project schedule and budget

project schedule and budget

1. PMBK - project cost management.

   • focuses on the processes, procedures, and techniques to develop and manage the project budget.
   • Includes
     • Estimate Costs
       • processes to estimate the monetary resources needed to complete the project work or activities.
     • Determine Budget
       • Aggregating the individual cost for each of the project activities orwork package components to determine the cost baseline or overall project budget.
     • Control Costs
       • Updating the project’s status while monitoring the project’s budget and managing any changes to the baseline plan.

2. tools and techniques

   • Gantt charts,
   • activity on the node (AON)
   • criticalpath analysis
   • PERT
   • precedence diagramming method (PDM

3. DEVELOPING THE PROJECT BUDGET

   • Cost Estimation
     • five steps
       • Determining the quantity of resources that are needed
       • Defining what resources will be needed to perform the work
       • Defining the cost of using each resource
       • Calculating the cost of the task or activity
       • Ensuring that the resources are leveled
     • Using the WBS
       • This is the link between Schedule & Budget, the totals MUST match.    
       • Break work down to the lowest level
       • Estimate costs at each item of work
       • Total upwards, to specific types.
       • Use the G/L codes
       • Enter costs into the Gantt chart via the resources.
     • Other Cost
       • Direct Costs - The direct cost of labor or other resources
         • •Labour  –People  n your own department  –Other people in company  –Contracted labour     
       • Indirect Costs - The cost for covering such things as rent, utilities, insurance, etc.
         • •Overheads  –Power, etc –PM •Non-labour –Purchases –Sub-contracts –Travel –Equipment hire 
         • •General and administrative costs  –Stationary     
       • Sunk Costs - Costs incurred prior to the project such as a project that has been restarted after a failed attempt
       • Learning Curve - Often have to “Build one and throw it away” to understand a problem or a new technology
       • Prorated Costs - The idea that there is a cost associated with using a resource
       • Reserves - Contingency funds to be used at the discretion of the project manager
       • Learning curve - time to learn should beconsidered in either the project schedule or budget.
     • Resource Allocation
       • review youtube
       • review the project plan to ensure that the resources are level
         • cannot be overallocated
         • Not catching these mistakes early can have a demoralizing effect on the team and leadto unplanned (i.e., unbudgeted) costs
   • Finalizing the Project Schedule and Budget
     • The project schedule and budget may require several iterations before it is acceptable to the sponsor, the project manager, and the project team
     • Once the project schedule and project plan are accepted, the project plan becomes the baseline plan.
     • Once accepted, the project manager and project team have the authority to execute or carry out the plan
   • Total of Budget in Proposal MUST match total of the Cashflow Report !