Amacom - Modern Project Management (Ocr) - 2001 ! - (By Laxxuss)

This unit rate measure is a man hour per quantity

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Unformatted text preview: e the quantity budget by the man-hour budget to get a (budgeted) " quantity per man-hour" ratio, which is the planned productivity for the task. Notice that this definition of planned productivity for the task involves the quantification of the task in a particular unit of measure. Since there may be several tasks with different units of measure in a work package, it is not immediately clear how we could give a corresponding definition of productivity for the work package that could be calculated from the productivity ratios of the individual tasks contained in the work package. This is because, in general, the unit of measure for the work package is different from at least one of the units of measure of the tasks that constitute the work package. For some reason, rather than defining a productivity measure by dividing the quantity budget by the man-hour budget, early practitioners of the unit rate method divided the task man-hour budgets by the quantity budgets to get a unit rate measure instead. This unit rate measure is a "man-hour per quantity" ratio, instead of a quantity per man-hour ratio. It is referred to as the (budgeted) unit rate for the task. It is the planned number of man-hours necessary to complete a single unit of work in the task's unit of measure. Consequently, the unit rate for a task is simply the inverse of the planned productivity for the task. Why early productivity measurement evolved in this backward manner is not clear. The author is familiar with papers from the 1970s time frame that explain this unit rate method, but when it first began and how it evolved to the state in which it existed in the 1970s is not known to the author. In what follows we will refer to this unit rate as the budgeted unit rate in TE Team-Fly® AM FL Y Page 128 order to distinguish it from the actual unit rate that we will now define. The actual unit rate for a task is defined to be the ratio obtained by dividing the actual man-hours expended by the number of units completed in the task's unit of measure. If the task is being statused by the quantity method (explained in Chapter 3), then the number of units completed is what is being reported periodically in order to compute the task's percent complete. If the task is being statused by some other method, the task's percent complete is being entered directly into the Progress Transaction Entry/Edit tool, as discussed in Chapter 3. Consequently, the system can compute a ''number of units completed" figure, say n, by multiplying the task's quantity budget by the task's percent complete. To summarize, the actual unit rate AURt for a task t is computed using the following formula: where AM t is the actual man-hours expended for the task t , QBt is the quantity budget for t , and PCt is the percent complete for t. The actual unit rate for a task is then a measure of the actual productivity for a task in the same sense that the budgeted unit rate is a measure of the planned productivity for the task. Namely, it is the i...
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