Lab 6. Estimating Project Cost in MS Project

Lecture



Objectives:

  • Learn to estimate project cost using MS Project.
  • Master the program's functions for managing project costs, resources, and budget.

Steps for completing the lab:

  1. Creating a new project or opening an existing one:

    • Open MS Project.
    • Create a new project or open an existing project that you used in previous labs.
  2. Defining the project tasks:

    • Make sure the project already has all tasks entered, with their durations and dependencies specified.
    • If there are no tasks, add 5–10 tasks with their execution timeframes specified.
  3. Creating and configuring resources:

    • Go to the «Resources» view (Resource Sheet).
    • Enter information about the resources needed for the project, if you have not already done so:
      • Resource name: The resource's name (e.g., «Developer», «Tester»).
      • Resource type: Work, Material, Cost.
      • Workload: Specify the resource's available hours per week.
      • Resource cost: Specify the hourly rate or fixed cost (e.g., $50/hour for a developer).
  4. Assigning resources to tasks:

    • Select the task to which you want to assign a resource.
    • On the «Task» tab, select «Assign Resource» (Assign Resources).
    • In the window that opens, select the resource and click «Assign».
  5. Entering fixed costs (if necessary):

    • If you have fixed costs for tasks (for example, the cost of licenses or equipment), select the task.
    • Go to the «Tasks» table and enter the fixed costs in the corresponding field (Fixed Cost).
  6. Analyzing project cost:

    • Go to the «Resource Usage» view (Resource Usage) to see how costs are distributed across resources.
    • Also use the «Gantt Chart» view to visualize the tasks and the costs associated with them.
  7. Estimating the total project cost:

    • Go to the «Project Summary» view (Project Summary).
    • Here you can see the total project cost, which includes the costs of all assigned resources and the fixed costs.
  8. Creating a cost report:

    • Go to the «Reports» section (Reports) and select the cost report (Cost Report).
    • Configure the report to include information on resource costs, tasks, and the overall budget.
  9. Saving the project:

    • Save your changes by selecting «File» → «Save As».

Assignments to complete:

  • Create a project with 5–10 tasks and assign resources with different rates to them.
  • Enter fixed costs for some of the tasks.
  • Estimate the total project cost and create a cost report.

Results of the lab:

Upon completing the lab, you should:

  • Learn to estimate project cost, including resource costs and fixed costs.
  • Be able to analyze costs in MS Project.
  • Create a cost report for presentation to stakeholders.

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