Activity Planning, Resource Planning and Budget

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PROJECT CULTURE
UFND60
Yaşar University Foundation Course Programme
Assist. Prof. Dr. Ayselin Yıldız
Yaşar University

PROJECT CULTURE
MODULE 5: ACTIVITY PLANNING,
RESOURCE PLANNING AND
BUDGET
Assist.Prof.Dr. Ayselin Yıldız
Yaşar University
•Activity
•Activity Planning
•Activities and Budget
•Gantt Chart
•Resource Planning
•Budget Planning
Key Terms

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Aims
After you comprehend this module you will be able to;
•dene the project activities, activity planning, activity-time planning,
•determine the project activities by associating them with the project’s
expected outputs and the project aim
•plan the project activities properly by providing answers to the questions of
“what, why, when, how and who?”
•prepare the proper “resource planning” in line with your project activities
•prepare the project’s budget properly in order to undertake the project
activities and achieve the project aim
5.1. Introducton
Determining and planning the project activities properly is one of the most important
stages of achieving your project aim. The expected outputs and the impact of the
project are realized through the project activities. Therefore, each activity should be
planned and implemented in a proper and correct way with an engagement to serve
the project aim and achieve the expected concrete results/outputs of the project. At
this stage, the activity planning tries to answer which activity targets which output,
who is going to be responsible to execute the activity, when the activity will be
realized and which resources are needed to be allocated to conduct the activity.
Activities can be considered as the bricks or the bones whereas activity planning
can be considered as the skeleton of the project. Even the activities are determined/
chosen correctly, if the activity planning is not properly prepared the project
resembles to a weak building that is highly to collapse. A building which has high risk
to collapse due to its both weak bricks and improper skeleton resembles to a project
which born as handicapped due to its incorrectly determined activities and activity
planning. Therefore, a good project can be dened as the one that has correctly
planned and implemented activities leading to expected outputs and impacts by
also contributing to achieve the project aim.
In this context, the main aim of this module is to be able to determine the correct
activities serving the project aim, comprehend to plan the activities within a
time frame, prepare the resource planning in line with the planned activities, and
determine the total cost of the project by preparing the proper project budget.
You go next 1: If your aim is to gain weight or lose weight, which activities you
should and how frequent? Among these, which activities contribute to your aim the
most and eectively? What do you think which activities do not contribute to your
aim at all and discuss why?
5.2. What is “Activity”? How to determine the “Project Activities”?
“Activity” is dened as “all the works/tasks/operations to be realized in order to
achieve the project’s aim and the proposed expected results/outputs”
Each activity is expected to lead to a concrete output (impact, result, product,
service) and expected to be associated with contributing the project aim. For
example;
“Activity” is dened
as “all the works/tasks/
operations to be realized
in order to achieve the
project’s aim and the
proposed expected
results/outputs”

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Project aim : “To decrease the number of tra c accidents in the city”
Project Activity: “To train the taxi drivers”
Identi ed concrete task: To give training
Output of the activity: Increased knowledge among the taxi drivers about respecting
the tra c rules which they frequently neglect and make accidents
The contribution of the activity to the project aim: To contribute the decrease of tra c
accidents in the city by ensuring to have less tra c accidents made by the taxi drivers.
“Activity” should not be confused with the “project aim”. Activities are the tools we
utilize to achieve the project aim. For example, “to give training on tra c rules” is not
the project aim but a tool to decrease the number of tra c accidents.
The main question that we should ask to determine the activities is “how this activity
will contribute to the project aim?”. Asking the question “what can be done to solve
this problem?” to each problem we indicated in our problem analysis tree, will give
us an idea to determine our project activities. Accordingly, this will help us not to
plan irrelevant activities which do not serve to solve our main problem but propose
activities that satisfy and serve for the main aim of the project.
One of the common mistakes encountered in many projects is just to focus on
undertaking the activities by forgetting and moving away from the project aim
(Yentürk ve Aksakoğlu, 2006:51). For example, consider a project which aims to
prepare an international youth guide. If the project too much focuses on to realize a
youth camp with perfectly conducted activities without succeeding to publish the
guide, then we cannot consider this project as successful since it does not achieve
the main aim. A youth camp organized in Izmir with 24 participants from 12 di er-
ent countries which o ers many enjoyable social activities and sessions to share the
ideas for the content of the youth guide is expected to lead to the publication of
the guide. Otherwise, this is an example for an unsuccessful project which focuses
on only activities but misses the main aim of the project.
You go next 2: Determine your activities in order to succeed your project aim of
“increasing the social integration of orphan children” by studying on your problem
analysis tree. Together with its expected outputs, match/associate each activity with
the project aim.
Activities are the tools
we utilize to achieve the
project aims. “Activity”
should not be confused
with the “project aim”.
Imagine and visualize
each step of your project
in order to prepare a good
activity planning. Even
telling your project entirely
to your friend will help you
to discover the activities
you might skip before.

