In effort-based projects, the project manager schedules the project activities based on the number of work hours, and the number of resources it will take to get the work done. During project execution, the project manager tracks both the progress towards completion, and also the number of hours it takes for each of the assigned resources to complete the work. Based on this information, the project manager can make adjustments in the schedule as needed, for example, by assigning additional resources. This form of scheduling is more painstaking and time-consuming, but it provides better information metrics for future project improvements. Most software development projects follow the effort-based model.
In duration-based scheduling, the project manager does not manage or track the effort it takes to complete project activities. Rather, the project manager creates a schedule based on how long it will take to complete each activity. The manager then monitors whether an activity is started, completed, and how much of the scheduled duration has elapsed. Projects outsourced to third-party vendors or contractors can be managed using the duration-based model. For outsourced projects, project managers need to only track when the outsourced project will be completed and delivered to them, and need not concern themselves with the effort that the vendor or contractor will expend on the project.
For both types of scheduling, managers can monitor the overall timeline of the project, that is, the planned and actual start and finish dates.
When you select a project type as effort-based or duration-based, all the project elements and activities that you create are mandatorily classified with the selected project type attribute. For effort-based projects, all elements are effort-based; for duration-based projects, all elements are duration-based.
Effort-based projects are tracked based on the percentage work complete (%C) value for the project activities. This value is calculated based on the timesheet hours reported by the resources assigned to the activity. For example, a project activity is planned for 80 hours with 2 resources working for 40 hours each. In the first week, each resource reports 20 hours of work against the task. The total effort expended on the task is 40 hours, and the percentage work complete is calculated as 50%.
Duration-based projects are tracked based on the percent duration complete (%DC) for the project activities. This value is calculated based on the elapsed duration of the activity. For example, a task is planned to complete in 4 days with a start date of March 1. At the close of business on March 3, three days are elapsed since the start date of the task. Assuming the three days are working days in the project calendar, the %DC is calculated as 75%.