Weight Factor Calculation Base: Man-hour or Cost

Member for

24 years

Hi Fritsie,



The standard unit of measurement for engineering and design is manhours. I would suggest that you use manhours to get percent complete for engineering and design then convert this to cost to calculate a weighted factor for procurement. This is okay if your company is shouldering the cost, however, if you are just rendering a service then it is not applicable. It is better to use manhours all the way.



Regards,

Daniel

Member for

23 years 3 months

I suggest you to use both of them (cost and mhrs) but separately. So any time you can compare their % complete. It’s very useful, for your invoice use % complete from cost basis, but for your internal controlling you use mhrs.



Rgds

Member for

24 years

Hi Fritsie,



I think you need to have a common base if you want to have an accurate percent complete. It’s either manhours or cost, you can not combine the two. How can you calculate a weighted factor for manhours and cost unless you just guess the weight of the other.



Cheers,

Daniel

Member for

21 years 1 month

Hi Fritze in my opnion this will not effect the progress (%)that much.



If you look at the work done by the team I would suggest you break it down by deliverable.



If you have a look at the time frame the work is completed you would notice an engineer start and finish with the draftperson time wise. Remember the Engineer will spend most of his time Rough Sketches / Review of DWG / Mass Balance / Specifications. etc while the Draftees do the Dwg.



Please note if you want to you can easaly ad the cost (Rate for the People) as well and do a cross check and see if the result is different. I dont Believe it is.



As to the Breakdown on high lvl I Would Suggest something like this.



1) P & G

2) Engineering

2.1) Basic Engineering

2.2) Package Engineering

2.3) Construction Engineering

3) Procurement

3.1) Tender

3.2) Placement of Order

3.3) Expiditing & Inspection

4) Fabrication

4.1) Fabrication

4.2) Delivery

5) Construction

6) Pre Commisioning

7) Commisioning

8) Close Out



Cheers