3 pm3 c_5%20-%20work%20authorization

Slide 1

Cost Estimation

Work AuthorizationCost Budgetting

#3PM3_T_B Planning TimeAuthorizing Work in the BudgetOnce budget has been allocated to a Control Account, the scope flowdown has been matched to the funding flowdownWe have work in assignable packages = Work PackagesWe have the money assigned to fund these packagesThe last step in planning is now to authorize the work to go ahead - this is done by Work AuthorizationMethods:Informal email advising related functions of work scope authorized and charge number to useFormal (preferred) work authorization form issued

#3PM3_T_B Planning TimeSample Work Authorization FormAuthorization Reference #References to program scope: PO #; WBS Work Package # Description of work scope authorizedBudget authorization details by function and element of cost (ie. Labour, material, travel, etc.)Charge # referencesApprovals: CAM, Project Manager

#3PM3_T_B Planning TimeWork Authorization RulesNo work can happen until authorizedWork authorized has to be in the Work Package scope.May authorize:all work packages at oncejust some work packages (eg. The near term ones)just portions of a work package (must make the limits clear on the Work OrderBUTThe sum of all authorized work must be less than the Control Account budget Work has to stop when the budget runs out

#3PM3_T_B Planning Time

Work Authorization

Cost EstimationCost Budgetting

#3PM3_T_B Planning Time