Cost and Quality Management Plans for St. Dismas Medical Center

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

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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