Cost and Quality Management in Project Management

This article discusses cost and quality management in project management. It covers project cost estimation, budget baseline, tools and techniques used in cost management plan, justification for budget plan, and quality management planning. The study material is relevant for students studying project management and related courses in universities and colleges.

Running head: PROJECT MANAGEMENT
Part B: Cost and Quality Management
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
1. Cost management planning....................................................................................................2
1.1 Project cost estimation.....................................................................................................2
1.2 Project budget Baseline....................................................................................................3
1.3 Tools and techniques used in cost management plan.......................................................3
1.4 Justification for the budget plan.......................................................................................5
1.5 Gantt chart........................................................................................................................6
2. Quality management planning...............................................................................................7
Bibliography.............................................................................................................................11

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1. Cost management planning
1.1 Project cost estimation
Dr. Link estimated that the budget that is needed for finishing the project of “St.
Dismas Assisted Living Facility Project” is around $11,000,000. The estimated budget of the
project by Dr. Link is provided in the table below
Figure 1: Budget estimation as per Dr.Link
(Source: Created by author)

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On the other hand, it is estimated by CFO, that the required budget for the project will
be around $9,991,300. The figure below reflects the budget that is estimated by CFO
Figure 2: Budget estimation as per CFO
(Source: Created by author)

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1.2 Project budget Baseline
Project budget estimation as per the estimation of Dr.Link
09 April 2018 19 April 2021 29 April 2024 10 May 2027 20 May 2030 30 May 2033
$0.00
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
Budget baseline
Cumulative Cost
Figure 3: Project budget estimation as per the estimation of Dr.Link
Source: Created by author
Project budget baseline as per the estimation of CFO
09 April 2018 04 April 2022 30 March 2026 25 March 2030 20 March 2034
$0.00
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
Budget baseline
Cumulative Cost
Figure 4: Project budget baseline as per the estimation of CFO

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(Source: Created by author)
1.3 Tools and techniques used in cost management plan
The cost that is associated with the project “St. Dismas Assisted Living Facility
Project” is calculated with the help of Microsoft Project. Project schedule is mainly utilized
for organizing the project tasks into number of different manageable phases so that it can
properly understood by the project team members and as result they can work effectively
with the project (Heldman, 2018). Proper project tasks are assigned to each of the project
team members according to their knowledge as well as experience in a specific field so that
the entire work for St. Dismas Assisted Living Facility Project will be successfully finished
with the probable time and budget. The project managers assign resources to the various
project activities so that the work for the project can be finished effectively. After
successfully assigning the project resources, the project cost is calculated by utilizing bottom-
up approach. Bottom-up approach is one of the cost estimation method that generally starts
estimating the project cost from the lower level of the work package and completes after
reaching to the upper level (Klein, Biesenthal & Dehlin, 2015). It is found that bottom up
approach is mainly utilized in the project “St. Dismas Assisted Living Facility Project” as
with the help of this technique the cost associated with the budget can be estimated
accurately.
In order to manage the cost of the project following tools and techniques must be
utilized in the project:
Time management: Time management generally helps in playing a great role in
handling the cost that is associated with the project. If the project of “St. Dismas Assisted
Living Facility” is completed within the time that is assumed then the organization related

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with the project do not have to spend more budget on the project and therefore the project
will be executed within the budget that is assumed (Marcelino-Sadaba et al, 2014)
Cost tracking: It is found that cost tracking is one of the significant technique that is
generally used for tracking the project budget regularly for ensuring that the project will
achieve its objectives and thus the entire project will be finished within the expected deadline
(Pollack & Adler, 2015). If appropriate cost tracking procedure is utilized then it will be very
much easy to finish the project within the cost that is assumed.
Earned value use: It is found that earned value management technique is mainly
utilized in managing the project cost and in addition to this, it also assists the organization by
providing proper opportunity to measure the progress as well as performance of the project
(Mir & Pinnington, 2014).
Project change control: If the changes that is needed to be done in the project is
controlled then it is found that the organization do not have to spend money and thus it is
expected that the difficulty of finishing the project within the probable budget is reduced to
some extent.
1.4 Justification for the budget plan
It was analyzed that the cost that was estimated by Dr.Link for the project is too high.
The Medical director identified that Dr.Link wants to purchase too much expensive
equipments for the site. It is found that the hospital has the major number of equipments that
was needed for the project and therefore no need of same equipments for the project. On the
other hand, the budget that was estimated by the CFO was around 9,990,300, which exclude
expensive equipments for the site, and thus the budget that is created by CFO was considered
proper for the project. Therefore, the entire project must be finished within the budget that is
estimated by CFO.

