Project, Appraisal, Planning & Control

PROJECT APPRAISAL, PLANNING & CONTROL 12MBAFM425
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Questions and Answers
Module -1
1. Define project management. June/July 2011, June/July 2009
Project management is the discipline of planning, organizing, motivating, and controlling
resources to achieve specific goals
2. Describe the importance and difficulties of capital investment. July 2009
Measurement problems, uncertainty and Temporal spread

3. Why are capital expenditures often the most important decisions taken by a
firm? June/July 2011
Capital Expenditure or capital Investment Involves a current outlay (or future outlay) of
funds on the expectation of a stream of benefits extending far into the future.

4. Discuss the five broad phases of capital budgeting. June/July 2011, June /July
2009, July 2010
PHASES OF CAPITAL BUDGETING
Capital budgeting is a complex process that may be divided into six broad phases:
1. Planning
2. Analysis
3. Selection
4. Financing
5. Implementation
6. Review

1. Planning:
It is concerned with the articulation of its broad investment strategy and the generation and
preliminary screening of project proposals.
This provides the framework, which shapes, guides, and circumscribes the identification
of individual project opportunities.
2. Analysis

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If the preliminary screening suggests that the project is prima facie worthwhile, a detailed
analysis of the marketing, technical, economic, and ecological aspects is undertaken.
The focus of this phase is on gathering, preparing, and summarizing relevant information
about various project proposals, which are being considered for inclusion in the capital
budget.
3. Selection
It addresses the question--- Is the project worthwhile? A wide range of appraisal criteria
has been suggested to judge the worthwhile ness of a project.
They are divided into two broad categories, viz., non-discounting criteria (e.g. payback
period and accounting rate of return) and discounting criteria (e.g. net present value, the
internal rate of return)
4. Financing
Two broad sources of finance for a project are equity and debt. Equity consists of paid-up-
capital, share premium and retaining earnings.
Debt consists of term loans, debentures and working capital advances.
Flexibility, risk, income, control and taxes are the key business considerations that
influence the capital structure decision and the choice of specific instruments of
financing.
5. Implementation
It involves setting up of manufacturing facilities, consists of several stages: (i) project and
engineering designs, (ii) negotiations and contracting (iii) construction, (iv) training and (v) plant
commissioning.
6. Review
Performance review should be done periodically to compare actual performance with projected
performance.
A feedback device is useful in several ways: (i) it throws light on how realistic were the
assumptions underlying the project; (ii) it provides a documented log of experience that is
highly valuable in future decision-making; (iii) it suggests corrective action to be taken in
the light of actual performance; (iv) it helps in uncovering judgmental biases; (v) it
induces a desired caution among project sponsors.

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5. Explain the difficulties faced in capital expenditure decisions. June /July 2009

Characteristics Operating Administrative Strategic
decisions decisions decisions
1. Level of decision Lower level Middle level Top level
2. Structure of decision Routine Semi-structured Unstructured
3. Level of resource
commitment Minor Moderate Major
4. Time Horizon Short-term Medium-term Long-term

6. Explain the nature of BCG product matrix & GE stop light matrix as a planning tool. Dec/Jan
2009, June/July 2011

BCG Product Portfolio Matrix
It is a tool for strategic (product) planning and resource allocation. The Boston
Consulting Group (BCG) product portfolio matrix analyses products on the basis of (a)
relative market share and (b) industry growth rate.
The BCG matrix classifies products into four broad categories as follows:
BCG Product Portfolio Matrix
High Low
High Stars Question
Marks
Low Cash
Cows
Dogs
1. Stars:
Products which enjoy a high market share and a high growth rate are referred to as stars.

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Though they earn high profits, they require additional commitment of funds because of the need
to make further investments for expanding their production and sales.
2. Question Marks:
Products with high growth potential but low present market share are called question marks.
Additional resources are required to improve their market share and potentially convert them into
stars. Of course, their is no guarantee that this would happen.
3. Cash cows:
Products which enjoy a relatively high market share but low growth potential are called cash
cows. The generate substantial profits and cash flows but their investment requirements are
modest.
4. Dogs:
Products with low market share and limited growth potential are referred to as dogs. Since the
prospects for such products are bleak, it is advisable to phase them out rather than continue with
them.
From the above description, it is broadly clear that cash cows generate funds and dogs if
divested, release funds. Stars and question marks require further commitment of funds.

