Cost and Quality Management Plans for St. Dismas Medical Center

Dismas Medical Center 3 1.1 Overview 3 1.2 Project cost measurement 3 1.3 Cost variance 4 1.4 Cost change control process 5 1.5 Cost management approaches 5 1.6 Project cost 6 1.7 Cost estimated according to the Work Breakdown Structure 10 2. Dismas Medical Center 12 2.3 Purpose of quality management plan 13 2.4 Quality assurance 13 2.5 Reason to develop Quality management plan for St. Dismas Medical Centre 14 2.6 Quality management plan 15 2.7 Information management for quality record keeping 16 2.8 Quality control 17 References 19 Part B 1. Dis

Running head: COST AND QUALITY MANAGEMENT PLANS
Cost and Quality Management Plans: St. Dismas Medical Center
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Name of the university:

1COST AND QUALITY MANAGEMENT PLANS
Table of Contents
Part B...............................................................................................................................................3
1. Cost management plan for St. Dismas Medical Center...............................................................3
1.1 Overview................................................................................................................................3
1.2 Project cost measurement......................................................................................................3
1.3 Cost variance.........................................................................................................................4
1.4 Cost change control process..................................................................................................5
1.5 Cost management approaches................................................................................................5
1.6 Project cost.............................................................................................................................6
1.7 Cost estimated according to the Work Breakdown Structure..............................................10
2. Quality management plan for St. Dismas Medical Center........................................................12
2.1 Background of quality management plan............................................................................12
2.2 Steps for developing a QMP for St. Dismas Medical Center..............................................12
2.3 Purpose of quality management plan...................................................................................13
2.4 Quality assurance.................................................................................................................13
2.5 Reason to develop Quality management plan for St. Dismas Medical Centre....................14
2.6 Quality management plan....................................................................................................15
2.7 Information management for quality record keeping..........................................................16
2.8 Quality control.....................................................................................................................17
References......................................................................................................................................19

2COST AND QUALITY MANAGEMENT PLANS
Part B
1. Cost management plan for St. Dismas Medical Center
1.1 Overview
Cost management plan is referred to as one of the most important areas of project
management that involves all necessary processes those are required to successfully finish the
project within the estimated budget (Shang, 2017). In order to construct and design the building
the project manager of St Dismas Medical Centre construction project has considered certain
phases and based upon the skills and knowledge proper resources are also allocated for
successfully completing the project. The first task of the cost management knowledge area is the
plan cost management process (Rumane, 2016). Through plan cost management the project
manager will be able to establish policies, procedures, planning documentation, expanding and
controlling project cost etc.
1.2 Project cost measurement
Unit of measurement: The cost of the project should be measured based upon the
requirements of materials. Based on the project change and time the cost rate varies. For
measuring the length United Kingdom and United States uses inches whereas; the European
countries use square foot for measuring the units (Oakland, 2014). As the measurement of the
cost is critical from the developer’s aspect, thus St Dismas Medical Centre develops a cost
management plan to deliver and meet the expectation of the consumers.

3COST AND QUALITY MANAGEMENT PLANS
Level of precision: These are also should be included to the cost management plan which
defines the total number of decimal places (Park et al., 2017). However, for large projects
consideration of precision will vary the total cost thus this should be avoided in case of
mega projects.
Control threshold: The control threshold should be included in the cost management
plan of St Dismas Medical Centre project. In order to get the assumed track, for a particular
action the budget variance should take (Fleming & Koppelman, 2016). For any project if the
total budget is 1 million and the control threshold is set as $40,000 then it implies that the project
manager is responsible to take all corrective actions to control the cost to prevent the cost move
beyond this.
Performance measurement rules: Earned value management is one of the most widely
used tools that help to complete the project successfully within the estimated budget and time as
well. The cost management plan also includes the earned value analysis details. However, it
cannot be said that, the cost management plan of any project will be measured at the initiation
phase (Heagney, 2016). Rather with the changing time phase the project manager should track
and monitor the details. With the project progress the project status and cost according to that
should be considered.
1.3 Cost variance
The role of the project management and the finance manager is to estimate the total cost
for the successful completion of ay project. The costs for each of the activities are estimated
based on their size and complexity. It is important to estimate the cost properly to avoid internal
conflict and commercial failures (Heravi, Coffey & Trigunarsyah, 2015). For this project the