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5.3. What is “Activity Planning” and how to prepare it?
“Activity planning” is the planning of the works/tasks that are proposed to achieve
the project aim. It aims to succeed the project aim by managing the main and sub-
activities, specifying the needed means and resources (sta, technical equipment
etc.), and contributing to determine the project budget.
Activity planning is also used as “activity schedule” in some literature and it is dened
as a “method of presenting the activities of a project, which identies their logical
sequence and any dependencies that exist between them, and provides a basis for
allocating management responsibility for
completing each activity” (ITAD, 1999: 36). It is recommended to imagine and visu-
alize each step of your project in order to prepare a good activity planning. Even
telling your project entirely to your friend will help you to discover the activities you
might skipped before.
Identifying the activities as SMART (Specic, Measurable, Achievable, Realistic, Time-
Related) highly contributes to prepare a successful activity planning. For example;
Instead of identifying the activity as “giving training to children”,
We might better identify it as SMART: “Giving sailing training by Karsiyaka Sailing
Club to 10 orphan children between the age of 15-18 during July and August 2014”.
Identifying the activities as SMART facilitates to prepare a proper activity planning.
5.3.1. Identifying the main and sub-activities in a “work package” format
The proposed main activities and sub-activities can be designed in a “work package
format” in order to have a better project planning. For example;
We can design the main activity of “giving sailing training” as one of the work
packages. We should identify and specify the details and sub-activities of this main
activity in order to develop our activity planning/schedule. In other words, we should
break the main activity down into its sub-activities and tasks. By asking the question
of “which sub-activities should be done in order to realize the sailing training?” the
following sub-activities can be listed as:
• To determine the trainer
• To prepare and develop the teaching material
• To prepare the sailing boat for training
• To realize the trainings
The degree of specifying the main activity with sucient details diers in each proj-
ect. It is an important stage to decide where to stop in breaking the activities down
into details. It should not be more or less than it is needed (Yentürk ve Aksakoğlu,
2006:56). Too much specifying or not be able to foresee the sucient sub-activities
negatively aects the project management and implementation in terms of deter-
mining the required time, resources and budget. It should be underlined that, the
main prerequisite of a successful project is a well- developed activity planning.
The main and sub-activities are presented in activity planning by numbering them.
Following the same example, we can break the main activity down into sub-activities
as indicated below:
Identifying the activities
as SMART (Specic,
Measurable, Achievable,
Realistic, Time-Related)
highly contributes to
prepare a successful
activity planning
It differs in each project
to what extend the
main activity should
be rened with its
sub-activities. It is
an important stage
to decide where to
stop rening the main
activity, it should not be
more or less than it is
needed

