Hi friends,I need help on finding project cost per employee. Can anyone pls help me. I have calculated cost per hour of each employee and total cost they have spent using timesheet. What else should I use to get the project cost?
From India, Mumbai
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From India, Mumbai
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To calculate the total project cost per employee, you have already made a good start by determining the cost per hour and total cost from timesheets. However, there are a few more factors you should consider:
1. Overhead Costs: These include costs related to office space, utilities, equipment, and software used by the employee. You can calculate this by determining the total overhead costs of the project and dividing it by the number of employees.
2. Employee Benefits: Consider the cost of benefits provided to the employee, such as health insurance, retirement contributions, and paid time off. These should be prorated based on the amount of time the employee spends on the project.
3. Training Costs: If the project required any special training for the employees, these costs should also be included.
4. Miscellaneous Costs: These could include travel expenses, meals, and any other costs directly related to the project.
By adding these costs to your existing calculations, you can get a more accurate picture of the total project cost per employee. Remember, the goal is to capture all costs associated with an employee working on a particular project.
From India, Gurugram
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621. Overhead Costs: These include costs related to office space, utilities, equipment, and software used by the employee. You can calculate this by determining the total overhead costs of the project and dividing it by the number of employees.
2. Employee Benefits: Consider the cost of benefits provided to the employee, such as health insurance, retirement contributions, and paid time off. These should be prorated based on the amount of time the employee spends on the project.
3. Training Costs: If the project required any special training for the employees, these costs should also be included.
4. Miscellaneous Costs: These could include travel expenses, meals, and any other costs directly related to the project.
By adding these costs to your existing calculations, you can get a more accurate picture of the total project cost per employee. Remember, the goal is to capture all costs associated with an employee working on a particular project.
From India, Gurugram
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Dear Ash,
1. I wish you had given complete information while raising the query. What kinds of projects does your company handle? Are they civil construction projects, EPC projects, IT projects or still something else? This information would have helped in giving you a focused reply.
2. Anyway, the total project costs comprise the following:
a) Material costs: - These include supplier selection costs, transportation costs, material handling costs, material inspection costs, and the cost of material itself.
b) Manpower costs: - These include the wages and salaries paid to the regular and contract employees, statutory payments, training costs, costs incurred to acquire labour licenses, costs incurred during visits by the labour authorities, etc.
c) Operational costs: - These include fuel expenses, transportation expenses, energy expenses, office rent at the site, etc.
d) Other expenses.
3. Calculation of manpower count during the project period: - Measure the total project span in months. Note the manpower count at the end of each month and then take the average.
4. Project cost per employee = (Total of paragraph 2)/Paragraph 3
Thanks,
Dinesh Divekar
From India, Bangalore
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1. I wish you had given complete information while raising the query. What kinds of projects does your company handle? Are they civil construction projects, EPC projects, IT projects or still something else? This information would have helped in giving you a focused reply.
2. Anyway, the total project costs comprise the following:
a) Material costs: - These include supplier selection costs, transportation costs, material handling costs, material inspection costs, and the cost of material itself.
b) Manpower costs: - These include the wages and salaries paid to the regular and contract employees, statutory payments, training costs, costs incurred to acquire labour licenses, costs incurred during visits by the labour authorities, etc.
c) Operational costs: - These include fuel expenses, transportation expenses, energy expenses, office rent at the site, etc.
d) Other expenses.
3. Calculation of manpower count during the project period: - Measure the total project span in months. Note the manpower count at the end of each month and then take the average.
4. Project cost per employee = (Total of paragraph 2)/Paragraph 3
Thanks,
Dinesh Divekar
From India, Bangalore
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CiteHR.AI,
I refer to your comments given in my previous reply.
I have not specifically mentioned the "overhead costs" because overhead costs are combination of the elements of material costs, labour costs and the expenses.
As per the theory of cost management,
Overhead cost = (Indirect material costs + Indirect labour costs + Indirect expenses)
Maintaining books of accounts as per direct and indirect costs, each for labour, material and expenses, is not easy. The accounting clerks make mistakes while making the journal entries. Hence, I mentioned above the break-up of the costs and have eliminated the use of the term: overhead costs.
Thanks,
Dinesh Divekar
From India, Bangalore
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I refer to your comments given in my previous reply.
I have not specifically mentioned the "overhead costs" because overhead costs are combination of the elements of material costs, labour costs and the expenses.
As per the theory of cost management,
Overhead cost = (Indirect material costs + Indirect labour costs + Indirect expenses)
Maintaining books of accounts as per direct and indirect costs, each for labour, material and expenses, is not easy. The accounting clerks make mistakes while making the journal entries. Hence, I mentioned above the break-up of the costs and have eliminated the use of the term: overhead costs.
Thanks,
Dinesh Divekar
From India, Bangalore
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(Fact Checked)-Your explanation of overhead costs is accurate. They indeed include indirect material, labor costs, and expenses. Good job on clarifying this complex topic! (1 Acknowledge point)
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Dear Ash,
You have not provided the information about the nature of project and project period.
The CTC of each employee and their involvement period in the Project is their cost.
In a project employees of different categories are required and they are being hired in different phase of project.
You may have calculated the cost per hour of each employee using timesheet is not enough. There are other hidden cost associated with any project, which is around 2-3% of the labour cost.
The time sheet is not enough, as per the industrial engineering the time factor and reworking decides the cost.
From India, Mumbai
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You have not provided the information about the nature of project and project period.
The CTC of each employee and their involvement period in the Project is their cost.
In a project employees of different categories are required and they are being hired in different phase of project.
You may have calculated the cost per hour of each employee using timesheet is not enough. There are other hidden cost associated with any project, which is around 2-3% of the labour cost.
The time sheet is not enough, as per the industrial engineering the time factor and reworking decides the cost.
From India, Mumbai
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(Fact Checked)-Great input! Just to add, consider overhead costs like utilities, equipment, and training. These also contribute to project cost. (1 Acknowledge point)
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(Fact Checked)-Your breakdown of project costs is comprehensive and accurate. Don't forget to consider overhead costs too. (1 Acknowledge point)