4COST AND QUALITY MANAGEMENT PLANS
cost is allotted for the different parts such as fixed cost, material cost, contractor cost and cost for
other necessary facilities. The cost required for the facilities are the highest as the aim of the
project is to deliver quality service and care for the patients. Though, it is not necessary that
each tome the estimated cost of any project will be equal to the actual fixed. During the
development of the project it may happen that additional requirements are needed. For them
additional cost will also be required. Thus the project sponsors should estimate the budget in
such a way so that it needs not to add any extra cost during the project development and
implementation phase (Kerzner & Kerzner, 2017). However, for this particular project the cost
variance rate is shown in the above cost estimation table.
The cost management plan developed for St Dismas medical centre, defines the control
threshold for the project and all the necessary action those are needed to ne undertaken for the
successful implementation of the project. If is found that during the project development phase
the estimated budget is exceeding unexpectedly then necessary actions should be identified and
approved by the project sponsors so that it can meet the requirement of the project within time
(Moretti, Cantisani & Di Mascio, 2016). Again the project manager should also take care that
the time is not exceeding the estimated period because for that also the project of St Dismas
medical centre will ne eventually negatively impacted.
1.4 Cost change control process
Fr this particular project there is no such changes identified. Thus it is expected that the
project will successfully meet the requirements of the project within estimated time with a
greater level of revenue and commercial success at the same time.

5COST AND QUALITY MANAGEMENT PLANS
1.5 Cost management approaches
There are different cost management tools and techniques available those are widely used
by the project developers of the St Dismas Medical Centre construction project. Besides the
project manager the finance manager is also responsible to develop the project cost structure
accurately
1-Aug-
99 15-
Aug 29/10
/1999 4/11/
1999 9/11/
1999 14/11
/1999 21/11
/1999 28/11
/1999 5/12/
1999 13/12
/1999 22/12
/1999
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
Planned Value (PV)
Actual Cost (AC)
Earned Value (EV)
Figure 1: Cost management plan for the St Dismas Medical Centre
(Source: created by author)
1.6 Project cost
For this particular project the estimated cost is elaborated in the below section.
W
B
S
Activity 1-
A
ug
15-
Au
g
29/
10/
19
4/1
1/1
99
9/1
1/1
999
14/
11/
199
21/
11/
199
28/
11/
19
5/1
2/1
99
13/
12/
19
22/
12/
19
P
V
%
Co
mp
E
V

6COST AND QUALITY MANAGEMENT PLANS
-
99
99 9 9 9 99 9 99 99 let
e
1 Project
quality
management
plan
$
12
,0
00
$
20,
00
0
$
32
,0
00
10
0
%
$
32
,0
00
1
.
1
Project
quality
requirements
$
5,
00
0
10
0
%
$
-
1
.
2
Project
quality
standard
setting
$
18,
00
0
10
0
%
$
-
1
.
3
Cost estimated for
the risk
management plan
$
28,
00
0
10
0
%
$
-
2 cost
estimated or
the
construction
$
70,
00
0
$
70,
00
0
$
14
0,
00
0
80
%
$
11
2,
00
0

7COST AND QUALITY MANAGEMENT PLANS
3 Interior
design and
issues fixing
$
32,
00
0
$
22,
00
0
$
12,
000
$
66
,0
00
60
%
$
39
,6
00
4 facilities and
technical
cost
$
30,
00
0
$
48,
000
$
42,
000
$
54,
000
$
35,
00
0
$
20
9,
00
0
50
%
$
40
,0
00
4
.
1
cost for raw
materials
$
3,5
00
$
4,0
00
10
0
%
$
-
4
.
2
Cost
estimated for
the legal
licenses and
food services
$
18,
000
$
14,
000
$
12,
00
0
20
%
$
-
5 cost for
stakeholders
management
plan
$
12,
00
0
$
5,5
00
$
17
,5
00
20
%
6 Plumbing
and
$
4,0
$
4,
0
%
$
-

