Your budget is the cost of your project. What do you expect to spend on the planned workload? How much money are you investing in the project?
When projects go over their original budget, it's almost always due to poor planning. You need to identify every possible expense (labor, materials, design, testing, etc.), estimate the cost of each line item, and also plan for the possibility that something will go wrong.
To avoid budget overruns, it's important to build reserves into your budget, not only in case unforeseen costs arise, but also in case your estimates turn out to be inaccurate.
Most experts recommend setting aside 10-30% of the project budget. If the project is particularly important, it is advisable to add an additional budget to manage risks.
Budget is related to the other success criteria mentioned in complex ways. If it is the biggest limiting factor (as is often the case) and your actual costs begin to exceed your planned expenditure, you will need to make compromises in schedule, project scope and/or customer satisfaction to balance the costs.
THE RISK: Last year, according to the 2018 Pulse of the Profession study by the Project Management Institute (PMI), 43% of projects were not completed within their original budget.
How to monitor budgets: To accurately monitor budgets, you need automated tools korea telegram data not spreadsheets. Consider creating an expense database to more accurately estimate project costs in the future.
planned value
actual costs
completion value
Cost Performance Index : Earned Value (EV) / Actual Cost (AC)
Project success criteria: Adhere to the project schedule and budget
Displaying performance analyses on time and materials in Mavenlink (
source )
4. Achieving business goals
Achieving business objectives is about how well your project performs against the business case. Did it deliver the expected benefits (tangible and intangible)? Did it deliver the expected return on investment (ROI)?