Cost and Quality Management Plan Project 2022

Running head: COST AND QUALITY MANAGEMENT PLAN
Part B: Cost and Quality Management Plan
Name of the Student:
Name of the University:

1COST AND QUALITY MANAGEMENT PLAN
Table of Contents
1. Cost management plan for St Dismas..........................................................................................2
1.1 Cost management objectives.................................................................................................2
1.2 Cost management roles and responsibilities..........................................................................3
1.3 Cost Management Approach.................................................................................................3
1.3.1 Cost management tools and techniques..........................................................................3
1.3.2 Cost Planning and Estimating.........................................................................................3
1.3.3 Budgetary plan................................................................................................................4
1.3.4 Cost baseline...................................................................................................................5
2. Quality Management plan............................................................................................................5
2.1 Quality Management objectives............................................................................................5
2.2 Project Quality Control..........................................................................................................6
2.3 Project Quality Assurance.....................................................................................................8
2.4 Quality Team Roles & Responsibilities................................................................................8
2.5 Quality Tools.........................................................................................................................9
2.6 Quality Control and Assurance Problem Reporting Plan......................................................9
2.6.1 Quality Control Log........................................................................................................9
2.6.2 Quality Assurance Log.................................................................................................10
References......................................................................................................................................11

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1. Cost management plan for St Dismas
1.1 Cost management objectives
Cost management plan is referred to as one of the most significant knowledge areas that a
finance manager and CFO should necessarily involve for finishing any project in an approved
budget. This part depicts the cost management plan which St. Dismas needs to assist while
facilitating the project budget. The assigned CFO of the project was not enough experienced in
this field thus he selected Dr Sharf as a guide or consultant. The initial action plan submitted to
the construction contractor, the probable cost for the facilities will be $70/ square foot with a SD
of $3.67. However, Dr. Zen Link, the Head of Geriatric Medicine at St. Dismas incorporated
additional cost to the plan for providing high medical facilities to the population of St Dismas.
As a result it is identified that the operational cost for the project is becoming too high due to
excessive expensive equipments, similar multiple numbers of equipments etc. The objectives of
developing the cost management plan are as follows:
 To reduce the unwanted inflation reflecting in the budget plan developed for St.
Dismas’s project
 To utilize effective cost management tools and techniques for estimating
appropriate budgetary plan
 To develop the project budget baseline portion for the project
1.2 Cost management roles and responsibilities
It is duty of the Chief Financial Officer (CFO) and finance department to consider all the
project requirements and additional needs before developing an ultimate action plan. The CFO
must ensure that no additional unwanted inflation will be reflected in the final project budget.

3COST AND QUALITY MANAGEMENT PLAN
The main cost accounting aspects that a finance manager should consider while developing the
living facility budget for St Dismas include: ascertainment of cost, determining selling price rate,
cost monitoring, control and needful reduction, measuring potential profit from each
development activities and assisting the steering committee for final decision making.
1.3 Cost Management Approach
1.3.1 Cost management tools and techniques
Before developing the final budgetary plan for St Dismas it is mandatory to identify the
most effective cost estimation tools and techniques among: cost benefit analysis, NPV, ROI,
Payback period etc. not only this but also for managing cost the other elements which require
significant focus include: cost tracking, earned value analysis, projet change control, time
management, budget planning etc.
1.3.2 Cost Planning and Estimating
At the project initiation stage the project requirements should be clearly understood bu
the finance manager and CFO as well. The cost planning process is comprises of three stages:
The first of the stages include establishment of a complete realistic estimation known as
primary or rough estimation
In the second stage how the estimate will be spent for each activity is decided and
In the stage the finance team checks the process to make sure that the authentic design
details for different elements of the project can be successfully constructed in the cost plan

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However, the primary budget developed for St Dismas was not beneficial for the project
owner. For further improvement some changes are incorporated to the project budgetary plan and
the new budgetary plan, cost baseline are elaborated in the below section.
1.3.3 Budgetary plan
Task Name Duration Start Finish Predecessors Resource Names Cost
Cost estimation for St
Dismas facilities 45 days Mon
7/1/19
Fri
8/30/19 $815,000.00
Measuring
organizational cost 1 day Mon
7/1/19 Mon 7/1/19 organizational
cost[1] $20,000.00
Legal and accounting
cost 2 days Tue 7/2/19 Wed 7/3/19 1 legal cost[1] $15,000.00
Initial marketing cost 3 days Thu 7/4/19 Mon 7/8/19 2 marketing
cost[1] $50,000.00
Project consulting cost 1 day Tue 7/9/19 Tue 7/9/19 3 consultation
cost[1] $25,000.00
Market survey follow
up cost 2 days Tue 7/9/19 Wed
7/10/19 3 survey cost[1] $90,000.00
Net organizational
cost 2 days Thu
7/11/19 Fri 7/12/19 4,5 $0.00
Construction cost
estimation 6 days Mon
7/15/19
Mon
7/22/19 6 construction
cost[1] $100,000.00
Building cost 4 days Tue
7/23/19 Fri 7/26/19 7 Building cost[1] $200,000.00
Contingency cost 2 days Mon
7/29/19
Tue
7/30/19 8 contingency
planning[1] $50,000.00
Furniture costing 2 days Wed
7/31/19 Thu 8/1/19 9 cost of
furniture[1] $80,000.00
Capitalized interest
cost 6 days Fri 8/2/19 Fri 8/9/19 10 $0.00
Site improvement cost 5 days Fri 8/2/19 Thu 8/8/19 10
Site
improvement
cost[1]
$95,000.00
Kitchen equipments 5 days Mon
8/12/19 Fri 8/16/19 11,12 kitchen cost[1] $10,000.00
Phone and IS system 5 days Mon
8/19/19 Fri 8/23/19 13 cost for
system[1] $30,000.00
Medical operational
cost 5 days Mon
8/26/19 Fri 8/30/19 14 Cost for medical
equipments [1] $50,000.00

