Looking After The Pennies In Microsoft Project

Your budget is likely to be split among many different variables and it is important to factor in bills and fees for the smallest elements of your assignment, as well as the largest.

Many project managers think big when calculating whether they have enough funding to carry out their tasks. For example, if you've recently been given the task of creating new lines of stock and getting in suppliers, you are likely to be figuring out how many items you can purchase for the amount in the corporate kitty. Microsoft Project is useful when you need to establish the parameters of initiatives and is ideal for planning tasks and working out costs.

One of the first steps you might take when organising a workplace venture via this application is to establish the number of mini-projects and their importance. This is a good way to clarify what needs to be done and when it ought to be completed. Those helping you on the task get an insight into those jobs that have been given the highest priority, so important deadlines are not missed.

The next important bit of information that the software needs is the duration of these mini-projects so it is able to calculate how long they will take and keep you within timeframes. In addition to having an end date for the entire project, each of these smaller tasks will also have a duration that could collide with other jobs. For example, before ordering stock for a new line you may need to carry out market research to see what will sell best.

Project can help you organise this time by establishing what it calls 'dependencies', where the beginning of one task depends on the end of another. Another important element to your project is your resources and these are affected by factors such as duration and costs. Your staff are one of the major resources that you have and their employment costs will take up a fair part of your budget.

Once you have inputted the figures, Project is able to calculate how long your staff spend on the tasks and how their wages affect your funds. This is an example of a 'rate-based' cost as it's dependent on pay rates, although there are many others that you will have to take into account to ensure you spend wisely. For instance, there are 'per use' costs that are applied each time a resource is used, which in the previous example could include the input of a retail consultant to advise you on possible stock.

'Fixed costs' are those that do not alter despite how long the tasks last for and could be compared to one-off payments, perhaps for equipment and other materials. These examples generally refer to the larger amounts that will detract from your budget, but equally important are the smaller outgoings that can build up over time and make an impact on funds.

These may include fees run up by staff members when they are completing others tasks, such as air fares hotel charges and other bills. Project gives you the opportunity to take these into account via cost resources. This tool means that miscellaneous and multiple costs can be factored into the bigger picture separately, giving you greater control over the finances of the assignment, making sure that you can keep it on track.