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Level of Effort for Indirect Costs

5 replies [Last post]
Dennis Hanks
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Joined: 17 Apr 2007
Posts: 310
Does anyone know how Pertmaster treats Level of Effort activities when determining cost?

If an indirect cost (supervision, support staff, equipt. rental, etc.) is a LOE activity with assigned costs, will those costs move with the underlying (driving) activities?

Should LOE activities be ranged (max, min) or do the driving activities provide the ranging?

If not, how is the best way to handle indirect costs?

Any thoughts appreciated. Thanks.

Replies

Dennis Hanks
User offline. Last seen 3 years 18 weeks ago. Offline
Joined: 17 Apr 2007
Posts: 310
Dieter;

Right, but in my case I use ’fixed units’ and the LOE/Hammock activity moves as the underlying activities move - just as I was hoping.
Dieter Wambach
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Joined: 15 Jan 2007
Posts: 1350
Dennis

I don’t know your understanding of "regular".

For resource assignments you have a parameter
"calculate cost from units" Switch off, then costs will be indepentent from units

On activity level: duration type set to "fixed duration and units", then units will remain constant independent from the duration.

Regards
Dieter
Dennis Hanks
User offline. Last seen 3 years 18 weeks ago. Offline
Joined: 17 Apr 2007
Posts: 310
Kieran;

Thanks for the reply, but what I was after was whether or not a P6 LOE activity behaved as a ’regular’ activity. That is, would it’s costs change as it’s duration changed driven by the underlying activities.

In Pertmaster, LOE activities are called hammocks and do behave as expected, so indirect costs can be effectively modeled.

Again, thanks for the input.
Kieran Thomson
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Joined: 28 Jan 2004
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Not really up with this sort of request so I’ll give it my best.

If the delay you are talking about has a direct effect on the critical path then yes, or no, depending on the contract you have signed into.
But usually yes if it critical connected.
Indirect cost poses more questions, therefore if company thinks they are delayed, get time booking, receipts, charges, all sorts. If your company bean counters arent up to it your basically fucked as a company. Bail.
Dieter Wambach
User offline. Last seen 2 years 16 weeks ago. Offline
Joined: 15 Jan 2007
Posts: 1350
Dennis

"fixed units" and "fixed duration and units" for LoE has the same behaviour because they have no own duration.