Here are the steps to translate a work breakdown structure (WBS) into a budget:1. For each task in the WBS, list the required inputs (materials, equipment, labor, etc.)2. Estimate the cost of each input. This could include unit costs (e.g. $5 per board) or total costs (e.g. $300 for a saw). 3. Estimate the time required to complete each task. This will be used to calculate labor costs. 4. Calculate labor costs by multiplying hourly rates by estimated task times. 5. Add up the total costs of all inputs for each task. 6. Repeat steps 1-5 for all tasks
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The document discusses how to plan operations by creating a work breakdown structure (WBS) and budget. It explains how to break down activities into tasks, identify inputs and associated costs, and estimate time needed to complete each task. An effective budget includes projected income, expenses broken into categories and line items, and monthly or annual projections to cover costs. The document provides examples of how to build a WBS and translate it into a basic budget to plan operations.
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Similar to Here are the steps to translate a work breakdown structure (WBS) into a budget:1. For each task in the WBS, list the required inputs (materials, equipment, labor, etc.)2. Estimate the cost of each input. This could include unit costs (e.g. $5 per board) or total costs (e.g. $300 for a saw). 3. Estimate the time required to complete each task. This will be used to calculate labor costs. 4. Calculate labor costs by multiplying hourly rates by estimated task times. 5. Add up the total costs of all inputs for each task. 6. Repeat steps 1-5 for all tasks
Similar to Here are the steps to translate a work breakdown structure (WBS) into a budget:1. For each task in the WBS, list the required inputs (materials, equipment, labor, etc.)2. Estimate the cost of each input. This could include unit costs (e.g. $5 per board) or total costs (e.g. $300 for a saw). 3. Estimate the time required to complete each task. This will be used to calculate labor costs. 4. Calculate labor costs by multiplying hourly rates by estimated task times. 5. Add up the total costs of all inputs for each task. 6. Repeat steps 1-5 for all tasks (20)
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Here are the steps to translate a work breakdown structure (WBS) into a budget:1. For each task in the WBS, list the required inputs (materials, equipment, labor, etc.)2. Estimate the cost of each input. This could include unit costs (e.g. $5 per board) or total costs (e.g. $300 for a saw). 3. Estimate the time required to complete each task. This will be used to calculate labor costs. 4. Calculate labor costs by multiplying hourly rates by estimated task times. 5. Add up the total costs of all inputs for each task. 6. Repeat steps 1-5 for all tasks
- 1. Operations and Finance Pre-Exercise: Think for a Moment • What did you do today? • Write out the series of major actions you took today • Next to each action, write down what it took to complete these actions • Next to each input, write associated costs
- 2. Operations and Finance Implementation: Operations & Finance Bringing Your Vision to Life a Step at a Time
- 3. Operations and Finance Context in the Curriculum Divergence Convergence Emergence Inspiration Ideation Implementation • Visioning & Sharing • Social Business • Operations & Finance Vision Models • Volunteer Management • Environmental • Prototyping & • Pitching and Friendraising Scanning & Impacting Assessment Environment
- 4. Operations and Finance The Tent of Meeting Took Hard Work • The People of Israel needed a place to worship, so Moses develops a new structure: The Tent of Meeting • Moses’s vision is perfect – but he needs to translate that vision into practice. • He sets people to work through a detailed structure.
- 5. Operations and Finance The Tent of Meeting Took Hard Work Moses passed on his plans in the following format : 1.1 The tabernacle, its tent, and its covering, its clasps, and its boards, its bars, its pillars, and its sockets; 1.2 The ark, and the staves thereof, the ark-cover, and the veil of the screen; 1.3 The table, and its staves, and all its vessels, and the showbread. (Exodus 35) In modern terms, this plan is a Work Breakdown Structure (WBS).
- 6. Operations and Finance WBS: Each Breakdown Breaks Down 1.2 The ark, and the staves thereof, the ark-cover, and the veil of the screen; 1.2.1 Ark and Staves Thereof 1.2.1.1 Walls of Ark (day 1-3) 1.2.1.2 Staves of Ark (day 2-3) 1.2.1.3 Cherubs (day 3-6) 1.2.1.4 Veil of the Screen (Day 4-8) Break each activity into tasks: 1.2.1.1 Walls of Ark (day 1-3) 1.2.1.1.1 Gather Wood (2hrs) 1.2.1.1.2 Hew Wood (4hrs) 1.2.1.1.3 Piece together Wood (4hrs) 1.2.1.1.4 Cover with Gold (2hrs)
- 7. Operations and Finance How Does One Plan Operations? • One plans for operations by creating a workplan. • A Workplan reflects the activities the venture needs to carry out order to produce its desired outputs. Every activity has required inputs. • A Budget then takes those inputs and lists the costs and labor hours they require to carry out the activities. A Good Plan Makes Operations Easy.
