This specifically means:
1. Preliminary breakdown
2. Scheduling
3. Budgeting process; in accordance with target financial goals.
4. Creative preferences
5. Above the line costs
6. Below the line costs
7. General production logistics at hand as outlined by the script and/or storyboards.
Without this important analysis from a qualified and competent line producer, production supervisor or unit production manager, oftentimes, if not always, unexpected costs and/or circumstances will arise impacting scheduling and cost in ways not previously anticipated or desired.
Many lower budget and/or first time productions oftentimes back into a budgetary number before any research is even done. This is not only unrealistic but dangerous to a production.
The reason for this is because without research, there is no credibility to the detail being presented. Only someone who actually knows these costs and organizes productions would have the experience necessary to research and acquire this information accurately.
The budget must be established as a direct derivative of what is being created along with all creative and logistical circumstances possible. Adding up numbers to a desired target number sans research and scheduling breakdown is not budgeting, but basic arithmetic. A budget is a researched document based upon a script/concept which may, or may not, be equal to the amount of money desiring to be spent.
Knowing what to budget for, and/or not budget for, and understanding production circumstances is equally, if not more important, than knowing the potential risks and anticipating/preparing for them in a way which protects the production company itself in terms of general liability and the individual cast and crew members. Such factors include making sure appropriate fringes are accounted for-SAG, Payroll, Agency Fees, etc. and that proper liability and workers compensation coverage is in place to protect both cast and crew, as well as the production company itself, from liability and harm.
Just because a researched budget is in place, doesn't mean it cannot and/or will not be exceeded, or in best cases, come in under budget. It's essential to have your line producer or post production supervisor present throughout the entire process to monitor and insure that these researched costs are held in place as best as possible, as that person is going to be in the best position to advise what they see across all departments of the job and as to why something is coming in on budget, under budget or over budget and to have the know-how and experience to offset costs from one area of the locked budget to assist other areas which may be going over budget. It's a balancing act of cost and organization in effort to best support the creative backbone of the production.
It's been said the first rule of filmmaking is there are no rules. However, there is clearly a difference between rules and laws. It's up to the line producer to make those laws known and encourage their enforcement in effort to have a safe, professional work environment whereas a collaborative, creative project can be materialized on schedule and on budget.
