Cost Management Plan

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The development of a project management plan is a complicated procedure, which

consists of preparing all the subsidiary plans in different fields such as risk,
coordination, efficiency, human resources, schedule, scope etc. The last paper to be
finalized in the preparation phase would be the project management strategy.
Talking regarding the project management plans involves discussing over ten
separate plans, quite necessary for the credibility of the company.

Introduction
A complete project management plan is required from the following plans:
requirements management plan, scope management plan, timetable management
plan, cost management plan, quality management plan, process improvement plan,
human resources management plan, communication management plan, the risk
management plan, the acquisition management plan and the stakeholder
manpower.
The paper would concentrate on the scope, the cost, the schedule, human resources,
the risk management portion and Quality Management during the next stage of
growth. The paper would focus on quality management.

Cost Management Plan


The project budget is the largest instrument in the expense segment as it reflects the
cumulative sum of approved financial capital committed for a certain period of time
for the particular purposes of the project funded. It is the main financial document
that provides the funding needed for project implementation and delivery. A
comprehensive statement of all direct and overhead expenses necessary for the
achievement of the project priorities is included in the Project Budget.

The project budget management as an individual method involves a sequence of


measures to identify and generate a budget sheet. The main stages are:
1. Development: estimate of the financial capital needed and creation of the budget
for a project.
2. Use: use of the financial services approved and the expenditure execution.
3. Measurement: cost-effectiveness viewing and spending management.
4. Edit: display the expenditure baseline improvements and update the project
budget sheet.
Cost Estimating
Project cost control requires the procedures necessary for the completion of the
project under the agreed budget, as provided for in PMBOK Guide. Resource
planning (determining how the resources and quantities of the project activities can
be used), cost estimates (determining the approximate costs for the project
activities), cost budgeting (assigning the total cost estimate of each work item) and
cost controls are the four major processes of project cost management. Project cost
management. Project cost estimations (controlling changes to the project budget).
PMBOK describes the budget mechanism as follows: The PMBOK guide points out
that budgeting is a three-stage operation, inputs + tools = production. The entry
includes nine variables (cost management plan, scope, baseline, activity cost
estimates, basis of estimates, project schedule resource calendars risk register,
agreements, organizational, process, assets). Five methods compose of tools (cost
aggregation, reserve analysis, expert judgement, historical relationship, and funding
limit reconciliation). There are three factors in the outputs (cost baseline, project
funding requirements, and project documents updates). Nevertheless, several state,
personal and global considerations that cannot be considered at the outset can
affect the estimate of project costs.
The cost estimate may be difficult, especially if the operation requires financing is
lacking in expertise, for example. The expert opinion as outlined in the PMBOK
published by the Project Management Institute will therefore be of great help to
include a rough cost estimate based on the comprehensive WBS. (Project
Management Institute, 2013)

Cost Budgeting
The project plan is the mechanism to convey the jobs to be done, the company
finances and the schedules with which the job is to be carried out. The project plan
should represent all the work involved in the project delivery on time. The project
manager cannot communicate in full costs and services required to implement the
project without a comprehensive and complete plan. The schedule displays the
timetable for each operation to begin and end and the final project dates.
The project management plan planning component is as follows described by
PMBOK: Creation of schedules involves setting the beginning and end dates of work
on the project. If the start and end deadlines are not reasonable, the project would
therefore not end as planned. Input methods, in particular duration estimates and
expense estimations, must be iterated in addition to the processes used to
determine the project plan.
Companies also use bar charts called Gantt charts to describe the correct timetable.
They show starting and ending dates and anticipated periods of activities, but
normally do not demonstrate addiction. It is very simple to read and is mostly used in
management presentations. The use of milestone maps is another helpful tool. They
are close to bar charting except the biggest benefit is that the big deliverables and
primary external interfaces are planned start or finish. (Project Management
Institute, 2013)
The PMBOK Guide goes into greater depth and three main procedures are found in
the human resource portion. Project human resource management refers to the
procedures that may be followed in order to allow the most use of the project's
resources. Both project partners, including donors, clients, and individual
participants, are included. Organizational preparation (identifying, tracking, and
assigning job positions, obligations, and reporting relationships), personnel
acquisition (getting the human capital required allocated to and operating on the
project), and team building are the three mechanisms listed above (developing
individual and group skills to enhance project performance). (Project Management
Institute, 2013)

