project management课件(part4).pdfVIP

Chapter 6. Project Budgeting • §6.1 Introduction • §6.2 Budget preparation • §6.3 Presenting the budget §6.1 Introduction • Project Budget specifies the activities and their costs so as to achieve its objective and fulfil all requirements to complete the project. • Three tiers of budgets: − Long-range, organization-level − Midrange, functional unit − Operational, project based. §6.1 Introduction • Three processes in preparing the budget: − Top-down budgeting ∗ Long-range budget is developed by the top management, and then passed to the functional managers and project managers who will develop the functional and operational budgets. §6.1 Introduction − Bottom-up budgeting ∗ Project managers prepare his/her budget proposal that supports efficient and on-schedule project execution. ∗ Functional managers prepare the budgets for their units, considering the resources required in each period of time. ∗ Top management streamlines and integrates the budgets from the low levels into a strategic long-range organizational budget. §6.1 Introduction • Iterative budgeting − A combination of the above two §6.2 Budget preparation • The budget of a project specifies the scheduled expenditures and scheduled revenue as a function of time. • Two approaches are used to determine the budget for a project: ♣Slack management -- An approach that utilizes the slacks of activities to meet the organizational budget requirements. ♣Crashing -- An approach that attempts to shorten an activity duration by adding more resource, so §6.2.1 Slack management • Development of the budget of a project