St. Dismas Medical Center: Cost and Quality Management Plan

This report presents a detailed analysis of the cost and quality management plans developed for the St. Dismas Medical Center construction project. The report begins with an overview of the cost management plan, including project cost measurement, variance analysis, and change control processes. It delves into cost management approaches, providing a breakdown of project costs according to the Work Breakdown Structure (WBS) and utilizing tools like Earned Value Management. The report then transitions to the quality management plan (QMP), outlining the background, steps for development, purpose, and quality assurance measures. It also discusses information management for quality record-keeping and quality control processes. The plan aims to ensure the project's success within budget and time constraints, emphasizing the importance of accurate cost estimation and quality control throughout the project lifecycle. The report highlights the significance of these plans in achieving competitive advantages, delivering quality services, and meeting consumer expectations.

Running head: COST AND QUALITY MANAGEMENT PLANS
Cost and Quality Management Plans: St. Dismas Medical Center
Name of the student:
Name of the university:

1COST AND QUALITY MANAGEMENT PLANS
Table of Contents
Part B...............................................................................................................................................3
1. Cost management plan for St. Dismas Medical Center...............................................................3
1.1 Overview................................................................................................................................3
1.2 Project cost measurement......................................................................................................3
1.3 Cost variance.........................................................................................................................4
1.4 Cost change control process..................................................................................................5
1.5 Cost management approaches................................................................................................5
1.6 Project cost.............................................................................................................................6
1.7 Cost estimated according to the Work Breakdown Structure..............................................10
2. Quality management plan for St. Dismas Medical Center........................................................12
2.1 Background of quality management plan............................................................................12
2.2 Steps for developing a QMP for St. Dismas Medical Center..............................................12
2.3 Purpose of quality management plan...................................................................................13
2.4 Quality assurance.................................................................................................................13
2.5 Reason to develop Quality management plan for St. Dismas Medical Centre....................14
2.6 Quality management plan....................................................................................................15
2.7 Information management for quality record keeping..........................................................16
2.8 Quality control.....................................................................................................................17
References......................................................................................................................................19

2COST AND QUALITY MANAGEMENT PLANS
Part B
1. Cost management plan for St. Dismas Medical Center
1.1 Overview
Cost management plan is referred to as one of the most important areas of project
management that involves all necessary processes those are required to successfully finish the
project within the estimated budget (Shang, 2017). In order to construct and design the building
the project manager of St Dismas Medical Centre construction project has considered certain
phases and based upon the skills and knowledge proper resources are also allocated for
successfully completing the project. The first task of the cost management knowledge area is the
plan cost management process (Rumane, 2016). Through plan cost management the project
manager will be able to establish policies, procedures, planning documentation, expanding and
controlling project cost etc.
1.2 Project cost measurement
Unit of measurement: The cost of the project should be measured based upon the
requirements of materials. Based on the project change and time the cost rate varies. For
measuring the length United Kingdom and United States uses inches whereas; the European
countries use square foot for measuring the units (Oakland, 2014). As the measurement of the
cost is critical from the developer’s aspect, thus St Dismas Medical Centre develops a cost
management plan to deliver and meet the expectation of the consumers.

3COST AND QUALITY MANAGEMENT PLANS
Level of precision: These are also should be included to the cost management plan which
defines the total number of decimal places (Park et al., 2017). However, for large projects
consideration of precision will vary the total cost thus this should be avoided in case of
mega projects.
Control threshold: The control threshold should be included in the cost management
plan of St Dismas Medical Centre project. In order to get the assumed track, for a particular
action the budget variance should take (Fleming & Koppelman, 2016). For any project if the
total budget is 1 million and the control threshold is set as $40,000 then it implies that the project
manager is responsible to take all corrective actions to control the cost to prevent the cost move
beyond this.
Performance measurement rules: Earned value management is one of the most widely
used tools that help to complete the project successfully within the estimated budget and time as
well. The cost management plan also includes the earned value analysis details. However, it
cannot be said that, the cost management plan of any project will be measured at the initiation
phase (Heagney, 2016). Rather with the changing time phase the project manager should track
and monitor the details. With the project progress the project status and cost according to that
should be considered.
1.3 Cost variance
The role of the project management and the finance manager is to estimate the total cost
for the successful completion of ay project. The costs for each of the activities are estimated
based on their size and complexity. It is important to estimate the cost properly to avoid internal
conflict and commercial failures (Heravi, Coffey & Trigunarsyah, 2015). For this project the

