Paris kermanshahiMBA Student| Santa Clara UniversitySanta Clara, Ca, United States
Hi my friends,
I hope you are well, I have got a couple of questions that need your advice.
1- How to do you manage budget for a program? what tools do you use? (e.g do you create a separate budget excel sheet for each project? )
2- How do you calculate the cash flow and ROI? what tools do you use? Is it the responsibility of a project manager to do all the calculation?
Many thanks for your help in advance,
Paris Saving Changes...
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ANTRONE PORTERFacility Advisor, Project Coordinator| AlutiiqDacula, Ga, United States
Hi Paris - For your first query, may I ask does your organization have any type of software that can help facilitate your requirement? Yes, I use a spreadsheet, but with the data I pull from a system called Costpoint.
V/r,
Antrone
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1 reply by Paris kermanshahi
Sep 03, 2017 8:09 AM
Paris kermanshahi
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Hi Antrone, thanks for your reply, we dont have any software, it is a start-up company.
Saving Changes...
Paris kermanshahiMBA Student| Santa Clara UniversitySanta Clara, Ca, United States
Aug 29, 2017 2:33 AM
Replying to ANTRONE PORTER
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Hi Paris - For your first query, may I ask does your organization have any type of software that can help facilitate your requirement? Yes, I use a spreadsheet, but with the data I pull from a system called Costpoint.
V/r,
Antrone
Hi Antrone, thanks for your reply, we dont have any software, it is a start-up company. Saving Changes...
Chevine AndersonAVP of Project Management| VensureLithonia, Ga, United States
Hi Paris,
1. To manage a budget for a program, I work with my components so that I can produce an aggregate of cost before the baseline. The uncertainty in cost is in the components; you will need to work with each business case/proposal for your projects and the program to produce the financial framework. I use a spreadsheet, and I also use a dashboard feature in OmniPlan that aligns my components (the dashboard is different in MS Project).
2. Calculating cash flow and ROI is similar at the project level a Histogram may be produced for cash flow expenditures as components are executed during benefits delivery. Your PM software may do this for you. The responsibility of the Project Manager is to work with the Prog. Manager to produce a Component Cost Estimates along with documentation. A lot of the component/project level will be in the realm of order-of-magnitude in the beginning. As the program progresses, you may implement earned value management. Side note you will have your aggregate your risk registers to ensure that they do not influnce more than one component.
I hope that helps. Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Cash flow can be tracked in a spreadsheet. What you do is show by period, usually month' what cash will come in and what cash will go out. For example, you may receive an invoice in January but only pay it out in February. In that case, you would show the cash going out in February. The purpose of cash flow analysis to ensure that the organization does not overextend its cash investment in your project
The ROI can be measured using various techniques, such as payback period, present value, net present value. Most of these ROI techniques can be easily used in a spreadsheet. Saving Changes...
Paris kermanshahiMBA Student| Santa Clara UniversitySanta Clara, Ca, United States
Thanks all for your reply, very helpful.
It would be great if I can talk to one of you guys over Skype? Much appreciated, Saving Changes...
Ramachandran SwaminathanRegional Delivery Manager| Oracle Consulting IndiaBangalore, Karnataka, India
Paris,
You already have received very good inputs from our group members. I am adding my two cents if that makes sense
1. If your organization doesnt have any software, then you are left with excel. You can get lot of templates from projectmanagement website.Depending on the size, complexity, duration of the program you can track the budget weekly, fortnightly or monthly. For small duration programs(of less than 3 or 4 months), I would suggest to track weekly or fortnightly. If you are managing multiple programs with separate budgets assigned to them, then track separately. In cases where you are using same resources across multiple projects, track the individual project budget and also give a combined view of the projects at a portfolio leve
2. The definition of ROI would depend whether you are doing internal projects for your own organization or some consulting work to external organization. If its external, then your biggest ROI is the invoices paid so far and also you profitability to date from the project. If it is internal, it depends on lot of factors and needs a detailed discussion Saving Changes...
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