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Main Activity 1. Determining the Participants (Work Package1)
Sub-Activities 1.1. Meeting with the Orphan House Management
1.2. Meeting with the orphan children
1.3. Selection of orphan children
1.4. Getting the legal approvals
Main Activity 2. Giving the sailing trainings (Work Package 2)
Sub-Activities 2.1. Determining the trainer
2.2. Preparing the teaching material
2.2.1. Developing and designing the teaching content
2.2.2. Publishing the teaching material
2.3. Preparing the sailing boat for training
2.3.1. Renewing and the painting of the boat
2.3.2. Providing the sailing suits and life jackets for each
participant
2.4. Realizing the trainings
5.3.2. The relation between the “Activity Planning” and “Budget”
A proper activity planning which is suciently specied with main and sub-activities
ensures the accurate estimation of required means and resources to undertake
the activities. Determination of the required resources to realize the activities and
accordingly calculating the cost of each activity strongly contributes to formulize
the project budget. This subject will be studied in the further part entitled “resource
planning” of this module.
For example, as a result of specifying the activity of “preparing the teaching material”
with sucient detail and sub-activities, we can accurately estimate the cost of the
activity as follows:
2.2.1. Developing and designing the content of the teaching material:
• 1 trainer to prepare the training book (30 working days*50 TL/per day): 1.500
TL
• 1 editor (3 working days*50 TL/per day): 1.500 TL
2.2.2. Publication of the teaching material
20 training books (20 books*20 TL): 400 TL
The cost of the activity “ preparing the teaching material” is estimated as 3.400 TL
You go next 3: Determine maximum ve main activities for your project. Identify
your work package by breaking your main activities down into sub-activities.
5.4. What is “Activity-Time Planning” and how to prepare it?
Activity-time planning demonstrates the realistic estimate of the duration of each
activity (when it starts and ends), the dependency between the activities (is the
activity dependent on the start-up or completion of any other activity?), responsible
person or institution to undertake the activity. Activity-time planning is indeed the
roadmap of our project. It is not only a tool to monitor and evaluate the smooth
functioning and management of the activities but also contributes to provide a
measure of progress and performance.

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• Before you start to prepare your activity-time planning, determine your
estimate dates for start and end of your project.
• It is recommended to include “preparation activities” as one of the work
packages of your project in your activity-time planning. These activities
might include the task delegation among the project team, completing the
legal approvals to start for some activities, purchasing some equipment,
establishing the project o ce, signing the contracts with the partners or the
sta etc.)
• Before you start to prepare your activity-time planning, do not forget to take
into account the o cial holidays, academic calendars, reporting dates etc.)
• Try not to put many activities in the same period unless you have enough
sta capacity and resources.
“Time” is one of the risk factors in every project which goes fast and silent. Many
projects do not end on the same estimated date as they are proposed. Therefore,
your project will not be the only one which might need a delay in completing it. The
important thing is trying to respect your activity-time planning, perform progress,
monitor your planning, take your precautions in case of delays, revise it if necessary
and complete your project on the estimated time through an e cient and e ective
project management. In case you encounter with an unexpected failure in your
project, by consulting with your project partners you are expected to revise your
activity-time planning accordingly.
5.4.1. Gantt Chart
Gantt Chart was developed by Henry Gantt, an American engineer, and it is a
graphical format which shows the summary of activity and time planning to monitor
the progress of the project. Gantt Chart has di erent versions; some specify activities
on a monthly basis or some uses weekly format. In general, activities are listed on
the left-hand column by re ecting the main and sub-activities taken form your
activity planning. The rows shows the time frame allocated for each activity. As seen
on the Chart below, it shows when the activities start and end, who is going to be
responsible from the activity, the sequence and dependencies between activities.
Some activities such as regular project meetings are seen to be repeated on the chart.
For example, the activity numbered 3, “evaluation”, shows the project’s monitoring/
evaluation meetings planned to be held in each 4 months.
An Example of Gantt Chart

