Executive Summary: The Budget Process

Name: Qian Guo
Course: MGT609WS-W1
Instructor's name: Dr. Alan C. Maltz
Week 7 Summary
In week 7, we have talked about the development of project budgets. Project implementation focuses on the project budget and authorizes the Pproject Mmanager to obtain resources required to begin work. There are different budget techniques and what budget technique will be used will depend on the project type. Budgeting techniques include:
A Ttop-down approach is based on collecting the judgments and experiences of top and middle managers, and available past data concerning similar activities. The advantage of this strategy is that aggregate budgets can often be developed quite accurately, and small yet costly tasks do not need to be individually identified.

Senior managers see the bottom-up process as risky and they tend not to be particularly trusting of ambitious subordinates who they fear may overstate resource requirements. They are reluctant to hand over control to subordinates whose experience and motives are questionable.
After explaining the budget techniques, we have some areas for discussion. The first question is about the budget process for the projects that you have been involved with. In my past projects, once we finished the final design of a project we moved on to the budgeting process. In a budgeting process, we count each part of the product to estimate the total cost of the project. Then we add up the labor cost and an extra 10% left over in case of any unexpected event. The final budget we proposed would be reviewed by our supervisor to make the final

When making a budget for a project, we would build in an extra 10% to ensure it covers any unforeseen event. Then in processing the project, any cost must be accounted clearly. Every team member should be informed of the current usage of all resources. Then the listed usage should be accessible to everyone at any time. The project manager should also keep forecasting the cost as the project processing. The project manager should also consider backup plans for the project to ensure the projectit will end within the budget limitation. There are four ways to keep budget planning from becoming a game. The first is the sSteer clear of too-precise estimates, which can imply the total time taken to finish the project is a reality and not an estimation. Stakeholders could deal with business choices by considering these evaluations. The second way is considering leverage cost-estimating experts. These specialists play an important role in defining work, or scope, of the project. The third way is giving stakeholders a behind-the-scenes look that indicatesing to the stakeholders the points of interest behind your estimation and how this was accomplished. This gives them the certainty that you will have the capacity to deliver. The last way is keeping on open dialogue with stakeholders. It is very import to continue the communication with the stakeholders about the estimates and minor changes