Work Breakdown Structure


Outline for GI-PMO

1.0 Initiation
1.1 Develop project charter
1.1.1 Identify Goals and Objectives
1.1.1.1 Capture and author goals and objectives
1.1.2 Develop Strategies and Plans
1.1.2.1 Capture and author strategies and plans
1.1.3 Research Previous Experience
1.1.3.1 Incorporate lessons observed into project
charter
1.1.4 Develop project charter
1.1.4.1 Author project charter
2.0 Planning
2.1 Secure office location
2.1.1 Identify space requirements
2.1.1.1 Ensure (4) workstation capacity for: (3)
permanently assigned PMs plus (1) rotator desk
for PMCs use when on-site
2.1.2 Secure office space
2.1.2.1 Facilitate contract, lease, approval etc. as
necessary
2.2 Develop Information System plan
2.2.1 Gather requirements
2.2.1.1 Receive Galaxy approval for IS requirements
2.2.2 Draft IS Plan
2.2.2.1 Identify IS hardware and software
2.2.2.2 Detail data storage plan
2.2.2.3 Determine contingency plans
2.3 Develop procurement plan
2.3.1 Identify inventory for procurement
2.3.1.1 Create inventory procurement list
2.3.1.1.1 Hardware list
2.3.1.1.2 Software list
2.3.1.1.3 Equipment list
2.3.1.2 Perform inventory cost analysis
2.3.2 Subcontract data installation
2.3.2.1 Identify potential subcontractors
2.3.2.2 Select a subcontractor
2.3.2.3 Contract subcontractor
2.4 Identify personnel
2.4.1 Coordinate with Galaxy to determine PMO
assignments
2.4.1.1 Assign (2) Project Managers from CIO’s
office
2.4.1.2 Assign (1) Project Manager from COO’s
office
2.5 Develop personnel training plan
2.5.1 Coordinate Galaxy PM PMP bootcamp attendance
2.5.1.1 Research PMP bootcamps
2.5.1.2 Select PMP bootcamp
2.5.1.3 Schedule Galaxy PMs for bootcamp
2.5.1.4 Fund Galaxy PMs for bootcamp
2.6 Plan office intranet
2.6.1 Gather requirements
2.6.1.1 Receive Galaxy approval for procurement
requirements
2.6.2 Outline intranet implementation plan
2.6.2.1 Research intranet options
2.6.2.2 Select intranet facilitation software
2.6.2.3 Draft intranet contents and organization
(software page, etc.)
2.7 Develop PM Processes
2.7.1 Develop PM Methodology
2.7.1.1 Receive Galaxy approval PM Methodology
2.7.2 Develop PM Policies
2.7.2.1 Receive Galaxy approval PM Policies
2.7.3 Develop PM Procedures
2.7.3.1 Receive Galaxy approval PM Procedures
2.7.4 Determine PM Evaluation Criteria
2.7.4.1 Determine Measures of Effectiveness (MOE)
2.7.4.2 Determine Measures of Performance (MOP)
3.0 Execution
3.1 Execute Procurement Plan
3.1.1 Inventory Acquisition
3.1.1.1 Purchase office hardware
3.1.1.2 Purchase office software
3.1.1.3 Purchase office equipment
3.2 Configure Office Location
3.2.1 Office configuration
3.2.1.1 Assemble office furniture
3.3 Implement IS Plan
3.3.1 Data installation
3.3.1.1 Supervise subcontractors installing phone,
network and fax capabilities
3.3.2 Setup office phone, fax, computer
3.3.3 Install required software
3.4 Deploy PMO intranet
3.4.1 Build intranet site
3.4.1.1 Build intranet backbone
3.4.1.2 Load content onto intranet pages
3.4.1.3 Publish intranet site
3.4.1.4 Test intranet site
3.5 Ensure Galaxy PM PMP Training and Certification
3.5.1 Validate PMP requirement satisfaction for each PM
3.5.1.1 Validate 35 hours of project management
experience
3.5.1.2 Validate passing test score on PMP exam
3.5.2 Conduct PM Process training for Galaxy PMs
3.5.2.1 Review and instruct on PM Methodology
3.5.2.2 Review and instruct on PM Policies
3.5.2.3 Review and instruct on PM Procedures
3.6 Implement PM Procedures and Policies
3.6.1 Publish PM Policies
3.6.1.1 Acquire Galaxy PM signature acknowledging
all policies
3.6.2 Handoff procedures to Galaxy PMs
3.6.2.1 Ensure Galaxy PM procedure
comprehension and way forward
4.0 Monitoring/Controlling
4.1 Monitoring and control project
4.1.1 PMO site
4.1.1.1 Collect metrics
4.1.1.2 Assessment
4.1.1.3 Corrective action as necessary
4.1.1.4 Replanning as necessary
4.1.2 Galaxy PM Training
4.1.2.1 Collect metrics
4.1.2.2 Assessment
4.1.2.3 Corrective action as necessary
4.1.2.4 Replanning as necessary
4.1.3 PM Processes
4.1.3.1 Collect metrics
4.1.3.2 Assessment
4.1.3.3 Corrective action as necessary
4.1.3.4 Replanning as necessary
4.1.4 Office Intranet
4.1.4.1 Collect metrics
4.1.4.2 Assessment
4.1.4.3 Corrective action as necessary
4.1.4.4 Replanning as necessary
5.0 Closing
5.1 Perform staff evaluation
5.1.1 Provide feedback to Galaxy PMs
5.2 Ensure contract satisfaction
5.2.1 Validate timely delivery
5.2.2 Validate project quality
5.2.3 Render final payment as required
5.3 Conduct post-project evaluation
5.3.1 Create after action report
5.3.2 Document lessons learned
5.4 Archive project documents
5.4.1 Organize project documents
5.4.2 Move documents to permanent storage location
5.4.3 Destroy documents as needed