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C: Coordinator, P1: Partner 1, P2: Partner 2 P3: Partner 3
Gantt Chart is not only a tool to be used in project planning and management but it
can also be used as a progress chart to monitor and plan our daily tasks.
As another Gantt Chart example, you can examine the Gantt Chart of the project
entitled “University and High School Youth are Hand in Hand for Social
Integration” (SENTULGE) which has been successfully implemented by Yasar
University European Union Center in 2008. The detailed information about the
project which has been granted under EU YOUTH Programme Action 1.2 is available
on the link: http://sentulge.yasar.edu.tr/. The main aim of the project was to increase
and strengthen the social integration of young students who have dierent socio-
economic levels by bringing them together through the sport and dance activities.
The activity-time planning of the project has been designed as follows:
MONTH WEEK PLANNED ACTIVITIES
1. MONTH (OCTOBER)
1. WEEK • Meeting with the project team and
examination of the task allocation
• Determining the trainers and informing
them about the project
• Preparing the project brochures
2. WEEK • Contacting the high school manager and
getting the legal approvals
• Delivering the project brochures and
posters in the high school
• Informing the local and national media
about the project
• Project Progress Meeting I (monitoring/
evaluation)
• Designing the project web-site
3. WEEK • Visiting the high school
• Purchasing the project equipment/oce
material
• Contracting with the sports hall and dance
studio
4. WEEK • Selection of the students/beneciaries
• Meeting with the selected students to
inform them about the project
• Purchasing equipment and stu required
for basketball and dance performance
trainings
• Organizing a seminar on EU YOUTH
Programe
• Update of the website

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2. MONTH (NOVEMBER)
1. WEEK • Giving trainings on basketball and dance
performance
• Conducting research on Izmir by using the
library and internet
• Publicizing the seminar “Let’s Learn About
Izmir” which will be presented by the young
students
• Project Progress Meeting II (monitoring/
evaluation)
2. WEEK • Giving trainings on basketball and dance
performance (proceeding)
• Visiting the historical sites and museums
in Izmir
• Taking photos of the visited sites, cultural,
historical places and archive the photos
3. WEEK • Giving trainings on basketball and dance
performance (proceeding)
• Organizing the seminar “Let’s Learn About
Izmir” in the high school
• Project Progress Meeting III (monitoring/
evaluation)
4. WEEK • Giving trainings on basketball and dance
performance (proceeding)
• Visit to the high school manager and
conducting performance evaluation on
the progress of the project
1. WEEK • Completion of trainings on basketball and
dance
• Preparing the feed-back questionnaires
• Preparing and delivering the invitations
of the basketball match and dance
performance
• Preparing and delivering the press release
• Project Progress Meeting IV (monitoring/
evaluation)
2. WEEK Realizing the basketball match and dance
performance n the university
3. WEEK • Performing the dance in the high school
• Feed-back meeting with the participants for
video recording and photos to be published
in the project’s website, and booklet
• Updating the website
4. WEEK • Delivering the feed-back questionnaires to
the participants
• Organizing the closing and certicate
ceremony
• Evaluation meeting with the project team
and participants

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4. AY (OCAK)
1. WEEK • Analysis of the questionnaires
• Preparation of project’s nal report in the
format of a booklet and CDs
2. WEEK • Analysis of the questionnaires (proceeding)
• Preparation of project’s nal report in the
format of a booklet and CDs (proceeding)
• Project Progress Meeting V (monitoring/
evaluation)
3. WEEK • Reporting the results of the analysis of
questionnaires
• Preparation of project’s nal report in the
format of a booklet and CDs (proceeding)
4. WEEK • Preparation of project’s nal report in the
format of a booklet and CDs (proceeding)
• Updating the website
• Project Progress Meeting VI (monitoring/
evaluation)
5. MONTH (FEBRUARY)
1. WEEK • Publication of the project’s nal
report and CDs
• Updating the website
• Contacting with the local media
2. WEEK • Publication of the project’s nal
report and CDs
• Updating the website
• Project Progress Meeting VII (monitoring/
evaluation)
3. WEEK • Posting the booklets and CDs to the relevant
universities, high schools and NGOs.
Collecting the missing supporting documents
(reports, photos, nancial documents etc.) for
project reporting phase
4. WEEK • Posting the booklets and CDs to the
relevant universities, high schools and
NGOs.
• Collecting the missing supporting
documents (reports, photos, nancial
documents etc.) for project reporting
phase
• Project Evaluation Meeting
• Meeting with the high school and university
management for future collaboration,
sustainability and new projects
5.4.2. Stages of Activity-Time Planning
It is highly recommended to prepare your activity-time planning through
“brainstorming” by coming together with your project team and the partners,
stakeholders. It is always better to consult to the experts for specic activities while
estimating their actual duration. Additionally, try to take into account the capability,
It is highly
recommended to
prepare your activity-
time planning through
“brainstorming” by
coming together with
your project team
and the partners,
stakeholders.

