Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
No it does not say 80 days, it says "80 work days". I read that as you need to complete the 40 person-days of work within an 80 work day duration.
You could have one person working every second day for 8 weeks (assuming no holidays and a five-day work week). You could have five persons working one day a week for 8 weeks.
Of course, you could also have one person working every day and you would be done after 40 working days.
If the "80 working days" was an effort, your costs would be twice that of 40 person-days, not ten times. Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
By the way, a person-day, the politically-correct version of man-day, is the amount of work performed by one person in one day.
Sometimes, you will see organization use full-time equivalents (FTEs) which represent the amount of resource required for a month. For example, a 2 FTEs project is a project that requires either two full-time persons for one month or one full-time person for two months. Saving Changes...
Wolf TombeChief Technology Officer| GovernmentSpringfield, Va, United States
Oct 25, 2017 10:13 PM
Replying to Julie Chan
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Hi Aaron and Sante - my calculation is as follows and I would like to confirm my understanding is correct. 40 Man day = 40 / 8 = 5 resources; 5 resources for 80 work days = 5*80 = 400 work days
400 work days = 400* 8 hours = 3200 hours
So the dollar value is 3200*100 =$320,000
Other considerations might be overtime rates and/or shift differential pay for evening or midnight shifts.
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1 reply by Stéphane Parent
Oct 26, 2017 7:37 PM
Stéphane Parent
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If we go with the prevailing assumption that the 40 person-days must be completed over an 80 work day period, we should not have to worry about overtime and all work should be done during a "work day".
So the truth lies between $32,000 and $320,000, all depending on one's interpretation of the wording. Oh it's only a "0" here or there! Saving Changes...
Anonymous first stated that the project goes for "80 working days", at least that is how I understood it. So that is the duration of the project. They left out a crucial piece of information (which they added later) which was the 5 resources available on the project per day. So now by their second or third post, they have established that there are 5 resources, working 8 hours a day (I still believe they are referring to 40 man hours per day not 40 man days), over a project duration of 80 days.
Therefore: 5 resources x 8 hours per day x $100 per hour per resource x 80 days = $320,000.
Like I said, it's only a zero to the left or right. Shouldn't matter to finance ;-)
I would disregard the original question, as the subsequent posts clarified both hourly rate, number of resources per day, and by inference, 80 days project duration. Saving Changes...
Hi it is clear that 40 Man Day means 40 Man can complete a task within one day or in 8 working hours so at 100 $/ hour the rate of worker ( resource ), means the cost will be daily 4000 $ ( 5 man hour * 100 *8) which 4000 $ will be include OT as the task shall be completed in one day.
Therefore for 80 working days the cost will be 4000 $ * 80 days ( Working Days ) = 320,000 $ include OT include holidays etc.
So it means the work shall be completed in around 4 months with 5 persons who shall get salary of 16,000 USD/ Month which is very good salary!
Maybe for staff who want to start up a big power plant / refinery...;) Saving Changes...
Henry HattenrathProject Consultant| Tectonic Engineering MSA LLCNew York, Ny, United States
Why not interpret the quote as - 40 mandays is 320 hours to be used over a maximum activity duration of 80days. Assuming $100/hr includes the prevailing wage rate plus overhead and profit, the value of the 80 day activity is $32,000. I think you need to review the sales quote with a supervisor before making any further interpretation or commitments. Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Oct 26, 2017 1:46 PM
Replying to Wolf Tombe
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Other considerations might be overtime rates and/or shift differential pay for evening or midnight shifts.
If we go with the prevailing assumption that the 40 person-days must be completed over an 80 work day period, we should not have to worry about overtime and all work should be done during a "work day". Saving Changes...
Dear All, I do not think so 32,000$ even you calculate minimum productivity then cost is more than 32,000 $ ! because which work will be for 80 working days use only 40 Man Day !!! If asking in 80 working days 40 man day required then 32,000 $ is correct reply but 320,000 $ should be correct reply as per my understanding and reasonable ... GOOD LUCK Saving Changes...
Regardless of the confusing question format with key variables missing, "Anonymous" has since confirmed/added that it's in fact 5 resources, at $100 per hour, over 80 days, and the question was to calculate a dollar value.
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1 reply by Stéphane Parent
Oct 27, 2017 4:40 PM
Stéphane Parent
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No, Sante. Julie asked if dividing 40 person-days by 8 hour-days meant 5 persons. This is not a correct calculation.
