This video discusses processes for building your project schedule so cost allocation to resources, or resource types, is easily captured and can be tracked efficiently during project execution.
- Imagine being told you're going…to receive a $100,000 salary,…but were not told when you would receive it.…That'd be fairly inconvenient and frustrating,…wouldn't it?…Having a project budget…where you allocate funding,…but don't detail…when you're going to spend it is the same problem in reverse.…You need to know how much you're going to spend…and when you're going to spend it.…To do this more easily, it helps to build a cost forecast.…
Let's look at how you can approach building this great tool.…First ensure you have all of the cost outlays captured…in your project schedule.…A project schedule is made up…of all the tasks, resources, and cost estimates you'll need…for your project.…So, if you're baking a cake,…you'll want to start with the cost of the ingredients,…eggs, sugar, flour, and so on.…Second, build a cash forecast chart.…Let's look at an example.…The cash forecast chart has the money spent on the y-axis,…and the month on the x-axis.…
The date is cumulative over the life of the project.…With this chart, you can show total spending…
Note: This course follows the latest guidance from Project Management Institute, Inc., as outlined the PMBOK® 6 Guide.
- Recall best practices for project budgeting and estimation.
- Distinguish common estimation approaches used to build project budgets, and understand when to use them.
- Identify best practices for budget expectation management, while utilizing sound budget refinement techniques.
- Describe and explore agile project budgeting techniques.
- Review various approaches for correcting project budget overruns.
- Review sound budget reporting approaches, including how they can be used to report project status.
- Recognize the issues and changes that can put a project budget in jeopardy.