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skills and experience of each team member while doing the task allocation.
Consequently, the proposed activities will be better designed properly and eciently
in order to achieve the main objective of the project.
The stages of activity-time planning is listed as:
1. Determination of the main activities
Determination of sub-activities
2. Sequence of the activities
3. Determination of the duration of the activities (start and completion of each
activity)
4. Determination of responsible members for each activity (task allocation)
The determination of sequence of the activities requires to associate them in a
logical way. Some activities might depend on the start-up or completion of any
other activity. For example the activity of “giving training” can only start after the
completion of two activities; “selection of the participants” and “determination
of the trainer”. However these two activities might take place in the same time.
It is recommended to estimate the start and completion time of the activities by
allowing some exibility. Specically for the activities which requires expertise to
undertake it, we might be not able to propose its content entirely. The estimation
for duration of such activities should be consulted to an expert for that specic
activity.
Concerning the determination of responsible person/institution for each activity, the
stakeholder analysis should be examined in order to assign the activity to the most
relevant stakeholder with its expertise for the better functioning and management
of the project.
You go next 4: Determine your activities to succeed the course X and
show them on the Gant Chart with a time frame.
5.4.3. Key Questions in Preparing the Activity- Time Planning
• Where I should stop in breaking the main activity down into its sub-
activities?
The most common mistake is to break the activities down into too much or
less detail. By consulting to an expert and the person responsible for that
activity, the breakdown should stop as soon as you are able to estimate the
time and the resources required. For example, “delivering the teaching ma-
terial to the students” is a too much detailed activity which should not be
included in the activity planning.
• Does my project should have many activities? For example am I obliged
to have the activity of developing a web site for my project?
No. Every activity you determine in your project should be undertaken in order
to achieve the expected outputs and the aim of the project. It is a common
misperception that every project should have a website or it should organize
a closing ceremony. The activities should be engaged and associated with the
project aim and they should target the achievement of the project aim.
• What is the relation between project activities and the budget? The
resource planning and the estimated cost of each activity which must be
developed on the activity planning has a direct impact on the estimated
It is recommended to
estimate the start and
completion time of the
activities by allowing some
exibility. Specically
for the activitiesawhich
requires expertise to
undertake it, we might
be not able to propose
its content entirely. The
estimation for duration of
such activities should be
consulted to an expert for
that specic activity.

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budget of the project. The activity planning might need to be revised
according to the minimum and maximum limits of the grant programme.
If the total estimated cost exceeds the maximum allocated grant, then you
should look for new funding sources or the project might not be submitted
due to the inadequate resources available for the project.
• While writing the abstract/ summary of the project should I mention the
activities?
It is recommended to indicate your main activities in the abstract/summary
part of your project. Referring to your planned main activities to achieve the
expected results and the project aim helps to draw the main framework and
give an idea about the milestones of your project.
• What does it mean to be “realistic” while proposing the project activities?
You should be considering the capacity and expertise of your project team
while proposing your activities. The activity planning should involve the most
relevant partner as the task owner according to the match of their expertise
with the planned activity. The stakeholder analysis should be well examined
in doing the task allocation. For example if Karsiyaka sailing Club is our partner
in the project, then it should be responsible to coordinate and undertake
the activity of “determining the sailing trainer”. Assigning the most relevant
partner for the activity which requires its expertise strongly contributes to the
success of the project. Another issue is to determine and oer the resources
(human resource, equipment, nancial resources) in a realistic way based on a
realistic needs analysis. For example the activity of conducting a face-to-face
interview with 3 million people in Izmir which is proposed to be realized by a
project team of 5 young students is not realistic and feasible.
5.5 Resource Planning
The resource planning estimates the required inputs and means necessary to
undertake the activities. Resources can be listed in four categories:
• Human Resource/Salaries
• Resources for Travel and Allowances
• Physical Resources (equipment, material, hardware etc)
• Other Resources
The project budget is prepared after the completion of the resource plan-
ning. In other words, the rst step and prerequisite of the project budget is
to prepare the resource planning. The more properly prepared and estimated
resource planning basis the more successful budget. If you do not formulate
your project budget on a well prepared resource planning then your project
high probably fail and your activities might not be undertaken due to the
insucient budget. Resource planning can be considered as the bridge be-
tween the activities and the budget.
Resource planning does not aim to determine and calculate the cost of the
activities but to determine the resources, inputs and needs required to realize
the activities. It provides a basis to justify the project budget and the main
budget items.
You can follow the below stages in preparing your resource planning:
Resource planning does
not aim to determine
and calculate the cost
of the activities but to
determine the resources,
inputs and needs
required to realize the
activities.
Resource planning
should be prepared for
each activity in detail. At
this stage, to imagine the
activities and living them
in our mind beforehand
will help us to discover
the needs and required
resources in detail

