The project for the company offsite 2 day training session has given a preliminary go-ahead. The budget of the project will determine any important factors that will impact the training project. The company of AER has given the opportunity for all workers to get the training required. The budget of the 2-day training session project will recover any expenses that occur before the initiation, during processes, and until completion of the project.
The first step of the project is to develop a budget. The budget management process involves the project manager in developing all the cost, estimates, and the total amount of money resources necessary for the implementation of all the activities. All the tasks and events are defined and stated in the WBS and Schedule in the lower section of the memorandum.
Budget development should cover the capital, and the operating expenses to ensure the success of the project completion. The project manager needs to gather all the funding requirements and then send a formal request to the sponsor. The sponsor needs to look first in the feasibility study, business case, and project charter before making any final decision. For developing a budget project sheet, there are a few estimation methods, like the cost baseline measurement, and the cost aggregation. The budget development is the initiation of the project that will measure all the tasks with cost and time. The process will be evaluated with decisions of the participants. The milestones reflected in the document will be also revised by the specialist of the cause and utilized for further interruptions.
The next step of the budget is to allocate the financial resources and start running the plan of the budget. The project manager has to control and track the budget resources to make sure the task is performed with necessary funding. Also the project manager has to make sure that there is no lack of money for the implementation of the entire project. We need to develop an investment plan to track and control the budget for better results. This document will include justifications and approvals for necessary items and services. The investment plan will support the project with any acquisition. After it gets completed, the project manager will have sent the investment approval request to all the stakeholders.
Budget Measurements and estimates
This phase of the project is the most important because it has to be appropriately done with cost performances. The project manager has to work with performance data, like deliverables, and cost-schedule estimates. Developing the budget analysis, and performance reviews will help conduct the project in the right direction. In this step we will compare the current cost performance against the planned amount of financial resources discussed in the project budget. In case of any deviations, it is necessary to make formal changes request to modify the budget with approvals.
After all the changes have been done, the project manager can proceed with the update of the budget plan sheet to make any deviations, or changes to the original break down structure of financial resources. In the update, we can make changes to the cost estimates, cost performance, resource activity estimates, and the cost management plan.
My management guide. (2010-2014). Retrieved from http://www.mymanagementguide.com/project-budget-and-financial-resources/ Project Management Docs. (2014). Retrieved from http://www.projectmanagementdocs.com/project-planning-templates/work-breakdown-structure-wbs.html