8COST AND QUALITY MANAGEMENT PLANS
electricity
cost
00 00
0
7 cost for
control
measurement
s
$
50,
00
0
$
50
,0
00
0
%
$
-
8 Cost for final
quality
checking
$
14,
00
0
$
14
,0
00
0
%
$
-
Monthly
Planned
Value (PV)
$
25
,0
00
$
75,
00
0
$
10
2,0
00
$
55,
00
0
$
35,
000
$
15,
000
$
10,
000
$
60,
00
0
$
9,5
00
$
50,
00
0
$
14,
00
0
$
53
2,
50
0
$
22
3,
60
0
Cumulative
Planned
Value (PV)
$
25
,0
00
$
10
0,0
00
$
20
2,0
00
$
25
7,0
00
$
292
,00
0
$
307
,00
0
$
317
,00
0
$
37
7,0
00
$
38
6,5
00
$
43
6,5
00
$
45
0,5
00
Monthly
Actual Cost
(AC)
$
25
,0
00
$
75,
00
0
$
40,
00
0
$
65,
00
0
$
40,
000
20,
000
20,
000
20,
00
0

9COST AND QUALITY MANAGEMENT PLANS
Cumulative
Actual Cost
(AC)
$
25
,0
00
$
10
0,0
00
$
14
0,0
00
$
20
5,0
00
$
245
,00
0
$
265
,00
0
$
285
,00
0
$
30
5,0
00
Monthly
Earned
Value (EV)
$
25
,0
00
$
75,
00
0
$
40,
00
0
$
55,
00
0
$
35,
000
10,
000
0 0
Cumulative
Earned
Value (EV)
$
25
,0
00
$
10
0,0
00
$
14
0,0
00
$
19
5,0
00
$
230
,00
0
$
240
,00
0
$
240
,00
0
$
24
0,0
00
1.7 Cost estimated according to the Work Breakdown Structure
The aim of any project is to gain competitive advantages and to deliver quality service to
the consumers as per their desire. With proper quality cost effective services the St Dismas
medical centre project will also be able to increase the number of patients and also can retain the
existing consumers (Kerzner & Kerzner, 2017). In order to develop the project an accurate
project plan in terms of work packages are created. It is the responsibility of the project manager
and project team members to follow the project plan accurately and deliver their responsibilities
for particular activities. The activities listed for the project are differentiated in small parts such
as management, interior designing, issue fixing, technology incorporation, food service, legal
terms, site visiting, layout and marketing. For each phase project team members are allowed in

10COST AND QUALITY MANAGEMENT PLANS
terms of resources (Heravi, Coffey & Trigunarsyah, 2015). It is the responsibility of the project
manager to allot necessary human and physical resources based o their skill, knowledge and
importance as well. Catering service, electricity plumbings are the activities considered for the
successful implementation of the project of St Dismas medical centre. The St Dismas medical
centre has non-profit 450 bed is facing huge loss in their patient admission. Mostly the person
who are catastrophically ill and several time injured are offered treatment. Both the short term
and long term success plan are developed by the project managers and the project team members
associated to the program to meet the project aim within the estimated cost. The long term
objectives of the St Dismas medical centre is to increase the census in the hospital’s impatient
units by adding location where the people will be able to gain necessary facilities. Based on the
size of the apartments and their equipments, proper budget is also estimated by the finance
manager and the project manager of the project. It has been found that the total cost allotted for
the project is between $8,500,000 and $11,000,000. Mainly for facilitating the construction this
construction amount is estimated and on the other hand, the estimated cost also includes the land
cost, furnishing cost and connection shelters of the hospitals. It is the role of the project team
members to take follow up of all these components accordingly with the changing time period.
It can be said that the construction is not the end of the project but in order to gain effective
competitive advantages and commercial success proper marketing criteria are also needed to be
followed by the project team members. The total income estimated for the project is around
$9,000 and $12,000. On the other hand the total cash flow of the project is estimated to be
$1,500,000.

