IT Project Budget & Cost Management
3.7 (7 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
18 students enrolled

IT Project Budget & Cost Management

Project Management tips to manage a million dollar IT Project budget from start to finish
New
3.7 (7 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
18 students enrolled
Last updated 8/2020
English
English [Auto]
Current price: $139.99 Original price: $199.99 Discount: 30% off
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This course includes
  • 5.5 hours on-demand video
  • 5 articles
  • 11 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What you'll learn
  • Students will learn IT Project budget management from the Project Manager perspective.
Requirements
  • Familiarity with MS Excel
Description

With over 5 hours of content, this is the most comprehensive course on how to manage a million-dollar software project budget.    Please note that this course is not about construction budget management.

Gain hands-on knowledge in all the areas of managing a large project budget - from business case creation through financially closing out your project.

Information gathered is from specific past job experience - this is not a theory course but a course to teach you specific step-by-step procedures to manage your project budget.

Gain real-world knowledge of project budget management as we work through a sample project with real implications.  The sample project deals with leveraging a software development vendor to build our organization's new application on the web.

Your project management toolkit is not complete without detailed knowledge of how to manage project finances.  This online training course will give you the background to complete your toolkit.

Bonuses - Sections end with a "resources" area so that you can download bonus materials and templates based on the content of that section.

How long will it take?

With over 40 lectures and 5 hours of content, if you budget just 30 minutes a day, you can complete this course in approximately 3 weeks. 

Is it for me?

This course is for you if you want to learn step-by-step on how to manage a million-dollar budget for a software project.  Remember, this is not a "theory" course but a course to mimic as if you were managing a real-world project.  The skills you learn here can be applied to real-world projects.

What if I don't understand a topic?

As you move through the course, I will provide prompts where you can reach out to me on my website with questions or feedback.  I will PERSONALLY get back to you to answer any questions you may have.  I understand that Financial topics are sometimes tricky to understand because I was there also when I first began as a project manager.

What you’ll learn

  • How projects are initiated financially and how these finances play a major role in the project eventually being approved by executive management for execution.

  • Step-by-step estimation skills to prepare your budget for project expenses such as internal resources, contractors, hardware, software, and business travel. 

  • Step-by-step instructions on how to set up your initial project budget based on estimated expenses.

  • An examination as to how actuals are realized against your project budget.  You will also learn step-by-step how to analyze these actuals to determine if incorrect charges are appearing on your project.

  • How to use Finance performance metrics such as Earned Value (EV). Schedule Performance Index (SPI) and Cost Performance Index (CPI).  Remember, this will be based on a real-world scenario and not based on theory. 

  • Step by step procedures to do your monthly and quarterly re-forecasting for your project budget.

  • Understand the change control process so that you may make changes to your project budget whether you're over or under budget.  Also, learn step-by-step how to re-forecast once your change control is approved.

  • How to financially close out your project and give any unused funds back to the organization so that it may leverage this to fund other projects.


    Who this course is for:

  • Anyone who wants to transition from their current job role to a career in project / program management.

  • Senior Managers who are new to managing project budgets. 

  • PMO Analysts who want to understand the financial performance of projects.

  • Executive steering committee's to understand how an execution project budget works after business case approval.

  • Anyone band new to project management to understand how managing costs and budgets work. 

  • The "accidental" project or program manager.

Who this course is for:
  • Project Managers, PMO Finance Analysts, Program Managers, Procurement Analysts, Project Analysts, PMO Analysts, IT Business Partners, Financial Managers
Course content
Expand all 46 lectures 05:17:39
+ Course Introduction
2 lectures 05:05

Thanks so much for purchasing this course on IT Project Budget and Cost Management and I sincerely hope it meets your expectations.  Feel free to visit me on www.DanRiveraPMP.com to provide feedback or to comment.  I'm always looking to improve this course as it is YOUR course.

I look forward to sharing my time with you on this journey of understanding how to manage IT Project budgets.

Cheers!

Preview 02:12

In this lecture, we will go over the components of the course.  We will also discuss the content of each section of the course and what you can expect from the course.

Preview 02:53
+ How are Projects Created?
9 lectures 51:39

In this lecture, we'll get an overview of what Section 2 of the course contains. 

Introduction
01:57

This lecture presents an overview of the sample project that we will be working with.  We'll understand the scope of our IT implementation project where a new PMO Management tool is being implemented at your organization by a vendor software development company.  During the course of the project overview, we'll identify the areas where we will need a budget that will form the basis for developing our Budget model.  The development of the budget model will be discussed during the course of Section 2.

Project Overview
04:04

In this lecture, we'll discuss the capital accounts relating to the Budget Model.  We'll discuss how the budget for each of these accounts are derived and how the budget model is required for the eventual project approval. 

