Corporate Finance: Cost Control Techniques & Quality Management Plan

This report provides a detailed analysis of cost estimation and quality management within the context of corporate finance. It begins by developing cost estimates using a project schedule, detailing activity cost estimates with various estimation methods and confidence levels. The report then compares two cost control techniques: project budget planning and time management, highlighting their importance in maximizing profit and adhering to project deadlines. Furthermore, it prepares a quality management plan, identifying key metrics, measurement methods, and quality control tools such as checklists and Pareto charts, which are crucial for ensuring project success and customer satisfaction. The report concludes by emphasizing the importance of planning and quality control in project management, advocating for the use of specific tools and techniques to manage costs and maintain product quality effectively. Desklib provides access to similar solved assignments for students.

Corporate Finance

Contents
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
Develop cost estimates with the help of project schedule......................................................3
Compare two cost control techniques....................................................................................6
TASK 2......................................................................................................................................7
Prepare a quality management plan and provide at least two tools for managing the quality
of project................................................................................................................................7
CONCLUSION..........................................................................................................................8
REFRENCES.............................................................................................................................9

INTRODUCTION
Planning and Budgeting is a systematic application that assists with putting top down
targets and create a bottom - up budget plan, which is at the establishment of the association's
tasks. It assists the executives with assessing business options and set monetary targets, and it
empowers the association to work agreeably, revaluating the revenue estimates, changing
beginning and end dates and adjusting goals (Chadha and Sharma, 2019). This report is based
on the cost estimates and the activity budget baseline. The cost control methods techniques
are elaborated with respect to the cost management principle. Further, quality management
planning is done and two different tools and explained.
TASK 1
Develop cost estimates with the help of project schedule.
ACTIVITY COST ESTIMATES
Project Title:
W
BS
ID
Resourc
e
Dir
ect
Cos
ts
Indi
rect
Cost
s
Rese
rve
Esti
mate
Meth
od
Assump
tions/
Constra
ints
Additio
nal
Inform
ation
Ra
nge
Confid
ence
Level
1 Informat
ion
Compila
tion
N/A
1.1 Review
Filed
Sales
reports
0.1
1
0.1 0.02
75
0.134 Param
etric
N/A 0-
0.2
15%
1.2 Conduct
tech
capabilit
ies
assessm
ent
0.3
0
0.02 0.07
5
0.335 Analo
gous
N/A 0-
0.5
10%
2 Marketi

ng
Researc
h
2.1 Conduct
Competi
tive
analysis
0.5
0
0.01 0.12
5
0.502
5
Param
etric
N/A 0-1 3 %
2.2 Develop
focus
data
group
0.2
0
0.08 0.05 0.201 3
point
estima
te
N/A -
0.0
2 –
0.4
1 %
2.3 Conduct
telephon
e
surveys
0.0
8
0.00
1
0.02 0.100
5
Botto
m up
estima
tes
N/A -0.5
–
0.3
-5%
2.4 Identify
relevant
specifica
tions
improve
ments
0.1
5
0.01 0.37
5
0.167
5
Param
etric
N/A 0.1-
.04
12 %
2.5 Interface
with
marketin
g staff
0.0
67
0.02 0.16
75
0.067 Param
etric
N/A 0-
0.1
2
12
3 Remode
lling the
applianc
e
3.1 Develop
engineer
ing
specifica
0.2
1
0.01 0.05
25
0.234
5
Botto
m –
up
estima
N/A 0-
0.5
4
13%

tions tes
3.2 Check
and
debug
designs
0.0
8
0.01 0.02 0.100
5
Analo
gous
N/A -0.1
–
0.5
2%
4 Testing
the
function
ality of
the new
applianc
e
4.1 Develop
testing
protocol
0.8
1
0.1 0.20
25
0.837
5
Param
etric
N/A 0.5-
1
25%
4.2 Identify
critical
perform
ance
levels
0.0
1
0.00
1
0.00
25
0 N/A -0.5
–
0.1
-10%
4.3 Assess
and
modify
product
compon
ents
0.1
2
0.01 0.03 0.167
5
3
point
estima
te
N/A 0.0
5 –
0.3
3%
4.4 Conduct
capabilit
ies
assessm
ent
0.0
8
0.00
6
0.02 0.100
5
Analo
gous
N/A -0.2
–
0.3
10%
4.5 Identify
selection
0.0
2
0.00
4
0.00
5
0 Botto
m –
N/A -
0.0
-5%

criteria up
estima
tes
1 –
0.0
2
5 Create a
producti
on plan
5.1 Develop
RFQ
0.2
0
0.00
3
0.05 0.234
5
Analo
gous
N/A 0.0
1-
0.5
8%
5.2 Develop
producti
on
master
schedule
0.0
8
0.01 0.02 0.100
5
3
point
estima
te
N/A -0.4
–
0.3
-3 %
6 Launchi
ng the
applianc
e
6.1 Liaise
with
sales
staff
0.0
1
0.00
5
0.00
25
0.067 N/A -0.1
–
0.1
-2%
6.2 Prepare
product
launch
0.5 0.2 0.12
5
0.067 N/A 0.1
2-
0.3
13%
Compare two cost control techniques.
Cost control: Cost control is used to examine a company's overall expenses and lower
project costs in order to maximise profit. Typically, a corporation engages finance
professionals to track costs, prepare budgets for each project, and adjust projects that can
improve a company's financial performance. Some of the cost control tools are:
1. Planning the budget of project: Most companies use budget management when
starting a new project. It is important to allow enough time to create an accurate

