Quality and Cost Management Planning

Quality and Cost Management Planning

Table of Content
Cost Management Planning.............................................................................................................3
Process.............................................................................................................................................3
Techniques of Cost Control.............................................................................................................4
Quality Management Planning........................................................................................................4
Review Quality................................................................................................................................4
Information Management................................................................................................................5
Output Quality Control....................................................................................................................5
Bibliography....................................................................................................................................7

Part A - The post of my friend does depict the importance of quality management and cost
management in a project. However, the focus is limited to quality management only as of now.
Quality is indeed an important parameter of controlling the project. It is correct that unless
project meets with defined quality standard, it is not deemed to consider as successful. The post
describes various tools and techniques being used in implementation of quality management of
the project. To begin with the first technique, flow chart, it is indeed simple but it is not fit for
complicated projects like construction of a building as it will span over various pages and may
not give a proper flow of quality metrics. Pareto chart depicts the events but it is difficult to
troubleshoot. Third technique, histogram, provides life cycle of project but it is based on the
frequency of repeating patterns which may not be available in very simple or very complicated
projects. Cause and effect is a effective technique than the mentioned techniques because it
measures the cause of any response which occurs. Checklists and control charts are indeed
monitoring techniques but also play an important role in managing quality. However, the post
didn’t describe the implementation of any of the quality measuring techniques. It just provides
the definitions of the techniques. Instead, an example case study for each of them should have
been given.
Part B
Cost Management Planning
The Cost management planning for the Bungalow Project will establish the set policy, process
and proper documentation for benchmarking the plans, manage, save and spend thereby
controlling the cost of the project.
Process
The following steps will assist in formulating the cost management plan:
Resource Planning: The first step will involve the estimation of the resources that will be
required and the complete list of activities that will ensure the completion of the project. The
work breakdown structure and the project schedule will give us complete detail of the activities.
With the availability of the historical information, the estimation of the labour, time, materials,
types of equipment and cost would be derived (Harrison & Lock, 2017).
The work has been divided into four major components i.e. the design of the bungalow, the
preparation of the site, building to lock up and handing over the building to the owner. The first
activity will take about a total of 106 weeks to complete, the second activity will take about 60
weeks, a total of 21.5 weeks will be devoted to the third phase and 29.2 weeks will be taken by
the fourth activity.

Estimation of the cost: The total estimation of the cost will be dependent on the project schedule
(Kerzner, 2019) and the resources that will be required to complete the bungalow based on the
available historical data.
The cost of the labour is applicable on per week basis for all the four major tasks. For the first
task the labour resources required will be 7.25, for the second week it is 2.08, for the third task it
will be 11.4 and for the fourth task, it will be 4.25.
The cost of the materials to be used and the cost of the plant will also be on a weekly basis. The
cost of the plant for the first task will be 1050 Australian Dollars, for the second task it will be
2054 Australian Dollars, the third task will comprise of 300 Australian Dollars and the fourth
task will be 34,500 Australian Dollars. The estimated cost of the materials be 1910 Australian
Dollars for the first task, for the second task it will be 2404 Australian Dollars, the third task will
comprise of a sum of 20,975 Australian Dollars and the fourth task cost about 7000 Australian
Dollars.
Budgeting of the Cost: The estimation of the cost will give us a brief idea about the total
expected budget of the Bungalow project. The project will take about 216.7 weeks to complete,
employing about 25 labours per week with a total expenditure of 70193 Australian dollars per
week.
Cost Control: A lean project management approach will be used to cut down unnecessary
projects and reduce the cost of the bungalow project. The other techniques used for controlling
the costs are cost tracking technique and time management.
Techniques of Cost Control
For more efficiency in terms of maintaining cost control for the Bungalow Project, the project
manager will be using the following techniques.
Cost Of Quality will be specifically used by the project manager to avoid any kind of failure in
project management. The technique of Expert Judgment will be adopted by the external
consultants and the team of auditors to review the cost of the project from time to time (Allen et
al. 2015).
A real-time cost tracking of the system will be done, keeping in focus the estimation set for the
bungalow project. The costs that have been incurred will be regularly updated and the deviations
in the plans will be marked and improvised on. To accomplish the task, the software has been
developed to keep a real-time check on the project cost and intimate the manager or even a slight
deviation in the estimated plan (Lock, 2017).
Cost management plan