When the Budget Model is approved, it will become the basis for your project's budget.

Budget Model - Capital
05:54

This lecture will focus on the Operating components of the Budget Model.  We'll go over how each account was derived based on what is needed for the project.  We'll put together the entire Budget Model so that it is in a ready state to be reviewed by executive management.

Financial Model - Operating
03:32

The Business Case is the formal document that justifies why a project should be undertaken.  In this lecture, we'll discuss each component of the Business Case and how the Budget Model integrates into the Business Case.

Ultimately, the Business Case will be leveraged as one of the critical documents to present to executive management to get your project approved.

Business Case
08:20

Here, we'll go over project methodologies such as agile and waterfall and discuss how milestones are arranged for each type of project.  In addition, we'll see how each milestone has a dollar value associated with it based on the SOW agreement with the vendor.  Also, we'll take a look as to how these milestones form the high-level timeline for each type of project whether it's agile or waterfall.

Project Assessment
03:45

In this lecture, we will go over the project approval process.  This is the process that needs to be executed in order for a project to be reviewed by executive management and then approved.  Once the project has been approved, it is ready for execution and for a project manager to be formally assigned.  Please keep in mind that this process may differ depending on your organization's procedures.  This lecture covers the components typically covered in a project approval process.

Project Approval
04:29

This is the conclusion of Section 1.  In the next lecture, there are resources provided for your continued learning on the topics presented in this section.

Conclusion
01:11

In this Resources area, please add to your learning experience by leveraging the tools available on this page.

First, there is a bonus video that goes over the vendor selection process for when you are selecting the vendor you are wanting to work with.

Also, there are artifacts relating to:

  • Project Overview

  • The Business Case

  • Project Approval Process

  • Discussion on Depreciation and Write-Offs

  • Discussion on Net Present Value and Internal Rate of Return

Resources
18:27
+ Budget Planning - Part I
6 lectures 57:53

In this lecture, we'll get an introduction to what's in store for Section 3 - Budget Planning Part 1.  I'll go over the contents of this section as well as what to expect.  In the following two sections, we'll get a very good feel for what it takes to develop a project budget and a plan to manage actuals against that budget.

Introduction
01:50

In this lecture, we will discuss how resources are allocated to projects and how to estimate the costs of those resources.  Hourly Rates (based on international location), allocations, and translated costs will be considered.  It is necessary to ensure your project budget has enough funds to cover for resource costs and estimating those resource costs is the first step.

Planning for Resource Costs
17:45

In this lecture.  we'll go over the Statement of Work document (SOW) in detail and I'll explain each of the components of this critical document for vendor contracts.  We'll see how each one of the deliverables the vendor is promising will have a dollar value associated with it and how this will integrate with our overall Budget Plan.  I'll also go over with you other pertinent information in this document that will be required for eventual review with the executive steering committee, Finance, and Procurement.

SOW & Planning for Vendor Costs
26:27

In this lecture, we'll go over the Budget Plan Template in detail and introduce its components.  This budget plan will be the basis for you to manage the project's finances as we continue along with the project.  From this point forward, we will start to see how the variables we'll deal with on the project will fit into this budget plan template.

Budget Plan Template Overview
10:12

This is the wrap up in what we covered in Section 3.

Conclusion
01:07
Resources
00:32
+ Budget Planning - Part II
4 lectures 32:12

This video will go over the content of this Budget Planning Part II section.  Here we will discuss the content of this section at a high level.

Introduction
01:20

In this lecture, we will discuss each account that is associated with the Budget Plan and how those dollar amounts were derived.  We will also take a look at how Operating and Capital portions of the budget are broken out and see how the overall budget feeds from the Operating and Capital numbers.  In addition, we will discuss certain limitations when attempting to move funds between the Capital and Operating accounts. 


Budget Plan Overview - Part 1
15:10

In this lecture, we will discuss each account that is associated with the Budget Plan and how those dollar amounts were derived.  We will also take a look at how Operating and Capital portions of the budget are broken out and see how the overall budget feeds from the Operating and Capital numbers.  In addition, we will discuss certain limitations when attempting to move funds between the Capital and Operating accounts. 

Budget Plan Overview - Part 2
14:20

This lecture is the conclusion of Section 4 - Budget Planning Part II.

Conclusion
01:22
+ How are Project Costs Realized?
9 lectures 01:18:35

Section 5 will be the section where we will discuss how project costs are realized.  This is a very critical component of project budget management because if we can determine when project costs will be realized we can appropriately budget for these costs.

