Step 2: Given the budget and schedule details, create a Time Phased Budget (like the one in Fig 8.16). Assume the “cost of parts” is paid in the first unit of time, and the labor is equally spread out over the units of time.

Total Budget = $85,000

• Initial design Work = 10%
• Ventilation System = 35% (Parts = 20%; labor = 15%)
• New Racks = 20% (Parts = 15%; labor = 5%)
• Power Supplies and Cables = 25% (Parts = 15%; labor = 10%)
• Switchover Ops Checks = 10% 

FIGURE 8.16 Patient Entry Time-Phased Work Packages Assigned 1000) Week D Du Task Budget O 1 2 3 46 6 Y 9 00 11 12 13 14 Design deta V 1 3 5 system 2 2 Desain entry 4 2 form 2 31 3 Establish entry 6 codes 2 22 4 5 Get RFP d 3 2 1 5 6 Colect 6 data 1 1 1 6 Establish accou 5 codes 2 2 1 7 6 Program system 12 2 & 2 4 1 Merge dala & 4 codes 9 2 Test system 7 Week total 52 5 6 4 3 3 9 4 3 1 56 4 4 3 C 5 11 21 25 29 30 35 41 41 451 49 52 60 50 Curative Cine Bug P 40 30 20 12 : 14 You have now developed complete time and cost plans for your project. These project baselines will be used to compare planned schedule and costs using an integrative system called earned value. The application and use of project baselines to measure performance are discussed in detail in Chapter 13. With your project budget baseline established, you are also able to generate cash flow statements for your project, like the one presented in Figure 8.17. Such statements prepare the firm to cover costs over the lifespan of the project. Finally, with resource assignments finalized, you are able to generate resource usage. schedules for your project (see Figure 8.18) These schedules map out the full deployment of personnel and equipment and can be used to generate individual work schedules FIGURE 8.17 Project Monthly Cash Flow Statement Q Search Open ye Twin Febdary Mach Ap May $1148000 3434000 $130000 12112000 $14,000.00 $14,000.00 $7433000 a page 286