4COST AND QUALITY MANAGEMENT PLANS
cost is allotted for the different parts such as fixed cost, material cost, contractor cost and cost for
other necessary facilities. The cost required for the facilities are the highest as the aim of the
project is to deliver quality service and care for the patients. Though, it is not necessary that
each tome the estimated cost of any project will be equal to the actual fixed. During the
development of the project it may happen that additional requirements are needed. For them
additional cost will also be required. Thus the project sponsors should estimate the budget in
such a way so that it needs not to add any extra cost during the project development and
implementation phase (Kerzner & Kerzner, 2017). However, for this particular project the cost
variance rate is shown in the above cost estimation table.
The cost management plan developed for St Dismas medical centre, defines the control
threshold for the project and all the necessary action those are needed to ne undertaken for the
successful implementation of the project. If is found that during the project development phase
the estimated budget is exceeding unexpectedly then necessary actions should be identified and
approved by the project sponsors so that it can meet the requirement of the project within time
(Moretti, Cantisani & Di Mascio, 2016). Again the project manager should also take care that
the time is not exceeding the estimated period because for that also the project of St Dismas
medical centre will ne eventually negatively impacted.
1.4 Cost change control process
Fr this particular project there is no such changes identified. Thus it is expected that the
project will successfully meet the requirements of the project within estimated time with a
greater level of revenue and commercial success at the same time.

5COST AND QUALITY MANAGEMENT PLANS
1.5 Cost management approaches
There are different cost management tools and techniques available those are widely used
by the project developers of the St Dismas Medical Centre construction project. Besides the
project manager the finance manager is also responsible to develop the project cost structure
accurately
1-Aug-
99 15-
Aug 29/10
/1999 4/11/
1999 9/11/
1999 14/11
/1999 21/11
/1999 28/11
/1999 5/12/
1999 13/12
/1999 22/12
/1999
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
Planned Value (PV)
Actual Cost (AC)
Earned Value (EV)
Figure 1: Cost management plan for the St Dismas Medical Centre
(Source: created by author)
1.6 Project cost
For this particular project the estimated cost is elaborated in the below section.
W
B
S
Activity 1-
A
ug
15-
Au
g
29/
10/
19
4/1
1/1
99
9/1
1/1
999
14/
11/
199
21/
11/
199
28/
11/
19
5/1
2/1
99
13/
12/
19
22/
12/
19
P
V
%
Co
mp
E
V

6COST AND QUALITY MANAGEMENT PLANS
-
99
99 9 9 9 99 9 99 99 let
e
1 Project
quality
management
plan
$
12
,0
00
$
20,
00
0
$
32
,0
00
10
0
%
$
32
,0
00
1
.
1
Project
quality
requirements
$
5,
00
0
10
0
%
$
-
1
.
2
Project
quality
standard
setting
$
18,
00
0
10
0
%
$
-
1
.
3
Cost estimated for
the risk
management plan
$
28,
00
0
10
0
%
$
-
2 cost
estimated or
the
construction
$
70,
00
0
$
70,
00
0
$
14
0,
00
0
80
%
$
11
2,
00
0

7COST AND QUALITY MANAGEMENT PLANS
3 Interior
design and
issues fixing
$
32,
00
0
$
22,
00
0
$
12,
000
$
66
,0
00
60
%
$
39
,6
00
4 facilities and
technical
cost
$
30,
00
0
$
48,
000
$
42,
000
$
54,
000
$
35,
00
0
$
20
9,
00
0
50
%
$
40
,0
00
4
.
1
cost for raw
materials
$
3,5
00
$
4,0
00
10
0
%
$
-
4
.
2
Cost
estimated for
the legal
licenses and
food services
$
18,
000
$
14,
000
$
12,
00
0
20
%
$
-
5 cost for
stakeholders
management
plan
$
12,
00
0
$
5,5
00
$
17
,5
00
20
%
6 Plumbing
and
$
4,0
$
4,
0
%
$
-

8COST AND QUALITY MANAGEMENT PLANS
electricity
cost
00 00
0
7 cost for
control
measurement
s
$
50,
00
0
$
50
,0
00
0
%
$
-
8 Cost for final
quality
checking
$
14,
00
0
$
14
,0
00
0
%
$
-
Monthly
Planned
Value (PV)
$
25
,0
00
$
75,
00
0
$
10
2,0
00
$
55,
00
0
$
35,
000
$
15,
000
$
10,
000
$
60,
00
0
$
9,5
00
$
50,
00
0
$
14,
00
0
$
53
2,
50
0
$
22
3,
60
0
Cumulative
Planned
Value (PV)
$
25
,0
00
$
10
0,0
00
$
20
2,0
00
$
25
7,0
00
$
292
,00
0
$
307
,00
0
$
317
,00
0
$
37
7,0
00
$
38
6,5
00
$
43
6,5
00
$
45
0,5
00
Monthly
Actual Cost
(AC)
$
25
,0
00
$
75,
00
0
$
40,
00
0
$
65,
00
0
$
40,
000
20,
000
20,
000
20,
00
0

