Determine Budget
Figure 17: Determine Budget: Inputs, Tools and Techniques, and Outputs. Reprinted from "A Guide to the Project Management Body of Knowledge (PMBOK Guide), (5th Edition)" by Project Management Institute, 2013, p. 208. Newton Square, PA: Project Management Institute, Inc. Reprinted without permission
Figure 17: Determine Budget above depicts all the possible inputs tools and techniques resulting in Cost baseline, Project funding requirements and Project documents updates.
7.3 Determine Budget
Process Definition
The budget is a conglomeration of plans which breaks down all the activities and work packages into measurable units. The budget itemizes each of these activities and appropriates the necessary funds with possible scope constraints to control expenditures through legal or procedural agreements and provides mechanisms to measure the initial baseline budget against the actual expenditures. A good budget will account for additional unrealized requirements and budget for these through contingency and management reserves. Figure 16: Determine Budget below depicts all the possible inputs tools and techniques resulting in Cost baseline, Project funding requirements, and Project document updates.
Process Assessment
Budgets are important to projects in measuring how well or how poorly upfront activities and work packages were developed and estimated. The budget tracks all defined requirements known. Additional requirements assessed and approved by a change control board now go through all planning processes before being funded. The budget adds and accounts for the approved requirements and re-baselines the budget. The appropriate funds are released to act upon these new work activities. Budgets need accountability or are riddled with unauthorized scope changes, which will wreak havoc on all aspects of the project.
Determine Budget
7.3.1
Input
In PGMT 614, this input to the WBS dictionary is broken down into bite-size work packets which makes it easier to break down the component costs.
7.3.2
Tools and Techniques
In PGMT 612, determine budget summary it is important to measure cost performance index and the schedule performance index against the established project baseline. Further, down the page added from PGMT 502 is a dashboard, a tool that further measures project performance, utilizing more formulas and reporting periods as the project progresses. These tools and techniques quickly communicate project health.
7.3.3
Outputs
Cost Performance Baseline 502:
In PGMT 502, Paws for Adoption measurements are generated as outputs based upon internal completion of the project against the baseline schedule developed internally against actual work completed measuring planned value, actual value, cost performance Index and schedule performance index.