What is effort tracking? Definition and meaning
In effort tracking, all project-relevant efforts are recorded. These are subsequently assigned to a specific project, sub-project or work package. It forms the basis for project control and project controlling.
Relevant Types of Effort
The following types of expenditure are essentially recorded and documented:
- Consumables
- Overhead material costs
- Depreciation on wear and tear (AfA)
- Capital expenditures made
- Various payments to third parties (e.g. fees)
- Miscellaneous charges
- Personnel overhead costs
- Personnel expenditure/working time recording
Not all efforts incurred in the course of the project carry a fixed price. Personnel expenditure in the form of working time, for example, must first be calculated using individual cost rates. The prerequisite is, of course, that the project hours rendered have previously been recorded and posted to the corresponding work packages. This can be achieved, for example, using electronic time tracking.
Effort Tracking vs. Effort Estimation
Effort tracking is of central importance for determining project costs. It is particularly meaningful when an effort estimation has been carried out at the start of the project. The efforts recorded after the fact can then be systematically compared with the estimates. From this, a conclusion can be drawn about the cost accuracy and profitability of the overall project.