9COST AND QUALITY MANAGEMENT PLANS
Cumulative
Actual Cost
(AC)
$
25
,0
00
$
10
0,0
00
$
14
0,0
00
$
20
5,0
00
$
245
,00
0
$
265
,00
0
$
285
,00
0
$
30
5,0
00
Monthly
Earned
Value (EV)
$
25
,0
00
$
75,
00
0
$
40,
00
0
$
55,
00
0
$
35,
000
10,
000
0 0
Cumulative
Earned
Value (EV)
$
25
,0
00
$
10
0,0
00
$
14
0,0
00
$
19
5,0
00
$
230
,00
0
$
240
,00
0
$
240
,00
0
$
24
0,0
00
1.7 Cost estimated according to the Work Breakdown Structure
The aim of any project is to gain competitive advantages and to deliver quality service to
the consumers as per their desire. With proper quality cost effective services the St Dismas
medical centre project will also be able to increase the number of patients and also can retain the
existing consumers (Kerzner & Kerzner, 2017). In order to develop the project an accurate
project plan in terms of work packages are created. It is the responsibility of the project manager
and project team members to follow the project plan accurately and deliver their responsibilities
for particular activities. The activities listed for the project are differentiated in small parts such
as management, interior designing, issue fixing, technology incorporation, food service, legal
terms, site visiting, layout and marketing. For each phase project team members are allowed in

10COST AND QUALITY MANAGEMENT PLANS
terms of resources (Heravi, Coffey & Trigunarsyah, 2015). It is the responsibility of the project
manager to allot necessary human and physical resources based o their skill, knowledge and
importance as well. Catering service, electricity plumbings are the activities considered for the
successful implementation of the project of St Dismas medical centre. The St Dismas medical
centre has non-profit 450 bed is facing huge loss in their patient admission. Mostly the person
who are catastrophically ill and several time injured are offered treatment. Both the short term
and long term success plan are developed by the project managers and the project team members
associated to the program to meet the project aim within the estimated cost. The long term
objectives of the St Dismas medical centre is to increase the census in the hospital’s impatient
units by adding location where the people will be able to gain necessary facilities. Based on the
size of the apartments and their equipments, proper budget is also estimated by the finance
manager and the project manager of the project. It has been found that the total cost allotted for
the project is between $8,500,000 and $11,000,000. Mainly for facilitating the construction this
construction amount is estimated and on the other hand, the estimated cost also includes the land
cost, furnishing cost and connection shelters of the hospitals. It is the role of the project team
members to take follow up of all these components accordingly with the changing time period.
It can be said that the construction is not the end of the project but in order to gain effective
competitive advantages and commercial success proper marketing criteria are also needed to be
followed by the project team members. The total income estimated for the project is around
$9,000 and $12,000. On the other hand the total cash flow of the project is estimated to be
$1,500,000.

11COST AND QUALITY MANAGEMENT PLANS
2. Quality management plan for St. Dismas Medical Center
2.1 Background of quality management plan
Quality management plan is referred to as a process through which the quality of any
project can be measured statistically and functionally as well. It has been found that with an
accurate quality management plan any organization will be able to grab new consumers and also
can retain the existing consumers (Heravi, Coffey & Trigunarsyah, 2015). The quality
management plan develops for the St Dismas Medical Centre is comprises of organizational
responsibilities, policies, procedures and program details. A professional QMP serves specific
drawing outlines for any particular project.
It has been found that if accurate quality management plan is developed then St Dismas
Medical Centre will be able to gain expected outcomes. Quality management plan defines the
success of any project. As this is a construction based project thus for accomplishing this project
the steps those are to be followed include- contract to raw material suppliers, blueprint of the
building structure, designing the structure, interior development and others (Heagney, 2016).
Quality management project is defined as a meta-project that is project within a project. Based
on the status of the project, stakeholders should be appointed. However the stakeholders must be
aware of the project requirements and the objectives.
2.2 Steps for developing a QMP for St. Dismas Medical Center
In order to develop the project for the St Dismas Medical Centre, the necessary steps
those are followed accordingly include:
 Designing a quality program
 Schedule for review and the check points