Cost & Quality Management Plan Assignment Help
Cost Management Plan
The purpose of this cost management plan is to present the overall approach for project cost management which was adopted for the vehicle maintenance facility project. The plan highlights the specific processes, tools and techniques which were utilized to establish the project cost estimate and a project budget baseline. In conclusion, the plan also presents a justification for the budget, highlighting why the proposed budget is suitable to successfully steer the project towards its conclusion.
Project Cost Management Approach and Processes
The first step which was undertaken to develop this plan was associated with engaging in resource planning. According to Ray (2012), resource planning is essentially the starting point of a project cost management plan because it provides project managers with a clear perspective of the resources which are required to initiate the project and conclude it successfully, in line with the project goals. For the purpose of this plan, a work break down structure was adopted to define the project precisely and its deliverables precisely. The sub-tasks within the project were categorized in terms of their importance. This assisted in the identification of project elements which were accounting for the maximum part of the budget in comparison with components that did not require significant expenditure.
The next important mechanism which is a part of the cost management plan pertains to establishing controls that are pertinent to cost reporting. In this particular cost management plan, the estimated budget for the items listed below was ascertained in order to ensure that it could be gauged against actual costs for determination of variances. The items included in the budget are as follows:
- Initial Contract-Related Costs for the Project
- Initial Site Work
- Foundation
- Structure and Envelope
- Office Interiors
- Final Site Work
- Closeout of Project
This cost management plan is largely based on a processed based approach. In order to ensure that the project remains on track and is characterized by the presence of effective monitoring, control and evaluation, the cost variances identified during the course of the project will be reported to the project administrator and senior management. An important component of the cost management plan is the control threshold which is the level of tolerance that the project can bear with reference to actual and budgeted costs (Sanghera, 2008). With regard to the Vehicle Maintenance Facility project the prescribed control threshold is 10%, such that if the actual cost exceeds the budgeted cost by this proportion then the project would be deemed as ‘out of control’. If the project reaches this stage, the project team will develop a revised cost schedule which will be devised in close coordination with the senior management.
Project Cost Estimation Tools and Techniques
According to Heldman (2018), there are various techniques and tools which can be utilized to perform cost estimation which include vendor bid analysis and establishing the rates of resources. The process of cost estimation is largely based on predicting resource requirements and allocating costs to these resources by taking into account both the risks and trade-offs of forecasting these costs. The cost estimation presented in this plan is based on determining resource rates by engaging in primary and secondary research. Primary research in this case includes approaching vendors to acquire resource rates by asking for quote submissions whereas secondary research maybe undertaken through the Internet. Additionally, resource rates can also be determined internally from the organization. For example, rates of human resources and materials procured from certain verified suppliers may assist in gauging the market average. The project manager will ensure that all supporting documents, research and evidences for each of these resource costs is stored so that any changes to the cost management plan can take place by reviewing the initial sources.
Justification of Budget Determination
The project’s baseline budget helps set a target for the project team and also aids in the evaluation of outcomes by comparing projected and actual costs (Verzuh, 2008). The project budget baseline includes the total estimated project cost and highlights the source for each funding requirement. The development of the budget is based on cost aggregation which amalgamates the individual costs for the overall project (Kerzner and Saladis, 2017). To ensure that a certain margin for changes in vendor contracts is accounted for, a 5% allowance for any modifications to the total cost listed in the vendor contracted has been taken into consideration. This will ensure that any changes to total contract costs do not influence the variance in actual and budgeted cost drastically.
Quality Management Plan
The objective of this quality management plan is to present the processes that will be implemented for the Vehicle Maintenance Facility project to ensure that it complies with and adheres to quality standards and meets the purpose for which it was designed. According to Nanda (2005), a quality management plan comprehensively showcases the information which is needed to manage the overall quality of a project from the planning stage up to its completion. In order to ensure that this goal is achieved, a quality management plan presents quality assurance policies, standards, mechanisms, roles and responsibilities as well as output quality criterions for the project. The elements of this quality management plan include; quality assurance processes, mechanisms for quality control and areas for enhancing the overall quality of the project.
Project Quality Assurance
According to Nicholas and Steyn (2017), quality assurance ensures that the project adheres to the necessary standards, processes and methodologies which are required to fulfill end-item requirements. The Vehicle Maintenance Facility project will comply with the following standards and methodologies in order to ensure that the benchmark level of quality is secured.
- CFR Construction and Project Management Guidelines – Developed in collaboration with Australian Building Codes Board 2014, available at files.em.vic.gov.au
- Contract Management Guide, available at https://www.finance.gov.au/government/procurement/contract-management-guide
- Department of Finance – Procurement policies, available at https://www.wa.gov.au/organisation/department-of-finance/procurement-policies
- AS/NZS 9004.5:1998 ISO 10005:1995 ‘Guidelines for Developing Quality Plans’, available at saiglobal.com
- AS ISO 31000:2018 Risk management – Guidelines, available at https://www.standards.org.au/standards-catalogue/sa-snz/publicsafety/ob-007
Quality Review
The quality review process for the project will be undertaken by a designated quality reviewer. As noted by Westland (2007), a quality reviewer has three primary responsibilities which includes 1) undertaking a comprehensive quality review of various management procedures and assessing outcomes or deliverables against set targets 2) communicating the scale or level of project quality which has been achieved to the project manager and 3) reporting any problems associated with quality to the project manager and senior management, if required.
The quality review process will adhere to a specific reporting hierarchy whereby, the quality reviewer will inform the project manager of any modifications in the project scope or any incoming challenges with reference to the project that may adversely impact quality. Accordingly, any changes to the project scope will be presented to the senior management by the project administrator and will be signed by off them. The quality reviewer will complete the following forms during the course of the formal quality review process and provide it to the project manager:
- Deliverable review form – this form will examine whether project deliverables were successfully secured in line with the designated quality measures, standards and methodologies
- Process review form – this form will assess whether all quality review processes were executed in compliance with the designated methodologies and standards prescribed in the quality management plan
Quality Control
The project manager will develop quality measurement reports in coordination with the quality reviewer, quality manager and project administrator. The designated outputs of the quality control process shall include 1) validated deliverables and 2) lessons learned. The fitness for purpose for this particular project will be gauged against the benchmarks set by the construction industry for projects of such nature as outlined in CFR Construction and Project Management Guidelines – Developed in collaboration with Australian Building Codes Board 2014. The efficacy of the processes at work in this case will be assessed by the quality reviewer under the quality control process and will be defined in collaboration with the goals and objectives of various stakeholders including the project owners and management.
