I. Project budget
Project budget generally refers to the budget prepared by non-profit organizations (such as government agencies, schools and hospitals). ) according to their service items. The project budget is different from the traditional budget. The traditional budget is the annual budget compiled by the working department according to the cost expenditure items. The project budget is usually not limited to one year, and it is based on the total cost allocated to each project.
For example, the project budget compiled by the outpatient department of a hospital is not classified by cost items such as salary and material consumption, but by service items such as children's medical care, adult medical care and aftercare after illness. Only in this way can the real cost be displayed and the economic responsibility can be easily distinguished. It is convenient for cost control and evaluation and examination of the results of various project activities.
Second, the project budget law
Project budget method is basically a systematic method to seek the most effective resource allocation to achieve the goal. Because this method emphasizes the planning and realization of objectives, an expenditure is increased or decreased according to the planned project plan rather than the budget base of the functional department in the previous year, which overcomes the shortcomings of various budgets (including enterprise budgets).
Basic method:
1, top-down project budget
This method mainly relies on the experience and intuition (judgment) of middle and senior project managers. These experiences and judgments may come from historical data or actual data of related projects. First of all, the middle and senior managers of the project estimate the total cost of the project and the sub-project costs that constitute the project, and hand over the results of these estimates to the lower managers.
The purpose of this budget method is that when the cost estimate made by the upper management according to experience is decomposed to the lower level, it may happen that the lower level staff think that the upper level estimate is not enough to complete the corresponding task. At this time, the lower-level personnel may not express their true views, or they may not discuss with the upper-level management rationally, so as to get a reasonable budget allocation plan.
2. Bottom-up project budget
The bottom-up approach requires the use of WBS to carefully check the time and budget of all work tasks of the project. Initially, the budget is for resources (team members' working hours and raw materials), and then it is converted into the required funds.