7. What is abandonment analysis in Project review? Describe the general procedure of this
analysis. June/July 2011
Project Abandonment Analysis is a process that organizations should execute before making
decisions upon stopping or continuation of their projects. This analysis embraces economic and
administrative considerations that an organization should give to their projects prior to making a
well-grounded project continuation vs. abandon decision when it is necessary for an organization
to cease some of their projects for the sake of a better viability of their other projects.

8. What conditions should the capital budget satisfy in order to be meaningful and viable? June /July
2009
Project budget can be prepared in many types identify the different kinds of budgets that you
enter for your projects. Every project budget that you enter is classified by a budget type.

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Each budget type is defined as either a cost budget type or a revenue budget type. For budgets
using cost budget types, you can enter quantities, raw cost, and burdened costs. For budget using
revenue budget types, you can enter quantities and revenue amounts.
You can use any budget type for project status tracking.
Oracle Projects predefines four budget types:
o Approved Cost Budget
o Approved Revenue Budget
o Forecast Cost Budget
o Forecast Revenue Budget

9. Discuss the influence of Intuition and judgement in capital budgeting. What factors
influence judgement? Dec/Jan 2009
Refer the above answer for the same.
10. What are the three important reasons which make capital investment decisions
important? Dec/Jan 2009
a. Return on Investment
b. Company extensions
c. Profit maximization
11. What are the sources of net present value? June/July 2011
a. Economies of Scale
b. Product Differentiation

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c. Cost Advantage
d. Marketing Reach
e. Technological Edge
f. Govt. Policy
12. Explain the essential elements/steps involved in the project planning process.
June/July 2011

1. Compatibility with the promoter
2. Consistency with governmental priorities
3. Availability of inputs
4. Adequacy of market
5. Reasonableness of cost
6. Acceptability of risk leve

13. What is a work schedule and what is its purpose? Dec/Jan 2009
Work schedules are up to an employer to set and enforce, i.e., scheduling of employees
is entirely within the employer's control, and it is up to the employees to comply with
the schedule that is given to them.
With only extremely narrow exceptions relating to certain regulated industries or
collective bargaining agreements, adults, as well as youths ages 16 or 17, may work,
and/or may be required to work, unlimited hours each day (the only limits are employee
morale, practical realities, and common sense in general).


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Module-2

1. Distinguish between the physical life and economic life of an asset. How would you determining
the latter? Dec/Jan 2010
The expected period of time during which an asset is useful to the average owner. The economic
life of an asset could be different than the actual physical life of the asset. Estimating the
economic life of an asset is important for businesses so that they can determine when it is
worthwhile to invest in new equipment. In addition, businesses must plan so that they have
sufficient funds to purchase replacements for expensive equipment once it has exceeded its
useful life.
2. Discuss various elementary investment options, which influence resource allocation.
July 2012
The following are the elementary investment options:
Replacement & Modernization
1. Capacity expansion
2. Vertical Integration
3. Concentric diversification
4. Conglomerate diversification
5. Divestment

3. Problem on Ranking of Five Projects Dec/Jan 2009
Five Basic Steps for a Successful Project Management
1. Get the right staff for the right work.
2. Map out Procedures and make them understandable.
3. Get the right directions and make sure that people do not have doubts.
4. Follow Up; Even more communication.
5. Respect
4. Explain the Jury of Executive method and Delphi method of demand forecasting. Dec/Jan 2009
Demand forecasting is the activity of estimating the quantity of a product or service that
consumers will purchase. Demand forecasting involves techniques including both informal

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methods, such as educated guesses, and quantitative methods, such as the use of historical sales
data or current data from test markets. Demand forecasting may be used in
making pricing decisions, in assessing future capacity requirements, or in making decisions on
whether to enter a new market.
The Delphi method is a structured communication technique, originally developed as a
systematic, interactive forecasting method which relies on a panel of experts
In the standard version, the experts answer questionnaires in two or more rounds. After each
round, a facilitator provides an anonymous summary of the experts forecasts from the previous
round as well as the reasons they provided for their judgments. Thus, experts are encouraged to
revise their earlier answers in light of the replies of other members of their panel. It is believed
that during this process the range of the answers will decrease and the group will converge
towards the "correct" answer. Finally, the process is stopped after a pre-defined stop criterion
(e.g. number of rounds, achievement of consensus, stability of results) and
the mean or median scores of the final rounds determine the results
5. What are the sources of project ideas? Dec/Jan 2009

