Budgeting processes and techniques
A company builds custom yachts for the high-end boating market. They
develop and build these custom designs as a single individualized
unit. The orders are generated by the marketing and sales department
with help from the owners, who participate in the management of the
company. Each new order is assigned to a project team which starts by
making an estimate to the customer before a contract is signed. The project
teams have a great deal of experience in these projects.
As would be expected, the owners are hands-on and have opinions on the
estimates. The marketing folks also provide suggestions on what the
customer is willing to pay.
What are some processes and techniques that you would suggest to make the
budgeting process work well? Start with general but also provide some
specifics as relate to creating detailed project budgets. Be sure to
justify why you think your recommendations will work.