PROJECT MANAGEMENT SOFTWARE

Background of the Invention

1. Field of the Invention This invention relates generally to software systems for managing fees and profitability, and specifically to a software system that manages fees and profitability by calculating the number of hours that employees should be assigned to a specific project and stay within the available fees.

2. Background Information The inventors have spent most of a long career managing a large staff of professionals, constantly trying to assure that the time spent on projects fits within the fee negotiated with client. During that period the inventor was constantly looking for available software that would improve the ability to control the hours assigned to projects. Unfortunately the available software all have short comings in that the user is required to predict the hours to be assigned, rather than the system defining appropriate hours. These conventional methods of scheduling employees have no direct control on the projects profitability. Their attempts to achieve the projected profit in this way have several disadvantages, including reliability and accuracy. The prior art method of assigning staff to a project requires estimating and inputting the amount of time that the assigned staff would need to complete the project. These were based on such factors as previous experience with similar projects, or tables that would estimate the labor for similar types of projects. Once again, this inputted data does not allow for a dynamic management of fees and/or profitability.

For example, these prior art systems can result in the over-scheduling of hours such that the project does not stay within the fees, and, subsequently, is not profitable. Under- scheduling leads to similar problems and affects profitability as well. In addition, these methods require a user to monitor time variations (e.g. variations due to vacations, leave or holidays) and manually adjust the schedule accordingly. Keeping track of time variations for each employee and manually entering these changes is not only time intensive but also unreliable since they depend on formulas or procedures that may or may not be responsive to the actual fees available. This is why prior art project management programs cannot

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automatically adjust employee hours when there is a change in one of the other variables (profitability, direct expenses, or overhead) that make up fees. If one of these variables changes, the user must manually re-input employee hours in order to maintain net fees. These prior art systems do not dynamically modify the assigned hours when any of these variables change.

Summary of the Invention

The problems of the prior art are solved by this invention, which is a method of scheduling labor (staff) based on available fees. With this invention the hours assigned to individuals are calculated based on actual fees and actual individual billing rates. The fees are converted to direct labor dollars. Direct labor rates are determined from the formula: fees = profitability + direct expenses + overhead + direct labor. The direct labor rate is used by the program to derive a schedule for each staff member assigned to a project. The resulting schedule allows the project to be carried out while remaining within available fees, managing profitability. If any of the other variables (profitability, direct expenses, overhead) change during the course of the project, the program can dynamically reschedule staff to allow the project to be completed within the available fees.

In particular, the program monitors the profit being generated from a project and ensures that it remains constant by re-scheduling the labor assigned to the project to remain within available fees. In addition, the program provides for variability of profit goals, allowing a user to increase or decrease a project's profit goals at any time after the start of the project. This is done by ,the proposed invention dynamically re-scheduling not only the labor, but also any of the other parameters like overhead and direct expenses.

The program also accounts for each individual staff member's working schedule. For instance, the inventions scheduling of a staff member to work on a phase of a project accounts for any planned utilization, vacations, leave, holidays or other contingencies planned by the staff member.

It is an object of the present invention to provide a project management system that derives the amount of time an employee can work on a phase of a project within available fees.

It is an object of the present invention to provide a project management system that manages fees and profitability by calculating the number of hours employees can spend on a specific task and stay within available fees.

It is an object of the present invention to provide a scheduling program that can quickly adjust for any change in fees, overhead, expenses, or profitability.

It is an object of the present invention to provide a scheduling program that automatically accounts for any variations in an individual staff member's schedule (i.e. due to vacations, leave, or holidays).

These and other objects of the present invention will become apparent to those skilled in the art upon reference to the following specification, drawings, and claims.

Brief Description of the Drawings

Figure 1 is a general flow chart depicting the overall operation of the scheduling method. Figure 2 is a flow chart depicting the determination of working days.

Figure 3 is a chart depicting the calculation of the direct labor amount available for each phase, as used in flow path A of Figure 1.

Figure 4 is a chart depicting the assignment of staff members and their percentage participation to each phase, as used in flow path B of Figure 1. Figure 5 is a chart depicting the calculation of the total labor rate per hour for all staff members assigned to a phase, as used in flow path C of Figure 1.

Figure 6 is a chart depicting the total number of hours per phase, as used in flow path D of Figure 1.

Figure 7 is a chart depicting the calculation of hours per phase assigned to each staff member, as used in flow path F of Figure 1.

Figure 8 is a chart depicting the calculation of working days in a phase, as used in flow path E of Figure 1.

Figure 9 is a chart depicting the calculation of hours per day assigned to each staff member, as used in flow path F of Figure 1.

