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Question: Discuss about the Cost and Quality Management Plan. Answer: Introduction Cost and quality management plan is a very important factor when it comes designing a project management plan. The purpose of the quality in the project is to describe how quality will be managed across the lifecycle of the project. On the other hand, cost management plan is to describe how the cost of a project will be managed through the process. For example, the manufacturing of 10,000 rubber components at Rubber components production will require quality and cost management plan. This medium is very much essential for the organization to understand the scope of what they want to invest in and perhaps make some profit (Al-Zwainy, F.M.S., and Neran, page 42). Measuring Project Costs This section entails aims at the explanation of cost for a project management plan can be determined. The analysis of the PMBOK is concerned with cost determination and control which can be estimated through the calculation of the schedule variance. The earned value which is the actual value and its difference from the planned value provides the schedule difference (Alvarez, Turner, R. and Mittra, page 60). Ideally, when the difference is negative then it implies the organization is taking a wrong turn and when we have a positive figure on the difference, it means that the company is on the right path. Therefore, the project enactment can be known using the earned value management with the four matrixes that are used in the cost planning project. The company and the owner of the tender are expected to state the real product worthiness and this help in knowing and the determination of the exact product cost. The raw material purchases per month in the company are 1000 units for the production process. On the other hand, the vendors will be guaranteeing a fixed cost of $200 per raw material units during the first 12 months of the project only. Material escalation factors are expected at month 13 due to renegotiation of the United Rubber Workers contracts. The cost measuring index Performance measure Blue Red Schedule performance index Less or more than 1 Less 0.9 or more than 1.1 Cost performance index Less or more than 1 Less 0.9 or more than 1.1 The cost baseline PMBOK explains the cost base line as set base cost limit that is considered as the control factor in measuring, controlling and also the monitoring process for the whole project performance. However, there exist a variety of factors that have an effect on a project cost performance and thus during the planning process, the estimated cost figures may perhaps not be accurate based on the factors in the working environment and the emerging trends (Reich and Wee, page 11). For example, if at a particular phase the training, materials and traveling costs were estimated and the then during the execution of the plan, the costs of the materials changes and this increases or decreases the cost of the performance. Therefore, time is another factor that can affect the cost of performance of a product due to the unstable costs of the raw materials that are very much essential in the determination of the final product and hence the final costs. The tools and techniques used in the cost management plan These are the techniques that are very essential and are used in the determination of the cost of a project during the cycle period. The management plan assists in a setting that is then measured, reported and controlled. The techniques of cost management plan are the earned value management which is an essential tool in the determination of the cost of the project. Additionally, in the capturing of the earned value management various tools and techniques such as the project management software which will assist in the capturing, recording and then forecasting the projects. Additionally, there are various measurement tools that can be used in the determination of the earned value management and this includes; The schedule variance (SV) The schedule variance determination is based on the project performance. The SV calculation is done the determination of the differences between the real value which in this case is the already earned value and the budgeted value. The planned value is the amounts we were supposed to get at the end of the project and its always under speculation. Therefore, the difference marks the success of the business or perhaps will determine whether the project is valid. Ideally, the plans should be able to be positive in comparison to the actual plan of the Rubber component production. The cost variance The value is measured based on the budget performance for the project. This is calculated by subtracting the actual costs (AC) which are the actual cost incurred to the very date from the earned value (EV). Therefore, this will be determined by taking into consideration the present cost that the company has used in the production of Rubber and getting the difference from the earned value. The perfect project is signified when the CV value is zero, but when the value of cv goes more than zero and also you find that you also notice the value is accumulating more cost than was planned this is termed as under budgeting. Over budgeting, on the other hand, comes in when the project CV is less than zero. The schedule performance index It is the measure of that which has been achieved