Tool 6: Activity Cost Matrix

AKA

N/A

Classification

Data Collecting (DC)

Tool description

The activity cost matrix is a useful cost data collection tool for the purpose of planning and budget preparation. In order to identify which personnel are involved in a major project, direct and supporting activities are listed and percent contribution estimated for each contributor.

Typical application

• To determine departmental activities and associated cost data.

• To schedule personnel for completing specific project activities.

• To compare the ratio of contribution (effort) against the total project budget.

Problem-solving phase

	Select and define problem or opportunity
→	Identify and analyze causes or potential change
→	Develop and plan possible solutions or change
→	Implement and evaluate solution or change
	Measure and report solution or change results
	Recognize and reward team efforts

Typically used by

	Research/statistics
	Creativity/innovation
3	Engineering
1	Project management
4	Manufacturing
	Marketing/sales
2	Administration/documentation
	Servicing/support
	Customer/quality metrics
	Change management

links to other tools

before

• Information needs analysis

• Data collection strategy

• Interview technique

• Audience analysis

• Time study sheet

after

• Deployment chart (down-across)

• Action plan

• Monthly assessment schedule

• Gantt chart

• Major program status

Notes and key points

• Use actual timekeeping data from previous project closing documentation to estimate percent cost of the various activities.

• To increase the validity of data to be stated in the activity cost matrix, department sources or subject matter experts (SME) should be contacted for specific information.

Step-by-step procedure

• STEP 1 The first step requires a search for a previously completed project's historical data. Timekeeping (activity time) and cost data will greatly assist in the completing of an activity cost matrix. See example Training Activities—Percent Cost.

• STEP 2 Interviews are conducted with department personnel or subject matter experts. Information on percent contribution to total project effort is collected.

• STEP 3 Lastly, an activity cost matrix is completed and dated as shown in this example.

• STEP 4 A copy is given to all involved parties for their review and feedback.

Example of tool application

Training Activities — Percent Cost

Date: xx/xx/xx		Responsibility — % Contribution
Analyst: A. Fisher Activity Costs for Training Workshop Development Activities		User	User — SME	Training analyst	Training developer	Training instructor	Training administrator	Graphic arts	Reproduction	Budgeting and finance	Facilities
1	Training course request	2	5	10
3	User needs analysis	5	5	20
4	Training proposal			20	5		2			90	5
5	User task analysis	15	5	20	10			4	5
7	Workshop development		20		60
7.3	Graphics and aids			2	3		2	96	5	5
7.9	Formative evaluation		50	13	10
8	Pilot workshop	5	5	5	5				4
10	Workshop revision				2				3
11	Train-the-trainer		5		5	20					5
12	Workshop participation	70	5			70
13	Summitive evaluation			5		2	5
15	Scheduling and administration	3				3	80		3	5	90
15.2	Material reproduction					2	5		80
17	Master copy control			5		3	6
	Total contribution	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%
Note:SME = Subject Matter Experts