Cost resource type

[thpyeman]

Hi everyone,

I looked around for an hour for an "easy" explanation -- couldn't find it so
here goes:

I need an "easy, non-Microsoft speak" version/explanation of what the Cost
Resource Type is for. An example would be helpful too.

I understand Work and material resources.....it seems to me that a Cost
resource is just a way to track what *I* would interpret as a fixed cost (the
cost of 'doing' the task). But it seems that this "cost resource" allows you
to plug in the cost of doing the resource "after the fact" -- just like
plugging it into fixed cost would do too....

......help?

Eric.

 

[Dale Howard [MVP]]

Eric --

Pretend that you have a project in which a number of tasks require the
assigned resources to travel. This generates travel expenses for the
project and you would like to see a running total of all travel expenses in
the project. For this purpose, you could use a Fixed Cost for each task,
but the Fixed Cost column does not "roll up" to the Project Summary Task, so
you can't see a running total. Instead, use an Expense Cost resource called
Travel Expenses and assign the resource to every task involving travel.
Enter the actual travel expenses on the Cost Resource on each task and you
can then see a running total in the Resource Usage view. Hope this helps.

 

[thpyeman]

Hi Dale,

Thank you for the speedy reply.

Can you give me an example of how I would use this in anything else???
Everywhere I read uses the "travel" example. I'm still foggy with that
example and I feel my students will be too -- especially those in
manufacturing who don't travel.

Thanks again!!

Eric

 

[Jan De Messemaeker]

Hi,

Well first, if you absolutely don't see a need, why bother in the first
place ?
Cost resources in manufacturing could be
Setup costs (independent of duration and not a material)
Tooling (sometimes idem)
....
Hope this helps

 

[thpyeman]

Well first, if you absolutely don't see a need, why bother in the first

place ?

Well, I teach corporate clients and project managers in all fields how to
use MS Project. I've learned in my 10 years of teaching that you need to
relate the feature to the student's level of understanding....and answer
acccordingly

.....not all the time does the "pat" answer work for everyone.

Thank you for your reply. That helps.

Eric

 

[Jan De Messemaeker]

Sorry. I see the point. Note that half of my customers are in
manufacturing...

 

[Dale Howard [MVP]]

Eric --

I'll give you another example. In some organizations that use Project
Server 2007, the organization does not cost each project using resource
rates or Fixed Costs. Instead, they set the Standard and Overtime rates for
each resource to $0.00 and do not enter any Fixed Costs. Instead, they
import actual cost information for a project from a third-party financial
system. Organizations such as these one or more Cost Resources to each
project to track the kind of actual costs associated with the project. They
use a Budget Cost resource to set a budget for the entire project and they
use Expense Cost resources to track actual expenditures. Because they are
using Project Server 2007, they have the Expense Cost resources updated
automatically from the third-party financial system on a regular basis, such
as monthly. I think that was one of the primary intents for Cost resources,
but as you know from the examples Jan and I gave you, there are other uses
as well. Hope this helps.

 

[thpyeman]

Hi Dale, Jan,

Thank you both for the examples. My apologies if my reply was a bit short
-- it was kind of odd that the question you shot back Jan was what I usually
would like to say to my students -- but never get the chance too! <grin>

The scenario you bring up Dale would've been useful in the past as I do have
clients who use 3rd party software to bring in cost figures -- if they're
using them at all. Can this scenario work with those who are *not* using
Project Server?

I did read another post about how to "create a budget" in Project. I will
have to take time in the future to learn that trick so I can teach it to
others who may find it useful.

Thank you both for your time!! Have a great weekend!