1.SWOT Analysis
2.Clear Articulation of Objectives
3.Fostering a Conducive Climate

6. What are the pre requisites for successful project implementation. Dec/Jan 2009
Prepare the infrastructure.
Coordinate with the organizations involved in implementation.
Implement training.
Install the production solution.
Monitor the solution

7. Explain in detail the project implementation strategies .Dec/Jan 2009
If the only action by an executive is the assignment of a project manager, is it reasonable for that
executive to expect that something special will happen next? Many strategic projects fail to gain
total acceptance within an organization, thereby stalling effective project management initiatives.
Gaining "buy in" is imperative to achieving the desired results. Whether it is with a dynamic
personality, a compelling story, or a media blitz, implementing project management can take on

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a life of its own given the right force. As many people find out, after the big kickoff meeting
there needs to be something else that continues to breathe life into the large strategic projects and
keeps the momentum going in the right direction.

8. Discuss the biases of cash flow. July 2009
The Typical Pattern
i. At beginning of the project, some amount must be spent to invest in the
project (Initial outlay)
1. Subsequent cash flows tend to be positive
Project Cash Flows Are Incremental
ii. What cash flows will occur if we undertake this project that wouldnt
occur if we left it undone and continued business as before
Sunk Costs
Costs that have already occurred and cannot be recoveredshould not be included in
projects cash flows
Only future costs are relevant
Opportunity Costs
What is given up to undertake the new project
The opportunity cost of a resource is its value in its best alternative use ,For instance, if
firm needs a new warehouse, it could either:

9. What are the various methods of demand forecasting? July 2013, June/July 2009
Qualitative methods
i. Jury of executive method
ii. Delphi method
Time series projection methods
iii. Trend projection
iv. Moving average
Causal methods
v. Consumption level method
vi. End use method
vii. Econometric method


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10. Explain Porters model of profit potential of industries. June/July 2009
Threat of New Entrants
Rivalry amongExisting firms
Bargaining Power of Buyers
Bargaining Power of Suppliers
Threat of Substitute Products

11. Problem on Risk Analysis & Selection of Projects June /July 2009, July 2012
The expected period of time during which an asset is useful to the average owner. The
economic life of an asset could be different than the actual physical life of the asset.
Estimating the economic life of an asset is important for businesses so that they can
determine when it is worthwhile to invest in new equipment. In addition, businesses must
plan so that they have sufficient funds to purchase replacements for expensive equipment
once it has exceeded its useful life.


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Module-3
1. Describe important investment criteria. June/July 2011, June/July 2009
1. Discounted Cash Flow (DCF) Criteria
a. Net Present Value (NPV)
b. Internal Rate of Return (IRR)
c. Profitability Index (PI)
2. Non-discounted Cash Flow Criteria
d. Payback Period (PB)
e. Discounted Payback Period (DPB)
f. Accounting Rate of Return (ARR)

2. Explain the ways of evaluating on International Investment Proposal Dec/Jan 2009
Facets of Project Analysis
The important facets of project analysis are:
1. Market Analysis
2. Technical Analysis
3. Financial Analysis
4. Economic Analysis
5. Ecological Analysis

3. How will you prepare a project budget? What are the various budgets? Dec/Jan
2010

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Budget Preparation
Consider very carefully what is required when putting together a budget request for a funding
application. There are two general areas in a budget:
1. Direct costs which are directly attributable to a research project
2. Indirect costs which institutions incur in supporting research, but which cannot be
directly attributed to individual research projects.
If there is no set format for the application, consider grouping your costs under 3 headings:
1. Direct Labour costs
These are personnel costs (including relief from teaching) which include salary
on-costs (salary on-costs covers superannuation, payroll tax, workers
compensation, etc.)
2. Direct Operating costs (i.e. non-labour project costs), such as:
Travel
Consumables
Equipment hire (including Central Science Laboratory costings)
Other
3. Indirect costs
For Category 1 Australian Competitive Grants (ACG) there are no charges for
Indirect costs. For grants that do not appear on the ACG Register, Indirect Costs
are applicable. Please refer to the Indirect Cost policy.
Please refer to the Australian Competitive Grant Register (ACGR) to confirm if
the Funding Body is exempt from Indirect Cost charges

4. Describe the properties of NPV. June/July 2012
A rule stating that an investment should be accepted if its net present value is greater than
zero and rejected otherwise. According to the theory of net present value (NPV),
participating in a positive NPV project will increase firm or shareholder wealth.


