MS Project : Setting Up Overtime Pay Rates and Assigning Resource Overtime Hours

I will explain how can you assign overtime hours and overtime Pay Rate to Resource in MS PROJECT 2010

First I will add TASK 1 with 5 days duration:



Now I will add Mary as a resource with $100/hour as standard pay rate, and $150 / hour as overtime pay rate:



Now I will assign Mary to the TASK 1:



You can see $400 in the Cost field (5 days X 8 hours/day X $100 / hour = $4.000)

Now, I will choose the Gant chart view open the Task form ad a detailed view:



I will click ANYWHERE in the Task Form and then I will click on the Format Tab, in the Details Group –> WORK:



Now I will put 16 hours in the Overtime work field. It means that Mary will work 16 hours overtime:



It seems like nothing happened in the Gant chart? I will now click anywhere in the Gantt chart portion of the screen and I will get:



You can see that TASK 1 will have only 3 days duration. Why? Well, if you add overtime work on the task the same amount of work will be done but in shorter period.

I will now close the Task form:



and I will open the Resource usage sheet:



You can see 40 hours that in the Work field. Why? Because initially TASK 1 had 5 days duration (e.g. 40 hours). By adding 16 hours as overtime, TASK 1 will not last 40+16 = 56 hours, but those 40 hours will be done in shorter period.

Why 13.33 hours/day? 40 hours of total work – 16 hours of overtime work is 24 hours. 24 hours divided by 8 hours regular work per day is 3 days. O.K. we have 3 days duration. And Mary will work 8 hours each day (regular work) and (16 hours of total overtime / 3 days) = 5.33 overtime hours per day. So, 8 + 5.33 = 13.33.

Now, I will open the Cost table:



And I will get



Why? Well, Mary will work 40 hours on the TASK 1. 24 hours is regular work, and 16 hours is overtime work. 24 X $100 (standard rate per hour) = $.2400, 16 X $150 (overtime rate per hour) = $2.400. So, the total cost fore the TASK 1 is $2.400 + $2.400 = $2.800.

Overtime work is complicated, so you should use it with caution!

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