Effective Resource Planning for Project Management Success

Resource Plan and Project Budget LOOM.02.124 Project Management By Dr. Kairi P ldsaar

Resource Plan RESOURCE PLANNING IS A KEY ELEMENT OF PROJECT MANAGEMENT IT ENSURES THAT A PROJECT HAS ACCESS TO THE NECESSARY RESOURCES (STAFF, FACILITIES, ETC.) AT ALL TIMES IT IS VERY CLOSELY RELATED TO THE DEVELOPMENT OF SCHEDULES AND BUDGETS

Types of Resources Services outsourcing, sub-contractors Labor staff involved in the project Equipment things needed during the project, and can be used later for other projects Materials things needed for the project, can be part of deliverables/outcome Money needed to aquire and maintain all the other resources Space office, factory, etc. Time amount of all the other resources needed depends on time variable

Resource Plan A resource plan aims to use resources in the most efficient manner possible the most efficient manner possible, thus contributing to the overall productivity of the project

Important questions to ask while compiling resources plan: What are the roles of the project team? What are the procurement needs of the project? What types of contracts are required? Are there any pre-qualification methods needed? What criteria will be used to select contractors or vendors? How much of the budget is allocated to resources? How will performance be measured in the project? What policies and procedures will be used?

Stages of Resource Plan Ascertain efficiently and cost-effectively Procure team-qualifications, contracts, budgets etc Manage who is responsible for what Control resource utilization rate

Simple Resource Plan Example

An estimate of income and expenditure for a set (future) period. Its compiled and re-evaluated on a periodic basis What Is a Budget? It is a financial plan for a defined period (normally a year)

Surplus budget profits are anticipated Balanced budget revenues equal expenditures Deficit budget expenses will exceed revenues

- To manage expenses Importance of Budget in Project Managment - To understand the resources needed to fulfill the project effectively - To stay within budget and not go into dept - To have control over the project finances

Static budget remains unchanged over the life of a budget/project Types of Budgets Flexible budget has relational value over certain variables

Simple budget example Educational web-application Cost line Detailed description Total sum (EUR) Creating a web-application XYZ , frontend, backend development, testing, etc. Web-application 22620,00 Translation to estonian and russian languages Translation services 720,00 Salary Project manager salary 1882,60 TOTAL 25 222,60

Simple budget example furnishing a bakery kitchen Project budget for "Daisy's Cakes" bakery renovation and furnishing LEADER financial support Item no. Of this eligible cost Self-financing amount Activity Cost without VAT 20% VAT Total 1Renovation of production premises 2Ventilation 3Fridge Basic C 700 4Freezer Basic F 700 11 642,00 4 829,00 1 032,00 1 243,00 2 328,40 965,80 206,40 248,60 13 970,40 5 794,80 1 238,40 1 491,60 8382 3477 743 895 8 382,24 3 476,88 743,04 894,96 5 588,16 2 317,92 495,36 596,64 Combi oven Retigo Orange Extra 611ic 5 6Mixer Artisan 6,9 L 4 175,50 804,17 835,10 160,83 5 010,60 965,00 3006 579 3 006,36 579,00 2 004,24 386,00 7Elektrical oven Beko FSE 66000GS 8Capsule coffee machine Jura 6J 224,92 1 408,33 44,98 281,67 269,90 1 690,00 162 1014 161,94 1 014,00 107,96 676,00 Total: 25 358,92 5 071,78 30 430,70 18 258,42 18 258,42 12 172,28

Simple budget example Organising the Geology Autumn School + publishing the conference abstract book Type of expenditure Activity Unit Unit price (EUR) Amount SUM Source funding Self- funding (10%) Conference full-service (accomodation, catering, rent, etc) Organising XVII Geology Autumn School Set 11 010,00 1 11 010,00 9 400,00 1 610,00 Printing, publishing Editing and publishing Schola Geologica XVII collection Set 738,00 1 738,00 738,00 0 Transportation of participants Organising XVII Geology Autumn School Set 2 240,00 1 2 240,00 2 240,00 0 Scientific editing of articles Editing and publishing Schola Geologica XVII collection Set 500,00 1 500,00 500,00 0 Office supplies (eligible 15%) General costs Month 70,00 10,1 106,05 106,05 0 Communication (phone, internet etc) (eligible 20%) General costs Month 130,00 10,1 262,60 262,60 0 Utility costs (50%) General costs Month 66,48 10,1 335,72 335,72 0 TOTAL 15 192,37 13 582,37 1 610,00

1) Outsourced services (total 14 488,00 EUR) Conference full-service (11 010,00 EUR) EXPLANATION how this cost has been achieved! Transportation of participants (2 240,00 EUR) EXPLANATION how this cost has been achieved! Printing/publishing (738,00 EUR) EXPLANATION how this cost has been achieved! Editing service (500,00) EXPLANATION how this cost has been achieved! Explanatory memorandum (see the example on course webpage) 2) Purchased producs (total EUR) 3) Wage costs (total EUR) 4) Other transportation costs (total EUR) 5) Overheads (total 704,34 EUR) Office supplies (106,05 EUR) EXPLANATION how this cost has been achieved! Communication (262,60 EUR) EXPLANATION how this cost has been achieved! Utility costs (335,72 EUR) EXPLANATION how this cost has been achieved!

Basis for cost estimation Previous experience Comparison with similar other available costs/information Price offers received from a supplier, service provider specially for your project Prices publicly available on suppliers webpages Expert advice Only in our course assignment case! the best reasonable assumption

Assignment 6 (due Monday (due Monday - - 29.03 @17:00) 29.03 @17:00) 1) Compile a simple budget for your projects, showing all the most important cost lines for your particular project case. 2) Compose an appendix to the project a short and simple Explanatory memorandum letter, explaining all the costlines (why were such costs considered, whats the basis for the cost in a word, where did you take the particular cost number from )