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1. Determine all the resources and inputs required to undertake the all activities in
the project.
2. Determine the amount/quantity and how long you need these resources? (Yentürk,
Aksakoğlu, 2006)
Resource planning should be prepared for each activity in detail. At this stage, to
imagine the activities and living them in our mind beforehand will help us to discov-
er the needs and required resources in detail. For example if we think the activity of “
giving sailing trainings to orphan children” we can determine the resources needed
as a classroom for the trainings to take place, a computer, a projector, a minibus to
carry and bring the students to the training place since the disadvantaged children
will not be able to do it easily by themselves. The resource planning for this activity
might be listed as below:
Main activity: Giving sailing trainings
Sub-actvtes 2.1. Determnng the traner
2.2. Preparng the teachng materal
2.2.1. Developng and desgnng the teachng content
2.2.2. Publshng the teachng materal
2.3. Preparng the salng boat for tranng
2.3.1. Renewng and the pantng of the boat
2.3.2. Provdng the salng suts and lfe jackets for each partcpant
2.4. Realzng the tranngs

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You go next 4: Prepare the resource planning of SENTULGE project
activities indicated to take place during the 2nd week of 2nd month
Giving trainings on basketball and dance performance (proceeding)
Visiting the historical sites and museums in Izmir
Taking photos of the visited sites, cultural, historical places and
archive the photos

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4.6 Budget
Project budget is the table which demonstrates “how the nancial resources of the
project will be utilized and allocated among the activities” (Eser, Akyüz, 2007). Budget
planning helps to estimate the total cost of the project and determine the available
nancial resources.
We can list the important stages of preparing a project budget as follows:
1. Preparation of budget proposal in association with the resource planning
2. Linking the activity-time planning with the budget proposal
3. Justication of the expenses, costs
4. Conducting the market cost analysis
5. Finalizing the budget
A proper and accurate budget can only be prepared if the project has successfully
planned with clearly indicated main and sub-activities and has well prepared
resource planning in detail. In other words, as long as your activity planning and
resource planning clearly indicates the accurate estimation of the amount and
duration of resources needed –such as duration of the each sta member working
for the project-your project budget will be successfully prepared.
The project budget is prepared by calculating the cost of each activity. Therefore,
each budget item should be associated with the planned activities by providing the
concrete justications concerning the reason, amount and time. For example, you
are expected to explain and justify why you need 2 trainers for the sailing training
and how much is their salary and how long they are expected to work? At this stage,
the Gantt Chart that demonstrates the project activities in a time frame helps to
formulate a more accurate budget planning.
Another important issue is to be able to determine the accurate cost for each
activity through conducting a good market research. Each expense should be
calculated by consulting to the experts in the eld and by undertaking a detailed
market research in order to estimate the costs accurately. For example, the cost of
sailing suits is not easily estimated. You should make a market research in calculat-
ing the cost for each suit by calling some sailing sports stores or consulting to
friends who sail. In doing the market research you can visit or stores, search inter-
net, or demand the price of each item ocially from the relevant companies.
It should also be noted that even the market research is done in detail by estimating
the accurate cost for each activity, if your activity planning is weakly prepared and
lacks some activities, you should more likely encounter budget problems while
implementing and managing your project. An activity which you forget to put in
your activity planning thus also in your resource planning but highly required to be
undertaken in order to achieve one of the expected results and the project aim would
create serious problems since you will not have budget allocated for that activity.
Therefore, you minimize the risks in your budget as long as you have a properly
designed activity and resource planning. It is probable that the estimated and actual
budget will dier to an extent, deviation of +/- %5-10 is normal and demonstrates
that your budget is successfully planned (Eser, Akyüz, 2007).
5.6.1. Main Budget Items
Each budget has its own budget items which are prepared according to the
Therefore, you
minimize the risks in
your budget as long as
you have a properly
designed activity and
resource planning.

