Resource types Work material and cost

Although people and things come in all shapes and sizes, only three types of resources exist as far as Project is concerned: work resources, material resources, and cost resources:

1 Work resources are typically (but not always) people. They can't be depleted but can be reassigned. Their costs are associated with the amount of work time they put in, usually at an hourly rate. Work resources are assigned to tasks based on a Working Time calendar (as shown in Figure 7-3), where you specify their working and nonworking hours. You can select one of three base calendars and then modify specific working hours.

1 Material resources can have an hourly rate or a unit cost, and they also have an unlimited working time. This type of resource has no calendar, and you make no settings for working and nonworking time.

1 Cost resources have a set cost associated with them. Calendars and units of work or unit costs have nothing to do with the amount such resources deduct from the bottom line of your project.

A typical work resource is a person working eight hours a day at a standard rate of $20 per hour and an overtime rate of $30 per hour. Another example of a work resource is a meeting facility available only eight hours a day at an hourly rate. Even though it's not a person, the meeting facility would probably be created as a working resource because it has limited "working" hours.

The three kinds of calendars are Project, Task, and Resource. Calendars, their settings, and how those settings interact are discussed at some length in Chapter 3.

A typical material resource is any material — such as steel, rubber, paper or books, chairs, and shoes — assigned to a task with an associated unit cost.

For example, a resource called Books with a unit price of $12.95, assigned to a task called Computer Training at ten units, accrues a cost of $129.50 to the task. Another example of a material cost is anyone performing a service for a fee where working time is not an issue. A speaker who presents at a conference for a fee of $1,000 but whose working calendar and time are not your concerns might be created as a material resource with a unit cost of $1,000.

An example of a cost resource is a consultant working for a set fee. The cost might be $2,500, for example, and would not change based on the length of the project, nor is it based on a volume of units used.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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