Page 107 - Budgeting for Managers

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Budgeting for Managers
See
Notes
Method
Work Time
In-house staff
3, 10
task, total the results,
project costs at
multiply by rate
departmental level
3
Negotiate contracts if
Consultants and Often not counted in WBS, estimate time per Chaps
Tasks defined in WBS, get
Contractors possible the right people for the
Use WBS to define job, job
deliverables, and Get bid or estimate from
production schedule vendor
Purchasing
Direct Materials For example: photos from Each item from WBS: 3
advertising consultant; What do I need to include
paper, cover stock, and in the product?
staples included in printer's
price quote
Indirect Materials Includes tools, equipment, Estimate cost, get bids for 3
and anything used up and large items
disposed of
For example: might need
to buy a computer
program to manage mailing
lists
Table 5-4. The Project Budget Summary
Manager’s Checklist for Chapter 5
❏ Always create a project plan first, then build the estimate
and budget from the plan.
❏ Projects without written plans fail: people aren’t on the
same page. Know your purpose, set your goal, and know
where you’re starting and what problem you’re trying to
solve.
❏ Remember the six keys to project success. If you do lots of
projects, make a copy and put it on your desk.
❏ Teach everyone on your team how to plan their work with
visualization plus questions.
❏ A project budget has four elements: cost of internal labor,