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project’s content and speci c activities, however we can generalize the main
budget items under 6 di erent category.
1. Human Resources/Sta Costs
2. Travel and Subsistence/Allowance Costs
3. Equipment/material/hardware costs
4. Project O ce Costs
5. Other Costs
6. Administrative Costs
Human resources/sta costs include the gross salaries/wages paid to the sta
members working in the project. Projects recruit personnel such as project coordinator,
project assistant, consultant, technical or administrative o cer, accountant, web-
designer, and trainer. Total cost for sta is calculated by multiplying the unit cost of
salary/wage with the duration of the working hours/days/months. It should be noted
that the sta costs are calculated over gross payment.
Travel and subsistence/allowance costs cover travel and subsistence expenses of
the project sta and the participants while undertaking the project activities. For
example the expenses of invited speakers as part of your seminar activity or the visits
of the project sta to another city as part of your  eld study activity are all calculated
under this budget item. Travel costs include the expenses such as tickets for  ight, bus,
train, or gasoline for car or taxi expenses and categorized as international, national or
local. Subsistence costs include the expenses for accommodation, catering. It is paid
to the project sta or the participants on daily basis if they need to stay in another
city or country other than the place where the project is taking place. The stay should
be justi ed as part of the project activity.
The following example demonstrates the budget planning of travel and subsistence
for a seminar in Izmir which invites 4 speakers; 1 from Izmir, 1 from Berlin and 2 people
from Ankara
The reason to calculate the subsistence for 4,5 days is to multiply the number of days
stayed by 3 speakers with 1,5 since they need to spend ½ days on the way for their
travel.
Equipment/material/hardware costs include all the expenses related with the
purchase of equipment, material and hardware. For example, the equipment needed
for the project such as a computer, projector, scanner, camera, phone etc. can be

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listed under this budget item.
Project/oce costs cover the expenses needed for the oce used for the project
management. The rent of the oce, furniture, expenses of electricity, water usage,
and heating are some examples that can be listed under this budget item.
Other costs, are detailed within the framework of ‘other expenses and services” It
mainly covers the sub-contract costs, outsourced services and the expenses which
can not be categorized in the above budget items but are need to undertake
the project activities. For example, the publication of a book, brochures, costs for
translation, costs for auditing or external evaluator can be listed under this budget
item.
Administrative Costs, refer to the expenses required for the management of the
project but are not directly attributable to the operation of project activities. These
costs are associated with the management, administrative, clerical functions of the
project. For example, if the project oce is not rented but the project coordinator or the
partner allocates its own oce to be used for the project then the costs for electricity,
water usage, heating, costs for communication, stationary, costs for cleaning of the
oce can be covered under the administrative costs. It is recommended that the
administrative costs should not exceed the 7% of the total direct costs of the project
budget.
5.6.2. Key Issues in Preparing the Budget
• If you are submitting a project proposal under a grant programme/scheme
you should be careful to respect the aannounced minimum and maximum
budget limits and also the percentage of the grant to be allocated.
• Start to prepare your budget after you complete your resource planning. One
of the common mistakes is to prepare the budget according to the oered
grant in call for proposal and ignoring the resource planning which should
be closely associated with the activity planning. Therefore, the budget is to
be prepared at the last stage of preparing the proposal. This will also help you
to check whether your activities are realistically planned and your project is
feasible.
• Do not forget that your budget planning should cover the costs to be incurred
between the start and end dates of your project.
• Prepare your budget in line with your activity-time planning. Thus, the bud-
get amount allocated for each month is determined according to the activ-
ity-time planning. It is recommended to prepare your budget by following
with your Gantt Chart.
• It is recommended to demand price oers for the costs, goods and services
while preparing the budget. This will more likely reduce the dierence be-
tween the estimated (project planning stage) and actual (project manage-
ment stage) budget. Requesting the price oers with details also helps to
calculate the cost for that activity in a more accurate way. For example if you
need to get translation service, the cost will not only cover the sta payment
for the translator but you should also request the cost for the translation cab-
in and many other relevant technical equipment.
You go next 5: Prepare the budget for “giving the sailing training” by
using the resource planning of the same activity which is presented in
the previous part.

