Budget: how does it work???

[Vit]

Hi all,

I'm trying to better understand how the budget fields work...

I have lokked at the follow : http://office.microsoft.com/en-us/project/HA101632951033.aspx?pid=CH100666641033

but why I have to allocate the budget at the project level???

I tought that I I can use the budget could be calcolated as the
ammount of work and cost for every tasks...

I'm confused... can someone please expalain me ho it works???

how can I use a budget for every tasks?????

thank you so much!!!!

Vit

 

[Rod Gill]

Not very well!

Budget is intended as a first guess long before any detail has been
developed, hence the assignment to the project level only. Once you have a
schedule set, you can save to a baseline (Tools, Tracking, Set Baseline).

--

Rod Gill
Microsoft MVP for Project

Author of the only book on Project VBA, see:
http://www.projectvbabook.com

 

[Vit]

Not very well!

Budget is intended as a first guess long before any detail has been
developed, hence the assignment to the project level only. Once you have a
schedule set, you can save to a baseline (Tools, Tracking, Set Baseline).

--

Rod Gill
Microsoft MVP for Project

Author of the only book on Project VBA, see:http://www.projectvbabook.com














- Show quoted text -

ok ,now it make sense... thanks!!!

I have just to guess adout the all project.... right???

another question.... with MS Project 2007, wher can I insert the value
of a cost resource????

Thank you so much!!!!

Vit

 

[Jan De Messemaeker]

Hi,

In most companies I have worked with and for, budget is set by Big Brother
regardless of any calculation. It is the amount you are allowed to spend,
not what you think you need.
The fact to set budget at Project level is consistent with that practice.
Hope this helps,

--
Jan De Messemaeker
Microsoft Project Most Valuable Professional
+32 495 300 620
For availability check:
http://users.online.be/prom-ade/Calendar.pdf

 

[Rod Gill]

Cost Resources are great! Show the Assign Resources Dialog (Alt+F10) ,
select the task then simply enter a cost in the Cost column of the Assign
Resources dialog.

--

Rod Gill
Microsoft MVP for Project

Author of the only book on Project VBA, see:
http://www.projectvbabook.com

Not very well!

Budget is intended as a first guess long before any detail has been
developed, hence the assignment to the project level only. Once you have a
schedule set, you can save to a baseline (Tools, Tracking, Set Baseline).

--

Rod Gill
Microsoft MVP for Project

Author of the only book on Project VBA, see:http://www.projectvbabook.com














- Show quoted text -

ok ,now it make sense... thanks!!!

I have just to guess adout the all project.... right???

another question.... with MS Project 2007, wher can I insert the value
of a cost resource????

Thank you so much!!!!

Vit

 

[Steve House]

Jan is right in that he describes how budgets usualy work in a firm,
unfortunately. But "budgets" in projects are the projected expenditures
that will be required to complete the tasks. We have a painter painting 400
square feet of wall using a paint sprayer that can lay down 10 square feet
of paint per hour. It will take him 40 man-hours to paint that space and
there's not a damn thing we can do about it. To get it done with less
labour, our only option is to only paint part of the space and leave the
rest bare. If we can't reduce the required deliverable, and we usually
can't, then it will take 40 man-hours, engraved in granite by Mother Nature
and the physics of paint. If our painter earns $10 per hour, the projected
cost of that task is $400, also engraved in granite. If we don't spend
$400, we don't complete the task - it's as simple as that. So $400 is the
budget for the task. Top-down budgets - the money allocated to us by senior
management - isn't really a budget of expenditures at all. Instead it is an
expected distribution of revenues - we think that 6 months from now, when we
need to paint the room, we will have had sufficient income so we'll have at
least $400 in the bank with which to pay the painter. If management have
given us at least $400 to play with, we're golden and we have a chance of
succeeding. If they've only given us $200 and we can't negotiate an
increase up to the required level or re-invent the technology of painting so
the painter becomes more efficient, the project will fail - it can't do
anything else so update your resume.

One of the biggest myths of management is that it is possible - that somehow
the world can be changed through setting of goals and through determination.
Athletic competitions aside, it can't.