Add Costs to the Project

Quick reference

• 00:05 When we built our project schedule, we added resources, and
• 00:09 those resources have an hourly rate, but so far,
• 00:13 we only have resources that represent people doing work.
• 00:18 It does not actually represent cost for
• 00:21 the project such as purchasing the land for the house.
• 00:26 Purchasing equipment to build the house.
• 00:29 And purchasing all of our home interior furnishings.
• 00:33 So we can build a budget for that in Microsoft Project.
• 00:36 And in this lesson, I'm going to show you how to do that.
• 00:40 In order to add the resources for cost,
• 00:43 we start by entering the resource name just as we did previously.
• 01:06 With these resources added,
• 01:08 the next thing we wanna do is to find them as cost-based resources.
• 01:13 So you can see here there's a type column and
• 01:17 we can choose work, material, and cost.
• 01:21 We're going to choose cost and set each one of these to a cost type resource.
• 01:28 Notice that their hourly rate is no longer here because now we're going to just
• 01:33 enter a cost, rather than some number of hours and letting project calculate that.
• 01:39 Now we need to add these costs to our project.
• 01:42 So click the task tab, and choose chart.
• 01:47 Under acquire land, we want to add this resource.
• 01:51 So we use our split view just like we did before.
• 01:54 By going to the view tab and choosing details.
• 01:59 Or remember we can drag the view up from the bottom.
• 02:05 Now right now I'm looking at a cost style view.
• 02:08 But you may not be, so just right click on the grey area,
• 02:13 anywhere over here to the right, and then choose cost.
• 02:17 And now you'll get the cost form.
• 02:20 What we'll do is add a resource.
• 02:22 In this case, I'll add cost acquire land.
• 02:26 And create a cost for that.
• 02:35 And that will be $150,000.
• 02:39 On the build house we actually need to create a task because there is no task
• 02:44 that says acquire materials or purchase materials so we'll go ahead and
• 02:49 insert a task.
• 02:52 And say purchase house materials, we'll make this one day,
• 02:57 you could actually spread this out across the project.
• 03:03 You could incorporate budget resources into each one of these tasks, but
• 03:07 right now what I'm doing is just showing you the very simple, straightforward way
• 03:10 of at least getting the costs into the project and tied to the timeline.
• 03:15 So, let's go ahead and add a resource for this.
• 03:27 Oops.
• 03:32 And that will be $250,000.
• 03:38 So now the other important thing here is that this task is not linked.
• 03:43 So I need to make sure that this task is also in the critical path of our project.
• 03:48 So right now, this task here of excavate land, is linked to acquire permits.
• 03:54 What I'm going to do is just move purchase materials to linking to acquire permits.
• 04:01 And then, link this task here to purchasing the house material.
• 04:06 And I'll make sure that my predecessors and successor columns
• 04:09 are all linked together, and I'll use the network diagram if I need to.
• 04:13 I'll enter the rest of the costs for my project now.
• 04:31 Now that we have the cost defined for our project,
• 04:34 we're going to look at the total cost for the entire project and
• 04:38 see how using these resources affected our schedule.
• 04:42 So first I'll close the split view, which again,
• 04:45 I can just drag it down to the bottom or I can double click on the line.
• 04:49 And now, what I'm gonna do is locate the view tab and the tables pick list.
• 04:56 The table allows us to look at different columns in the same view that we're in.
• 05:01 Right now we're in an entry view.
• 05:03 What we're gonna do is choose the cost table.
• 05:07 And this cost table keeps us in the chart view, but
• 05:11 changes the table of columns that are being displayed.
• 05:14 So let's expand the total cost field, and you can that the total cost for
• 05:19 a project is about $800,000.
• 05:22 And this is all calculated because we added these resources to our project.
• 05:27 I should note that when we work with a chart and we're adding.
• 05:32 I'll go back to entry, and we're adding these tasks.
• 05:35 Right now we're just making them one day.
• 05:38 You could get more detail oriented with this, however the more detail you add,
• 05:43 the more difficult it's going to be to track your project.
• 05:46 I recommend you start by just at least putting the costs for
• 05:49 your project at the start of a particular phase or summary and
• 05:53 then from there you can start building out more detail if you need to.

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