Project Planning and budgeting: Scenario of Bunglow project

Running head: PROJECT PLANNING AND BUDGETING
Project Planning and budgeting: Scenario of Bunglow project
Name of the Student:
Name of the University:

1PROJECT PLANNING AND BUDGETING
Table of Contents
Part B: Cost and Quality management plan.....................................................................................3
1. Cost management plan.................................................................................................................3
1.1 Cost management process......................................................................................................3
1.2 Cost management tools and techniques.................................................................................4
1.3 Justification............................................................................................................................5
2. Quality management plan............................................................................................................5
2.1 Quality management process.................................................................................................5
2.2 Quality management approaches and techniques..................................................................6
Bibliography....................................................................................................................................8

2PROJECT PLANNING AND BUDGETING
Part B: Cost and Quality management plan
1. Cost management plan
1.1 Cost management process
The process of cost management is always used as a tool to manage complex project and
complete the project within estimated budget. The cost management process is comprises of four
phases in terms of project planning, project estimation, project budgeting and project controlling.
It is the responsibility of the project managers to ensure that the nominated project-Bunglow
project is absolutely well defined. In addition to this, the project should have realistic approved
project budget.
Before initiating the project the project manager and the finance manager are required to
plan the project activities and its complexities respectively. Then the project cost should be
estimated considering approximate resources required to complete the project. Then the budget
should be planned considering individual work activities and baseline to measure the
performance. After that the project cost should be controlled to avoid overrunning budget issues.
It will also help the project managers to control the budget changing activities.
The project that has been nominated for this paper is the “Bunglow Project”. This
Bunglow construction project is a large and complex project therefore in order to reduce its level
if complexity this large project is subdivide into four work packages. For each work package
again many work activities are present. The total time assigned for the project is 420 days and
the total budget estimated for the project is $139,210.00. The project cost management is initially

3PROJECT PLANNING AND BUDGETING
concerned with resource costs required to complete the activities within schedule. Although, the
cost plan should consider the effects of maintenance, services, products and design. However,
the broader view of project cost management is also known as project life cycle costing.
Therefore, throughout the project development period the project manager needs to be
maintaining the cost of the project effectively. The cost details are as follows:
Activit
ies
#
Uni
ts
Units Plants Mater
ial
cost
Total
cost
Optimis
tic cost
Pessimis
tic cost
Most
likely
(cost)
Mean
1
1.1 2 $
2,250.0
0
- - $
2,250.0
0
$
1,800.00
$
3,375.00
$
2,250.0
0
$
2,475.0
0
1.2 48 $
1,350.0
0
- - $
1,350.0
0
$
1,080.00
$
2,025.00
$
1,350.0
0
$
1,485.0
0
1.3 0.25 $
2,250.0
0
- - $
2,250.0
0
$
1,800.00
$
3,375.00
$
2,250.0
0
$
2,475.0
0
1.4 1 $
450.00
- $
450.00
$
900.00
$
720.00
$
1,350.00
$
900.00
$
990.00