Project Management and Bottom-up Budgeting

Topics: Project management, Critical path method, Top-down and bottom-up design Pages: 8 (2429 words) Published: August 3, 2011
The final chapter focuses on what it means to be managing at the frontier by describing the uncertainty surrounding decision making. The case was made that managers can use the decision guides developed in chapter 1 as well as current and future stakeholders to serve as guidelines to help manage at the frontier. The management principles from this chapter were designed to help managers when usual management approaches seem inadequate or inapplicable to a situation. The understanding of related risks and uncertainties surrounding new frontiers due to globalization or mass commercialization were a focus of this chapter. Privacy and ownership guidelines were developed in this chapter as a matter of foundational concepts. 1.
How is critical path determined? Should the critical path activities be managed differently from noncritical path activities and if so, why? To determine the critical path of a project three major factors are required: A full list of activities required to complete the project.

The duration of each work item.
Work item dependencies.
The critical path is then determined by calculating the longest path of planned activities to the end of the project, meaning, the earliest and latest that each activity can start and finish without lengthening the project. A project can have several, parallel, near critical paths. An additional parallel path through the network with the total durations shorter than the critical path is called a sub-critical or non-critical path. The non-critical path(s) are a series of activities (paths) that can be slipped to a certain degree without threatening the completion date of the overall project. In other words, they have slack, whereas the critical path doesn't. Yes, critical path activities should managed differently as they are directly effects project schedule and its success. The Critical Path requires specific prioritization of the task and assignments to be completed within a specific time frame. Feedback between the Project Manager & the groups being managed is important so that sub-deadlines are properly met to achieve the main objective of meeting the critical main deadline with deliverables in place.

Non-Critical Path requires that the tasks are met however the priority is more flexible and the assigned task can be distributed accordingly. The procedure is not as important as in the Critical Path where the margin for error is little to none and flexibility limited. 2. Describe the budgeting process for your selected project. Was bottom-up, top-down, or program budgeting used? Who was involved in the budgeting process? How were costs estimated? What steps are in place to control costs? What steps can be taken to make controlling costs easier? In our organization, the Controller and IT director makes final decisions on what is included in the budget and what funding levels will be. But before these choices can be made based size and past project experience, information, recommendations, and preferences are provided to these decision-makers by a wide range of groups like functional managers, IT manager and outside consultant; who have an interest the project. The project was Top-down budgeting. It begins by estimating the costs of higher level tasks, and then the estimates will constrain the estimates for costs of lower level tasks. So the entire process of coming up with a budget begin with upper-level management and an overall estimate of the entire project. Then the overall budget is divided among the first level of tasks, and then the budget is divided among lower level tasks and then lower level tasks. This continues until funding has been given to all of the tasks necessary for a project. The project cost is estimated by estimating the costs of the major tasks and near major task. In order to control cost of the project some of the measures are in place like,...
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