11COST AND QUALITY MANAGEMENT PLANS
2. Quality management plan for St. Dismas Medical Center
2.1 Background of quality management plan
Quality management plan is referred to as a process through which the quality of any
project can be measured statistically and functionally as well. It has been found that with an
accurate quality management plan any organization will be able to grab new consumers and also
can retain the existing consumers (Heravi, Coffey & Trigunarsyah, 2015). The quality
management plan develops for the St Dismas Medical Centre is comprises of organizational
responsibilities, policies, procedures and program details. A professional QMP serves specific
drawing outlines for any particular project.
It has been found that if accurate quality management plan is developed then St Dismas
Medical Centre will be able to gain expected outcomes. Quality management plan defines the
success of any project. As this is a construction based project thus for accomplishing this project
the steps those are to be followed include- contract to raw material suppliers, blueprint of the
building structure, designing the structure, interior development and others (Heagney, 2016).
Quality management project is defined as a meta-project that is project within a project. Based
on the status of the project, stakeholders should be appointed. However the stakeholders must be
aware of the project requirements and the objectives.
2.2 Steps for developing a QMP for St. Dismas Medical Center
In order to develop the project for the St Dismas Medical Centre, the necessary steps
those are followed accordingly include:
 Designing a quality program
 Schedule for review and the check points

12COST AND QUALITY MANAGEMENT PLANS
 Forms
 Documents on control plan
 Construction inspection as well as testing Quality assurance plan
 Construction quality training manual
 Laboratory system manuals
2.3 Purpose of quality management plan
The purpose of developing a quality management plan is to meet the expectation of the
consumers from the project. In the initiation phase the project manager should create a quality
management plan. The quality of any project are somewhere fully and somewhere partly
dependent on the project activities (Goetsch & Davis, 2014). The activities should be developed
focusing upon the requirement of the project. Project quality identifies the quality standards and
the procedures to deliver quality project to the consumers. In addition to this a quality
measurement metrics is also developed for measuring the performance of the project.
2.4 Quality assurance
The project manager is responsible to control and monitor the entire project from the
staring till the final success of the project. Again the business and quality analysts of the project
are responsible to analyze and review the condition of the project. The quality of this particular
project deals with raw material suppliers, construction blueprint, building design details, quality
of the interior design, electricity, plumbing etc. The quality measures are rated as follows:
Schedule Performance Index 0.74
Cost Performance Index 0.95

13COST AND QUALITY MANAGEMENT PLANS
For this project the control threshold is from the range between 0.9 and 0.8. Both the CPI
and the SPI are beyond the threshold level (Heravi, Coffey & Trigunarsyah, 2015). The CPI
(0.95) is above the range and the SPI (0.74) is below the range thus both of these are in critical
situation.
Quality assurance is referred to as a systematic work package that determines whether the
project is meeting the specific expectation of the consumers or not. The quality assurance is
meant to increase the confidence of the consumers along with the company credibility including
work processes, efficiency (Moretti, Cantisani & Di Mascio, 2016). With an accurate quality
assurance plan the St Dismas Medical Centre will be able to add better values to their services.
There are different tools and techniques such as cost benefit analysis, control charts,
benchmarking, statistical sampling, cost of the quality etc through which the quality of this
project can be measured. In this particular project a cost benefit analysis has been done to
measure the quality of the project in terms of loss.
2.5 Reason to develop Quality management plan for St. Dismas Medical Centre
Quality is a degree which is followed accordingly by the developers to meet the
requirement of the consumers. The St Dismas medical centre is currently facing huge declination
in their admission (Flemin & Koppelman, 2016). The focus of the medical centre is to
rehabilitation of the center with additional service and management. The success of any project
can be measured based on the quality of the project. In order to identify the future opportunities
for the medical centre the company is focusing on retreat. However, two major levels of
strategies are considered by St. Dismas medical centre to gain effective commercial revenue and
market level success. In order to deliver the impatient care the short run initiative are very much
cost effective on the other hand, the other one is the long term strategy that helps to develop new

