Week 4 Assignment: Project Exercise
Submitted to DeVry University
Undergraduate Faculty of the School of Business
In Partial Fulfillment of the
Requirements for the Degree of
[Insert your degree program here]
[Put your name here]
Table of Contents
Introduction ..................................................................................................................................... 1
Adding Resources and Associated Costs ........................................................................................ 1
Resolving Resource Overallocations .............................................................................................. 1
References ....................................................................................................................................... 1
[Write a brief introduction here]
Adding Resources and Associated Costs
[Describe how you determined the costs for the resources you added to the project schedule.
Provide a screenshot of the resources within Microsoft Project.]
Resolving Resource Overallocations
[Describe how you handled the overallocated mechanic from the previous item. Provide a
summary screenshot of the final leveled project schedule below.]
(Note References page titles are a top level heading in the Table of Contents, but they are not
bold. They should also be on their own page.)
PROJ430 Project Exercise 4: Adding Resources to the Project
In this exercise, you will add resources to the project schedule. You will incorporate materials, parts, and
employees to your project. You will add these resources to a resource sheet along with their standard
and overtime rates or material costs and assign them to tasks. This is called the resource-loaded
schedule. Then you will identify which tasks are over allocated. Resources are over allocated when a
resource has to work overtime or you need more resources than you have available.
How To Do It
1. Get the MS Project Exercise 3 Finish Exercise 4 Starter File.mpp. Open it up – it should look like this.
2. Take off the red critical path formatting. When there is red critical path formatting, resources you
will eventually assign to tasks are not visible. Therefore, go to Format and uncheck the critical tasks
check box. Your screen should look like this.
3. Go to View-Resource sheet. This is where you enter the resources you have available for your
project, whether they are sufficient, or not.
4. Enter these resources into the Resource Sheet. Remember that any resource that attracts an hourly
rate is considered work, even though it may be equipment, like an air compressor. For now, simply
enter the data below into your Resource Sheet. Explanatory notes are below the graphic.
Type refers to whether the cost is work, material, or a cost resource. A work resource is for
resources that attract an hourly rate. This could include people or machines that are billed hourly.
Material resoruces are items like wiring, wood or stone that has a cost/unit of measure. A cost
resource is for items that have a fixed cost, but which can be assigned multiple times across
different tasks at different rates (such as bolts). You enter the cost of cost resources in the Task
Usage screen later. Therefore, no cost is shown in the resource sheet for a cost resource.
Material Label refers to the units of the materia such as feet, square feet or yard. This field is only
active when you have categorized a cost as material in the Type column.
Max: Refers to the number of units you have available to the project. This applies to work types of
resources. One of something is 100%, two of something is 200% and a full time and part time person
who works half-days would be 150%.
Std and Ovt. Rate: These represents the regular and overtime rates of the resources in dollars. You
can can enter $20/hr or $160/d and MS Project will calculate resource costs based on the equivalent
Cost Per Use: This is a fixed charge that occurs as soon as you assign a resource to a task. It can be
used for situations where a contractor charges a fee to come to the site, and then an hourly rate
after s/he arrives. The fixed fee is in the cost/use column, and the hourly rate is in the Std and Ovt
Accrue at: This refers to how MS Project will estimate the cost of the resource on specific tasks.
Prorated means that as the project manager updates the schedule with an individual task’s progress,
MS Project will charge the cost of the resource for the amount of time that resource has worked.
Start means MS project charges the full budgeted amount of the resource to the budget as soon as
the project manager indicates work has started on a task. End means MS Project charges the full
budgeted amount of the resource to the task when the project manager reports the task has been
Calendar: Leave this at Standard for now. Later exercises will explain how calendars work in MS
Group: This allows you to create a group code which can be convenient for running reports that
group resources into categories. We leave this blank for this exercise.
5. Now that your resources are added to the project. We can assign them to tasks. There are many
different ways of assigning resources to tasks. The easiest way is for situations when you need only
one of each resource. Select the task Overhaul Machine 1, Go to Gantt Chart view (Table-Entry
View) and scroll over to the Resources column. Click on its drop down arrow and check off these
6. After you press Enter, you should see them assigned to the Overhaul Machine 1 task.
7. To view their total cost as in the screen shot above, select the Start column, right click, Select Insert
Column, Type Cost and press Enter. This will display the total cost of Overhaul Machine 1 to the left
of the Start column as pictured in the previous step. Notice how the cost rolls up through the
summary tasks above it.
8. Asssume we need to assign two technicians to the Test Machine 1 task. To do this, you need to
enter tasks a different way than you did for the first task in the project. Double click on the Test
Machine 1 task. The Task information screen pops up. Select the Resources tab. Enter the Technician
at 200% which means you need 2 Technicians.
9. After you Press OK to leave the Task Information screen, the Project should display the units of
Technicians and their cost to the Test Machine 1 task.
10. Assign one Mechanice to the Overhaul Machine s task. Note – you do not assign resources to
summary tasks or milestones – only to the tasks in the regular font in your Table-Entry screen in the
left panel of the previous screen shot.
