Скачать или смотреть 5 Tips To Create The Best Project Budget

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PM Tip, Week of 8 August 2021

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Partial Transcript:
Hey everyone, Ray here. It's time for another project management tip. During the month of August, we're going to focus at least for these initial weeks, maybe all the weeks on project cost management. So today, let's take a look at five brief tips to create the best project budget. You know, starting a project with a proper budget is one of the best ways you're going to have to manage your budget. If you don't have a solid budget, it's going to be very difficult to manage finances. So here are the five tips for creating a solid budget. Number one, develop a deep understanding of the project requirements. Know what the stakeholders really need and want, so your budget will be stronger. And don't forget to do a WBS and use the team in creating that WBS and creating the estimates. Number two, work from effort rather than duration. Now, the task level of effort is sometimes a better gauge of resource expenses. Duration, which will take into account overhead time may needlessly increase or decrease the budget. So you have to be careful, you do need to look at both. But perhaps, if your team is having trouble estimating costs, you'll think about looking at effort rather than duration. Three, include all costs. Make sure you understand all the fees, shipping fees, usage, fees, taxes and any other charges you can encounter. For longer term projects, also consider the effects of potential price increases over a period of several years, and perhaps inflation in general. Number four, no surprises. Be sure to include a reasonable amount for contingency and management reserves, so risks do not throw you completely off course later. And finally, number five, use multiple approaches and get buy in. Looking at the budget from different perspectives will help you validate you have a well developed budget. Use top down and bottom up estimating techniques. And ask for buy in, and the key stakeholders so that you get valuable feedback for adjustments. So that's it for this week's tip. Thanks again for joining us. Be sure to like, share, and subscribe if you enjoyed this video. And I'll see you next week. Take care.