NR631 Week 7: Controlling Risks and Project Budgets
NR631 Week 7: Controlling Risks. You’ll recall that as part of developing your project charter (Week 2), you submitted a preliminary budget. This week’s lesson went into much greater depth on the financial aspects of a project. This is a good time to look at your preliminary budget, consider what was presented in this week’s lesson, and reflect back on other financial concepts and tools you learned throughout the nurse executive track. Use the following questions as the basis for your discussion this week.
- What variances can you identify on your project to date? If you had to report on the reason for variances +/- 10% of budget, what would your report say?
Think back to lessons and discussions on forecasting. What adjustments do you feel you need to make to your project budget based on your progress to date and what you foresee moving forward? What changed to cause you to have to adjust (forecast) the project budget?
NR631 Week 7: Controlling Risks Answer
Effective Cost Management in Project Planning
Ensuring the success of any project hinges on the project manager’s ability to maintain an organized approach to tasks and exhibit a keen awareness of cost control. While time and resource management are crucial, cost management ultimately determines a project’s positive outcomes (Smith, 2016). Vigilant supervision of costs, considering the “how, where, when, what, and who” of cost allocation, is imperative for maintaining an appropriate level of control (Pheng, 2018).NR631 Week 7: Controlling Risks
In the initial project forecast, budget considerations were as follows:
| Budget Item | Cost Calculation |
|---|---|
| Personnel | |
| – Team Leader Salary | $6,200 |
| – Fringe Benefits | |
| – Field Supervisor Salary | $4,000 |
| Travel | |
| – Team Travel | $1,000 |
| – Vehicle Rental | $700 |
| – Vehicle Maintenance | $500 |
This breakdown provides a comprehensive overview of the anticipated costs associated with personnel and travel, laying the foundation for effective cost control throughout the project’s lifecycle.
References:
Smith, A. (2016). Project Management. Routledge. Pheng, L. S. (2018). Cost Management in Construction Projects. Springer.
