Fixed cost for resource over the time period in MS PROJECT 2016

Hi,

I’ve got a question from one of my Blog readers:

“Mr. Nenad, I have a question please:
Let’s suppose that I have a human work resource assigned to different tasks within the project. It receive each month a fixed salary of 4000 dollars even if it has free days (without task assigned) during the month. How can I do that in MS Project ? If I create a work resource with a standard rate of 4000$/Month then I will not be able to solve the problem since MS Project will reduce this monthly salary to an hourly rate and the cost of the resource will be proportional to time consumed, which is not the case I speak about. I want for each month (January, February, ….December) a fixed salary for this resource.”

Well, the answer is: “It is NOT possible with MS PROJECT!”. Why? There are several reasons. The major one is that if you put a resource to the Task like this one:

image

then what is the real cost of the Resource who has $4000 salary per month. As you can see the Resource will work from 18.09.2018 to 30.09.2018, and from 01.10.2018 to 22.10.2018. Now those are two months but not full months. And rarely will you have task which started at the first day of the month, and finish at the last day of the month.

Another example is like this:

image

Now let’s say that resource will work 30% on the Task 1, and 50% on Task 2. What will be the cost on Task 1, and what on Task 2? Tasks have two different durations. And even worse, the resource will work only 80% of his time. What about rest of the 20%?

So no, this doesn’t make a sense. You should always have a rate per hour, week, month, and YES MS PROJECT should calculate costs according to effort (hours) which resource will spend on those tasks.

Regards.

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About Nenad Trajkovski

Location: Zagreb, Croatia Occupation: Project Manager Interests: Project Management and MS PROJECT He was born in Zagreb, Croatia at 1963. After completing his college he started working on projects in different business areas (banking, manufacturing, automotive industry, distribution, oil companies, etc.) developing and implementing ERP systems into different companies. He has got a lot of experience working with people in different business processes and also possesses great knowledge in information technologies and financial services. Today he works as a business consultant, adn Project Manager in PERPETUUM MOBILE d.o.o. Zagreb. He is a regular lecturer for Project Management in MS Innovation Center in Varaždin, Logosoft Sarajevo in Bosnia and Herzegovina and SEAVUS GROUP in Skopje Macedonia. He was named the best lecturer of WINDAYS 2008 while his lecture was also voted as the best. In addition, he was in TOP 10 lecturers at the MS SINERGY 2009 and MS VISIA 2009, 2010. Shares first place as the best lecturer of KulenDays 2009 and 2010 and PMI Conference 2009 in Zagreb. He is also a regular lecturer in the MS Community. He is a Certified Accountant and a PMP (Project Manager Professional) and a PMI-RMP (Risk Manager Professional), MCP, MCT, and Microsoft Certified Technical Specialist - Microsoft Project 2010. From 01.01.2012 awarded with MVP (Microsoft Most Valuable Proffesional - Microsoft Project)!
This entry was posted in MS PROJECT 2016, PMI, PRoject Management and tagged , , . Bookmark the permalink.

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