Budget Management with Can Do project intelligence
Optimal planning of resources such as staff, departments and machines as well as of financial resources (finance budget) is of central importance for businesses and organisations. Project budgets form an elementary part of project target definition. Budgets are equivalent to content targets and scheduling guidelines. A budget plan determines how many financial and other resources can or may be used in the implementation of a project. The budget manages the use of resources such as departments, employees, machines or capital. It is usually binding for a designated period of time.
With Version 4.1 of the project and portfolio management software, Can Do project intelligence presents comprehensive budget management for the first time, for planning, managing and monitoring costs and project workloads.
Budgets can be defined for projects, departments and other cost types. If specific budgets are exceeded, Can Do project intelligence alerts the user to this through the use of warning lights. In this way it is possible to control allocated contingencies in workload and financial resources and to give early warning of an overrun. The project leader thus has the opportunity to monitor his project continually and to introduce necessary countermeasures.
Budgets serve exclusively to monitor the project. They do not alter capacities or financial processes. Budgeting by a department has no effect on capacity.
Capability Characteristics of Budget Management
Budgets can be defined for projects, departments and other cost types. These are then planned and used in the real (current) project. If specific budgets are exceeded, the software alerts the user to this through the use of warning lights. In this way it is possible to control allocated contingencies in workload and financial resources and to give early warning of an overrun.
- Resource Budgets (Work Budgets)
A resource budget allocates various resources, i.e. employees or departments, to the project. Drag & Drop allows either individual employees or entire organisational units to be added to the budget plan. A predetermined workload (working hours, man-days) is then allocated to them, and is available for the corresponding phase of the project.
- Finance Budgets
A finance budget assigns financial resources to a project. These are then called up in the project planning and implementation. Here, Can Do Project Intelligence distinguishes between fixed costs, which can be redefined for each project, and variable costs, which are based on the hourly rate of the resources allocated (employees and departments).
- Project Budgets
As a rule, project budgets encompass either money (financial budgets) and/or workload (resource budgets). It is possible to draw up and manage a resource budget (work budget) as well as a finance budget. It is also possible to combine the two budgets with one another.
- Departmental Budgets
Within a project a departmental budget can be defined either in the form of a work budget (workload) or a finance budget (costs). If the project is now planned in detail and the resources (employees and departments) have been allocated to individual projects, Can Do Project Intelligence monitors the level of the work or the costs. In case of an allocation of employees from the abovementioned departments or an allocation of the department itself, the software deducts the expenditure from the respective budget.
If the given budget is exceeded in the planning, the software reports a risk at project level (warning light) and in the budget plan (red line & negative residual value).
- Budgeting with Item Numbers
With Can Do project intelligence, budgeting can also take place with individual item numbers – similar to SAP PS. Individual item numbers together with budgeting are initially drawn up in the budget plan. In project planning the respective item numbers are then allocated to the individual projects. Optionally, the saved items can then be transferred from phase to work package level.
The workload as well as the financial resources can be budgeted here. Both budget forms can be combined with the Can Do Tool.
- Budgets for Cost Types
Can Do Project Intelligence enables budgeting for various cost types such as travelling expenses. These are chronologically divisible and can be limited with a budget lock. Here, it is possible to integrate actual data externally via interfaces and to manage and monitor it with the Can Do software.
- Plan Budgeting vs. Actual Budgeting
The project management software distinguishes between planned budgets (plan budgets) and tasked budgets (current budgets). This is particularly important in detail planning and planning adjustments, as the project leader needs to maintain an overview of how much of the money and resources budgeted is available to him for further planning, or how much of the allocated capacity has already been used.
- Time-based budgetary Limits
It is common practice for project budgets to be divided per financial year. Partially unused quantities of work or money can be carried over to the following year (quarter, month, etc.).
Budget management in Can Do Project Intelligence is able to determine budgets for freely definable periods of time. Optionally, these can then be carried over to the subsequent period.
- Overbooking Tolerance
Projects seldom run exactly as planned. Deviations are the rule rather than the exception. For this reason the developers of Can Do have integrated overbooking tolerance into the budget management, which can be activated optionally.
- Budget Management Feedback
Can Do project management software takes the feedback data during budget management into account. The tool is of course able to take feedback on a personal as well as on a departmental level into account, depending on the person for whom the budget is intended.
- Allowance for inaccurate Values
Can Do budget management takes the use of inaccurate or inexact values into account on all levels.
- Easy Use
Budget management is integrated into the project management software as part of the Properties window. Nearly all functions can be activated with a mouse click, and common operations such as “Drag & Drop” are supported.
The user can modify the level of display detail with two practical slider controls. The number of budget management fields shown is set with View Control, while Detail Control regulates the display measurement (e.g. EUR, KEUR, and Million EUR). All viewing fields can be shown or hidden with a mouse click.
- All informatione in real time
In budget management too, Can Do remains true to its philosophy to offer all data in real time, that is, live. All feedback and other changes to the project and budget planning are immediately taken into account in the calculations and illustrated graphically on the system.