Best Practice: NLRs vs. Fixed Cost/Price or Manually Set Budgeted Cost/ Actual Revenue work items
- Use a Non-Labor Resource if an item has no work effort value associated (and so should not affect a project’s expected work progress calculations), has no scheduling or dependency information that can affect the work plan, or has variable pricing over months (like materials).
- Use Fixed cost or fixed prices when you need to assign delivery to an individual and collaborate around it.
- Use Fixed Costs/ Fixed Price if a work item’s cost does not vary with duration or is not likely to be used outside of one project and therefore not needed for cross-project reporting.
Best Practice: NLRs for IT/PMO Organizations
IT/PMO organizations frequently run a spectrum of projects from large infrastructure upgrades to minor updates.
- If your organization run as a cross-charges other business units, you should consider using both the Cost & Revenue fields of the NLRs where the Revenue fields represent the cost to the other internal organizations.
- Use the categories of the NLRs to track the common categories
- Use the CAPEX/OPEX fields - this is especially important for IT product development projects where Capital Expenditure (CAPEX) may have tax credits associated and should be accurately tracked.
Best Practice: NLRs for Professional Services teams
Professional Services delivery / consulting organizations can consider the Non-Labor Resources as somewhat similar to a Product List if they are providing packaged materials (such as training materials). Additionally NLRs should be used for variably-priced items such as bandwidth, travel budget (where expenses are being reported in 3rd party systems) or even media spend for digital marketing-type projects.