¶ … start, budget at completion equals estimate at completion -- but that can change.
Certainly what the original budget estimates reflect are not set in stone, so yes the final cost of the project can be different from the original estimate. The Budget at Completion (BAC) is the sum of all budget values that were set up when the project was being designed. The BAC is "the total planned value of the project" (project-management-knowledge.com). Each of the items that are part of the projection are " ... assigned a cost," and that cost is expected to remain the same and when added up, weighed against the "pre-determined budget for the project" (project-management-knowledge.com - pmk).
First of all, the project has to be carefully thought out, and the estimate to complete (ETC) is a considerable process that includes -- according to the Project Management Institute (PMI, 200) -- developing "an approximation of the monetary resources" that will be required to complete the project. There are inputs, tools, and outputs that are part of the estimate of costs, which are basically a prediction of what the final project will cost; taken into consideration are " ... costing alternatives" that will be needed to "initiate and complete...
Among those costs: "direct labor, materials, equipment, services, facilities, information technology ... and financing ... " (PMI, 207).
The answer to the question posed at the top of the page, again, is yes, the BAC can change when the project is finished. The ETC, it should be noted, is calculated and it is applied based in part on assumptions in the past become out-dated and there is a need for fresh estimates. The formula (in calculating the estimate at completion -- EAC) includes taking into consideration "variances ... which will be present in the future," because anticipating that those variances will be present in the future aids in meeting goals (pmk)
Ethics and Responsibility
Arrogance can and does lead to jumping to conclusions -- and much more. For an executive or a manager in an important position, the lack of sincerity, first and foremost, is immediately detected by those around the leader, and when there is not trust, there cannot be strong leadership and team success. My position is that management that doesn't listen to employees -- and rationalizes its mistakes rather than learning from them -- is doomed to fail rather than progress.
I comprehend the…
Leadership Skills Impact International Education CHALLENGES OF INTERNATIONAL EDUCATION Practical Circumstances of International schools THE IMPORTANCE OF LEADERSHIP IN EDUCATION What is Effective Leadership for Today's Schools? Challenges of Intercultural Communication Challenges of Differing Cultural Values Importance of the Team Leadership Style LEADERSHIP THEORIES Current Leadership Research Transformational Leadership Skills-Authority Contingency Theories APPLYING LEADERSHIP IN AN INTERNATIONAL SETTING Wagner's "Buy-in" vs. Ownership Understanding the Urgent Need for Change Research confirms what teachers, students, parents and superintendents have long known: the individual school is the key unit
Leadership and Human Resources Sunflower Electric Power Corporation certainly had compelling circumstances that motivated management to pursue cultural change. Having recently undergone debt restructuring and charges of mismanagement and corruption, employee morale was at an all-time low. The major priority for the company was to completely change its corporation culture with a huge emphasis on interpersonal relationships. The culture of Sunflower was a command-and-control culture characterized by authoritative and conservative leadership. This
Lehman Brothers, once a global financial behemoth, collapsed in 2008, triggering a severe financial crisis. The company's downfall was largely attributed to poor leadership and decision-making (Egan, 2009). Richard Fuld: The Imperious CEO Richard Fuld, the CEO of Lehman Brothers from 1993 to 2008, was a highly ambitious and competitive executive (Grigoriadis, 2009). He was known for his autocratic management style and his tendency to ignore dissenting opinions (Egan, 2009). Fuld's obsession
leadership is crucial for organizational success in a competitive marketplace. Gaps in leadership or conduct that could be interpreted as ineffective could have adverse effects on the reputation and overall competitiveness of a company. One company that suffered the adverse effects of poor leadership was British Petroleum, during and in the years leading up to the 2010 explosion and oil spill in the Gulf. Research has since shown that
Achieving and Maintaining Individual Excellence For any organization, effectively motivating everyone is the key to ensuring their continuing happiness and well-being. This means that the strategies which are used will have an impact on how they feel about the management and the firm. Those organizations which understand and can apply flexibility in the process are more capable of connecting with them. To fully comprehend which approach is the most efficient requires
Carly Fiorina and Followership How Carly Fiorina Influenced an Organization Prior to joining the giant company, HP, Carly Fiorina had served in AT&T and Lucent Technologies, in the senior leadership ranks for around two decades. She successfully led to the growth of AT&T and led the execution of Lucent Technologies from its spinoff from AT&T. In so doing, she managed to find favor from the HP's board of directors, and given a