Skip to main content

How to overcome from project challenges? - 4) Budgeting issues

Most managers consider financial issues as one of the biggest hurdles in effective project management.

Finally every project boils down to MONEY.

If you had a bigger budget, you could probably get more people to do your project more quickly and deliver more.

That's why no project plan is complete until we get the correct budget.

But no matter what it is, as a project manager we need to use the Cost Management process to over come from the budget challenges.

Cost management process involves below steps:


1) Create Cost management Plan
You need to plan out all the work you will do to make sure your project doesn't cost more than you have budgeted. This will be the input to the determine the budget.
2) Estimate Cost
Estimate cost is based on scenarios how much it will cost or how much time it will take to complete or how many resources required to complete.
Estimate the costs using the tools like Rough Order of Magnitude (ROM), ballpark estimate, if you are using scrum project you can use story point estimation techniques.
3) Determine Budget
Once the cost is estimated budget will be determined based on below inputs:
  • Cost management plan
  • Basis of estimates
  • Activity cost estimates
  • Risk
  • Agreements
  • Resource experience/salary
  • Project schedule
  • Project scope
  • Organizational process assets
4) Control cost:
Control cost is similar to how we control schedule.
When something unexpected is coming, you need to understand it's impact on your budget and make sure that you react in the best way for your project.
Control cost is all about knowing how you are doing compared to your plan and making adjustments when necessary.



    

Comments

Post a Comment

Popular posts from this blog

Certified Enterprise Architect Professional (CEAP) - Module 5 - Architecture Frameworks

Architecture Frameworks: An Architecture Framework is a theoretical structure that has the purpose of developing, executing, and maintaining an Enterprise Architecture. Advantages of EA framework: Simplify Breaks down areas of the business process Organise business components and create and identify relationships between business Determine the scope Customization in the existing framework Disadvantages of EA framework: Need to follow process Provides only direction and not information It's based on goal and objective Need creativity and proactive thinking Zachman Framework: The Zachman Framework is a widely used model in Enterprise Architecture (EA) that provides a structured way to classify and organize an organization's information infrastructure by defining different perspectives from various stakeholders, allowing for a holistic view of the enterprise and facilitating alignment between business needs and technology solutions; essentially acting as a template to organize arc...
Post a Comment
Read more

Daily Agile Scrum stand-up meeting guidelines

Followers of the Scrum method of project management will typically start their day with a " stand-up meeting ". In short, this is a quick daily meeting (30 minutes or less) where the participants share the answers to the three questions with each other: • What did I accomplish yesterday?  • What will I do today?  • What obstacles are impeding my progress?  Some people are talkative and tend to wander off into Story Telling .  Some people want to engage in Problem Solving immediately after hearing a problem. Meetings that take too long tend to have low energy and participants not directly related to a long discussion will tend to be distracted. These are the minimum number of questions that satisfy the goals of daily stand-ups. Other topics of discussion (e.g., design discussions, gossip, etc.) should be deferred until after the meeting.  Here are few tips for running a smooth daily meeting:  • Everyone should literally stand-up and no one should sit down ...
Post a Comment
Read more

Certified Enterprise Architect Professional (CEAP) - Module 4 - Architecture Precursors

 Architecture Precursors: Precursors to modern Enterprise Architecture (EA) include early frameworks like IBM's Business Systems Planning (BSP), which focused on aligning business strategy with information systems, as well as other Information Systems (IS) architecture methodologies that emerged in the 1970s and 80s, emphasizing the connection between business processes and IT systems, laying the groundwork for the holistic view of an organization that EA represents today; the "Master Plan for Information Systems" by Evans and Hague is also considered a foundational concept in this area. Drivers: internal / external pressure enforce to change the system Aims & Directives: Aims:  Goals Objectives Requirements Directives: Principles (example: Principles can be associated with business, data, applications, infrastructure, or security) Policies (example: Members of the public have minimal access to data) Business Rules (example: A rule directs and restricts a procedure)
Post a Comment
Read more