need help choosing the right resource type

[jimRedfield]

A newbie with Project 2007, I'd like advice re how to set up my project
resources.

We operate as an orchestrator of work done by other companies. Various
subcontractors contract with us to provide 'stuff' to us under terms that
simplify specify what we're purchasing, when it's to be delivered, and the
price. We want to use Project 2007 because there are LOTS of subs involved,
and sometimes complex scheduling dependencies between them which we must ride
herd on to ensure that the all the pieces of a project come together at a
deadline.

Seems like we should set the subs up as Material Resources (where the
'materials' we'd be tracking would be the stuff we're purchasing) rather than
Work Resources (since we have no labor or time-expended issues to contend
with). But I'm not sure what undesireable ramifications that decision might
have.

Advice appreciated - I'd like to get us off on the right foot with this new
software. Tnx in advance.

Jim Redfield

 

[JulieS]

Hello Jim,

I would go ahead and create your subcontractors as work resources, even
though the work they perform does not directly impact cost. By creating
the subs as work resources, you have the capacity of modifying resource
calendars to impact the schedule of tasks due to issues with the
subcontractor. For example, a contractor lets you know that s/he cannot
work on your project from March 1 - March 15 due to other commitments.
You may initially say that is fine because you plan on getting them what
they need to be able to complete their particular task by early Feb.
However, if the "stuff" they need is not available on schedule that
delay may push the contractor into their "not available" time.

By using work resources you can also use Project's capability of
alerting you to overallocated resources as an early warning to the
subcontractors. If subcontractor "A" only has 2 ASP.net programmers and
you suddenly need 3 programmers to meet schedule, Project can alert you
to the overallocation of the programmers.

Setting the resources as work resources also give you nice resource
utilization reports pre-built into Project.

I hope this helps. Let us know how you get along.

Julie
Project MVP

Visit http://project.mvps.org/ for the FAQs and additional
information about Microsoft Project

 

[jimRedfield]

Thanks, Julie - I will plow ahead with Work Resources. ..and I am likely to
have more questions to throw your way so thanks for inviting that too.

Ahem, here's one: If I set up a favorite sub as a Work Resource and I use
him for a number of projects simultaneously (since the sub is a large company
and can handle the work load), how do I handle 'work units' in a way that
doesn't trigger over allocation warnings? Set him up with 1,000% so we can
never over allocate him unless we are using him for eleven projects?

- Jim

 

[JulieS]

Hi Jim,

You're most welcome for the opinion and thanks for the feedback. Please
do post here as you need with questions -- it's what we're here for.

To your new question -- you are spot on. If you have a resource who can
supply you with any number of additional people, you can create them
with a maximum unit above 100%. A 1,000% max unit would imply you have
10 of those resources available full time according to their resource
calendars. You might also find using the "Group" field in the Resource
Sheet is helpful. If out of those 10 resources, 5 are programmers, 3
are business analysts, and 2 are systems analysts, you could create
those 3 types of resources with the appropriate max. unit and use the
Group field to indicator they are from one company.

I hope this helps.

Julie

 

[Steve House]

A material resource is one that is either used up by performing the task or
incorporated into the task's deliverable. Fuel for a bulldozer would be an
example of the former while paint for a wall would be an example of the
latter. Your subcontractors are Work resources since the number of them
that you have and the tasks they're assigned to will determine when other
tasks that need them can proceed.

Why are you using Project to track this? Project (and other similar
software) is NOT an accounting package - it is a work scheduling and cost
(of doing said work) estimating system. It assumes materials are infinite in
supply and immediately avaiable whenever you need them. Material
consumption is always associated with a task - observable physical activity
performed by a resource with clearly defined beginning and ending dates,
thus extending over a measurable period of time. Since you say you're not
scheduling work but tracking purchases and deliveries, it seems to me that
Project would be far from a good solution to your needs and an inventory
control / purchasing accounting package would be better suited to you.

 

[vanita]

Hi Jim

If your sub agencies supply some completed work at fixed price e.g in
construction industry it would be x cu m soil excavation @ $y/cu m. Then you
are not really concerned that what resource your sub agency is using, but you
are monitoring that work is completed on time. Then this work of 'soil
excavation' would be taken as a material resource and rate given as $y. In
automobile industry similar example would be supply of finished sub
assemblies by a sub agency.

But if you are monitoring your sub agency for no. of hours it is spending on
your project and you have to pay accordingly, then take them as work
resources.

I hope it helps.
Vanita