Respond to the 3 discussion posts below in 150 words or more. use one reference for each. (dana)1. Determining a project’s budget is a complex process that involves several steps. As Gido et al. (2018) discussed it starts with the Total Budgeted Cost (TBC), which is an estimated cost for the entire project. The TBC is then followed by the Time-Phased Budget, which is the cost distribution over a period. Project managers need to make sure that the TBC aligns with the customer’s allocated funds. This may require multiple TBC configurations before reaching alignment. Once the TBC is finalized, the project manager must allocate specific funding across the entire project to ensure that each activity aligns with the budgeted costs and does not hinder project progress. To monitor project progress, project managers must keep a careful eye on actual costs and how they align with the TBC. Calculating the Cumulative Budgeted Cost (CBC), Cumulative Actual Cost, and Cumulative Earned Value can help forecast the Cost of Completion (FCAC) and determine if the project is on track. It’s crucial to avoid pitfalls such as estimates from individuals not involved in the working activity or subject area. Project managers should always leverage experts in the field when compiling estimates. These experts should be aware of the project’s scheduled target events and proactively communicate progress, enabling the project manager to analyze costs in real-time and make adjustments before they impact project timelines. Reference Gido, J., Clements, J. P., & Baker, R. (2018). Successful Project Management. Cengage Learning. (julianna) 2. What is the total budget cost: This is the aggregate estimated cost of all the specific activities to perform and complete a work package or project. Then the next step is to develop a time-phased budget (Gido et al., 2018). Allowing for the distribution of a period of the total budget cost. Keeping it on track and ensuring that the work involved is kept within the allocated budget. This is seen by actual cost, committed costs, and comparing it to the actual vs budgeted cost. It is done by keeping track of the actual cost of the project. This can be established with a system to collect on a regular and timely basis. committed Costs are funds that were purchased but not paid for yet. An example of a committed cost is hiring a contractor to do a job. The book uses the example of a contractor for the painting of a home. Before, during, and after a project it is good to analyze the cost performance of TBC (Total Budgeted Costs), CBC (Cumulative Budgeted Cost), CAC (Cumulative Actual Cost), and CEV (Cumulative Earned Value). They are all used to determine if the project is within the budget points and pitfalls. Risk factors like natural disasters, legal costs, inflation, penalties, and labor can all contribute to the budget. References Gido, J., Clements, J., & Baker, R. (2018). Successful Project Management (Seventh). Cengage. (gage) 3. Essentially, budgets are cost constraints for projects that sponsors will determine and contractors need to base the activities of the project off of this. For a project to successfully produce deliverables while remaining within the cumulative budgeted cost, it is vital for work packages to be priced out. To begin, the work packages will be priced based on how much it will cost to realistically meet the standards of completion. Once the work packages have been priced amongst the entire project, there is now a total budgeted cost. If for any reason the budgeted amount is unachievable and there aren’t solutions to reduce cost without radically reducing the project quality, one of two options must be considered. First, the project manager can discuss with the sponsor about reducing the project scope. This will reduce the resources required for completion as well as the amount of work packages included in the project. On the other hand, the project manager can also reach out to the sponsor and determine if they can provide additional budget funds. Project managers should avoid mismanaging their time when determining how they can produce the project deliverables without stepping outside of the budget constraints. The longer this takes, the less prepared the sponsor will be to make any agile decisions to assure that the project can be completed within the time-schedule. If project managers are not aware of this, the project may not be completed at all and will be a failure. The project manager should be documenting the actual costs and comparing them to the total budgeted costs that were estimated prior to the start of the project tasks. Utilizing an some sort of accounting system to track these actual costs will allow the project manager to be aware of where the project is at in terms of the budget constraints. Reference Jack Gido, J.C. (2017). Successful Project Management. Cengage Learning.
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