Detailed Description of the Invention

In general terms, the present invention is a project management system for calculating the number of hours that a particular employee can spend on a specific project and stay within available fees.

The traditional method of scheduling labor involves estimating and inputting the amount of direct labor that will be used to complete a particular project. Direct labor is estimated by using a variety of tools, including previous experience with similar projects, and tables of data regarding labor rates for similar projects or tasks. Such data maybe available in the public domain for different industries and services. All such methods of predicting hours are approximate at best. The present invention uses a different approach for scheduling labor, as it determines the direct labor that will be required to complete a project while staying within fees and then schedules labor accordingly. In other words, this direct labor is used to schedule staff members assigned to a project so that the amount spent on labor stays within the available fees. In particular, Figure 1 shows a flow chart depicting the overall operation of the program that converts net fees to time 10. There are three main flow paths A (12), B (14), C (16) carried out by the program.

Flow path A (12) determines the labor amount 24 for a particular phase of a project. Calculation of the labor amount 24 begins with retrieval of direct labor 20. Direct labor 20 is determined from the following formula: Fees = Overhead + Expenses + Profits + Direct Labor. Each project is divided into separate phases (e.g. planning, design, and implementation), and each phase is assigned a percentage of the project 22, such that all phases together are 100% of the project. The labor amount 24 for a phase is calculated by multiplying direct labor amount 20 by the percent breakdown of the phase 22. In flow path B (14), individual staff members are assigned 30 to the phase and staff percentages are assigned 32 to each staff member of the phase. These assignments are validated 34 such that the aggregate staff percentage for a project phase is 100%.

Flow path C (16) calculates the total labor rate per hour. First, the rate per hour 40 is retrieved for each staff member assigned to the phase. Generally, hourly billing rates are determined by dividing the total salary of a staff member by the total number of working hours in a year. Then, the labor rate 42 for each staff member of the phase is calculated by multiplying the staff member's rate per hour 40 by the staff member's percentage of the phase

32. Next, the total labor rate per hour 44 for all staff members of the phase is determined by adding all of the labor rates 42.

Flow paths A (12) and C (16) converge to determine the total hours per phase 50. Total hours per phase is determined by dividing the labor amount 24 by the total labor rate per hour 44. To determine the hours per phase for each staff member 60, the total hours per phase 50 is multiplied by the percentage than the individual staff member is assigned to the phase 32.

To determine the hours per day for each staff member 70, the number of working days 82 must be determined. Figure 2 is a flow chart demonstrating the calculation of the number of working days 82. As shown in Figure 2, the number of days between the start date and the end date of a project phase is evaluated 70 (both start and end date are inclusive). The number of days 70 is split into months 72. Each month is then tested for holidays 74. Next, it is determined whether any of the holidays fall on weekends 76. Non-weekend holidays are stripped 78, as are weekends 80. The resulting number is the working days for the project phase 82.

As seen in Figure 1, the working days 82 is used to determine the hours per day for each staff member 90. The hours per phase for the staff member 60 is divided by the working days 82.

Figures 3-9 show an example of the calculations described above. In this example, the program determines the number of hours assigned to employee Fleming during phase

053a (construction administration) of the Allendale County Courthouse project. Figures 3-9 include screen shots generated by the program.

Figure 3 demonstrates how the labor amount 24 is determined in flow path A (12) of Fig. 1. The direct labor 20 for all the phases is retrieved, and, in this example, is $39,230.73. Next, the phase percentage breakdown 22 is retrieved. The percentage of fees assigned to this particular phase 05a is fifty-three percent. The labor amount 24 for phase 05a is calculated is $20,792.28 ($39,230.73 * 53%).

Figure 4 is an example of how staff members are assigned 30 and their percentage participation 32 is assigned to each phase, as shown in flow path B (14) of Fig. 1. In this example, Fleming, Henry, Moore and Williams are selected for phase 05a. The percentage of participation for each selected staff member is defined (Fleming = 41%, Henry = 41%, Moore

= 3%, Williams = 15%). Finally, a quality check validates 34 that the sum of all the percentages assigned totals 100%.

Figure 5 is an example of the determination of the total labor rate/hour 44 for all staff members of the phase, as shown in flow path C (16) of Fig. 1. First, the hourly rate 40 for each selected staff member is retrieved. In this example, Fleming's hourly rate is $22.02. For each selected staff member, their hourly rate is multiplied by their percentage 32 to determine the labor rate 42. In Fig. 5, Fleming's labor rate 42 is $9.03 ($22.02 * 41% = $9.03). Finally, the hourly rate for the phase 44 is determined by adding the labor rates of all the staff members assigned to the phase. In this example the hourly rate for the phase 44 is $20.63. Figure 6 provides an example of the calculation of the total hours per phase 50. The labor amount 24 from flow path A ($20,792.28) is divided by the total labor rate per hour 44 of flow path C ($20.63). In this example, the total hours for phase 05a is $20,792.28/$20.63, or 1,008.07 hours.

