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Pages : 5 Questions : 7

UNIVERSITY OF TASMANIA

EXAMINATIONS FOR DEGREES AND DIPLOMAS

November 2006

KNE301 Engineering Project Management &

Economics

Examiners: MS Shilpa Karri, Evangelista Albertini

Time allowed: THREE (3) hours

Instructions:
Answer ALL questions.
Answer Sections A and B in separate books.
Section A 3 questions Section B 4 questions
50 marks 40 marks

Materials Allowed
Any non-programmable, non-alpha-numeric, hand held battery operated calculator.
Graph paper will be available on request.
Marks may be deducted for failing to spec* units or using inappropriate accuracy in
specdying values.

KNE301 Engineering Project Management & Economics

Question A1 (15 Marks)

(1 mark) What is a project - provide a definition of a project. Two key features that distinguish projects from operations. List and explain these two features. ( l mark) List the project management knowledge areas (also known as project management functions and disciplines). (3 marks) (1 mark) Project lifecycles have phases, list the 4 typical phases. Draw 2 different types of project lifecycle and label key features. ( l mark) What are the three prime objectives of project management and how do they relate to each other - provide answer by way of diagram with each salient point labelled. (2 marks) Estimating techniques: o List 3 types of estimating techniques o provide an indicative level of accuracy associated with each type o provide a comparative assessment of the amount of time and cost associated with preparing each type (low, medium or high) (3 marks) Describe the term critical path. (2 marks) ( l mark) The acronym WBS stands for what project management tool.
Question A2 (20 Marks)

Organisations often use payback as a project selection model when deciding whether to proceed with a project or not. o Why is this model popular; (2 marks) o What is the key limitation of the payback model; Companies oRen use ROI, NPV, IRR and DCF analysis in determining whether to proceed with a project or not. What do these acronyms stand for: (2 marks) List 4 key disadvantages of DCF or NPV analysis in selecting projects (2 marks) Risk management is generally accepted to have 4 key processes. List and briefly describe (2 marks) these 4 processes Quality management is generally accepted to have 3 key processes. List and briefly (2 marks) describe these 3 processes Procurement management is generally accepted to have 6 key processes. List and briefly (2 marks) describe these 6 processes. Describe the term cash-flow and explain why it is so important to projects. (2 marks) (2 marks) Explain the key difference between arbitration and conciliation. Draw a representation of the relationship between the opportunity to influence project costs and the cost of implementing changes throughout the project lifecycle (2 marks) (2 marks) Describe the project tenn earned value.