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Michael Lepage uses Resources (Material) for Cost Loading - why? (instead of cost or expenses)

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John Reeves
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Michael Lepage uses Resources (Material) for Cost Loading - why? (instead of cost or expenses) I had always heard that was better but why not put costs where costs would normally go - in the cost setup??

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John Reeves
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So does answer indicate that you are English...

Bollocks or ballocks is a British English term that is from the old German word for ball. It can be an interjection that describes something as nonsense or garbage, rubbish. However, the term can also mean a male's testicles.

John Reeves
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Thanks, that is probably why I remembered doing it - P3 guy myself.  If is wasn't such a hassle i would kick it back to P3 run it, then bring it back to P6.  I share my frustrations, much of this was caused by Primavera chaing the IT market instead of making the tool better for the AEC market that made them.  I will post it if I figure it out, I think it is possible.

David Kelly
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John,

You pressed one of my buttons. Like many of the very old, I have a list of things P3 could do in 1990, that P6 cannot today. Near the top of that list is P3's ability to use fields from both the Activity AND Resource Assignment tables in a single Global Change + the ability to add a resource assignment record in addition to modifying it.

The UDF in your Activity Layout with number of men is in the Activities table, and you want to automate it creating a record in the Resource Assignment table. So, the frustrating answer to your question is: Very Easy in 1990 with P3, really difficult in 2020 with P6.

You will have to do some clever stuff with Excel export and import, so that you can export “Activity” values, then re-import them as “Resource Assignment” values. Enjoy!

John Reeves
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Wow, tjhat is the best set of answers ever on this site - Thanks!.  Follow-up, I thiink I have done this in the past but forgot the formula...I have a column of data in an activity column as an integer = man days, I want to transfer those values to my resource call man days.  Using UDF's and  substring commands etc I thought that could be done, does anyone have that formula? 

I do it this way for two reasons - I calculate the value using other data in columns & If you want to just show one resource value when you have multiple per activty you can't.  Your assistance is greatly appreciated.  I know there is like P6 loader etc but this job is too small for that but too big to do it manually.

David Kelly
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Vladimir, It is possible to force P6 to work the way you describe. It requires you to use several of the available percent completes, which of course have to be entered separately in processes that are not described in any of the manuals. I should be grateful, if P6 worked properly, or had actually been finished by the Eagle Ray team before they sold it to Primavera, my day rate would have halved.

David,

usually in detailed resource loaded schedules material requirements are set as an amount per volume unit, activity duration depends on assigned labor (and/or machines) resource productivity and workload. Increasing activity duration without changing its volume we change resource workloads but do not change material requirements. If assigned resource quantities will be changed then activity duration will change in accordance with the productivity of remaining crew.

Example: if activity duration becomes two times longer then planned assigned labor resource workload will become 50% instead of 100% but quantities will not change.

If the volume will become larger both material requirements and duraion will become larger proportionally. But if material requirements were set as fixed (not per volume unit) then they will not change.

We do not use %complete. 50% of activity volume can be done for 60% of activity duration and 70% of activity cost. All these parameters must be entered separately.

David Kelly
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Indeed, Vladimir.

I am not sure if the lack of a "volume % complete" or the control of how each resource within an activity responds to a change in remaining duration is my biggest frustration with P6.

Hi David,

thank you for the explanation. Looks like workaround.

It is hard to plan and to track resources and expenses ignoring the key parameter - volume of work.

Hi Raymund,

we usually advise to plan and to control only those materials that are expensive and those that require rather long time between ordering and delivery. Tapes, nails and other low cost materials that are easily available we plan as Other and enter their cost but not quantity.

If the project has large duration we suggest to use rolling wave planning with detailed planning of the works for the next 3-4 months and high level planning for the remaining works.

Roll up expenses must be lower than the contract cost, in other case the project is not profitable.

If you create the detailed schedule for the whole project it is possible to enter expected rates on 375th day and take into account existing uncertainty entering optimistic, most probable and pessimistic values. Risk simulation will provide probability distribution of future expenses.