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5. What is DPR? June/July 2009
The discounted payback period is the amount of time that it takes to cover the cost of a
project, by adding positive discounted cash flow coming from the profits of the project.

Module-4

1. What is sensitivity analysis? Dec/Jan 2009
Sensitivity analysis is the study of how the uncertainty in the output of a mathematical model or
system (numerical or otherwise) can be apportioned to different sources of uncertainty in its
inputs. A related practice is uncertainty analysis, which has a greater focus on uncertainty
quantification and propagation of uncertainty. Ideally, uncertainty and sensitivity analysis should
be run in tandem.
Sensitivity analysis can be useful for a range of purposes, including:
Testing the robustness of the results of a model or system in the presence of uncertainty.
Increased understanding of the relationships between input and output variables in a
system or model.
Uncertainty reduction: identifying model inputs that cause significant uncertainty in the
output and should therefore be the focus of attention if the robustness is to be increased
(perhaps by further research).
sensitivity analysis is also called What if analysis, Only one variable is varied at
a time
2. Explain the elements of project risk management. June/July 2011
Conservative estimation of revenues.
Safety margin in cost figures.
Flexible Investment Yardsticks.
Acceptable overall certainty index.
Judgement on three point estimates.

3. Discuss the different ways of managing project related risks. July 2013
a. Fixed and variable cost
b. Financial leverage

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c. Pricing strategies
d. Sequential investment
e. Improving information
4. What are the pros and cons of decision-tree analysis? June /July 2009
In decision analysis a decision tree and the closely related influence diagram is used as a visual
and analytical decision support tool, where the expected values (or expected utility) of competing
alternatives are calculated.
A decision tree consists of 3 types of nodes:
1. Decision nodes - commonly represented by squares
2. Chance nodes - represented by circles
3. End nodes - represented by triangles
Decision trees are commonly used in operations research, specifically in decision analysis, to
help identify a strategy most likely to reach a goal. If in practice decisions have to be taken
online with no recall under incomplete knowledge, a decision tree should be paralleled by
a probability model as a best choice model or online selection model algorithm. Another use of
decision trees is as a descriptive means for calculating conditional probabilities.
Decision trees, influence diagrams, utility functions, and other decision analysis tools and
methods are taught to undergraduate students in schools of business, health economics, and
public health, and are examples of operations research or management science methods.

5. Problem on Risk Analysis & Selection of Projects. June /July 2009
Problems are solved in the classroom
6. Discuss the Five stages of project appraisal in UNIDO method. June/July 2009,
June/July 2012, 13
a. Calculation of the financial Profitability of the project
b. Obtaining the net benefit of the project
c. Adjustment for the impact of project on savings & investments
d. Adjustment for the impact of project on income distributions
e. Adjustment for the impact of project on merit and demerit goods.


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7. What is scenario analysis? June/July 2009
In sensitivity analysis, typically one variable is varied at a time. If variable are inter-
related as they are most likely to be, it is helpful to look at some plausible scenarios,
each scenario representing a consistent combination of variables

8. Explain steps in Decision tree analysis. June/July 2011
Steps in Decision Tree Analysis:
Identifying the problem and alternatives.
Delineating the decision tree.
Specifying probabilities and monetary outcomes.
Evaluating various decision alternatives

9. What is simulation analysis? June/July 2009
Simulation will be used for developing the probability profile of a criterion of merit by
randomly combining values of variables which have a bearing on the chosen criterion.