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1.5 Gantt chart
Figure 3: Gantt chart
Source: Created by author

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2. Quality management planning
Factor
identification
Purpose Measurement
of project
quality
Analyzing
project quality
Quality control
Training Proper training
facility must be
provided to the
project team
members of St.
Dismas
Assisted Living
Facility so that
the entire work
of the project
can be finished
successfully
within the
expected budget
and time
without
compromising
the quality of
the project
work.
In the project
“St. Dismas
Assisted Living
Facility” proper
level of training
opportunity is
not given to the
workers of the
project.
Due to
presence of
improper
facility of
training the
project team
members faces
number of
challenges as
well as issues
while
progressing
with the project
work. They
faces difficulty
in finishing the
activities of the
project.
In order to
mitigate or
resolve the issue
that is
associated with
the training
facility, it is
quite essential
to give
appropriate
facility of
training so that
the workers of
the project can
easily execute
the project work
successfully
within the
expected time
and budget.
Poor quality It is essential to The project “St. The utilization It is quite

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material use good quality
of materials for
the project so
that no project
quality related
issue will occur
within the
organization
and as a result
the entire work
of the project
will be finished
within the
expected budget
and time.
Dismas
Assisted Living
Facility” does
not uses proper
quality of
materials and as
a result the
number of
challenges that
are associated
with project
quality arises
within the
project.
of improper
quality of
materials within
the project is
mainly analyzed
with the help of
various types of
quality related
challenges as
well as issues
that is occurred
within the
project.
essential to use
good quality of
materials within
the project in
order to avoid
project related
challenges
within the
project.
Poor project
investigation
Proper
investigation is
needed for
knowing about
the needs,
objectives as
well as
requirements of
the project so
that the project
The project
manager does
not investigate
the needs as
well as
requirements of
the project
properly and as
result they face
difficulty in
It is generally
reflected by the
issues and
challenges that
is occurring. It
is found that
due to unclear
knowledge
about the
project
The project
manager must
investigates the
requirements as
well as needs of
the project “St.
Dismas
Assisted Living
Facility Project”
effectively in

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PROJECT MANAGEMENT
manager can
easily finish the
work of the
project
effectively
without facing
any difficulty.
project
progress.
objectives and
goals the team
members faces
difficulty in
executing the
project.
order to finish
the project
effectively
without facing
any type of
difficulty during
the project
progress phase.
Utilization of
improper
equipment
It is necessary
to use proper
equipment in
order to manage
the project
effectively so
that the entire
work of the
team can be
handled
effectively.
The
equipment’s
that are utilized
in the project
“St. Dismas
Assisted Living
Facility Project”
is not proper as
per the
requirements of
the
organization.
The problem
can be reflected
due to the delay
that is generally
occurred within
the project
during the
project
progress.
It is essential to
utilize proper
project
equipment
within the
project “St.
Dismas
Assisted Living
Facility” so that
the project
managers can
be able to
handle the
project work
quite easily
without facing
any type of

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issues and
challenges. In
addition to this,
the organization
does not face to
face project
delays due to
use of proper
equipment’s.

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Bibliography
Heldman, K. (2018). PMP: project management professional exam study guide. John Wiley
& Sons.
Ika, L.A. (2015). Opening the black box of project management: Does World Bank project
supervision influence project impact?. International Journal of Project
Management, 33(5), pp.1111-1123.
Klein, L., Biesenthal, C. & Dehlin, E. (2015). Improvisation in project management: A
praxeology. International journal of project management, 33(2), pp.267-277.
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A.M.E. & Villanueva, P. (2014). Project
risk management methodology for small firms. International journal of project
management, 32(2), pp.327-340.
Mir, F.A. & Pinnington, A.H. (2014). Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), pp.202-217.
Pollack, J. & Adler, D. (2015). Emergent trends and passing fads in project management
research: A scientometric analysis of changes in the field. International Journal of
Project Management, 33(1), pp.236-248.
Rowell, C.J., 2016. Book Review: Project Management for Information
Professionals. Library Resources & Technical Services, 60(4), pp.280-281