How to Identify Tasks that Cause Budget Overruns in Microsoft Project

Microsoft Project is a popular project management tool used by businesses and organizations worldwide. As with any project, the ultimate goal is to complete it within the allocated budget. Unfortunately, cost overruns are common, and it can be challenging to find the root cause of these overruns. In this article, we’ll explore how you can use Microsoft Project to identify the tasks that are causing your project to go over budget.

Step 1: Set Up a Baseline

The baseline is an essential component of any project plan. It serves as a reference point against which you can measure the progress of your project. To set up a baseline in Microsoft Project, follow these steps:

1. Open your project plan in Microsoft Project.
2. Click on the “Project” tab in the ribbon.
3. Click on “Set Baseline” in the “Schedule” group.
4. Select the baseline you want to use (Baseline or Baseline 1-10).
5. Click “OK.”

Once you’ve set up a baseline, you can compare it to the actuals to determine whether you’re on track or not.

Step 2: Compare Actuals to Baseline

Comparing actuals to the baseline is a crucial step in identifying the tasks that are causing your project to go over budget. Follow these steps to compare actuals to the baseline in Microsoft Project:

1. Open your project plan in Microsoft Project.
2. Click on the “View” tab in the ribbon.
3. Click on “Tables” in the “Data” group.
4. Select “Tracking.”
5. Click on the “Tracking Gantt” view in the “Views” group.
6. Click on “View” in the ribbon.
7. Select “Split View.”
8. Select “Tracking Gantt” in the top pane and “Task Usage” in the bottom pane.
9. Click on the “View” tab in the ribbon.
10. Click on “Tables” in the “Data” group.
11. Select “Cost.”

Once you’ve set up your views, follow these steps to compare actuals to your baseline:

1. In the “Tracking Gantt” view, right-click on the chart area.
2. Select “Bar Styles.”
3. Select “Progress Line” from the left-hand pane.
4. Click on the “Tracking” tab.
5. Select “Actual Start,” “Actual Finish,” and “Percent Complete.”
6. Click “OK.”

This will display the progress line for each task in your project plan. You can compare the progress line to the baseline to determine whether you’re on track or not.

Step 3: Identify Tasks that are Over Budget

Now that you’ve set up your baseline and compared actuals to it, you can identify the tasks that are causing your project to go over budget. Follow these steps:

1. In the “Task Usage” view, select the “Cost” table.
2. Look for tasks with a “Cost Variance” value greater than zero. This indicates that the task is over budget.
3. Sort the “Cost Variance” column in descending order to see the tasks with the largest variance at the top of the list.

Once you’ve identified the tasks that are over budget, you can investigate further to determine the root cause of the cost overrun.

Step 4: Investigate the Root Cause

Investigating the root cause of a cost overrun can be challenging, especially if there are multiple factors at play. Here are a few tips to help you get started:

• Review the task details to see if there are any errors or omissions that might be contributing to the cost overrun.
• Look for external factors that might be affecting the task, such as delays caused by suppliers, weather conditions, or other external events.
• Consider whether the task was properly scoped in terms of time, resources, and budget. If not, you may need to adjust your plan accordingly.

By investigating the root cause of the cost overrun, you can take corrective action to get your project back on track.

Conclusion

Identifying the tasks that are causing your project to go over budget is an essential step in effective project management. By setting up a baseline, comparing actuals to it, and identifying the tasks that are over budget, you can investigate the root cause of the cost overrun and take corrective action to keep your project on track. With Microsoft Project, this process is relatively straightforward, making it an invaluable tool for project managers everywhere.

Related posts

• How to Create Baselines in Microsoft Project and View Them on the Gantt Chart?
• How to Track Task Progress on the Gantt Chart in Microsoft Project
• How Can I Track Progress and Identify Delays in Microsoft Project?