Module-5

1. What is social cost Benefit analysis? June/July 2011, June/July 2009
Costbenefit analysis (CBA), sometimes called benefitcost analysis (BCA), is a systematic
process for calculating and comparing benefits and costs of a project, decision or government
policy (hereafter, "project"). CBA has two purposes:
1. To determine if it is a sound investment/decision (justification/feasibility),
2. To provide a basis for comparing projects. It involves comparing the total expected cost
of each option against the total expected benefits, to see whether the benefits outweigh
the costs, and by how much

2. What are the principal discrepancy that needs to be considered while undertaking
social cost benefit analysis? June/July 2011
a. Market Imperfections.
b. Externalities.

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c. Taxes and subsidies.
d. Concern for savings.
e. Concern for Redistribution.
BA is related to, but distinct from cost-effectiveness analysis. In CBA, benefits and costs are
expressed in monetary terms, and are adjusted for the time value of money, so that all flows of
benefits and flows of project costs over time (which tend to occur at different points in time) are
expressed on a common basis in terms of their "net present value."
Closely related, but slightly different, formal techniques include cost-
effectiveness analysis, costutility analysis, economic impact analysis, fiscal impact analysis
and Social return on investment(SROI) analysis.

3. What is capital rationing? June/July 2009
Selecting the mix of acceptable projects that provides the highest overall net present value
(NPV) when a company has a limit on the budget for capital spending. The probability index
is used widely in ranking projects competing for limited funds

Module-6

1. What is a work schedule? June/July 2011
The time basis on which an employee is paid. A work schedule may be full-time, part-
time, or intermittent.

2. Define the term project monitoring and control .Dec/Jan 2010

Definition of Project Controls :
Project Controls can be defined as - Management action, either preplanned to achieve the
desired result or taken as a corrective measure prompted by the monitoring process.
Project controls is mainly concerned with the metrics of the project, such as quantities,
time, cost, and other resources; however, also project revenues and cash flow can be part

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of the project metrics under control. Thus, we believe an effective Project Controls
process can be applied in a collaboration of its various sub- disciplines, such as:

1) Planning, Scheduling & Project Reporting
Scope management;
Project deliverables:
Work breakdown / Cost breakdown structures;
Schedule management;
Schedule forecasting;
Corrective action;
Progress measurement / reporting;
Productivity Analysis & Calculation;

2) Earned Value Analysis & Management

3) Cost Engineering & Estimating
Estimating;
Cost management;
Cost control;
Cost forecasting

4) Change Management & Controls
Change order control;
Trend Analysis;

5) Risk and Delay Claims
Risk Assessment & management;
Delay Claims Quantification
Forensic Schedule Analysis

3. What is environmental impact statement of the project? Explain the contents of
environmental statement. June/July 2009
An environmental impact assessment (EIA) is an assessment of the possible impacts that a
proposed project may have on the environment, consisting of the environmental, social and
economic aspects.
The purpose of the assessment is to ensure that decision makers consider the environmental
impacts when deciding whether or not to proceed with a project. The International Association

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for Impact Assessment (IAIA) defines an environmental impact assessment as "the process of
identifying, predicting, evaluating and mitigating the biophysical, social, and other relevant
effects of development proposals prior to major decisions being taken and commitments
made." EIAs are unique in that they do not require adherence to a predetermined environmental
outcome, but rather they require decision makers to account for environmental values in their
decisions and to justify those decisions in light of detailed environmental studies and public
comments on the potential environmental impacts.

4. What is meant by Environment Impact Assessment? What are the methodologies
for Impact Assessment? Explain. June/July 2011

impact assessment type a wide range of methodologies has been developed, according to the
precise purpose of the assessment, the types of question to be asked, the organisational context,
the socio-economic context, available budget, research capacity and other factors. An impact
assessment may include any or all of:
Quantitative statistical methods involving baseline studies, the precise identification of
baseline conditions, definition of objectives, target setting, rigorous performance
evaluation and outcome measurement. Such methods can be costly, limited in the types
of impacts which can be accurately measured, and may pose difficulties for inference of
cause and effect. Some degree of quantification may be necessary in all impact
assessments, in order to evaluate the success of the intervention and the magnitude of any
adverse effects.
Qualitative methods suitable for investigating more complex and/or sensitive types of
social impacts, e.g. intra-household processes, policy issues and investigation of reasons
for statistical relationships and policy implications. These methods generally require high
levels of skill, and may be relatively costly. Some degree of qualitative interpretation
may be necessary in all impact assessments, in order to evaluate the causes of impacts
which have been observed.
Participatory approaches suitable for initial definition or refinement of the actual or
potential impacts which are of concern to stakeholders, questions to be asked, and
appropriate frameworks and indicators to be used. Such approaches can contribute to all
types of assessment, and are particularly suited to exploratory low budget assessments
and initial investigation of possible reasons for observed statistical relationships. They
offer a means of involving stakeholders in the research, learning and decision-making
processes. These methodologies also require a certain level of skill, depending on the
issues to be addressed and ways in which they are integrated with other methods. Some
degree of stakeholder participation is likely to be necessary in all impact assessments, in
order to achieve a good understanding of stakeholder perceptions of impacts.

