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Budget

Overview

The budget required for HSE-MIS planning and implementation consists of the capital and human resources necessary to plan, develop, test, and implement a new or upgraded system and train users. Developing and adhering to an HSE-MIS budget is essential in ensuring proper and efficient resource allocation. HSE-MIS budgets may include a combination of corporate, subsidiary, and facility funding.

	Key Concepts
Align the HSE-MIS budget for HSE solutions with the HSE-MIS Plan. Align the HSE-MIS budget with each business-level capital planning and budget process. Make sure the budget meets both short- and long-term support needs. Revisit the budget when there are revisions to the scope, changes to the implementation plan or schedule, or resource reallocation.

	Practical Advice
The cross functional team should be an active partner in budget development and management. Ensure that clear communication of project costs and responsibilities is extended to all appropriate levels including plant, corporate, and business levels. Continuous proper management of the HSE-MIS Implementation Plan is important to stay on budget. Plan ahead for HSE-MIS capital projects so that integrating these projects into the budgeting process is straightforward. Understand the ongoing budget needs for maintaining HSE-MIS systems. Identify who will pay for ongoing maintenance and support. When planning for a comprehensive HSE-MIS system that involves several subsidiaries or facilities, agree upon the allocation of costs up-front if the capital costs and expenses are billed back to subsidiaries or facilities. Budget for contingencies in the 10 percent - 20 percent range to eliminate the need for additional approvals. Cost overruns are not uncommon, particularly in writing and testing new computer code. Build in resources (approximately 25 percent of project costs) for testing and training. This is often overlooked, and may make the difference between meeting and not meeting user expectations. Buying or building a system is one cost; implementing the system is another. Implementation may be a long-term proposition and all aspects of it, such as training, data conversion, populating the database, and customization needs to be considered and included in the budget.

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