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Answers of “You Go Next” Questons
You go next 1: If you aim to loose weight then you might plan the activities of
doing sports, exercise or diet. However, if we do not do these activities regularly it
will be dicult for us to achieve our goal of loosing weight. Diet might also not be
the right activity for us. Instead of diet, regular and healthier nutrition might be a
better activity for us to achieve our goal. Therefore, jogging only a day in a week and
having fast-food with our friends on the weekends are not the relevant activities that
contributes to our aim. This case can be considered as an example which resembles
to establishing the link between project activities and aims.
You go next 2: The problem analysis of a project that aims to increase the social
integration of orphan children might include the sub-problems such as: limited
opportunities to reach social, cultural and sport activities, low self-condence
among the orphan children, insucient consultancy and orientation activities
oered to children etc. In this regard, teaching orphan children how to sail will not
only contribute to provide them opportunities for sports activities and will also help
them to increase their self-condence. This activity will contribute to the project aim
since it will directly increase the social integration of the children. This example can
be extended by using the other sub-problems.
You go next 3: If your project aim is to “decrease the number of trac accidents in
the city” your main project activities might be: to give trainings to the taxi drivers,
to organize a concert in order to increase public awareness, to prepare radio and TV
programmes, to organize workshops with the trac police. The work package on
“organizing the concert” can be divided into the sub-activities such as: organizing
the concert area/place, determination of the performance artist, preparation and
delivery of invitations. The resource planning can be prepared by determining the
needs for each activity.

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You go next 4: Every student can determine di erent activities, the following Gantt
Chart can be an example:

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You go next 5 :
,
BIBLIOGRAPHY
Akyüz, A., Eser, İ., Kurma, E. (2007). Proje Döngüsü Yönetm II: AB Fonları, Bütçeleme
ve Raporlama.
Tekndağ, F. C. (2005) Proje Döngüsü Yönetm ve Mantıksal Çerçeve Yaklaşımı.
Svl Toplum Gelştrme Programı, Yerel Svl Grşmler Projes. Ankara. Erşm:
,

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http://www.orkoop.org.tr/uploads/fles/proje_yonetm_ktab.pdf
Councl of Europe (2000). Project Management T-kt. (Ed) A. Dussap, P. Merry
Strasbourg, Cedex
PMBOK (4th Edton). (2010). “A Gude to the Project Management Body of
Knowledge”. Project Management Insttute
Yaşar Ünverstes Avrupa Brlğ Araştırma ve Uygulama Merkez Projes, TR-12-196-
2008 R2 “Sosyal Entegrasyon çn Ünverste ve Lse Gençlğ El Ele” Gençlk
Programı Eylem 1.2. www.sentulge.yasar.edu.tr
Yentürk, N., ve Aksakoğlu, Y. (2006). Proje Döngüsü Yönetm I: Proje Teklf Yazma,
İzleme ve Değerlendrme. İstanbul Blg Ünverstes Yayınları: İstanbul. Erşm:
http://stk.blg.edu.tr/docs/PDYI.pdf
Yıldız, A. “Faalyet-Zaman Planlaması” Sunumu, İzmr Vallğ Avrupa Brlğ ve
Dış İlşkler Koordnasyon Merkez tarafından verlen “Proje Hazırlama ve
Uygulama Eğtm”, 8-10 Nsan 2011

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