budget for new projects, as budgeting helps assess costs, keep finances organized, and
ensure that the cost variance is relatively small. When budgeting, companies consider
all parts of the project, including the number of people they will need on the project,
how long the project can take, and how much material they will need.
Time management: It is a method with which the costs of a project can be kept low by
adhering to project deadlines. If a project exceeds the deadline, it can increase the overall cost
of the project as it continues to require materials and human resources to complete the
project, reducing the profitability of the project (Deering and Lang, 2017).
TASK 2
Prepare a quality management plan and provide at least two tools for managing the quality of
project.
Item Metric Measurement Method
1.1 Review field sales reports Rise in sales Comparative method
1.2 Conduct tech capabilities
assessment
Practical test Testing
2.4 Identify specific relevant
improvements
Inspecting the areas Inspection
3.1 Develop engineering
specifications
Analysing the outcomes Outcome measures
3.2 Check and debug designs Testing the design Testing and check list
4.1 Develop testing protocol Measuring the structure Structure management
4.2 Identify critical
performance levels
4.4 Conduct capabilities
assessment
Observing the results Observation of
delivery
5.2 Develop production master
schedule
Conducting analysis of
schedule
Structure measures
6.2 Prepare product launch Complete check of product Result measurement
Project refers to the collection of different standards which are necessary for a project
to follow in order to be counted in successfully completed projects. It is the requirement
which is urged by the customer to be present in the product. A quality project has three
following mentioned components.
 The project must be worthy enough to satisfy the customer for paying a particular
amount of money.
 Its utility can be measured through the needs and vision of client
 The product should perform with excellence in relation to diligence, proficiency and
workings (Miller, Hildreth and Stewart, 2019).
The quality of project is regulated according to the project quality plan. There are
number of methods for ensuring that the company is handling the whole work as per
quality standards framed under plan. For example, in above cases, the quality of
capabilities of assessment can be checked with the help of observation of delivery

method. In this method, the task is performed and the quality of that work is checked by
assessing its results. Quality of sales report can be checked by comparing the present
number of goods sold to the previous results (Schoenfeld, 2019).
There are various types of quality management tools that can help in identification of
variances and can help in identifying the areas which needs to be improved. In this project
there are two main quality controlling tools that are helping the managing quality of
various tasks.
 Check list –This is used in collecting data related to the task easily. It also helps in
identifying the areas that demands special attention by identifying the problems that
are preventing the firm inn showing quality in the service. It is a long list of problems
which a product has to be freed from. This checklist helps the person in understanding
that whether the problem has been addressed or not. This can be used in the project of
refurbishment by first identifying the areas where the product is damaged or not
working properly. Then a check list is prepared listing all these problems. When the
problems are solved, these are then checked with the help of checklists (Siraj, and
Fayek, 2019).
 Pareto Chart- This chart helps the employees in identifying the places where there is
problem and checking their priority level. They also ascertain the level of frequency
in which that problem is occurring. It can be presented in both the formats graphs as
well as bars for recognising the frequency of the issues. This can be used in the
project of refurbishment by checking out the hurdles in the operations of equipment.
In this way, both these tools can be used by companies for checking out the quality of
project plan.
CONCLUSION
From the above analysis, it can be stated that while handling any project it is very
important to make a plan according to which the whole project works. This plan helps in
recognising the most efficient path that will help in completing the project in less time and
with minimum cost. It also aids in allocating the costs properly by establishing proper
relation among every task. Along with the planning the tasks, it is equally important to handle
the quality of these steps. It is necessary that each and every action is performed as per
budget and with quality. There are certain tools and techniques which helps the organisations
in managing and controlling the costs and quality of products. Companies must make use of
these methods.

REFRENCES
(Books and Journal)
Chadha, S. and Sharma, S.K., 2019. Capital budgeting practices: a survey in the selected
Indian manufacturing firms. International Journal of Indian Culture and Business
Management. 18(4). pp.381-390.
Deering, D. and Lang, D.W., 2017. Responsibility center budgeting and management" lite" in
university finance: why is RCB/RCM never fully deployed?. Planning for Higher
Education. 45(3). p.94.
Miller, S.A., Hildreth, R.W. and Stewart, L.M., 2019. The modes of participation: A revised
frame for identifying and analyzing participatory budgeting
practices. Administration & Society. 51(8). pp.1254-1281.
Schoenfeld, H.M.W., 2019. The present state of performance evaluation in multinational
companies. In Managerial accounting and analysis in multinational enterprises (pp.
217-252). De Gruyter.
Siraj, N.B. and Fayek, A.R., 2019. Risk identification and common risks in construction:
Literature review and content analysis. Journal of Construction Engineering and
Management. 145(9). p.03119004.