Chapter 9. Budget and Procurement

9.7 Microsoft Project Tutorial

For the MS Project tutorial, let’s continue with our example of the project for developing a mobile application. Here, we are building upon the Chapter 8 tutorial. Therefore, we are working on “1. Scope” (Table 9.6). This table also includes the duration, start and finish dates, and predecessors.

Table 9.6: WBS for the Scope Activities of the M-Commerce Project

WBS Task Name Duration Start Finish Predecessors
1 Scope 35 Days Mon 5/2/22 Mon 6/20/22
1.1 Clarify project purpose and determine project scope 5 days Mon 5/2/22 Fri 5/6/22 2
1.2 Secure project sponsorship 1 day Mon 5/9/22 Mon 5/9/22 3
1.3 Preparation of project charter 22 days Tue 5/10/22 Wed 6/8/22
1.3.1 Develop high-level scope 4 days Tue 5/10/22 Fri 5/13/22 3
1.3.2 Identify overall project risks 5 days Mon 5/16/22 Fri 5/20/22 5
1.3.3 Develop high-level schedule 6 days Mon 5/16/22 Mon 5/23/22 5
1.3.4 Identify main resources and develop a high-level budget 2 days Tue 5/24/22 Wed 5/25/22 7
1.3.5 Identify key stakeholders and project team member roles 8 days Mon 5/23/22 Wed 6/1/22 5,6
1.3.6 Develop project approval requirements and project exit criteria 5 days Thu 6/2/22 Wed 6/8/22 5,6,7,8,9
1.4 Approval of project charter by the sponsor 2 days Thu 6/9/22 Fri 6/10/22 10
1.5 Secure core resources 5 days Mon 6/13/22 Fri 6/17/22 11
1.6 Initiation stage complete 0 days Mon 6/20/22 Mon 6/20/22 12

We identified the resources in Chapter 8. Now, in the Resource Sheet, we can type the standard rates of resources (Figure 8.8).

Resource sheet on Microsoft Project
Figure 9.5: Resource Sheet

In the Resource Sheet, there are three types of resources:

  1. Work: Work resources are people and equipment. They have a standard rate per hour.
  2. Material: Material resources are consumable supplies. They have a unit of measurement such as tones, boxes, and cubic yards.
  3. Cost: Cost resources are independent costs we want to associate with a task such as a plane ticket.

In Table 9.5 (Section 9.4), we determined contingency reserves for three activities. As seen in Figure 9.5 above, contingency reserves were indicated as a “Cost” type which is independent of hourly work.  For activity 1.1, let’s double-click on the activity row. The “Task Information” window will pop up. Then, let’s click the “Resources” tab. For the work type resources (i.e., Sales and Marketing Experts and Systems Analysts), the cost is calculated automatically based on the hours worked. For the cost type, we must type the cost on this window. For activity 1.1, the contingency reserve is $300 (Figure 9.6).


The resources tab on the task information window on Microsoft Project. The columns are Resource Name, Assignment Owner, Units, and Cost. Contingency reserve is three hundred dollars when added.
Figure 9.6: Resources tab on the Task Information window

When we finish typing the contingency reserves for the other two activities, the Gantt Chart will be as in Figure 9.7.

Gantt Chart with the resources indicated on the right of the bars
Figure 9.7: Gantt Chart with the resources indicated on the right of the bars

In this tutorial, we ignore the project manager’s salary. As seen in Figure 9.8, we can insert a new column “Cost” to the left of Resource Names, and therefore, we can directly see the cost per activity on the main window (Gantt Chart view).

Adding a cost column to the right of Resource Names on Microsoft Project
Figure 9.8: Adding a cost column to the right of Resource Names



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Project Management by Abdullah Oguz is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, except where otherwise noted.

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