against the one that was planned for the project. The value is calculated by EV/PV and the value is one if both the EV and PV are equal. If the value is less than one, then the project started is behind the schedule and on the other hand, if the value is greater than one, then the project is ahead of the stated schedule. A perfect project should be that one that is slightly under or above the value one in the project (Diniz and Fabbe-Costes, page 240). The cost performance index This is the calculation comparison into the work value completed In reference to the real value in terms of the work that is already done. EV/AC calculation measures the cost performance cost. A project that equals to one is termed as an on budget project. On the other hand, if its less than one, its termed as over budget project. In addition to that, and under the budget project is one that total cost is more than one. The quality management plan for the project These are the processes and the activities of the organization that is performing that assist in the determination of the quality policies, expected objectives and the responsibility to make sure that the project satisfies the needs in consideration to the purposes. The purpose of the project is making sure that there is the production of 10,000 rubber components that are of good quality according to the standard of requirements (Polak and Wjcik, page 8). The management works to make sure that the requirements according to the state's policies are met and achieved in good terms. The Quality Management Plan (QMP) for the 10,000 Rubber component project will establish the activities, processes, and procedures for ensuring a quality product upon the conclusion of the project. The purpose of this plan is to: Define acceptable quality standards of the produced rubber products. Define quality assurance activities in the line of production. Ensure quality is planned according to the requirement. Define how quality will be managed in the production cycle. Purpose and Objectives The purpose of the 10,000 Rubber component production Quality Management Plan is to establish the plans, processes, and responsibilities required to implement effective quality management functions for the project mentioned above. This QMP defines how the Project Team will implement, support, and communicate project quality practices for utilization in the overall production process (Morris and Jamieson, page 5). Identify the quality matrix The quality planning team identifies the matrix the quality assurance team will use in the processes (Rodrigues and Sbragia, page 44). Therefore, the senior management of the project in collaboration with the process owner will identify and develop the right metrics that are applicable to the entire project. Creation of quality checklist The plan will assist in the identification of the quality checking list that will be used by the team in the production cycle of the Rubber component in the industry. This will be done by the senior managers in support by the process owner (Besner and Hobbs, page 20). Problem remediation The project will have various meetings with teams and the top leadership in the determination of the problems and the possible solution to the issues. The identified projects will then be solved to prevent further issues that might arise in the process of production that might affect the quality of the product. The matrix below describes the quality assurance standards for the Rubber component project: Project Process Quality Assurance Standard Inputs Include Project Schedule Management Project schedule review meetings occur Project schedule review meetings well attended Modifications to the project schedule accepted and tracked Impact estimations taking place outside of/prior to the schedule improvement process Roles and responsibilities are well defined Action items from review meetings are documented and tracked to completion Schedule Management Plan Project Schedule Standards References Al-Zwainy, F.M.S. and Neran, T.H., 2015. Investigation and Evaluation of the Cost Estimation Methods of Iraqi Communication Projects. International Journal of Engineering and Management Research, IJEMR, 5(6), pp.41-48. Alvarez-Dionisi, L.E., Turner, R. and Mittra, M., 2016. Global project management trends. International Journal of Information Technology Project Management (IJITPM), 7(3), pp.54-73. Besner, C. and Hobbs, B., 2013. Contextualized project management practice: A cluster analysis of practices and best practices. Project Management Journal, 44(1), pp.17-34. Diniz, J.D. and Fabbe-Costes, N., 2007. Supply chain management and supply chain orientation: key factors for sustainable development projects in developing countries?. International Journal of Logistics Research and Applications, 10(3), pp.235-250. Heldman, K., 2015. PMP project management professional exam deluxe study guide: updated for the 2015 Exam. John Wiley Sons. Morris, P.W., and Jamieson, A., 2005. Moving from corporate strategy to project strategy. Project Management Journal, 36(4), p.5. Rodrigues, I. and Sbragia, R., 2013. The cultural challenges of managing global project teams: a study of Brazilian multinationals. Journal of technology management innovation, 8, pp.4-4. Reich, B.H., and Wee, S.Y., 2006. Searching for Knowledge in the PMBOK Guide. Project Management Journal, 37(2), p.11. 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