Does your resource plan drive your budget, or does your project schedule drive your budget? Deciding which process works best for your organization is a business process decision. EPM Live offers the flexibility to do both. The recommended best practice is to select one or the other. This article describes the top down planning and bottom up planning methods in project planning.
Top Down Planning
If so, you are doing top down planning you are performing upfront strategic planning. To begin, you create a project and then you create a resource plan. The resource plan populates the resource tab in the Cost Planner and then you can then copy the values from the resource plan tab to the budget tab in the Cost Planner. It is from here that you have a budget to go forward with and you can then create a schedule with the budget that has been set. This allows you to compare what you planned for (budgeted for in the Cost Planner) and what actually was scheduled (Project Schedule) at a a later date and time.
Bottom Up Planning
If so, you are doing bottom up planning you begin with creating a project and then immediately edit the project schedule (plan) where you assign tasks and publish the schedule. Next, you import the work into the Resource Planner and save. Once saved, the values from the resource plan will populate the resource tab in the Cost Planner. In the Cost Planner you can split the screen and copy the values from the resource plan tab to the budget tab. Using this method, the scheduled work and the resource plan hours are one inn the same. This method helps in learning how to accurately forecast for future projects.