4th Sem – Project management – Spring 2016

DRIVE: SPRING 2016

PROGRAM: MBADS (SEM 4/SEM 6) MBAFLEX/ MBA (SEM 4) PGDPMN (SEM 2)

SUBJECT CODE & NAME: PM 0015 – QUANTITATIVE METHODS IN PROJECT MANAGEMENT

BK ID: B2011

CREDIT AND MARKS: 4 CREDITS AND 60 MARKS

 

Q1. Explain Business Value Models in detail

  • Balanced scorecard model
  • The Treacy-Wiersema model
  • The Kano model

Answer:

The following business models in detail in the following section:

 

Balanced scorecard model

 

The balanced scorecard model defines four scoring areas for business value and was first published by Robert S. Kaplan and David P. Norton in an article, “The Balanced Scorecard – Measures that Drive Performance.”

The model was developed as a replacement for earlier systems; those only included the financial perspective to measure

 

 

Q.2: What is parametric estimating? Explain the steps involved in the development of a parametric model.

(Define parametric estimating (1.25 MARKS)

Describe the 7 steps involved in the development of a parametric model 8.75 (1.25 marks for each step)

 

Answer:

Define parametric estimating:

Parametric estimating is an estimating technique that uses a statistical relationship between historical data and other variables, such as square footage in construction and lines of code in software development for calculating an estimate for activity parameters, such as scope, cost, budget, and duration. Parametric estimating can produce higher levels of accuracy depending

 

Q.3: 1. what aspects of capital budgeting must be considered while selecting a project?

  1. Suppose an investment requires an initial outlay of $5 million and has expected the cash flow of $1 million, $3.5 million, and $2 million for the first three years.
  2. Calculate:
  • The net present value using a 10% required rate of return
  • Profitability Index using a 10% required rate of return
  1. Also suggest if the project must be accepted.
  2. Explain the 4 aspects of capital budgeting that must be considered while selecting a project. 4 (1 mark each)

 

  1. a. calculation of net present value (2 MARKS)

Calculation of profitability index (2 MARKS)

  1. Mention if the project must be selected and give reasons why it should be project be selected/not selected (2 MARKS)

 

Answer:

  1. Explain the 4 aspects of capital budgeting that must be considered while selecting a project:

An organisation needs to consider the following aspects of capital budgeting while selecting a project:

Growth of the organisation: This implies that a project should be selected after considering the overall profit and market share of the

 

Q.4: Explain the various expense items in a project.

(List the various expense items in a project (1 MARKS)

Describe each expense with suitable examples 9 (3 marks for each expense item)

 

Answer:

List the various expense items in a project:

  • Direct and indirect costs
  • Variable and fixed costs
  • Actual and standard costs

 

Describe each expense with suitable examples:

Direct and indirect costs

Direct costs are expenses that directly affect the budget of a project. Expenses that are for the express benefit of the project, and would not be incurred if not for the project, are usually called “direct expenses.” In other words, direct costs can be identified

 

 

Q5. 1. Determine the average amount of bricks laid over a six-month period by 1 bricklayer. Collected information on the amount of bricks laid per month:

January 21,000

February 23,500

March 22,000

April 24,000

May 26,000

June 25,000

 

  1. Consider the sales figures of the Bricklayer Company over the period of 6 months, as shown in the table:

Month No of Sales

January 20

February 20

March 16

April 20

May 21

June 27

 Determine the average amount of bricks laid over a six-month period by 1 bricklayer.

 Consider the sales figures of the Bricklayer.

 

Answer:

  1. Mean = 21,000 + 23,500 + 22,000 + 24,000 + 26,000 + 25,000 = 141500

The total number of mean values = 6

Mean =141500/6 =

 

Q.6: What are the steps that should be followed to construct a “house of quality”?

(Explain the 5 steps that should be followed to construct a house of quality) 10

 

Answer:

Explain the 5 steps that should be followed to construct a house of quality:

The following steps need to be followed to construct a house of quality:

Step-1 Voice of the customer: This step includes determining and identifying the customer’s needs. The main objective of this step is to translate the needs of every customer into engineering specifications. Customers buy products that have the desired

DRIVE: SPRING 2016

PROGRAM: MBADS (SEM 4/SEM 6) MBAFLEX/ MBA (SEM 4) PGDPMN (SEM 2)

SUBJECT CODE & NAME: PM 0016 –PROJECT RISK MANAGEMENT

BK ID: B2012

CREDIT AND MARKS: 4 CREDITS AND 60 MARKS

 

Q1.What is Project Risk? Explain different sources of project risk with examples

  • Project Risk
  • Sources of project risk

Answer:

Risk is one of the major factors to be considered during the management of a project. Risk can be defined as, A probability or threat of damage, injury, liability, loss or any other negative occurrence that is caused by external or internal

 

 

Q.2: What is Risk Opportunity and Management System (ROMS)? What are its benefits?

