Project Management Plan: Importance Of Project Cost And Quality Control

Project Cost Management

Project cost is the overall activity that focuses on the estimation and the control of every cost within the project.

(a) Every estimation of cost determines to calculate the accuracy of the cost. In Sisense company the estimation of cost gives the idea on how to utilise the money in the company (Harrison and Lock ,2017 p.23). In most cases cost is always measured in terms of money. Basically in many cases cost is seen as a foregone resource therefore a need to come up with the objectives that can help to uplift the exchange. In general, in different situation project cost management always involves the whole idea behind the process needed to complete the overall budget within the Sisense company (Harrison and Lock ,2017 p.67).

(b)Cost estimating. 

In cost estimation it involves the idea on how to carry out the cost of every project in the company. The table below it indicates on the different methods of cost estimates (Meredith and Mantel ,2011 p.67). 

The capital cost for the Sisene company.

Direct cost	1	2	3	4	Total cost ($)
Initial	4500				94
Planning	2000	4000	6000	5000	17,000
Executing		–	–	–	–
Project control	2000	1000	2000	2000	7,000
Monitoring and control	1000	–	–	4000	5,000
Reserves	–	–	–	3000	3,000
Total	9,500	5,000	8,000	14,000	126,000

The planning cost of the Sisene company is high as compared to other direct sources. This shows the planning project has the highest complexity within the company. Thus the costs with high planning procedure have the highest credibility.

The project control system of the company also has the highest credibility as compare to the monitoring and the control costs. This can either been propagated by the high technology within the Sisense company. Project planning tends to be more expensive than the monitoring and the control system. This difference in cost gives an estimate of the costs in different fields within the Sisense company.

  (c)There different ways to manage cost within the company. Some of the techniques that can be used to measure cost, suggest the type of the cost needed, implement cost and record changes in managing cost are discussed below (Schwalbe ,2015 p.56).

1. Producing an estimate. It involves coming up with the estimate of the cost. This includes all the phases and stages involved within the project. It always accounts for all materials used in the project, all the people involved, the hardware and also the software’s included in the project.
2. Establishing the monthly budget. This can be done by determining on the cost to be expected within the project. Various documents should be used to manage the costs that can be anticipated within a month. This can either be in spreadsheets or even in different sources so long as it indicates the total expenditure incurred within the project.

• Recording the actual costs. It is done by checking the actual amount that is accounted to the project at a certain range of time especially a month. In most cases the figure is always provided by the finance department. One records the figure from the financial department then a comparison is made between the budget in the active project.

1. Calculating the metrics in the project. At the end of the reporting project the cost of metrics should be calculated. There is measure of how much was spend in the project as compared to what was provided from the finance department. The cost of metrics is included in project as a way of managing the cost.
2. Updating on the forecasts of the project is also a way of managing cost. There is need to adjust to every changes that is expected within the project.
3. There is transparency to the management about the project cost in the company. The cost of metrics and also the important numbers about the projects is presented to the appropriate committee. If the results communicated are found to be technical then the committee will analyse, resolve the results and then discuss the issues depending on a certain procedure.

(d) Other information’s related to cost management in the project. 

        At different times the accuracy of every cost estimation will depend on the method used. In general, at early stages of the project within the company there always rough estimates which are expected which are commonly known as the ballpark and it states the major points for starting the project cost of the company. In many cases a detailed structure describing the total costs regarding a particular activity within the company is checked to determine the level of accuracy about the costs (Hwang and Ng ,2013 p.90). In our project various variables and variances helps to describe most projects within the company that can assist in carrying out the cost estimation within the Sisense company. Variances basically is how the cost will be expected to change as expected in future

Cost Estimation

It focuses on all the steps used to ensure the project satisfies the goals which it was undertaken. In many cases it includes the activities that management uses to find out the quality policy, the aim and the responsibility such as the quality planning, the control of the project and the project execution (Khodakarami and Abdi ,2014 p.87-88).

Quality planning aims to come up with the standards which are relevant to the project of the      company and giving the measures to follow on how to meet the needs of the company (Burke ,2013 p.121).

Quality control monitors on specific results in order to find out whether the results meet the relevant standards and designing new measures to remove the defective results within the project.

Quality execution evaluates the whole project on the performance depending on a regular basis so as to give a certain confidence on aspect that the project will meet a certain standard.

