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

2COST AND QUALITY MANAGEMENT PLAN
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