Project Cost And Quality Management Plans For Poly Products Industry

Question: Discuss about the Project Cost And Quality Management Plans For Poly Products Industry. Answer: Project cost management plan It is a plan that represents policies, procedures, and documentation of how to estimate, budget and control costs of a project(Larson, 2011). Poly products industries cost planning andmanagement was based on proposal seeking bids to produce 10000 rubber components. The planning involved addressing cost risks, estimates, and budget for overheads used in production process(Phillips, 2013). Project cost planning Project planning is important in ensuring that resources are estimated and budgeted in effective and efficient manner(Bryde, Broquetas Volm , 2013). Project costs estimates and budgets for poly products industries were based on market survey of the current prices with comparison of other industries. Bottom up estimating approach was used to estimate the work packages of the project. Poly products work was divided using work breakdown structure which was used for budgeting and estimation process. Project cost risks The several risks facing project costmanagement of poly products industries include: possibility of union strike for salary increase of 1% per quarter and the current workforce increasing its rate of overtime to a value of 0.75%. In future the value of raw materials would increase making the cost of production to be higher. Project estimates and costs The following exhibits show summary of cost estimates, and budget for poly product industry. Staff overhead estimates The estimates were based on the different units, hours worked, and grading structure for 800 employees engaged. The proposal on the overhead was to increase and decrease at 10% for those below and above grade 7 in the structure. Table 1 shows a summary of estimates for workers in different units as per the hours structure. Table 1 Unit staff overheads Staff unit/section Hourly rate Research and development 1594 Design 1416 Project engineering 1235 Project management 730 Cost accounting 1010 Contracts 214 Publications 277 Computers 165 Manufacturing engineering 279 Industrial engineering 176 Facilities 680 Quality control 363 Production line 3270 Traffic 70 Procurement 182 Safety 102 Inventory control 131 Totals 11,894 Cost estimation of materials The materials for production were based on the proposed schedule of delivery and the fixed value provided to the bidders. The raw materials were estimated on a cost value of $200 that was for a period of 12 months. Table 2 show a summary of cost of materials as per deliveries. Table 2 Cost of materials Delivery units Costs 3000 units @$200 600,000 3000 units@$200 700,000 3500 units@$200 700,000 Totals 2,000,000 Overhead structure estimation The overhead structure estimation was based on planning phases of the project. The budget was structured for program management, engineering research and development, finance, and production(Gido Clements, 2014). Table 3 shows a summary of costs as per the quarter among the sections. Table 3 Overhead cost structure Sections Overheads per quarters 1st 2nd 3rd 4th Project management 730 234 145 340 Engineering research development 1040 4245 1240 350 Finance 1400 3465 5465 4590 Production - 603480 703450 704500 Totals 3170 611424 710,300 709780 Cost control Cost control involves the process of monitoring the status of the project to update the project costs and managing changes to the cost baseline the tools and techniques to be employed to ensure control is done is earned value management, forecasting and performance reviews(Kloppenborg, 2014). The output will be cost forecast, project document update and organizational process assets updates(PMI., 2013). The purpose of carrying out production control is to bring out expected to a level of acceptable limits. Project quality management plan The quality management plan represents how poly products industries well implemented quality policies. It is important to have a quality management plan because it defines how quality will be delivered during the production process. Success of poly products industries rubber components will depend on the quality of the products. The quality plan was developed based on the requirements of the project involving planning, deliverables, assurance and control of quality by the organizations. Project quality deliverables The quality deliverables to be achieved by the industry include: manufacture of rubber components according to specifications supplied by the customer, flexibility of contractor in material selection and testing as per specifications, continuous procurement as per quality guidelines, and operating a quality control program acceptance to customer and contractor that in addition allows a process of escalation between the parties. Project quality plan Project quality plan involves using the right tools, techniques and methodology to ensure quality is achieved(Hedman, 2013). The poly product industry will be guided by the philosophy that the products to be produced are acceptable among the customers. To ensure quality deliverables planning need to be done and developed. In planning for quality the scope statement will provide guiding a tool(Heagney, 2016). It will contain the required details for technical and operating performance. In addition the scope statement provides acceptance criteria for the project that form the basis of project approvals(Kendrick, 2013). The second tool for quality planning is the work breakdown structure (WBS) which provides a tool for measuring quality. It identifies the several deliverables and work packages expected to be achieved by the project. The basis of proper planning is to reduce wastages, lower costs, increase satisfaction and increase profitability(Burke, 2013). The tool used for planning is the quality checklists. A project quality checklist provides a list of standards and requirements to be achieved(Bryde, Broquetas Volm , 2013). Table 4 shows the quality checklist for the project. Table 4 Project quality checklist Items deliverables Status Remarks Achieved Not achieved Evaluation of contractors and bid done as per specifications Materials inspected and tested for conformance Manufacture of rubber components as per specifications Continuous procurement as per specifications Project audits and checks on processes are done An escalation process between contractor and project staff is developed Quality assurance It is a process that ensures that quality requirements and control measurements are used(PMI., 2013). The poly product industries will use quality assurance to facilitate improvement in its quality processes. The industry will use quality metrics as part of the quality assurance management tools that specify schedules and products. The production is based on scheduled specifications metrics that was specifically used to provide answers for questions on what, when and how production will take place. Quality assurance example metrics for poly product industries are the schedules for overheads and units to be produced. Quality controls It is the process in which poly product industry will monitor and record outcomes to ensure that performance is done as per requirements and specifications by ensuring that recommendations is done for future changes. The purpose of quality control is to improve quality and eliminate unnecessary defects(Hedman, 2013). The tool and techniques employed by the industry is the work performance data that outlines variances for technical, schedule and actual cost performance. Table 5 shows the summary of work performance data templates as part of quality control templates. Table 5 work performance data Metrics Planned performance Actual performance Remarks Technical performance: Involves specific resources utilized or consumed Schedule activities: involves specific work packages/activities allocated time Cost performance: it involves specific cost estimates and budgets for materials and overheads References Bryde, Broquetas Volm . (2013). The project benefits of building information modelling. International Journal of project management, 31(7), 971-980. Burke, R. (2013). Project management: planning and control tecniques. New Jersey: Wiley publishers. Gido Clements. (2014). Successful project management. Chicago: Nelson Education. Heagney, J. (2016). Fundamentals of project management. AMACOM: American management association . Hedman, K. (2013). Project management professional exam study guide. Indianapolis: Wiley. Kendrick, T. (2013). The project management tool kit: 100 tips and techniques for getting the job done right. . AMACOM Div: American management Assn. Kloppenborg, T. (2014). Contemporary project management. London: Nelson Education. Larson, E. (2011). Project management: the managerial process. New York: Mc Graw Hill. Phillips, J. (2013). PMP, project management professional (certification study guides). New York: Mc Graw Hill. PMI. (2013). A guide to project management body of knowledge . Newtown Square: PA: PMI.