Resource histogram for tender projects

Hi Sahul

Not using P3 but a spreadsheet.

For a very broad - global - resource allocation take the contract sum - reduce it by the OH&P percentage to get the net figure.

Apply an estimated figure for the labour content - depending on the project somewhere between 25% and 35%.

This will give the labour value - divide this by the average hourly labour rate and you will get an estimated labour hours total in the project.

This number of hours can be applied to the top summary bar at level 1 in P3.

To get an average gang size divide the hours by the number of work hours available in the project.

For a more detailed application set down the work hours available in each activity and apply the resource hours pro rata to each activity - the gang size will be the ratio of resource hours to work time hours.

Best regards

Mike Testro.

Dear Shahul,

You might want to take a look at the production rates posted in the PP site.

http://www.planningplanet.com/output_page.asp?choice=outputs

Also, the best resource would be your company records if they had done a similar job in the past. You can ask for the daily sheets and the financial records for salaries.

With kind regards,

Samer

Many thanks Mr.Mike and Mr.Samer for the response

Mr.Mike would u please explain about resource hours and working hours as u mentioned in previous message

Dear Mike,

In addition to the reduction of the OH&P, usually, a percentage for "Management Reserve" exists. This should be reduced as well from the Budget at completion amounts.

Dear Shahul,
The basic idea is to know that you have different categories of resources (Material, Equipment and Manpower) and each month you will have a different distribution.

With kind regards,

Samer

Hi Shahul

You wrote

Mr.Mike would u please explain about resource hours and working hours as u mentioned in previous message

it is simple arithmetic- as samer said the total cost of any project or section threrof consist of money totals for:

1. OH&P
2. Materials
3. Plant
4. Labour

Each has its own % content.

Once you have taken out the OH&P you have the net contract value.

Then you apply a reasonable labour % that represents the labour value.

This gives you the labour resource cost - in money.

Divide this by the appropriate labour rate and you have the resource hours in the contract sum.

This is the starting point for resource modelling in your software.

Sometimes I wonder why I bother.

Best regards

Mike Testro

Hi Shahul,

The devil is always in the details. The less details you use in the resource histogramme, the less accurate it will be unless you have the experience doing the same project.

Just my 2 cents.

Hi Se

That is my point entirely.

Except that if you are going to use a broad percentage the plus / minus averages will even out.

This is going against my usual concept of lots of little guesses is better than one big one.

But anyway I am losing interest in this topic.

Best regards

Mike Testro

Thanks Mr.Mike and Mr.Samer for the detailed explanation