Project Management: Cost and Quality Management Plans

This article discusses the cost and quality management plans for the Bungalow Project. It includes the project cost estimate, budget baseline, tools and techniques used, quality roles and responsibilities, quality planning approach, quality assurance approach, quality control approach, and quality improvement approach.

Running head: PROJECT MANAGEMENT
Project: Bungalow Project
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Part B: Cost and Quality management plans..............................................................................3
1. Cost management plan.......................................................................................................3
1.1 Project cost estimate.....................................................................................................3
1.2 Project budget baseline................................................................................................4
1.3 Tools and techniques that are used...............................................................................4
1.4 Justification for the budgetary plan..............................................................................6
2. Quality management plan..................................................................................................7
2.1 Quality roles and responsibilities.................................................................................7
2.2 Quality planning approach...........................................................................................8
2.3 Quality assurance approach..........................................................................................8
2.4 Quality control approach..............................................................................................8
2.5 Quality improvement approach....................................................................................9
References................................................................................................................................10

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Part B: Cost and Quality management plans
1. Cost management plan
1.1 Project cost estimate
The cost estimate for the project is provided in the table below:
Task Name Duration Cost
The Bungalow Project 136 days $ 231,000.00
Clear ground 2 wks. $ 14,600.00
Lay foundation 3 wks. $ 18,000.00
Build dwarf walls 2 wks. $ 9,800.00
Over site concrete 1 wk. $ 5,600.00
Floor joists 2 wks. $ 8,200.00
Main walls 5 wks. $ 28,000.00
Door and Window and frame 3 wks. $ 12,600.00
Ceiling joists 2 wks. $ 8,400.00
Roof timbers 6 wks. $ 25,200.00
Tiles 2 wks. $ 10,800.00
Floorboards 3 wks. $ 12,900.00
Celling boards 2 wks. $ 7,800.00
Skirting 1 wk. $ 3,800.00
Glazing 2 wks. $ 8,000.00
Plastering 2 wks. $ 6,600.00

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3 wks. $ 12,600.00
Plumbing and heating 4 wks. $ 15,600.00
Painting 3 wks. $ 22,500.00
1.2 Project budget baseline
June 2018
July 2018
August 2018
September 2018
October 2018
November 2018
December 2018
January 2019
February 2019
$ 0.00
$ 10,000.00
$ 20,000.00
$ 30,000.00
$ 40,000.00
Budget baseline
Cost
Figure 1: Budget Baseline
(Source: Created by Author)
1.3 Tools and techniques that are used
The tools and techniques that can be utilized for estimating the cost of the project are
as follows:
Expert Judgement: It generally utilizes the knowledge as well as experience of the
experts who are involved with the project for estimating the cost of the project successfully
(Fayard et al., 2014). It is found that this technique can take number of factors into account
and thus it can be biased.

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Analogous estimation: Analogous estimation utilizes historical data of the similar
projects as a basis in order to estimate the cost of the project. This method of estimate is
generally can be adjusted for knowing the differences that exists between various projects.
This type of estimate is mainly utilized in the initiation phase of the project. It is identified
that this method of technique is not much accurate as compared to other methods that are
used (Gopalakrishnan et al., 2015).
Parametric estimation: It is found that parametric estimation generally utilizes
statistical model for estimating the cost. It generally uses historical data of key cost drivers
for calculating a estimate for various parameters including the cost and duration.
Bottom up estimation: It generally utilizes the estimate of different work packages,
which are mainly summarized as rolled up for determining the overcall cot that is required for
finishing the project (Liu et al., 2015). It is found that this technique of cost estimate is quite
accurate as compared to other methods as it generally reflects on the cost from a much more
granular perspective.
Three-point estimation: Three-point estimation was mainly originated with the help
of program evaluation as well as review technique. This method mainly utilizes three
estimates for defining an approximation range for the various activities related cost. The most
likely cost estimation is done with the help of the formula= (C0+4Cm+Cp)/6.
Reserve analysis: Reserve analysis is mainly utilized for determining the contingency
reserve and it must be properly allocated to the entire project. This method of funding is
mainly utilized for estimating the cost uncertainty.
Project management estimating software: It found that project management
estimating software includes cost estimation related applications, simulation applications,

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spreadsheet as well as statistical software related tools (Sunil, Pathirage & Underwood,
2015). This type of software is mainly us at cost estimation related alternatives.
Vendor analysis: This method is mainly utilized for estimating that the cost of the
project by making proper comparison with the help of the bids that is mainly submitted by
multiple vendors.
1.4 Justification for the budgetary plan
It is found that three-point cost estimation method is mainly utilized for estimating
the cost that is associated with the bungalow project. This method is mainly selected as the
project considers both optimistic and Pessimistic situations. It is identified from the project
that if everything goes right then the schedule of the project will get completed 20% faster
whereas if something went wrong then time of the project enhances by 50%. It is found that
both the situation creates impact on the cost of the project (Boute, Bruggeman & Vereecke,
2014). This method is generally considered as accurate method of cost estimation. The cost
that is estimated through three-point estimation method is provided in the table below:
Three Point Estimates
Expected Cost
EstimateA 27300 18200 14560 19110
B 52650 35100 28080 36855
C 38100 25400 20320 26670
D 10200 6800 5440 7140
E 15000 10000 8000 10500
F 100500 67000 53600 70350
G 22950 15300 12240 16065
H 15300 10200 8160 10710
J 45900 30600 24480 32130
K 32850 21900 17520 22995
L 23400 15600 12480 16380

