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Unformatted text preview: e. Given the quantifications and man-hours for the tasks shown in Figure 6-1, the estimated costs for Figure 6-2. Baseline Chart including new tasks. the various cost accounts within the work packages were arrived at via the following procedure. For each work package, the man-hours for all the tasks within it were summed to obtain the total man for the package. From this total, estimates of how many man-hours are direct labor, as opposed to supervision labor, subcontract labor, and so on, were determined. To these different man-hour category totals were applied the different labor rates and mark-ups for overhead, profit, and other factors. Estimates were then made for materials and equipment accounts. A summary of this process and the resulting estimating assumptions is shown in Figure 6 -4. With the new cost budgets shown in Figure 6-3, expanded cost budget reports can be obtained. For instance, you can select (text continues on page 142) Page 140 Figure 6-3. Additional cost accounts for example project. Page 141 Figure 6-4. Estimating assumptions for new tasks. Page 142 the Budgeted Cost Listing from the Main Menu of the Modern Project toolset. However, we postpone discussing expanded cost reports for now so we can get on with discussing the expanded project performance charts we can obtain with the new transaction data that we also entered into the example database. The expanded project performance charts we produce will give the first glimpse of what trend charts on real projects look like. The transactions that were entered during the course of the first five chapters of this book were intentionally kept to the bare minimum so the reader could concentrate on learning the concepts, rather than data entry. Consequently, they are not very representative of real project performance charting after a project is well under way. 6.3— The Expanded Transaction Now that we have these expanded original quantity and labor-hour budgets, we should assume that we are at a later stage of the example project's life to make things more interesting. This assumption leads to the observation that there will therefore be additional cost, progress, and perhaps variance transactions that have occurred. This section of the chapter is devoted to explaining the new transactions that were entered into the example database (they are already in the exampleChapt6.mde database). 6.3.1— New Cost Transactions At the end of Chapter 5 there were only 14 actual expenditure transactions in the example database. These were the cost transactions shown in Figure 3-2 that were entered during the reading of Chapter 3. The additional cost transactions included in the exampleChapt6.mde database are shown in Figure 6- 5. With these new cost transactions, it is now possible to produce ex- Page 143 Figure 6-5. Additional cost transactions for example project. (table continued on next page) Page 144 (table continued from previous page) (table continued on next page) TE
Figure 6 -5 (continued) AM FL Y
Team-Fly® Page 145 (table continued from previous page) panded cost comparison reports...
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