PM Earth

Project Management Consulting Preparing Bugets

29 December 2008

Project Management Consulting Preparing Bugets

Prepare Budget

To prepare the budget, the PMO Manager does the following:

1.         He reviews the charter, with a focus on the Tactical Mission, the Approach to Execution, and the internal structure where staff roles are defined.

2.         He prepares a spreadsheet using the Human Resources section of the  Budget template. He defines the full-time equivalent (FTE) time needed for each staff role. He then determines an appropriate salary for each staff role.

3.         The spreadsheet multiplies the time needed by the FTE salary to determine the annual cost for each role. It also totals these to present the total budget for staff, also called the human resources budget.

4.         The PMO manager prepares a budget for expenses using the Other Expenses section of the  Budget template, considering cost of premises, cost of computer equipment and software, and other factors.

5.         The spreadsheet presents this as a total budget with two components: human resources; and expenses.

The Project Manager should check his work carefully and have someone else proofread it. It is also appropriate to have the PMO sponsor and other concerned executives review the budget.



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