 

 

Raymund de Laza
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Hello Sir Vlad,

 

The mere purpose of the this suggested Cost loading is for Earned Value reports.

 

"We usually use both contract cost and expenses. Contract cost can be firm but expenses directly depend on resources that are used."

Is the roll up cost of the project is equal to Contract amount?

How to determine specific pay per hour of a Resource (labor or equipment) that will be assigned to the task when this task will commence, say on the 375th day of the contract duration?

 

Resources:

 

The Activity is installation of Gypsum Wall partitions @ 10th floor

 

Materials = Gypsum board, studs and runners, screw, joint tape, glue, concrete nails, etc

Labor = Foreman, gypsum installer, helper, eqpt operator

Equipment /tools = tower crane (lifting of GB to 10th floor), power drills, steel scissors, nail gun, tape measure, etc

 

Are these individual resources above shall be loaded to an activity with Qty, unit rate?

 

David Kelly
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Fundamental to the understanding of how to cost load P6, is the role of the P6 “Duration Type”. Every activity has one of these, and it controls for ALL resource assignments the relationship between Duration, Total Quantity, and Quantity per time unit. For Example If we have an Activity that needs one drilling rig, and 1000 feet of tubulars (materials) and we estimate the duration of 20 days, Should the duration increase to 40 days due to adverse performance we can: Still have a total of 1000 feet of tubulars, but use 0.5 of a drilling rig per day Still use 1 drilling rig, but have a total of 2000 ft of tubulars. The technical term for either of the above scenarios is “bollocks” The P6 facility “Expenses” is never dependent on the Activity’s duration, so in the above example I would code the materials as an Expense, and the drilling rig as a resource, on an activity with a duration type that freezes the quantity per unit time. The P6 facility “Cost Accounts” allows you to use the same Cost Account dictionary for Resources and Expenses.

Hi Raymund,

as the result activity costs will not depend on resources that were used.

We usually use both contract cost and expenses. Contract cost can be firm but expenses directly depend on resources that are used.

I don't understand why "Practically in contactor side, it is not advisable to load the cost breakdown (Material, Labor & Eqpt Cost) into an activity, instead load the Unit Price which composed of the breakdown".

Understanding cost breakdown is useful in any case.

Raymund de Laza
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This opinion is taken from a Contarctor point of view.

The Idea of using a "Material Type Resource" for a Cost of an Activity is Simple and easy to understand.

In a contractor schedule, Cost Loaded must equate to the Contract Amount.

This Contract amount is derived from the BOQ Cost Line Items.

These BOQ Items turn out as the Activities in the Schedule.

These Activities has to be loaded with a cost that is composed of 1. Cost of Materials to be used 2. Cost of Installation (Labor Cost) 3. Equipment / Tool Cost.

Sum up the Cost Component will turn out to be the Unit Price and if multiplied by the Activity Quantity of Works is equal to the Cost of an Activity.

Practically in contactor side, it is not advisable to load the cost breakdown (Material, Labor & Eqpt Cost) into an activity, instead load the Unit Price which composed of the breakdown.

Hence, the Resource to be loaded must have a Quantity (Budgeted Units), unit of measure and unit price.

In the 3 Resource Types, Material Type is the best fitted for it. Labor and Non-Labor TYpes are having a units of Hours.

Equipment and Labor Resource will be loaded but without Unit Price.

 

Regards,

Project cost consists of the costs of project resource usage and costs of activities that can be set directly.

I don't understand how to take into account resource costs if the cost is just one of project resources.

John Reeves
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Additonal - what if we want to put in the most simple manpower loading, will using fixed cost interfere with that?  The reason he states is that it is the most simple, no calendar issues, readily available.  One thing I did notice was that if I did costs - it looked like I would HAVE to use a Global Calendar & most place prefer to use on Project Calendars and Codes only.  Also, my guess is that I have had situations where a contractor has or has not set up "Financial Periods" which is an issue itself.  -- Would that be why?