Assessment 2: Cost and Quality Management in Project Planning

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PROJECT PLANNING AND BUDGETING
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Table of Contents
Assessment 2 – Cost and Quality Management Plans.....................................................................3
Part A: Module Discussion Activity............................................................................................3
References:......................................................................................................................................5
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Assessment 2 – Cost and Quality Management Plans
Part A: Module Discussion Activity
Quality on a project can be defined as the requirement from the project that the customer or
stakeholder from the project would be requiring. Quality in the project is considered to be
achieved when the needs of customers are satisfied and it is likely that the goals of the
organisation will be achieved (project-management-skills, 2019). Following are the tools and
techniques useful in planning a project’s quality management:
 Cost-benefit analysis- The analysis of the cost and benefits appearing from that cost is to
be conducted which helps in measuring the trade-offs of providing quality.
 Cost of Quality- Cost of quality is also incurred in the project and is another tool or
technique to maintain the quality of the project. Some of the costs that are included in the
cost of quality are prevention costs, appraisal costs, failure cost and cost of non-
conformance (McClintock, 2016).
 Force Field Analysis- This is a technique in which the ideas are analysed by grouping
characteristics that are pros and cons for the project.
 Brainstorming Technique- This is a technique for the gathering of information in which
several forms of unfiltered inputs and ideas are gathered and captured for making the
decision after analysis of the same.
 Nominal Group Technique- It is a modern tool and is an improved version of
brainstorming. It is based on certain assumptions which state that the group which has
agreed to work as a team will perform better than the group which is engaged in the
process of brainstorming. The prioritisation of the input items collected is done by the
members and also prioritization is done on the basis of the cumulative score under the
nominal group technique.
 Other tools and techniques- Several other tools and techniques that are used in project’s
quality management includes cause and effect diagram, Pareto analysis & diagrams,
control charts, scatter diagrams, flowcharting technique, check sheets and histogram.
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If there is a problem in the quality of the project then it will affect the overall cost of the project
also. It can be seen that additional cost will be incurred to meet the quality of the project as well
as expectations of the stakeholders or customers. Following additional cost will be incurred if the
poor quality is maintained in the project:
 Delivery Cost- As the project is rejected by the quality department due to non-
compliance of quality as desired thus the same will delay delivery thus increasing
delivery cost.
 Correction & Improvement Cost- The project cost will also increase as the project
quality will have to be improved and for improving the same, correction & improvement
cost will be incurred.
 Penalty Cost- In some projects, there is a cost of penalty that is levied if the quality of
the same is not maintained. Thus penalty cost will have to be incurred which the
additional cost is incurred in the project due to not maintaining quality.
Thus it can be said that the poor quality in the project can affect the project cost as the project
cost will increase due to some additional cost incurring for improving quality of the project
as required by customers & stakeholders.
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References:
 McClintock, T. (2016) The Tools and Techniques Useful in Quality Planning, Assurance,
and Control [Online] Expert Reference Series of White Papers. Available at:
https://d1wl9nui6miy8.cloudfront.net/media/965849/wp-tools-and-techniques-useful-in-
quality-planning.pdf. [Accessed on 27.04.2019].
 Project-management-skills (2019). Project Quality Management. [online] Project-
management-skills.com. Available at:
https://www.project-management-skills.com/project-quality-management.html [Accessed
27 Apr. 2019].
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