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M 14400 9600 7680 10080
N 7050 4700 3760 4935
P 14700 9800 7840 10290
Q 25650 17100 13680 17955
R 22950 15300 12240 16065
S 54900 36600 29280 38430
T 41850 27900 22320 29295
2. Quality management plan
2.1 Quality roles and responsibilities
The roles and responsibilities are listed below:
Supervisor: The supervisors are the persons who are mainly responsible for
completing the day-to-day performance of the project. It is found that they generally helps in
checking the materials that are used, quality of training delivered, and performance of the
team for maintain the quality of the project for avoiding problems and issues (Goetsch &
Davis, 2014).
Labourers: The labourers who are mainly involved with the Bungalow project are
mainly responsible of laying foundations, developing over site concrete, plumbing as well as
plastering for finishing the entire project with proper quality.
Tradesman: The tradesman who are associated with the bungalow project are
generally responsible of completing the various activities of the project including
development of skirting, plumbing, plastering, main walls and more properly for avoiding
quality related challenges (Sanz-Calcedo et al., 2015).
Project manager: The project manager is the person, who is mainly responsible of
organizing, planning both the time and resources of the project for finishing the entire project

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within the time that is estimated. They are also responsible of checking, monitoring as well as
assembling the entire project so that no quality related issues could occur within the project.
2.2 Quality planning approach
The quality of the Bungalow project will be maintained properly if the goals and
objectives, which are related with the project, are achieved properly. It is found that it is quite
necessary to utilize integrated quality approach for proper planning of project in order to
maintain quality. Integrated quality approach are mainly utilized for measuring, defining as
well as for improving the quality of the project effectively (Molina-Azorín, et al., 2015) The
quality of the project will generally focus on the procedures and processes with the help of
which proper project deliverable is developed. It is identified that proper establishment of
standard that are associated with the quality are very much beneficial in delivering the entire
project successfully with proper quality. The metrics, which should be properly maintained
for maintaining the project quality, includes cost, resources, customer satisfaction, product
performance and more.
2.3 Quality assurance approach
Quality assurance approach generally reflects on the processes, which are generally
used in order to construct the Bungalow project. In order to ensure the quality of the project,
it is identified that an iterative procedure will generally be used throughout the project
lifecycle (O’Neill, Sohal & Teng, 2016). It is found that this iterative procedure generally
includes measurement of various metrics, improving the process as well as analysis of data. It
is the responsibility of the project manager to conduct quality-monitoring processes on a
daily basis for monitoring the performance of the project.

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2.4 Quality control approach
The quality of the Bungalow project needs to be maintained and for this the
challenges and issues, which are mainly associated with the project, needs to be controlled
(Zeng, Phan & Matsui, 2015). It is the responsibility of both the quality analyst as well as the
project manager to work together and focus on monitoring the activities that are performed
for ensuring that proper quality is maintained while performing the project activities. The
quality control approaches, which are mainly used for controlling the project quality, are
listed below:
 Proper analysis of materials and resources that are used in the project
 By reflecting on various quality control measures for ensuring the project quality is
maintained
 Determining the work that is generally undertaken with the help of quality control
team.
2.5 Quality improvement approach
It is found that for improving the project quality, it is very much essential for the project
managers to take some steps that are very much helpful in resolving the quality related issues,
which are mainly associated with the project (Sanz-Calcedo et al., 2014). The steps that are
needed to be followed for improving the quality are listed below:
 Encouraging communication, engagement as well as participation of all the
stakeholders of the project which are mainly affected with the help of quality related
process
 Implementation of proper improvements steps for quality maintenance of the project

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It is identified that by following the steps, which are provided above, the issues related
with the project can be resolved and the project manager can be able to improve the quality of
the project.

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References
Boute, R., Bruggeman, W., & Vereecke, A. (2014). Cost Management in the Supply Chain:
an integrated approach. Cost Management, 11-15.
Fayard, D., Lee, L. S., Leitch, R. A., & Kettinger, W. J. (2014). Interorganizational cost
management in supply chains: Practices and payoffs. Management accounting
quarterly, 15(3), 1-9.
Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence.
Upper Saddle River, NJ: pearson.
Gopalakrishnan, M., Libby, T., Samuels, J. A., & Swenson, D. (2015). The effect of cost goal
specificity and new product development process on cost reduction
performance. Accounting, Organizations and Society, 42, 1-11.
Liu, L., Sun, J., Ni, Y., Yang, S., & Song, P. A. (2018). Discussion on cost control experience
in construction project management. Smart Construction Research, 2(3).
Molina-Azorín, J. F., Tarí, J. J., Pereira-Moliner, J., López-Gamero, M. D., & Pertusa-Ortega,
E. M. (2015). The effects of quality and environmental management on competitive
advantage: A mixed methods study in the hotel industry. Tourism Management, 50,
41-54.
O’Neill, P., Sohal, A., & Teng, C. W. (2016). Quality management approaches and their
impact on firms׳ financial performance–An Australian study. International Journal of
Production Economics, 171, 381-393.

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Sanz-Calcedo, J. G., González, A. G., López, O., Salgado, D. R., Cambero, I., & Herrera, J.
M. (2015). Analysis on integrated management of the quality, environment and safety
on the industrial projects. Procedia Engineering, 132, 140-145.
Sunil, K., Pathirage, C., & Underwood, J. (2015, June). The importance of integrating cost
management with building information modeling (BIM). International Postgraduate
Research Conference (IPGRC 2015).
Zeng, J., Phan, C. A., & Matsui, Y. (2015). The impact of hard and soft quality management
on quality and innovation performance: An empirical study. International journal of
production economics, 162, 216-226.