Today I am hosting a post written by Mr. Jason Westland, the CEO of www.projectmanager.com , who has 15 years experience in the project management industry.
They were generous enough as well to offer 3 free licenses of their project management software to my interested readers (worth 495 USD each). Whoever is interested, please send me your email and full name and I will conduct a draw. Three lucky winners will win a free license of their software
I was so happy when he contacted me and asked to publish articles in my blog, so here is the article as written by him:
If you need to deliver projects on time and under budget, then you have to have a Project Financial Program to made you do it. Producing this programme is not a simple task, but by learning this article you can learn out how to execute it in four simple steps.
How to create a Project Financial Program
Step 1: Number the Financial Expenses
The best measure needed when specifying a Financial Design and placing a project budget, is to identify all of the varieties of expenses that are probably to be obtained throughout the Project Lifecycle.
Typically, most projects drop the majority of their budget on purchasing, leasing, renting or contracting the resources to the design (e.g. labor, equipment and materials). Yet other sorts of expenses found may take those associated to the:
- Procurement of resources from providers
- Formation of a Project Place
- Governance of the project
Step 2: Quantify the Financial Expenses
Once you have placed a particular list of expenses to be acquired throughout the project, the next way is to calculate the unit cost of every expense type listed. The unit price is merely the price of a single unit of a certain expense particulars. For instance, the total cost for:
- labor may be figured as the value every 60 minutes supplied
- equipment may be guessed as the lease value per day
- materials might be figured as the purchase cost per quantity
After numbering the unit value, you should estimate the complete sum of every expense item needed to undertake the project. For instance:
- Identify the number of uses necessary
- Quantify the items of equipment required
- Discover the sum of materials required
- Quantify the procurance particulars to be sourced from suppliers
- Figure out the organization value the project
Step 3: Make an Expense Schedule
You have nowadays collated each of the info involved to form a particular expense agenda. This schedule enables the Project Manager to estimate the complete price of undertaking the project on a daily, weekly or monthly ground.
To create an Expense Schedule, form a board which numbers all of the expense types down the left hand side of page, and all of the weeks in the yr across the page. Then distinguish for each week and for each expense sort, the total of financial expenditure to budget. Once finish, you can add up all of the expenses for whatever certain week to increase a weekly budget for the total project.
Of course you may want to estimate a daily, monthly or yearly prospect, depends upon your particular project need. Likewise don’t forget to number some presumptions taken during the creation of this Financial Plan. For example, it may be assumed that:
- “The project delivery dates will not change during this project.”
- “The unit value calculated are exact to within 5%.”
- “The funds listed by this programme will be accessib as needed.”
And lastly, list whatever constraints identified during this financial planning operation. For example:
- “Limited data was accessible when recognizing costs”
- “A marketplace shortage has resulted in a higher labor amount”
Step 4: Specify the Financial Operation
Now that you have created your Expense Agenda, you have to determine the procedure for monitoring and controlling expenses (i.e. costs) all over the Project Lifecycle. Set the Cost Management Form for your project by documenting the:
- Function of the process
- Steps taken in undertaking the operation
- Uses and duties involved in undertaking the operation
- Guides utilized to backup the process
And there you made it! By finishing these measures, you can make a particular Financial Plan to assist you deliver on time and reasonable budget..
They were generous enough as well to offer 3 free licenses of their project management software to my interested readers. A single license costs 495 USD. Whoever is interested, please send me your email and full name and I will conduct a draw. Three lucky winners will win a free license of their software
Jason Westland has 15 years experience in the project management industry. From his experience he has created software to help speed up the management process. If you would like to find out more information about Jason’s online project management software “http://www.projectmanager.com“