Introduction
01:20

In this lecture, we will discuss how we acquire internal labor resources.  Then, we'll go over the hourly rate of these resources depending on where they are internationally.  From here, we will calculate how much this resource will cost based on the hourly allocation for them on this project.  If we do this for all resources, we'll have a good picture of how much we need to budget for internal labor for a specific month. 

Internal Labor Actuals
13:09

We will analyze the costs we will realize from our software vendor.  The Statement of Work (SOW) will be leveraged to determine when milestones will be completed as well as their associated costs.  We'll discuss the importance of budgeting appropriately for the specific month where we're expecting costs from the vendor.

Vendor Labor or Hardware Costs
12:48

There are vendors working off a specific SOW for this project.  Once this project is done, that vendor will only offer operational support.  However, there are other vendors who work off a Master SOW that have signed lengthy contracts with your organization to do generalized software development work.  An example is a software vendor that has signed a 5-year contract with your organization to do development work.  During the course of these 5 years, the vendor will work on various projects for the organization.  These are "Master SOW resources" and it will be discussed in this lecture on how to handle them.

Master SOW Resources
08:32

Time and Expense charges are for resources that will book hours to your project as necessary.  Another component of Time and Expense is travel-related costs.  For our sample project, the team will realize travel expenses that they must be reimbursed for and our project budget must account for this.

Time and Expense Charges
12:53

In this lecture, we will take a time out from our regular syllabus to discuss the earned value and how projects can realize it.  Earned Value is critical for executive management to understand how the project is performing financially.  EV is also one of the leading indicators of whether the project is ahead or behind schedule.

Discussion on Earned Value
15:04

This lecture focuses on Cost Performance Index (CPI) and Schedule Performance Index (SPI).  These are the two leading indicators of how the project is performing.  We will discuss how to proactively leverage these statistics to ensure that your project is staying on track.

SPI / CPI Discussion
13:17

We conclude Section 5 with a brief discussion of what was covered and an invitation to contact me if there are any questions.  A ton of material was covered in the previous 3 sections, so now may be a good time to pause if you have questions and feel free to reach out to me.

Conclusion
01:15
Resources
00:17
+ Budget Plan Reforecasting - Monthly & Quarterly
4 lectures 40:27

A brief introduction as to what will be covered in Section 6:  How to perform budget re-forecasting on a monthly and quarterly basis.

Introduction
01:16

In this lecture, we will discuss how you can analyze all of the actuals that hit your project for a particular month.  From there, you will analyze your budget and reestimate for future months based on the costs you incurred during the current month.  Finally, we'll go into detail regarding the monthly re-forecasting process so that your budget is re-aligned for future months.

Monthly Reforecasting
20:49

In this lecture, we will discuss how you can analyze all of the actuals that hit your project for a particular quarter.  From there, you will analyze your budget and reestimate for future months based on the costs you incurred during the previous quarter.  Finally, we'll go into detail regarding the quarterly re-forecasting process so that your budget is re-aligned for future months.

Quarterly Reforecasting
17:08

This lecture is a wrap up of what was discussed in Section 6.

Conclusion
01:14
+ Change Controls
5 lectures 28:46

This is an introduction to Section 7 where we will go over in detail the change control process to make adjustments to your project budget.

Introduction
01:18

This lecture goes into detail about how to make changes to your project budget based on your analysis.  We will learn how to leverage the change control process to request more funding for your project or to give back money to the organization.

Change Control Process
11:59

Once your change control request is approved, you need to update your budget with the changes.  In this lecture, we will discuss the re-forecasting process once you update your project's budget.

Reforecasting Based on the Change Control
13:59

This is the conclusion of the change control process that was discussed in Section 7.

Conclusion
01:17
Resources
00:13
+ Project Closure
5 lectures 21:02

In this section, we begin winding down the course in discussing the project closure process.  During this section, we will go over the steps necessary to financially close out your project.

Introduction
01:12

In some instances, your project may have extra funding that you need to give back to the organization.  This is done so that the organization can leverage these monies to fund other critical projects.  In this lecture, we will discuss a special change control situation where you are giving back extra funding to the organization rather than holding it as an extra contingency for your project.  We will also discuss the effects on your project budget once this process is completed.

Giving Back Unused Funds to the Organization
08:39

In this lecture, we will discuss the process to financially close out your project.  This must be done so that no more charges will be realized by your project and executive management will realize that your project is complete.

Financially Closing the Project
09:21

This is a conclusion of Section 8 - Financially closing our your project.

Conclusion
01:34
Resources
00:16
+ Course Conclusion
1 lecture 01:22

This video summarizes what you've learned in the course and is an invitation to visit my website to attain resources and updates. 

Course Conclusion
01:22