(a) Qualities to be analysed in the three process of the project quality management. They are categorised in 3 subsections that is Inputs, Tools and Technology and the outputs.

1. Quality policy. Which gives the overall purpose and even the direction to the company with the respect to the quality as in the performance management. All the members involved in the project should all be aware about it.
2. Scope statement. Plays a vital role in input quality planning in quality planning. It describes the deliverables of the project and the objectives needed.

1. Product description. Contains the technical factors that and other aspects which are believed to affect the quality planning (Schwalbe ,2015 p.143).
2.  The cost analysis. Forms a role in tools and technique in quality planning. It involves the concept of benefit or the trade-offs in acquiring a certain quality or achievement within the project.

5.Results of quality control measurements. Gives a comparison and the analysis on all quality measurements in a company.

6.The quality audits. It is described as structure that gives a review on different quality management activities.

7.The quality improvements that includes the measures for increasing the efficiency in a project within the company. It is handled based on the procedures within the change control of the management (Stulberg et al,2010 p.143).

8.The work results describe all the process and the product process within the project. The actual results should be relevant to the expected information.

9.The control charts and statistical sampling. Generally, the charts give graphical representation of the results from the project. They give information on whether a certain process in project is in control and if found in control it should not be changed while in statistical sampling there is need to choose the whole of group of interest for the inspection.

(b)Measurable items and units of measure in quality.

       1.The return on the investment. Measured by use a certain concept that is multiplication of the net benefits or the costs by hundred (Stulberg et al,2010 p.193).

1. The productivity. It is the output produced per unit of input in an organization. This measure gives either the profit or the loss incurred within the organization.
2. Cost of the quality. This is referred as the amount of money losses by business when the product was not done in appropriate procedure.

       4.The cost of performance which gives the measure of efficiency within the project.

(c) The table developed for quality management 

The project	Total budget ($)	Illustrations
The designing of project	150,000	Describes the total hours used by all the stakeholders during the project
Plan of the project	270,000	Explains on the total number of hours the team used to access the information
The coding system	200,000	Records the time used for coding various activities within project.
Testing procedure	120,000	Always concerned with the total hours used for testing
Use of transitions and the closeout	230,000	Focuses on the hours for project completion and the closeout.

(e)The summary and analysis for the project.

The project describes a summary on the different fields within the company. The summary was analysed under different parts such as;

 The capacity of the staff.

 The averaged number as found in most challenged projects.

 The expenditure experienced during the project.

 The project resource on the cost.

(f)There were other information analysed during the project.

Quality assurance was analysed during the project since it provided confidence on the quality of the product (Roseau and Githens ,2011 p.77). It is always provided by the quality assurance department within the company although in sometimes it’s not a must to be provided. The use of benchmarking provided a comparison on the actual project and other projects so as to come up with improvements that will measure the performance of the project.

Conclusion

The project cost management and the project quality and management plays a vital role within the Sisense company (Rosenau and Githens ,2011 p.167). Cost estimate plays the key role in every output of every project in management. In most cases there are various types of important roles that can assist in cost estimation process.

References

Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach. Routledge.

Meredith, J.R. and Mantel Jr, S.J., 2011. Project management: a managerial approach. John Wiley & Sons.

Schwalbe, K., 2015. Information technology project management. Cengage Learning.

Hwang, B.G. and Ng, W.J., 2013. Project management knowledge and skills for green construction: Overcoming challenges. International Journal of Project Management, 31(2), pp.272-284.

Khodakarami, V. and Abdi, A., 2014. Project cost risk analysis: A Bayesian networks approach for modeling dependencies between cost items. International Journal of Project Management, 32(7), pp.1233-1245.

Burke, R., 2013. Project management: planning and control techniques. New Jersey, USA.

Schwalbe, K., 2015. Information technology project management. Cengage Learning.

Stulberg, J.J., Delaney, C.P., Neuhauser, D.V., Aron, D.C., Fu, P. and Koroukian, S.M., 2010. Adherence to surgical care improvement project measures and the association with postoperative infections. Jama, 303(24), pp.2479-2485.

Bernroider, E.W. and Ivanov, M., 2011. IT project management control and the Control Objectives for IT and related Technology (CobiT) framework. International Journal of Project Management, 29(3), pp.325-336.

Rosenau, M.D. and Githens, G.D., 2011. Successful project management: a step-by-step approach with practical examples. John Wiley & Sons.