View in Slide Show mode; see Notes Page Format for details

Hewlett-PackardProject & Portfolio Management

Non-Labor Cost

Labor Hour Valuation

Financial Summary

Capitalization and SOP 98-1

Financial Perspectives

Slide #2

1

2

1. Access the Proposal or Project through the Search Menu or Search Box in Upper Right Corner

1

2. Select the Financial Summary Link from the Proposal Request or Project Details tab or

3. The Project Cost Portlet on the Project Summary Page

3

View in Slide Show mode; see Notes Page Format for details

Financial Summary – Find the Financial Summary

Slide #3

1

3. The Background Fill represents the Burn Rate of the Initiative consuming the “Approved Budget”. The “Approved Budget” represents the initial Approved Cost as adjusted for Approved Change Requests. Select the View Approved Budget Details link.

2. The Benefits & Project Manager must assign individual Resources Access Rights in the Configure Access table.

1. The Financial Summary Settings should be set when the Initiative is Created.

2

3

View in Slide Show mode; see Notes Page Format for details

Financial Summary – Settings & Access

1

2

8. Enter $K in month expected to be billed

7. Select Type, Category and, Expense Type

6. Add Line for Forecasted Expenditures

5. Set Display Parameters

2. Actual Cost-to-Date Summary

1. Export to Excel to share with non PPM Users

3. Labor Costs can roll-up from the Work Plan

4. Scroll Down to Edit Forecast & Actuals section

5 56

8

9. Actual Costs entered the Same Way

9

10. Scroll Down for Benefits – Same Procedure

View in Slide Show mode; see Notes Page Format for detailsReturn

Financial Summary – Costs & Benefits

Slide #5

1

2. From the Project Summary Page select the Edit Work Plan button in the Work Plan Portlet.

1. Cost Summary Information is available in the Project Cost portlet via the Cost Detail button.

2

View in Slide Show mode; see Notes Page Format for details

Non-Labor Costs – Cost Summary Portlet

Slide #6

1

2. Select the Task and then the Edit Task Icon to record invoicing or payment (or double click the task line Status field to open the task tabs).

1. Create Milestone or Task for each expected payment, each Vendor or Monthly Totals

3. Select the appropriate Cost Category

4. Enter the Planned or Actual Values

2

34

2

4

5

5. On last actual update, set % Complete to 100%

View in Slide Show mode; see Notes Page Format for details

Non-Labor Costs – Work Plan Management

Return

Fully Loaded Rate

Time Sheet PolicyResource Rate

Fixed Bid Rate = $0.00

Notifications

Proposal Planning Rate

View in Slide Show mode; see Notes Page Format for details

Labor Hour Valuation – Cost Factors

• Rob Grace, when allocated to a Staffing Profile, will change the Forecasted Cost in the Financial Summary from the prior Resource Type \ Role Rate utilized for the Proposal. It will also be utilized to value all actual labor entered by Rob.

• If Rob Grace is a Practice Director from the Oracle Resources Region, he will still be charged at the $135\hour rate, as the Resource column takes precedence over any to the right.

• Any other Resources from the Oracle Resources Region who are also a Practice Lead will be charged at the $247\hour rate (Rule 29), unless they are also listed in the Resource column (this would not make sense in the real world).

• There is always a default rate.

• Rate Changes are Effectivity Date Driven, so a Rate change entered in a prior period will recalculate all costs except on Frozen Time Sheets and Closed Projects

View in Slide Show mode; see Notes Page Format for details

Labor Hour Valuation – Cost Rules

View in Slide Show mode; see Notes Page Format for details

Labor Hour Valuation – Cost Rates

Return

Cost Element Annual Cost

Hours Hourly Rate

Employee Compensation $52,000 2,080 $25.00

Company Holidays (10) 80

PTO (Vacation & Sick 18) 144

ConsiderationsPercentChange

Hours Available $52,000 1,936 $28.02 7.4% This rate would require no Time Sheet Hours for either Holidays or PTO time to reflect true cost of “Hours Working”

Training 40HR, Dept, Volunteer, etc 147 3 hours\week for the 49 weeks at work

Efficiency – 85% 262 Project Meetings, disruptions, collaboration, non-task efforts;Time not spent on assigned work products

Productivity – 85% 223Time on Assigned work but spent with emails, reporting, issues definition and resolution, Competency

Produced Content Hours $52,000 1,264 $41.15 64.6% The Compensation Cost of producing one planned hour. You would have to enter Planned Hours Produced in Time Sheet vs. Hours Worked.

Direct Payroll Expense $ 4,160 8.0% Employer FICA, UIT, other payroll taxes

Direct HR Expense $ 2,600 5.0 % Medical and other Insurance & Benefit Costs

Direct Productive Hour $ 58,760 $46.50 86.0% The Direct Cost of producing one planned hour. You would have to enter Planned Hours Produced in Time Sheet vs. Hours Worked.

Management Overhead $ 1,040 2.0%

Operations Overhead 2.0%$ 1,040Effective Planned Hour $60,840 1,264 $48.15 92.6% Total Loaded Cost to produce One Planned Hour of Content. Arguably the

Contract comparison rate for fully competent, heads down, on task work.

Normalized Cost $60,840 1,405 $43.29 73.2%Assuming a 10% overtime hours worked and not paid for the 49 weeks on site, with the same Efficiency and Productivity rates, an additional 149 hours of content would be produced.

Direct Hours Reported $58,760 2,276 $25.82 3.3% Every hour tracked on Time Sheet to cover All Costs. Holiday, PTO hours and non-direct costs are included in the Project Rate.

Fully Loaded Reported $60,840 2,276 $26.73 6.9%Every hour tracked on Time Sheet to cover All Costs. Holiday, PTO hours and non-direct costs are included in the Project Rate.

Time on Direct $52,000 1,749 $29.73 18.9% This rate would require Time Sheet Hours only for Time spent on Assigned work. Monitoring, Management and Control would not be possible.