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.