Project Management and Bottom-up Budgeting - 2437 Words

Abstract The final chapter focuses on what it means to be managing at the frontier by describing the uncertainty surrounding decision making. The case was made that managers can use the decision guides developed in chapter 1 as well as current and future stakeholders to serve as guidelines to help manage at the frontier. The management principles from this chapter were designed to help managers when usual management approaches seem inadequate or inapplicable to a situation. The understanding of related risks and uncertainties surrounding new frontiers due to globalization or mass commercialization were a focus of this chapter. Privacy and ownership guidelines were developed in this chapter as a matter of foundational concepts.†¦show more content†¦Inform project stakeholders of any changes in the cost baseline. A project’s cost change control procedure/system should be designed to outline the actions for changing the project’s cost baseline. In addition, a cost change control system helps the project team provide frequent feedback to project stakeholders about the actual project costs as compared to estimated project costs. Page188 It is important to realize that although a specific change control system can be set up for project costs, the time, costs, and performance of the project are all interrelated. Therefore, changes made to one of these variables will usually affect the other two. The bottom-up approach involves estimating the cost of individual activities or work packages and then summarizing or rolling up the individual estimates to get a project total. This approach typically results in greater accuracy in the detailed tasks, but there is a risk that some tasks may be overlooked. Costs means the overall estimated cost for a particular program alternative over the time period corresponding to the life of the program, including direct and indirect initial costs plus any periodic or continuing costs of operation and maintenance. ctShow MoreRelatedBudgeting and Control: Analysis of E Krells Article The Case Against Budgeting1816 Words   |  7 Pagesï » ¿Budgeting and Control The article, The Case Against Budgeting explains how the budgeting process has essentially become obsolete in the current business climate. Krell explains that many businesses feel that the budgeting process takes too much time and when its finally completed the final product is usually less than desirable (2003). Businesses need more agile forecasting and reforecasting capabilities, but the organizational barriers to those capabilities are formidable (Krell, 2003).Read MoreProject Budget : Top Down Budgeting869 Words   |  4 PagesAccording to Jeffrey Pinto, a project budget is defined as, â€Å"a plan that identifies the allocated resources, the project’s goals, and the schedule that allows an organization to achieve those goals.† (p. 243). A project budget is very important tool because it gives the overall scope, direction, and outlines the cash that is assigned to each project milestone. There are four different methods to creating a project budget that include: top-down budgeting, bottom-up budgeting, activity based costing andRead MoreThe Critical Path Method ( Cpm )1113 Words   |  5 Pages2015 MGT645: Project Management Essentials Professor James Marion Briefly describe â€Å"critical path.† Be sure to include in your description how critical path is determined, and why it is important. 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As Dr. Pace mentions, had the planners of the Irwin Army Community Hospital paid attention to the budget planning, the sponsor might have realized the shortRead MoreProject Planning Tools And Controlling958 Words   |  4 PagesProject Planning Tools and Controlling Budgeting, Scheduling, Resource Loading and Leveling Any project cannot be based on ROI because there are many aspects that can affect the cost management (PMI, 2013, pg. 198). All sources are part of a project planning guideline using a risk management system to control planned and unplanned events. Before anything can be done in a project a budget must be established. A budget is part of a cost management tool. Each project is not to prolong the processRead MoreThe Critical Path Method ( Cpm )1002 Words   |  5 Pages Erica Patterson July 19, 2015 Project Management Essentials The critical path method (CPM) is a step-by-step project management technique for process orchestrating that defines critical and non-critical tasks with the goal of averting time-frame quandaries and process bottlenecks. The CPM is ideally suited to projects consisting of numerous activities that interact in an involute manner. Then the connections between the tasks, kenned as dependenciesRead MoreThe Top-Down Budgeting Methodology1596 Words   |  6 PagesThe Top-Down Budgeting Methodology Top-down budgeting is the preferred method of budgeting for government agencies and many organizations (Ljungham). The methodology of top-down budgeting is described in Towards a Metatheory of Budgeting, as â€Å"dominated by top members of the executive branch and the legislative branch† (Williams Calabrese, 2011, 178). The methodology entrusts top members to make annual budgeting decisions for their organizations. In many instances, top members also use this timeRead MoreBudgeting And Investment Appraisal : Questions1432 Words   |  6 Pages, Workshop Assignment 3 Budgeting and Investment appraisal Student submitting their individual work ID # Other Team members if a group process was used. ID # Lecturer’s name: Paul Brewster Qualification: BBA – Top Up Unit number, title and code Accounting 2 Unit level QCF Assignment number : 3 Assignment title: Assignment 3: Budgeting and investment Appraisal Hand out date: 13/ 07/ 2015 Date for feedback Immediate /by... Presentation Summative Date for submission:Read MoreBudgeting and Forecasting 278 Midterm 20141600 Words   |  7 Pagesï » ¿Budgeting and Forecasting 278 Midterm 2014 (TCO 1) The type of budget that is updated on a regular basis is known as a  _____.    Student Answer:   continuous budget      revised budget      updated budget      flexible budget TCO 2) The quantitative forecasting method that uses actual sales from recent time periods to predict future sales, assuming each period has equal influence on the prediction of future sales, is the  _____.    Student Answer:   moving average model      weighted moving averageRead MoreProject Resource Matrix : Project Resources1340 Words   |  6 Pagesroject Resource Risk Matrix: Project Resource Matrix Format: 3.6 Elements to Ensure Optimal level of productivity from project resources: To ensure optimal level of productivity from project resources, INDITEX has to develop an accurate resource breakdown structure which is a base document with all the project elements to achieve the objects. Consultation from historical information with the types of resources required and garments industry standards is valuable input for resource planning. The