Project Planning and Budgeting

Running head: PROJECT PLANNING AND BUDGETING
Project Planning and budgeting
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1PROJECT PLANNING AND BUDGETING
Part A: Module Discussion Activity
Initial post
It has been defined that, whether a project is success or failure can be measure
considering all components of quality management knowledge area. The quality of any project is
measured with the help of consumer satisfaction, continuous improvement plan, prevention taken
based on inspection. Project quality management is referred to as a process or knowledge area
that requires massive focus for the success of nay project. The aim of quality management plan is
to identify, assess, control and achieve product quality to meet the primary objectives of the
company and also the requirements of the consumers.
In order to manage the quality of any project different available tools and techniques can
be used by the project associates. The most common quality management tool and techniques
widely used by the project associates are cause and effect diagram, control chart, histogram,
pareto chart and flow chart. The cause and effect diagram is used to observe whether the quality
of any project is reaching the primary objectives or not. If not then respective change
management program is required to be incorporated to make changes accordingly.
It is determine that the estimated cost of any project is somewhere related to the quality
of the projects. If lesser amount of cost is estimated then the project associates would have to
compromise with the quality of the project. It is necessary for the project managers and other
stakeholders to estimate the cost based on the requirements and quality expectation of the
customers.

2PROJECT PLANNING AND BUDGETING
Part B: cost and quality management plan
1. Cost management plan
1.1 Cost management process
In order to manage any project, stakeholders are needed to identify and follow proper
cost management processes. Based on the size and type of project the project lead must choose
the mist suitable cost management process. Some of the processes are elaborated in the below
section:
Cost benefit analysis: The process of cost benefit analysis is referred to as one of the
most widely used approach for project success. This value is calculated from the ratio of total
investment and expected benefits from the project. Cost benefit analysis tool is used to evaluate
change initiatives and other new projects as well. It helps to determined feasibility of the capital
purchase. In order to make effective decision making the cost benefit analysis approach is used.
The cost benefit analysis report includes intangible cost, opportunity cost, direct cost and indirect
cost as well. For most if the project, the stakeholders and project leads select cost benefit analysis
to study the project feasibility and its commercial success.
Net Present Value (NPV): NPV is the other cost management process used by finance
managers to measure the failure and success of any project. Throughout the project development
period the net cost measured for the project is measured with the help of NPV.
Payback period: The payback period estimates the total time that an organization would
take to recoup the total expense that the company has invested primarily. The project sponsors