Figure 7 is an example of how the hours per phase 60 for each staff member is determined. The total hours for the phase 05a (1,008.07 hours) is multiplied by the individual staff member's percentage 32 assigned to the phase. In this example, Fleming's percentage is 41%. Accordingly, the total hours in phase 05a that Fleming is assigned is 413.31 (1,0087.07* 41%).

Figure 8 is an example of the calculation of working days, as shown in Figure 2. Figure 9 is an example of the calculation of the hours per day for each staff member using the working days determination from Figs. 2 and 8. The hours per phase for each staff member 60 is divided by the total working days 82. In this example, Fleming is assigned to work on phase 053a for 4.35 hours per day (413.21/95).

The following tables illustrate the practical application of the data created by this invention. The example reports shown in Tables 1 -5, created by the invention, are based on the determination of hours assigned to staff members for a particular project phase.

Table 1 : Phase and Finance Details

Alleπdale County - Courthouse SD-CA (E) Est. Constr. Cost : $0.00

(23225.01/BG-001/E) Gross Fee : $127,500.00

Project Manager : Williams, Theodore Less Consult Fees : $0.00

Quality Review : Williams, Theodore Less Unusual Exp. $0.00

Start Date : October 14, 2003 Net Fees : $127,500.00

Summary Date December 1, 2004 Overall % Complete : 0%

1. Based on the remaining fees, and the percentage assigned to Construction Administration

2. The hours that Daryl Fleming can apply to this phase of the project is calculated

3. Daryl can apply a total of 413 hours to this phase

4. Using the calculated days available this results in 4.35 hours per day

5. This is then applied to the actual days avai lable in each month to show the hour per month that Daryl can apply (example: 96 hours in December)

Table 1 shows the hours assigned each month for each phase and for each individual for a typical project. With complete flexibility, project managers evaluate the number and distribution of hours based on the work required while ensuring profitability

Table 2: Staff Detail Report

Fleming, Daiyl: (672)

1. Over the next six months Daryl Fleming needs to put in 1 ,658 hours

2. The precise hours per day required for each phase assigned to him is shown

3. The hours per month spread over the next six months is calculated and shown

4. The total hours per day taking into consideration all the pahses assigned to him are shown with complete precision

5. Tasks assigned based on such reports over the last 10 years have been completed with almost 100% accuracy. * The report shows that from the month of January onwards Daryl Fleming is underutilized

Table 2 is. a report that summarizes employee Fleming's schedule for six months. The Allendale County Courthouse project information is included in this report, along with two other projects that employee Fleming is scheduled to work on in the six month time period. With this report adjustments can be made to specific projects to balance staff commitments.

Table 3: Staffing Over/Under Report

1. Example: Fleming Daryl, shown as over scheduled for the months of Dec, Jan and March

2. Starting in April, he has hours available for work on other projects

* Based on parameters established by the user, each employee's assigned hours are compared to his actual available

* (Action maybe required to re-apportion the workload)

Table 3 is a report that summarizes staff availability. Each.staff member's workload appears on the report. The report shows at a glance whether each employee is overscheduled or under scheduled and therefore who is available for potential projects. This information is critical in preventing employee burnouts.

Table 4: Revenue Projections Report

The immediate availability of accurate revenue projections

1. Projections for current and subsequent years

2. Sub-totals by user defined departments

3. Summary projections for all departments

Table 4 is a report that summarizes revenue projections. Revenues.for the Allendale County Courthouse and all other projects appear on this report. An accurate projection of revenues for current and subsequent years is dynamically available. Decision enablig subtotals are provided.

Table 5: Workload Summary Report

Table 5 is a report that accurately summarizes projected workloads. This report dynamically compares scheduled with the budgeted available hours. Decisions regarding future staff requirements, increases or decreases, can be made

The foregoing description and drawings comprise illustrative embodiments of the present inventions. The foregoing embodiments and the methods described herein may vary based on the ability, experience, and preference of those skilled in the art. Merely listing the steps of the method in a certain order does not constitute any limitation on the order of the steps of the method. The foregoing description and drawings merely explain and illustrate the invention, and the invention is not limited thereto, except insofar as the claims are so limited. Those skilled in the art who have the disclosure before them will be able to make modifications and variations therein without departing from the scope of the invention.