Professional Documents
Culture Documents
Fourth Edition
4-1
objectives
Budgets can be used as a tool by upper management
to monitor and guide projects.
Copyright 2011 John Wiley & Sons, Inc.
Top-Down Budgeting
4-3
Bottom-Up Budgeting
4-4
Disadvantage
risk of overlooking tasks
Accountability
4-8
Forms
Learning curves
Tracking signals
Forms
4-10
include:
people managers, technical and non-technical
money
materials facilities, equipment, tools, space, etc.
special services
And might identify:
person to contact
how many/much needed
when needed
whether available
Copyright 2011 John Wiley & Sons, Inc.
Learning Curves
4-11
Tn T1n
where
Tn = the time required to complete the nth unit
T1 = the time required to complete the first unit
r = log(learning rate)/log(2)
Copyright 2011 John Wiley & Sons, Inc.
Tracking Signals
4-12
achieve tasks.
New knowledge about the nature of the
performance goal or setting.
A mandate a new law or standard, etc.
Handling Changes
4-16
Game theory
Assume that competitors and the environment are
your enemies
Select a course of action that minimizes the
maximum harm
Expected value
The value of the outcome multiplied by the
probability of the outcome occurring
Simulation
Copyright 2011 John Wiley & Sons, Inc.
Copyright
4-21