7 Inputs For Determine Budget Process For Projects
In my previous articles, I have talked about some of the tools and techniques for estimate budget for projects. Now, I want to look at seven inputs that can be used when you need to perform determine the budget process for projects. Follow me as we look at some of these tools together in this article.
Now the tools for determining budget process…
#1 Project Management Plan
The project management plan subsidiary plans that are needed for determining the budget for projects include:
Cost management plan: The cost management plan describes how the project costs will be structured into the project budget. This examines how the money will be raised for project execution as well as how they will be spent on the project deliverables.
Resource management plan: The resource management plan provides information on the rates, which includes personnel and other resources, estimation of travel costs, and other foreseen costs that are necessary to estimate the overall project costs.
Scope baseline: The scope baseline includes the project scope statement, WBS and WBS Dictionary details for cost estimation and management for the project.
#2 Project Documents
Examples of project documents that are considered as inputs for this process include:
Basis of estimates: These are supporting details for cost estimates contained in the basis for estimates that should specify any basic assumptions dealing with the inclusion or exclusion of indirect or other costs in the project budget.
Cost estimates: Cost estimates for each activity within work packages are aggregated to obtain a cost estimate for each work package for the project.
Project Schedule: The project includes planned starts and finished dates for the project’s activities, milestones, work packages, and control accounts. The information can be used to aggregate costs to the calendar periods in which the costs are planned to be incurred.
Risk register: The risk register should be reviewed to consider how to aggregate the risk response costs. Updates to the risk register are included with project documents updates.
#3 Business Documents
The business documents that can be considered as inputs for this process include:
Business case: The business case identifies the critical success factors for the project includes financial success factors for the project, which must be considered when determining the budget for the project.
Benefits management plan: The benefits management plan includes the target benefits, such as net present value calculations, timeframes for realizing benefits, and the metrics associated with the benefits.
#4 Agreements
Applicable agreement information and costs relating to products, services or results that have been or will be purchased are included when determining the budget for the project.
#5 Enterprise Environmental Factors
The enterprise environmental factors that can influence the estimate costs process include exchange rates. For large projects, that extend multiple years with multiple currencies, the fluctuation of currencies needs to be understood and built into the determine budget process.
#6 Organisation Process Assets
The organisational process assets that can influence the Determine Budget process include existing formal and informal cost budgeting related policies, procedures, and guidelines. Historical information and lesson learned repository, cost budgeting tools and reporting methods for the project.
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