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1.3.4 Cost baseline
Figure 1: Baseline cost estimated for the project
(Source: Created by author)
2. Quality Management plan
2.1 Quality Management objectives
The aims and objectives of developing quality management plan is to make sure that
quality of a project is maintained throughput the project development life cycle period.
Improved project quality influences the performance and profit range of facilities. St Dismas
requires considering three different components in terms of high accuracy, compliance and high
client satisfaction.

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If three of the factors or elements are maintained throughout the budgetary planning then
the quality of the project would meet the expected objectives. A quality project can influence the
overall managerial and operational structure. For this project major focus requires on the below
mentioned criteria:
 Development of proper building maintenance program
 Identification of proper action plan to identify the medical requirements
 Identification of proper social activities for the residence
2.2 Project Quality Control
Project
Deliverable
Deliverable Quality
Standards/
Completeness and
Correctness Criteria
Quality Control
Activity
Frequency/Interval
To develop the
building design
and maintenance
plan
In order to deliver quality
building maintenance plan the
COO should consult with the
facility manager
Development of
accurate quality
control charts and
cost benefit
analysis as well.
Twice in a week
To meet to
dietary head for
developing action
plan to ideate
feeding practices
For the residents
In order to make sure that
health of the living people are
concern for the St Dismas
facility providers
Identification and
auditing non
conformance for
the St Dismas
facility
development
project
Weekly
To install only
needful medical
equipments
And eliminate
duplicates
In order to control the quality
of the project extra unwanted
cost requires to be eliminated.
Therefore, the duplicate and
extreme expensive equipments
suggested by the hospital
authority needs to be avoided.
Procedure
validation to
eliminate all
identified faults
Weekly

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2.3 Project Quality Assurance
Project
Process
Process Quality Standards/
Stakeholder Expectations
Quality
Assurance
Activity
Frequency/
Interval
Project
initiation
phase
In the project initiation phase stakeholders
are expecting to design the outline of the
project and make the project ideas and
requirements completely clear to all the
project team members
Configuration
control
Weekly
Project
planning
phase
In this phase the plans are developed
successfully
Establishment of
proper
authentication
Weekly
Final project
execution
phase
This is the ultimate phase where project
plan is executed
User acceptance
testing
Weekly
2.4 Quality Team Roles & Responsibilities
Project Team Role
Quality Control and
Quality Assurance
Responsibilities
Assigned Resource
Project manager To control and monitor the
project progress
Finance manager To design the project
budget based on the details
requirements
CFO The CFO should cross
check the complete
budgetary plan before final

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approval
2.5 Quality Tools
Tool Name Tool Purpose/Use
Pareto chart To identify common defects and challenges
that may interrupt project success
Case effect diagram Fishbone chart is used to identify the risk
triggers and its impact
Histogram The cause of different problems are
identified
Scatter diagram Helps to identify relation between two
variables
2.6 Quality Control and Assurance Problem Reporting Plan
2.6.1 Quality Control Log
Exceptio
n ID
Number
Review
Date
Deliverable
Reviewed
Findings Resolution
Resolution
Date
Q1 7/20/2019 Successful Hospital
facilities are
expensive
The unwanted
highly expensive
elements are
7/15/2019

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equipments
should be avoided
Q2 7/12/2019 Successful Building
maintenanc
e programs
are error
free
Further
improvement plan
should be
incorporated
8/20/2019
2.6.2 Quality Assurance Log
Exception
ID Number
Review
Date
Process
Reviewed
Findings Resolution
Resolution
Date
Q1 7/1/2019 Yes Final budget for the
project will be
$815,000.00
Feasibility
analysis
8/22/2019
Q2 8/22/2019 Yes The total time that
would be required to
implement the idea is
only 5 months
Time
management
8/25/2019

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References
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budgetary reliability of design stage elemental cost plan in building procurement: a New
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Fewings, P., & Henjewele, C. (2019). Construction project management: an integrated
approach. Routledge.
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approach. John Wiley & Sons.
Nanda, V. (2016). Quality management system handbook for product development companies.
CRC press.
Nicholas, J. M., & Steyn, H. (2017). Project management for engineering, business and
technology. Routledge.

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Papke-Shields, K. E., & Boyer-Wright, K. M. (2017). Strategic planning characteristics applied
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