  1. Define ROMS, why was it designed, how can it be used? (2 marks)

List its objectives (2 marks)

Describe the output of ROMS (2 marks)

List any 4 benefits of ROMS 4 (1 mark for each benefit)

 

Answer:

Define ROMS, why was it designed, how can it be used:

ROMS is a risk and opportunity management system that can be applied throughout an organisation. This system helps in establishing a practical, integrated, systematic, rigorous and collective approach for managing the risks and opportunities over a business’s or

 

 

Q3.

 

  1. Using Internet, identify a project and list down all the activities and milestones of a project and the activity risks associated with these milestones.
  2. Using Internet, identify a project and the activity risks associated with it.

Categorise the risks into three groups: controllable known, uncontrollable known and unknown. Find out the percentage of “unknowns” in total risks at the beginning and towards the end of the project.

 

  • Using Internet, identify a project and list down all the activities and milestones of a project and the activity risks associated with these milestones.

 

  • Using Internet, identify a project and the activity risks associated with it. Categorise the risks into three groups: controllable known, uncontrollable known and unknown. Find out the percentage of “unknowns” in total risks at the beginning and towards the end of the project.

 

Answer:

Milestones are significant events within a project schedule. They are not work activities. They can be considered as “activities with zero duration”. Milestones are often used to indicate a phase end, completion of a deliverable, or a checkpoint in the project execution. A milestone is a logical point in a project but at this point, no work is actually done. So do milestones have activity risks? The answer is yes.

First, a milestone

 

Q.4: What are the sources of resource risks?

  1. Explain the sources of

People risks (4 marks)

Outsourcing risks (3 marks)

Money risks (3 marks)

 

Answer:

People risks:

Risks related to people represent the maximum risks (by count) in the PERIL database, accounting for more than two-thirds of the total risk incidents. The sources of people risks can be divided into two main categories, which are as follows:

  1. Availability

 

Q.5: What are different types of scope risks?

  1. List the types of scope risks (1 marks)

Explain the 3 scope risks 9 (3 marks for each risk)

 Answer:

List the types of scope risks:

The different types of scope risks are discussed as follows:

  • Scope creep
  • Scope gap
  • Scope dependency
  • Defect

 

Explain the 3 scope risks:

Scope creep

Scope creep is the most common scope risk. It stems from gaps in the understanding or documentation of requirements. It is a dispute between the customer and project team over the scope boundary. In most scenarios, the requirements evolve and mutate as the project progresses. It happens when the customer pushes for including something that was not included in the

 

 

Q.6: Explain the three point estimates used in quantitative risk analysis.

  1. Explain the term “three point estimates” (2 marks)

Why are they used in quantitative risk analysis (4 marks)

How is it different from PERT distributions (4 marks)

 

Answer:

Explain the term “three point estimates”:

Three-point estimates describe three scenarios (pessimistic, base case and optimistic) and thus, help in considering different outcomes and their impacts. Three-point estimates provide a simple means of representing the magnitude and range of a risk impact

DRIVE

SPRING 2016

PROGRAM

MBADS (SEM 4/SEM 6)

MBAFLEX/ MBA (SEM 4)

PGDPMN (SEM 2)

SUBJECT CODE & NAME – PM 0017 –PROJECT QUALITY MANAGEMENT

BK ID – B2013

CREDIT AND MARKS – 4 CREDITS AND 60 MARKS

 

 

Q1. Explain various terms used in quality management? In a group of about 3 to 5 people, discuss the benefits of traditional method and contemporary method of quality assurance. List the benefits on a flipchart or the whiteboard. Which benefit do you think is the most beneficial and why?

  • Total Quality Management (TQM)
  • Continuous Improvement/Kaizen
  • Just-In-Time (JIT)
  • In a group of about 3 to 5 people, discuss the benefits of traditional method and contemporary method of quality assurance. List the benefits on a flipchart or the whiteboard. Which benefit do you think is the most beneficial and why?

Answer:

Total Quality Management (TQM): This quality assurance theory emphasises on product quality. The definition of TQM is “it is a management approach to long-term success by satisfying

 

 

Q2. Explain the major project management standards and frameworks. 10

Answer: Project Management Frameworks and Standards: This section covers some well-known project management standards andframeworks that primarily deal with project management processes. Themajor project management standards and frameworks are:

 

ISO 10006: ISO 10006 is a standard published by the ISO for providing guidance onquality management in

 

 

Q3. What are the benefits of quality metrics? Explain the 3 categories of quality metrics. 10

Answer: Quality Metrics: The selection and adoption of standards and best practices do notautomatically translate into quality products. These standards provide abasis for a project’s performance, but it is the metrics that measure theperformance against the standards. The metrics define the extent to whichthe standards should be applied. They link together the requirements,specifications, and

 

 

Q4. Discuss the major barriers to project quality improvement. 10

Answer: Barriers in Improving Project Quality:The most obvious barrier in improving project quality is resistance tochange. Employees prefer the status-quo because they are comfortablewith the existing methodologies and ways of doing business. Any changethreatens them. Those who are enjoying powerful positions in anorganisation might fear losing their privileges because of the change. Then,there are those employees who fear that they would become obsolete afterthe change.