14COST AND QUALITY MANAGEMENT PLANS
level of programs and services simultaneously that may collectively improve the existing system
and service (Abdullah et al., 2015). The aim of the project is to deliver quality service to the
patients. However, the operational a functional activity of the St Dismas medical centre is not
that much appreciable thus the managerial authority of the medical centre is focused to
developing its reputation in the existing market place. A potential Return on Investment is also
calculated by the project head to estimate the possible benefit can be generated from the capital
invested.
The St Dismas medical centre is focusing to construct a new building with additional
facilities, patient care unit and additional accommodation to deliver necessary care for the
patient. It is expected that with the successful implementation of these components they will be
able to grab more patients throughout and also high level reputation at the same time (Flemin &
Koppelman, 2016). After considering the background of the project required blueprint of the
building is also designed which is examined by also many companies to oversee the design
details, building, the facilities and operation they are going to incorporate in the St Dismas
medical centre service. The development team also makes a complete analysis to increase the
population and catchment area.
2.6 Quality management plan
Across the country the business development team visited many facility providers widely.
However, the role of the construction project manager is to take necessary steps to control the
quality of the project for long term sustainability. Besides accommodation the medical centre is
also focused to keep the security of their services (Heravi, Coffey & Trigunarsyah, 2015). The
official credentials are needed to keep security during the migration of the data centre. Proper
technical control and security protection should be developed by the technical team of the project

15COST AND QUALITY MANAGEMENT PLANS
to give proper shelter to the connections. The network or information flow channel should be
developed in such a way so that it can develop an accurate business model for the successful
implementation of the planned strategies. The project manager is responsible to control the
quality of the project (Perera, Zhou & Victoria, 2016). People who took admission for both
minor and major treatment are offered proper residential accommodation. The therapy programs
developed for the patients are again referred to the geriatric population. The accommodation is
not just offered to the patients abut also the residential are developed to those who were in the
need for hospitalization like aged people or weak person who have any serious unrecoverable
disease. In order to develop the resident the project development team took advice from the
architectural construction management (Moretti, Cantisani & Di Mascio, 2016). The developers
are responsible to identify and analysis the competitive market so that they can stand on the
competition with a higher level of reputation and can deliver quality service to the patient by
providing residents (Hong, Siegel & Ferris, 2014). The St Dismas medical centre project can be
defined as a healthier generic population project for the consumers.
2.7 Information management for quality record keeping
A technical computerized system should be adopted by the project team members so that
they can keep the credentials secured from the external attacks. In order to make the project team
members aware of the ALF project, the project head decided to arrange staff meeting program at
the launch meeting and the members who are requested to attend the meeting include the Chief
Financial officer, vice president, business development and marketing team, Rehab service
medical director etc (Flemin & Koppelman, 2016). All of these members are allowed to serve
their responsibilities accordingly so that the aim and objectives of the project can meet the
expectation. The information system director of the project development team is responsible to

16COST AND QUALITY MANAGEMENT PLANS
define and set up all necessary facilities associated to the telecommunication and information
system (Perera, Zhou & Victoria, 2016). Upon moving to the required facilities the director
informed that he or she is responsible to design the communication package, clinical services, in
house council etc. In order to operate the medical centre facilities it has been determined that
adequate supportive automated information system should be designed to assist the living
operational activities.
2.8 Quality control
Similarly there are many quality control techniques available through which the quality
of the St Dismas Medical Centre project can be controlled. The quality of the services of St
Dismas Medical Centre will be ensured if accurate designing processes are followed. Again the
design process requires to be backed with appropriate process design supported by suitable
technology that confirms the expectation and need of the consumers (Moretti, Cantisani & Di
Mascio, 2016). It also makes sure that all the risks and errors are completely prevented. For this
particular project the QC include the following steps- planning, designing, implementation, gap
analysis and necessary improvisation (Hong, Siegel & Ferris, 2014). If the project developer
delivers a stringent quality control plan thus the St Dismas Medical Centre will gain the
following profits:
 It will decrease the service level defects those were leading to variable cost with
the raw materials and the labor
 The scrap, pollution and wastage will be reduced
 St Dismas Medical Centre will be able to deliver quality services for sustainable
time period

17COST AND QUALITY MANAGEMENT PLANS

18COST AND QUALITY MANAGEMENT PLANS
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Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management.
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Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper
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