Budget

Definition

Budget

the management work product that documents the financial information concerning an endeavor or center

Objectives

The typical objectives of a budget are to:

• Document the planned cost of the endeavor or center in terms of its elements.
• Document the actual cost of the endeavor or center in terms of its elements.

Benefits

The typical benefits of a budget include:

• Enabling management to obtain the funding for the endeavor or center.
• Allowing management to control the costs of the endeavor or center.
• Minimizing endeavor risks related to cost overruns.

Contents

A budget typically has the following contents:

• Planned Costs
• Actual Costs
• Summary of Financial Status
• Appendices:
  • Major Issues
  • TBDs
  • Assumptions

Stakeholders

A budget typically has the following stakeholders:

• Producers:
  • Management Team:
    • Contact Center Management Team
    • Data Center Management Team
    • Program Management Team
    • Program Management Team
    • Project Management Team
    • Reuse Center Management Team
• Evaluators:
  • Management Inspection Team
• Approvers:
  • Management Team:
    • Contact Center Management Team
    • Data Center Management Team
    • Program Management Team
    • Program Management Team
    • Project Management Team
    • Reuse Center Management Team
  • Technical Leader
  • Customer Representative
• Maintainers:
  • Management Teams:
    • Contact Center Management Team
    • Data Center Management Team
    • Program Management Team
    • Program Management Team
    • Project Management Team
    • Reuse Center Management Team
• Users:
  • Management Team:
    • Contact Center Management Team
    • Data Center Management Team
    • Program Management Team
    • Program Management Team
    • Project Management Team
    • Reuse Center Management Team
  • Organization:
    • Customer Organization
    • Subcontractor Organization
    • Vendor Organization

Phases

A budget is typically produced and maintained during the following phases:

• Business Strategy: Completed
• Business Optimization: Completed
• Initiation: Completed
• Construction: Completed
• Delivery: Completed
• Usage: Completed
• Retirement: Archived

Preconditions

A budget can typically be started if the following preconditions hold:

• The contract has been signed.
• The statement of work (SOW) is approved.
• The mission statement is approved.
• An initial master schedule is available.
• An initial application vision statement is available (if the endeavor involves an application).
• The management team is properly staffed and trained in the cost management task.

Inputs

A contract typically has the following inputs:

• Work Products:
  • Contract
  • Statement of Work (SOW)
  • Mission Statement
  • Master Schedule
  • Application Vision Statement
• Stakeholders:
  • Project Manager
  • Technical Leader
  • Customer Representative
  • Subcontractor Representative
  • Vendor Representative

Guidelines

• A budget should be a living document that evolves as the scope of the endeavor evolves.
• Use the procedure in the associated work flow to produce this work product.
• If you tailor this work product, then tailor its associated standard, template, and inspection checklist.

Conventions

A budget is typically constrained by the following conventions:

• Work Flow
• Content and Format Standard
• MS Word Template
• XML Template
• Inspection Checklist

Examples

• Example Budget