Business Development Budget Planning

Work Instruction (WI) – Budget Planning Process Questionnaire

Name of Dept____Business Development______________________________

Dept. Head or Designee____________________________________

1. Do you know of any written procedures pertaining to the budget planning process?

I am not aware of any written budget procedures, though they may be a preliminary one started. There are a few templates that are used to guide the process.

2. What is your budget process?

* Review the past years sales revenue with Business Development Managers (BDM) and create a Forecasted Sales Plan for the coming year. (Excel Spreadsheet) This is based on any back log, past customer’s order performance, Requests for Quotes (RFQ), pending orders, number of current product evaluations, dialogues with customers’ about expectations, number of programs going into Low Rate Initial Production (LRIP), number of Contract Awards, current consumption of IR&D, product development status, new markets opening up, evaluating market trends, past internet orders, and best guess estimates.

* Develop and risk and probability percentages for Forecasted Sales Plan

* Create Total SG&A budgets for departments 5601, 5602, and 5603. This is overhead budget. This is a forecast of the next overall spend using last fiscal year’s actuals:

* Operating Supplies

* Utilities and Services

* Production Equipment and Lease Costs

* Miscellaneous: Travel, Business Conferences, Seminars, Interviews, New Personnel, Relocation, Subscriptions, Dues, Spend Activities, Contributions, Trade Shows, Advertising,

* Professional & Other Expenses

* Forecast Inventory and disposition of legacy materials and calculation of residual inventory and Year over Year (YoY) improvements

* Write a IR&D Product development justification

* Create IR&D Product development proposal with Net Present Value (NPV)

* Create information for the Stage Gate Review (SGR) board...