 

General uncertainty: Employees prefer the status-quo and do not like theuncertainty associated with changes. They feel

 

 

Q5. What is SIPOC (Suppliers, Inputs, Process, Outputs, and Customers)? Which 3 factors should you focus on developing SIPOC? Explain. 10

Answer: SIPOC:The Suppliers, Inputs, Process, Outputs, and Customers (SIPOC) processprovides a template to define a process in order to map, measure, and/orimprove it. It is represented in a five column tabular format. In the 1980s, SIPOC was used in the TQM programmes of differentorganisations.

 

Q6. Explain Statistical Process Control (SPC) along with SPC theory and tools?

 Statistical Process Control (SPC)

 SPC theory and tools

Answer:

Statistical Process Control (SPC) is an important statistical quality controltool. Its concept originated from the manufacturing industry, but is nowapplicable for analysing, controlling, and improving any kind of repeatableprocess.

In general, the project processes might not be amenable to SPC techniquesbecause, by definition, the projects are of temporary nature with a fixed startand end dates, and result in a single project outcome.

 

DRIVE

SPRING 2016

PROGRAM

MBADS (SEM 4/SEM 6)

MBAFLEX/ MBA (SEM 4)

PGDPMN (SEM 2)

SUBJECT CODE & NAME – PM 0018 –CONTRACTS MANAGEMENT IN PROJECTS

BK ID – B2014

CREDIT AND MARKS – 4 CREDITS AND 60 MARKS

 

 

Q1. Explain essential elements of project contract. How a project contract is formed?

  • Essential elements of project contract
  • Formation of project contract

Answer:

Essential elements of project contract

We have studied that a contract is an agreement enforceable by law. To beenforceable by law, an

 

Q2. What is bidding? Describe the bidding process from the buyer’s perspective. (Define bidding and mention the purpose of bidding, Describe 6 steps of the bidding process from the buyer’s side.) 10

Answer: Bidding:Bidding can be defined as a process of setting a price that an individual iswilling to pay for buying a product or service (as in an auction) or for sellinga product or service (as in project tenders). It can also be defined as aprocess to determine the price of a product, and it is mostly prevalent inauctions, stock exchange and real estate. The purpose of bidding is toprovide competition and thereby, reduce costs for an owner.The owner holds a meeting for all bidders to whom he/she has sent arequest for proposal or a request for bid. These conferences, which may bediscretionary or

 

 

Q3. Explain the structure of a contract. (List the elements of the contract structure, Explain the elements) 10

Answer: Contract Structure:There are several types of contracts in different industries. Contracts differin their terms such as type of work, number of parties involved, degree ofrisk, price of the contract, etc. However, the structure of a contract is almostsimilar in most industries. Most contracts follow the same basic format.Generally, contracts begin with a Preamble and continue with recitals orintroduction. Some contracts may not include the recitals or introductionunits, for example, contracts with short time periods. All contracts have amain section, the body of the contract, which addresses the reason why

 

 

Q4. Explain Co-operative Benchmarking Process (COBAP). (Explain the 8 steps of the COBAP process) 10

Answer: Co-operative benchmarking –an approach to partnering:In the case of partnerships, benchmarking can help in improving theperformance of organisations. The main motive for partnering is continuousimprovement, which is not possible without benchmarking.The Co-operative Benchmarking Approach to Partnering (COBAP) involvespartnering as a long term approach for

 

 

 

Q5. Explain process of procurement. Using the Internet search, list the procurement activities in the construction industry.

  • process of procurement

 procurement activities in the construction industry

Answer:

Process of Procurement

The procurement process includes the activities of procuring goods orservices, paying the bills, and closing the procurement contracts.The steps of the procurement process are shown in Fig

 

 

Q6. What are the different contract forms of PPP (Public Private Partnership). (Explain the 4 contract forms of PPP) 10

Answer: The 4 contract forms of PPP: The different contract forms of PPP are given below:

Management contracts: These contracts have a short-term tenure ofaround 2 to 5 years. In these contracts, the public sector retains theownership of the contract and enters into an agreement with the privatesector for managing a whole or a part of a public enterprise. The publicsector uses the skills and