Budget Analysis: Total Budget, Project Phases & Cost Breakdown

Project Budget Breakdown

What is your total budget for this project? Does this budget make sense?

The total budget that is estimated for this project is around $74,808. The budget that is needed for completing each of the activities of the project is shown in the table below. The budget that is required for completing the initiation phase of the project is around $8,800 whereas the budget that is needed for the planning phase is $24,736. Similarly the budget that is needed for the execution phase is around 25,736.  It is identified that it is quite important to complete the entire activities of the project within the budget that is estimated. If the project will be completed within the assumed budget then the organizarion will not face any type of financial crisis or problems.

Yes, the budget of the project that is estimated makes sense. It is identified that the estimated budget of the project is around $75,000.00 and the budget that is required for completing each of the activities of the project is around $74,808. Thus, it can be analyzed that the entire project will be completed within the budget that is estimated which further achieves one of the activities of the project. The project manager will be able to complete the project within the budget that is estimated because they manage the activities of the project properly and maintains proper tracking in order to monitor whether the project is completed on time or not. This helps in ensuring that the project is progressing by utilizing the correct time. If the project is not managed on time, the budget of the project will increase (Khamooshi & Abdi, 2016).  In addition this, the project manager analyzes the cost of the equipments as well as other requirements of the project properly so that the budget of the project does not exceed the estimated budget of the project. Moreover they found cheaper contracts, resources in order to complete the project without compromising the project quality. The number of days that is needed for the project is also shortens as per the needs so that the project can be completed within the budget that is estimated without creating any financial risk for the organization.
Essay Question #2: What can be done to lower the budget and reduce the project’s duration?

 Cost is considered as one of the important factor for measuring the success of the project. The project manager who is able to deliver the project on time and within the estimated budget is in high demand. It is identified that there are number of ways in which the project manager can be able to lower the budget of the project. The set of cost cutting measures that are elaborated below helps in making changes that further assists in keeping the project on target for its original schedule, cost as well as scope objectives.

Importance of Managing Project Budget

 Finding cheaper contracts: It is identified that one of the best way of lowering the cost of the project is to solicit proposal from different bidders. The contractors are quite quick in discovering that whether they have competition and can be able to adjust the project cost accordingly. It is very much important to open the contract to different sub contractors and the best one must be selected (Fleming, & Koppelman, 2016). As time is considered as money, it is quite important to research the past performance of the companies and they must go with the organization that has on-time delivery reputation. It is analyzed that the specialized companies can be able to work quite faster and they are cheaper even at high rate.

Finding cheaper resources: The companies generally hire recent college graduates though they require training because they are quite cheaper as compared to experienced workers. In order to assign cheaper resources for the project, it is quite beneficial to break up log sequence of tasks into smaller tasks and then cheaper resources must be assigned to the tasks that are small (Verweij, 2015). It is found that short tasks are quite helpful in providing flexibility in context to resource assignments.

Shorten the duration of the project: It is quite important to optimize the schedule of the project by reducing the, longest path. If the project manager is able to shorten the duration of the project then the labor expense of the project can be reduced (Huet et al., 2014). In addition to this, cost associated with other facility as well as other administrative operation needs to be minimized.

 Preventing overtime work: If the overtime work of the project are considered the in this situation, it is quite important to determine the higher priority time, cost as well as limit overtime must work accordingly (Kendrick, 2015). 

Smoothing workloads: If the workload of the resources is smoothen then the hidden cost of the resources can be reduced. A smooth workload is also helpful in reducing unproductive effort that is generally produced from an erratic schedule.

Re-examining effort estimates: The needed duration of the project must be reexamined for shortening the schedule of the project that further helps in reducing the cost (Ghaffari, Sheikhahmadi, & Safakish, 2014). This generally needs some type of renegotiation with the team members as well as resource managers.

 The duration of the project can be reduced by following some of the methods that are elaborated below:

Ways to Lower the Project Budget

  Keeping track on utilized time for eliminating time wasters: When working on the next project, it is quite important to set a timer in order to complete a given project (Sahu & Sahu, 2014). Tracking should not only be performed on the steps of project completion but also on the activities that are not associated with the project.

 Creating agenda or proper system to follow: It is quite important to make weekly or daily lists including details of each item in order to cross off each task after accomplishing (Bryde, Broquetas & Volm, 2013).  This not only helps in allowing an individual to feel good but also helps in ensuring that one is preceding with the project activities in correct time.

Collaborating as well as delegation: The work of the project must be split up so that the individuals who are weak in specific area does not have spend their time on completing that part of the project when someone who strong in that particular areas is present in the project team (Yan, Zhang & Zou, 2016). In addition to this, strength as well as weaknesses must be discussed with the project teams so that the responsibilities of the project can be distributed as per the strengths of the individuals so that it can be completed on time.

 Understanding the procedure of work: It is quite important for the project team members to work in different environment (Beklemishev, 2013).  It is identified that after working in different environment they will get knowledge about which environment is suitable for them.

Proper meetings with the team members: The project manager must arranges meetings with the team members on a weekly or monthly bass in order to understand their problem. This meeting is arranged so that the team members can share their views about the complexity they face in the project (Khamooshi & Abdi, 2016).  If their problems are reduced then it will be quite easier for them to complete the entire project on time.

References

Beklemishev, A. (2013). Novosibirsk project of gas-dynamic multiple-mirror trap. Fusion Science and Technology, 63(1T), 46-51.

Bryde, D., Broquetas, M., & Volm, J. M. (2013). The project benefits of building information modelling (BIM). International journal of project management, 31(7), 971-980.

Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management. Project Management Institute.

Ghaffari, M., Sheikhahmadi, F., & Safakish, G. (2014). Modeling and risk analysis of virtual project team through project life cycle with fuzzy approach. Computers & Industrial Engineering, 72, 98-105.

Huet, K., Toqué-Tresonne, I., Mazzamuto, F., Emeraud, T., & Besaucèle, H. (2014, May). Laser thermal annealing: A low thermal budget solution for advanced structures and new materials. In Junction Technology (IWJT), 2014 International Workshop on (pp. 1-6). IEEE.

Kendrick, T. (2015). Identifying and managing project risk: essential tools for failure-proofing your project. AMACOM Div American Mgmt Assn.

Khamooshi, H., & Abdi, A. (2016). Project duration forecasting using earned duration management with exponential smoothing techniques. Journal of Management in Engineering, 33(1), 04016032.

Sahu, K., & Sahu, M. (2014). Cost & time and also minimum project duration using alternative method. International Review of Applied Engineering Research, 4, 403-412.

Verweij, S. (2015). Achieving satisfaction when implementing PPP transportation infrastructure projects: A qualitative comparative analysis of the A15 highway DBFM project. International Journal of Project Management, 33(1), 189-200.

Yan, Q., Zhang, Q., & Zou, X. (2016). A Cost Optimization Model for Multiresource Leveling Problem without Project Duration Constraint. Discrete Dynamics in Nature and Society, 2016.

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