Quality Management Plan


Plan deliverables and project work cycles are covered by quality management plans.
Quality management practices ensure that project deliverables follow established
quality requirements by monitoring and verifying them. Quality improvement
activities ensure that the procedures for managing and producing deliverables are
followed and efficient.
It certifies that the commodity met the requisite requirements and was in good
quality and the right amount when it left the port of departure. It is normally
required for the import of industrial machinery, meat goods, and perishable
merchandise.
The PMBOK's definition of project quality management involves the protocols that
must be followed to ensure that the project meets the requirements with which it
was created. It encompasses all activities of the overall management function that
define the quality policy, goals, and obligations, as well as the methods by which they
are implemented within the quality framework, such as quality preparation, quality
monitoring, quality assurance, and quality enhancement.
Conclusion
After going through the pages, you should have a good idea about what a project
management strategy is and what it entails. There is a plethora of various steps to
take, one of which leads to the emergence of new tasks. You now have a clear
understanding of the project's scale, as well as a full understanding of the cost
statement and cost allocation, as well as how the project is planned, which includes
the development of action schedules for various projects and the achievement of
milestones within the project's time frame.
In addition, the stages of human resource management, crisis control, and quality
management are clarified and outlined with real-life illustrations and models gleaned
from a thorough web review. Special emphasis should be paid to the point of quality
control, which is critical to the whole method and without it, all stakeholders will be
dissatisfied.

References
Project Management Institute, (2013). A Guide to the Project Management Body of
Knowledge: Sixth Edition. Project Management Institute

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