Effort Limit and Financial Limit of Projects and Groups

Tutorials and guides for the features of Octaved Flow

It is part of the Octaved Flow concept that the work package is the focus. Prices and efforts are given for work packages. The totals for the project result from the work packages. Additionally there is the possibility to define a limit for the total effort of a project and a financial frame for the project can be defined. This additional possibility is described in this tutorial.

Projects and sum of work packages

Projects in Octaved Flow are divided into work packages and per work package billing types such as fixed price or effort with cap are assigned. For fixed price the calculated maximum effort in hours is specified and for effort with cap the number of hours to which the effort should be capped.

Effort with cap
Fixed_price

So the idea is that a project is divided into work packages and conversely the sum of the work packages represents the project. Examples:

  • A project (order) consists of 5 work packages, for each of which a fixed price is specified. The order total is therefore the sum of the 5 fixed prices of the work packages.
  • A project consists of 6 work packages, for which effort is specified as the billing type. The order total is not fixed until the end of the project and is calculated by the sum of all time bookings of the 6 work packages.

Effort limit and financial framework for projects

For projects independently of work packages an effort limit and a financial frame can be specified in the properties of the project under Time/Money.

Time and financial frame in project

Effort limit of the project

The effort limit for a project specifies the maximum amount of time that can be booked on a project. The number or billing type of work packages does not matter. For example, an agreement with the customer that the project with billing by effort does not exceed a certain limit can also be mapped.

Time bookings only up to the limit

If this option is enabled, time cannot be booked on any work package included in the project if the time limit of the project is exceeded.

Examples of use

Effort limits are ideal for long-running projects where new work packages are added during the runtime. This can be the case, for example, for maintenance, in agile methods or because a realization project is very complex and drags on for many months.

If a contract is concluded with the customer in which annual work hours are agreed, the project can be set to exactly this year via time control. For the next year it is then copied and the time control is adjusted.

Effort limit of a project
Time control of a project

Effort limits can be used for any kind of capping that should work across work packages. Another example is a consulting firm where several consultants each have their own work packages in a project and may even be allowed to create additional work packages themselves as needed. However, despite this flexibility and dynamism, the agreed contract sum must not be exceeded.

Display of the sum of time limits in work packages

The sum of the limits of work packages is displayed here for control. How many of the total work packages contained in the project have a billing type with a time limit is also displayed.

Application examples

Not all work packages must necessarily have a billing type with a time limit. There are different scenarios.

  • Scenario 1 - All work packages have a settlement type with a time limit - Then only the total is checked here. Time postings only up to the limit can be switched off, because each work package individually ensures that postings can only be made up to the limit. With the display Work packages with limit: 5 of 5 you check that really all work packages have a time limit.
Overview of the effort limits in the project
  • Scenario 2 - No work package has a billing type with time limit - Then activate Time bookings only up to limit. The total of time bookings will be controlled by the project. As soon as this limit is reached, no more bookings can be made to any of the work packages.
Time booking limit at project
  • Scenario 3 - Mix of 1 and 2 - This variant combines both. For a work package with a limit, either the work package can be "full" and time bookings are therefore not possible, or the project is full and you can no longer book to any work package - thus not to this one either.

Which billing types have a time limit is set in the system settings under Timeout. See Tutorial. In Octaved Flow's default settings, the billing types Effort with cap 1, Contingent 2 and Fixed price 3 have a time limit.

Time booking limits at billing types

Financial frame of the project

The financial framework for a project is useful, among other things, if a price for the project has been agreed upon, but at the beginning of the project the exact division into work packages is not yet clear. If new work packages are created and priced during the course of the project, it can be checked that the financial framework of the project is adhered to (and also exhausted).

Financial frame of the project

For the settlement of work packages the prices specified in the work packages are used. Only work packages with billing types fixed price and contingent are considered when calculating the total, as these are the only billing types with fixed prices.

It is possible to create work packages with fixed price and quota, even if this exceeds the financial scope of the project. The financial frame of the project is only there for checking.

Displaying the sum of fixed prices and quotas from work packages

Work packages can be provided with fixed prices and quotas. The sum of the amounts is displayed here for checking. Also shown here is how many of the work packages in the project have fixed price or contingent as the billing type.

Sum of the fixed prices in the project

Recommended procedure

This function is intended for all work packages in a project to have either Fixed Price or Contingent as the billing type. Otherwise, control over the project price is not possible. Work packages that have the billing type Expense will not be included in the calculation of the total price. Financial frame and time limit should not be used in the same project at the same time.

Groups

For groups, i.e. groups of work packages, the same settings can be made as for projects.

The settings and the totals refer only to the work packages. The defaults of the project are not displayed in the groups. The sum of the groups is not displayed in the projects. In both only the contained work packages are displayed.

Links to further tutorials of this subject area

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