11. Assign 40 feet of wiring and one technician to the Test Machine 2 task…
12. Assign two technicians to the Test-In Line task.
13. Review your project to ensure you have assigned all the resources to the right tasks. Your total cost
should be the same as in the picture below.
14. If your total cost is the not the same as in this example above then you need to check that a) you
have effort-driven scheduling turned off in File-Options-Schedule and that your task type is set to
Fixed Duration b) That you have entered the standard and overtime rates correctly in the Resource
Sheet c) that your task durations are the same as in the screen shot above and c) that you have
assigned the right number of units of each resource to each task.
Occasionally, you may need to unassign resources and then reassign them to their tasks. Do this by
deleting the resource from the Task Information window if the task that has the wrong cost. In
certain circumstances, you may have to delete the resource from the resource sheet and then reenter it there, and reassign it to its task(s).
15. Review the project schedule. Note the red, person icon to the left of the Overhaul Machine 1 and
Overhaul Machine 2 tasks. This means you need more mechanics at regular rates than you have
available. This is called a resource overallocation. We explain how to resolve these overallocations
to avoid paying overtime and other problems, in the next exercise.
1. We did not assign costs for the bearings and bolts. If we wanted to do this, we would need to go to
the View-Task Usage screen. After the cost resource is created, you can assign the cost resource to a
task. After the cost resource is assigned to a task, you can enter costs for the resource assignment
by using the Task Usage view. On the View tab, click Task Usage.
Select the task that the cost resource is assigned to, then right-click to select Information.
In the Task Information dialog box, click the Resources tab, and then enter a cost value in the Cost
2. We can also add a total fixed cost to an activity if we want. To do this go to Gantt Chart view and
select View – Table – Cost. Up comes this screen. Enter total fixed costs for an activity in the column
marked in red. Do not put costs beside summary tasks or milestones.
3. Do not add any of these costs to your existing project as this will throw off subsequent exercises
instructions. However, we provide this addendum for completeness in showing how to budget costs
in MS Project 2010.
PROJ430 Project Exercise 5: Resolving Resource
In this exercise, you will deal with the over allocated Mechanic from Exercise #4: Adding Resources to
the Project Schedule. We will attempt to level the project within available slack. This means, we will try
to stagger the times when the mechanic works so he or she is committed to an eight-hour workday,
rather than being over allocated. Leveling within slack preserves the original project finish date. If there
is insufficient slack to reschedule the tasks on which mechanic works, we will remove this leveling
constraint, and allow MS project to extend the project finish date if necessary.
How To Do It
1. Get the MS Project Exercise 4 Finish Exercise 5 Starter File.mpp and open it up – it looks like this.
2. Note how there is a red icon to the left of the Overhaul Machine 1 and Overhaul Machine 2 tasks.
This means there is at least one resource that must work more than a standard length day at certain
times in the project. We need to identify which resource this is, and when that resource is over
allocated. Do this by going to View-Resource Sheet.
The mechanic is over allocated because s/he is in red. However, we still do not know when this
3. Go to View – Resource Graph. Scroll through the left panel scroll bars until you get to the Mechanic.
Right click on the time line above the right hand panel, and select Zoom and Entire Project. You
should get this screen.
The screen shows that you need two mechanics on Wed, Thurs, and Friday of the week prior to July
26. This is where your over allocation lies.
4. You can also identify over allocations by going to View-Resource Usage and looking for red.
5. To resolve the over allocation, go to Gantt Chart View again. Then go to Resource – Leveling options.
6. Check the Leveling Order to Level only within available slack. With this option checked, MS Project
will attempt to resolve the over allocated mechanic within slack time, thus preserving the project
finish date. Although this is not always possible, it is the first place to start. Press the Level All button
to try to resolve the mechanic over allocation within slack. You will get messages indicating MS
Project’s inability to resolve the conflicts within slack. Read and skip each message to determine
where the problems exist. When finished skipping, Go to Gantt chart view -- the project looks like
Notice that even though MS Project could not resolve the over allocation, it tried to delay it by
moving the Overhaul Machine 1 task to after the Overhaul Machine 2 task is complete. This did not
fix the over allocations, but it delayed them. It also introduced more over allocations with the
technician (note the red icons beside the Test Machine 1/Test In Line activities). This isn’t acceptable
to us, so we will clear this leveling “solution” from MS project next.
7. Go to Resources- and select Clear Levelling for the entire project. This will put the project back to its
8. Go to Resources—Leveling Options and uncheck the Level within available slack option. This will
allow MS Project to move tasks around even if it delays the project beyond its original finish date of
August 6, 2015.
9. Press the Level All button to get the leveled project.
Notice how all the red icons have disappeared because MS Project moved tasks around to avoid
anyone working more than a standard day. However, the project finish date has been moved from
August 6, 2015 to August 10, 2015.
As a project manager, you have to decide if this is acceptable to your client or your project. If not,
you would clear leveling, and consider bringing on a second mechanic you could assign to the
Overhaul Machine 2 task so there is no conflict. You would add the new mechanic to the resource
sheet, unassigned the first mechanic, and add the second one. As an alternative, you may simply
increase the mechanic resource in the resource sheet to 200%, assuming the new mechanic works
at the same rate of pay as the first mechanic you added to the resource sheet.
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