Page 105 - Budgeting for Managers

Budgeting for Managers
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Next, we walk through each group of steps. If we do each
step, in order, will we reach the desired result? Is anything miss-
ing? Last, we repeat that with larger groups of steps, walking
through every milestone to see that we get the job done with
nothing missing. We can think of milestones as steppingstones
we use to cross a river: Are all the stones there? Are they firm
(clearly defined and not wobbly)? If so, we can cross to our goal
on the other side.
Proofreading, Formatting, and Numbering
When our work plan is all done, we’ll want to check for spelling
errors and clarity. We might also want to add numbers to each
step. The numbering system matches the levels of the outline.
The big items on the margin are numbered 1, 2, 3 .... Under
each item, we have secondary numbers. For example, the
items indented under item 2 are numbered 2.1, 2.2, 2.3 .... If we
have a third level under some items, we start a third numbering
series beginning, for example, with 2.3.1. Renumbering can be
a pain, even when using an automated outline numbering sys-
tem, so it’s best to add the numbers when the list is done and is
unlikely to change.
This chapter is almost finished and we haven’t talked about
our project budget yet. This actually makes sense. Project
budgets come from project work. Most project budget errors are
really the result of incomplete work plans. If the plan is correct
and complete, then the budget is easy to make, as we’ll see in
the next section.

Calculate the Cost

The estimated cost of a project is the cost of the work to be
done plus the cost of whatever we need to buy to do it.
Our first step is to estimate the time it takes to do each task.
We ask the worker how long it will take to do each task. It’s good
to ask for a minimum and maximum and then pick something a
little above the middle. If the worker has never done the task