- 8. Operations and Finance First, Detail Your List of Activities • List activities from social business model, and add as necessary • Break activities into tasks • Order chronologically • Determine timeframe for each
- 9. Operations and Finance Example: Jewish Kids Groups Work Breakdown Structure 1.0 Volunteer Engagement (Sep-‐Oct) 1.1 Iden3fy poten3al Volunteers 1.1.1 Build a prospects list 1.1.2 Contact prospects in ranked order 1.1.3 Hold informa3on Session 1.2 Select Volunteers 1.2.1 Conduct Interviews 1.2.2 Iden3fy roles and commiAees 2.0 MarkeBng & Social Media (Oct -‐ Nov) 3.0 School Partnerships (Nov – Dec) 4.0 Curriculum Development (Jan – Mar)
- 10. Operations and Finance Then Get SMART Your tasks should be: • Specific (Can anyone understand them?) • Measurable (Can you know if it is done?) • Achievable (Can it be done?) • Relevant (How relevant is it to success?) • Time-bound (When does it need to be done?) • Anyone should be able to understand what needs to be done and how long it should take.
- 11. Operations and Finance And SMARTer Work Breakdown Structure Phase 1.0 Volunteer Engagement (Sept-‐Oct) 1.1 IdenBfy 15 potenBal Volunteers (Sept) Activity 1.1.1 Build a ranked prospects list of 30 volunteers Task based on research and referrals (Sept 1 -‐ 8) 1.1.2 Contact prospects -‐ phone & email (Sep 8 -‐ 15) 1.1.3 Hold informa3on session at JCC for one hour, with call-‐in capabili3es (Sept 20) 1.2 Select Volunteers 1.2.1 Conduct Interviews by phone and in person -‐ have your top two volunteers conduct interviews as well (Sept 21 -‐ 30) 1.2.2 Ask for commitments from volunteers (Oct 10) 1.2.3 Assign roles and commiAees (Oct 15)
- 12. Operations and Finance Next, Identify Your Inputs Phase: Volunteer Engagement Identify Activity: Volunteers Tasks: Build prospect list Contact prospects Plan & hold info session Inputs: Friends & Family Phone Venue Computer Computer, Internet Food Internet resources Data system? A/V, materials Intel on community
- 13. Operations and Finance Workshop: Build a Quick Workplan • In groups of three, choose one venture. • Describe the key activities for the Identify first three months. Activity: Volunteers • Identify 3 tasks for one activity • Identify 5 inputs for one task, and Build prospect Tasks: list note the due date for the task • List each task on an individual Inputs: Friends & Family post-it.
- 14. Operations and Finance How Do You Translate WBS to Budget? Walls of Ark Needed Inputs Input Cost Gather Worker salary 20 shekel/hr Wood Wood No cost Hew Wood Worker salary 20 shekel/hr Sawing Tools (saw, workbench, clamps) 300 shekel Piece Worker salary 20 shekel/hr together Glue 15 shekel Wood Clamps (paid for above) Cover with Goldsmith salary 40 shekel/hr Gold Gold 7000 shekel Mold 300 shekel Smel3ng Equipment (tongs, pot, etc) 500 shekel
- 15. Operations and Finance Match Task With the Time It Takes Walls of Ark Input Cost Time Gather 20 shekel/hr 2hrs Wood Hew Wood 20 shekel/hr 4hrs 300 shekel Piece 20 shekel/hr 4hrs together 15 shekel Wood (paid for above) Cover with 40 shekel/hr 2hrs Gold 7000 shekel 300 shekel 500 shekel
- 16. Operations and Finance Lay Out Costs Per Day Inputs Day One Day Two Day Three Total Walls of Ark budget Salaries 40 shekel 160 shekel 80 shekel 280 shekel Equipment 315 shekel 350 shekel 665 shekel Materials 7000 shekel 7000 shekel
- 17. Operations and Finance Workbook: Basic Budget Worksheet Goal Needed Inputs Input Cost Time/Units Task #1 List inputs needed here List cost per List quan3ty unit of input of units or here amount of 3me here Task #2 Inputs Cost/Unit Quan3ty Task #3 Inputs Cost/Unit Quan3ty Task #4 Inputs Cost/Unit Quan3ty
- 18. Operations and Finance Elements of an Organizational Budget: • Projected income • Projected expenses • Categories and line items • Monthly and annual projections
- 19. Operations and Finance How Will You Cover Your Costs? • Plan to match revenues accordingly • (Basic) sources of revenue: – Program revenues – For-profits: Investments – Nonprofits: Grants and donations • Cash • In-kind • Remember: Those giving you money want to see what you are spending it on!
- 20. Operations and Finance Workshop: Build a Quick Budget • In groups of three, choose one venture • Revisit the inputs listed in the workplan from your last workshop • Group similar line items (budget categories) • Discuss potential sources of revenue • If you have time, do it for another venture
- 21. Operations and Finance Worksheet Online: Budget Template
- 22. Operations and Finance Remember: It Takes Time • No one expects you to launch everything at once • Developing a roll-out plan and a budget are critical to gaining credibility • Always start with low resource needs, and build requirements as you go • Revisit your workplan and budget monthly!
- 23. Operations and Finance A Look at the Venture Milestone • Please provide a detailed workplan for at least three phases over the course of the first year and a supplementary budget expressing the financial implications of taking those steps. • If you’d like, you can use the Work Breakdown Structure (WBS), expressing all tasks SMARTly: Specific, Measurable, Attainable, Relevant and Timebound. • You can use the Simple Budget Template that’s online, or another template for your budget.
- 24. Operations and Finance Every Gold Loop Counts • While everything is a work in progress, the Workplan should try to anticipate your venture needs • Be conservative in planning: things always take longer and cost more • The more you think through the details, the less you’ll worry about them later. Ventures are a collection of details – and out of the details beauty emerges.