Explore BrainMass

Explore BrainMass

    PM for LRH Products: Determining Budgets for Individual Tasks

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    As project manager, you have been given an overall budget for the trade show project, but you need to refine it (FYI: You have adequate budget, which was prepared by the marketing manager based on the costs from the last show).
    1) Consider various ways to determine budgets for the individual tasks.
    2) What are the pro's and con's of each method?
    3) What is the role of the project manager in determining budgets for these tasks?

    Please provide references/website addresses, etc., where you found your information.


    Your company, LRH Products, is about to attend a major trade show event in another city. You, a member of the marketing team, have been selected to manage the project. The project includes all the activities necessary to update the trade show display, re-stock the collaterals (brochures, signs, presentations), order new give aways, transport the trade show materials, and make all travel arrangements. At this time, you do not need to update any of the printed collaterals, but the presentation will likely need some small modifications. The sales people who will staff the booth also need to be identified, notified, and trained. Clothing may also be necessary to order for them.

    You will start this project ten weeks before the event; the display needs to be shipped ten calendar days before the event begins to ensure adequate time for set-up by the on-site trade show staff. You have adequate budget, which was prepared by the marketing manager based on the costs from the last show.

    You have a small team of people to help you complete the project. You are available to work up to 16 hours a week on the project. As the newest person in the marketing department, you are not very familiar with the products or what has been done at previous trade shows. You have significant experience organizing trade show events since you used to work from one of the competitors. You also have experience training sales staff. You do not know the vendors with whom you will work on this project, such as the printer and give away supplier. You do have the following individuals to draw upon their expertise for help and guidance.


    Hours available per week 12

    Related ExperienceHas been involved with the trade show for the past several years. Is very knowledgeable about the products and has a solid working relationship with the sales staff.

    Comments - Likes to update the collaterals, especially the presentation. Is comfortable training the sales staff, but doesn't always cover the material correctly. Will go on vacation four weeks prior to the trade show and will be off for two weeks.


    Hours available per week 8

    Related Experience Administrative assistant for the marketing department and has been involved in preparations for several trade shows.

    Comments Enjoys working on the give-aways and presentations. Does not enjoy making travel arrangements and tends to make mistakes there. May be pulled away from this project to support more time-critical activities.

    © BrainMass Inc. brainmass.com October 2, 2022, 1:04 pm ad1c9bdddf

    Solution Preview

    1) Consider various ways to determine budgets for the individual tasks.
    2) What are the pros and con's of each method?

    Â? Approved Cost Budget
    Â? Forecast Cost Budget
    Â? Multiple budget versions: Are maintained for each budget type. Hold the history of budget changes for a given budget type.

    Every project cost budget must be classified with a budget type. At LRH Products, each budget type is defined as an approved cost budget.

    All approved cost budgets will use burdened cost as the amount type. The amount indicates what type of cost is being tracked. Because LRH Products collects burden costs, the Burdened amount will be used within Project Cost Budgeting.

    LRH Products can define additional budget types during the implementation or at a later date. For example, the LRH Products may want to create a separate budget from the Approved Cost budget to track "what if" scenarios for future project alternatives.

    Draft Budget: A budget draft is a holding area for budget data that is currently in process. Draft budgets are considered to be in working status and not approved. Draft budgets will not appear in the Project Status Inquiry Screen, nor track actuals and commitments against the budgeted amounts.

    Baseline Budget: Base lining is the process of approving a budget for use in reporting and accounting. When the baselined function is called, the system copies the draft amounts into a new baselined budget version which will appear in the Project Status Inquiry Screen.
    LRH Products Projects maintains a detail budget history of all baseline budgets for each budget type. This includes summary and detailed information. The advantages of the budgets include:

    Â? Original: the first time you baseline a draft, the version is marked as the Original budget.
    Â? Revised original: An original budget may need to be revised and marked as the original budget due to project scope change or budget entry errors. When you baseline a draft, you can identify the new baselined version as a Revised Original. In calculations ...

    Solution Summary

    The 1239 word solution presents a comprehensive discussion about budget techniques.