Show Me Microsoft Office Project 2003

Similar to the ability to define a contoured resource availability, cost rate tables allow a project manager to model projected changes in a resource's rates over time, as well as allow a resource to have several different rate structures. This is useful when a resource's work is billed at different rates, depending on the type of work he does. For example, if a resource develops in Visual Basic, he is billed at $150 per hour, but if he develops in C++, he is billed at $175 per hour .

The "Defining Different Rates Over Time" section shows you how to define a changing rate over time. An example of this is when a project manager knows that a resource will receive a raise in pay on a specific date and she wants the project cost projections to include that raise.

Defining Different Rates Over Time

Double-click on the resource for which you want to define costs.

Select the Costs tab.

The " ”" in the first row means that the rates on this row are in effect for all dates up to the next row's Effective date.

$75 is the Standard Rate that was entered for this resource in the Resource Sheet view.

Define a new Effective date by entering the date here (6/30).

On 6/30 we want our resource's Standard Rate to become $85 per hour.

Then on 12/31 we want our resource to get a 10% raise. Entering 10% in the Standard Rate field causes Project to calculate a 10% raise and enter that value when you change the field selection.

In this example, from the beginning of time until 6/29 the resource's standard rate is $75 per hour. Then on 6/30, it becomes $85 per hour, and finally on 12/31 it becomes $93.50 per hour.

Click OK.

Defining Different Rate Tables

Double-click on the resource for which you want to define costs.

Select the Costs tab.

Select one of the Rate Table tabs (B “E). Tab A is always the default rate table used when assigning resources.

Enter the Standard Rate for this rate table, and/or edit the rate structure over time as needed.

Click OK.

Defining Resource Costs

The Standard Rate, Overtime Rate, and Per Use Cost for a resource is what Project uses to calculate the cost of using that resource to do the work on your tasks . Working with and understanding task costs are covered later.

Resource costs and how they affect a task's costs are made up of four basic elements (each of which are pointed out in the figure):

Standard Rate ” The rate Project uses to calculate the cost of regular (non-overtime) work on a task assignment.

Overtime Rate ” The rate Project uses to calculate the cost of overtime work on a task assignment.

Per Use Cost ” A cost that Project adds to the cost of the task assignment, regardless of how much work is associated with the assignment.

Accrue At ” The method Project uses to calculate costs.

• Prorated means that costs are accrued according to the percentage of work that is complete on the task.

• Start means that all costs associated with the task assignment become Actual Costs as soon as work starts on the task.

• Finish means that none of the costs associated with the task will become Actual Costs until the task is 100% complete.

The default method is Prorated.