This video defines project budgeting and discusses the production of initial budget estimates and dealing with differences in the initial budget estimates and budget targets, or constraints, set by management.
- Bankruptcy leaves a really bad impression.…If you don't establish, manage,…and control costs on your project,…you can end up with a bankrupt project…where costs exceed benefits.…To avoid this fate, you should control costs…while delivering needed outcomes.…The project budget is the tool…to ensure that you're spending…doesn't exceed your funding limits.…Here are my suggestions for creating a project budget.…First, focus on the triple constraints,…the schedule, the scope, and the costs.…
If you ignore any of these, you could spend…too much time focusing on the projects product,…and spend more money than is feasible.…An analysis of what you can and can't possibly accomplish…and what the costs are, is important…when creating an accurate budget.…A comprehensive project budget isn't overly complicated,…but it does have to take into account business realities.…Second, think about your project from start to finish.…Ask the following questions.…
How much money has been allocated?…What expenses are mandatory?…Which expenses aren't vital for success?…
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.