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Module-7
1. What are the various sources of finance available for the projects in India? Dec/Jan
2009/ Describe briefly the various means of financing of project. June/July 2009

The capital markets:
i) new share issues, for example, by companies acquiring a stock market listing for the first
time
ii) rights issues
Loan stock
Retained earnings
Bank borrowing
Government sources
Business expansion scheme funds
Venture capital
Franchising.

2. What is the procedure associated with availing term loan? Explain. June 2011/
Discuss the procedure associated with term loan. July 2012

a. Idea Generation and Financial Projections: Conceiving the project and preparation of the
projections regarding the project.
b. Submission of Loan Application: Submission of loan application along with project
report giving comprehensive information about the project.
c. Initial Processing (Flash Report): Initial processing of loan application and preparation of
Flash Report.
d. Detailed Appraisal: Appraisal of the proposed project report covers marketing,
technical, financial, managerial and economic aspects which is prepared after site
inspection.
e. Issue of (In Principle) Letter of Sanction: Issue of letter of sanction i.e. financial letter
of sanction.
f. Acceptance of Terms and Conditions: Acceptance of the terms and conditions and
compliance of terms of sanction by the borrowing unit at its board meeting and passing of
resolution and conveying its acceptance within a stipulated period.
g. Execution of Loan Agreement: Execution of loan agreement and payment of registration
charges. The draft loan agreement sent for execution by authorized persons and to be
properly stamped as per the Indian Stamp Act, 1899 and then the financial institution also
sign it.

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h. Disbursement of Funds: Disbursement of loans time to time as per the progress of the
projects and the financial status of the project.
i. Creation and Registration of Security: Creation of security through the first mortgage of
immovable properties and hypothecation of movable properties. Creation of mortgage
within one year from the date of first disbursement failing which 1% additional interest to
be paid. This time limit is given for acquiring the assets which might
be indigenous purchased or assembled or imported as the case may be.
j. Monitoring/Post Disbursement Check: Monitoring done at the implementation stage as
well as at the operational stage. Also monitoring recovery of dues of interest and
principal repayment.

3. Describe the key steps in public investment decision making process in India. July
2013
Define the problem
Develop the alternatives
Evaluate the alternatives
Make the decision
Implement the decision
Monitor the solution
4. Describe the features of term Loan. July 2012
Term Loan is a liability accepted by the company for purchasing the fixed assets. These
are repayable over a period of 3 10years. These can be given by Banks or other
financial institution.
Following are the features of term loans:
1) Banks or Financial institutions granting term loans are creditors and not the owners of
the company. They only lend the funds to the company.
2) They are required to be repaid during the life time of the company at a predefined
interval.
3) The term loans are either secured or unsecured.
4) Return on term loans is paid in the form of interest. This interest is still paid even if
there is non-availability of profits.
5) This source of raising funds is very risky from companys point of view.
6) Term Loans are less risky on the part of banks and financial institution.
7) They are cheap source of funds from companys point of view.


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Module-8
1. Explain the term project inventory. June/July 2011
The Inventory of Major Projects (IMAP) is produced by Alberta Enterprise and
Advanced Education to assist firms in identifying potential supply opportunities, as well
as informing Albertans on the status of projects in the province valued at $5 million or
greater.

2. Illustrate the problem of project scheduling in view of various resources constraints
with the help of an example. June/July 2011
In project management, a schedule consists of a list of a project's terminal elements with
intended start and finish dates. Terminal elements are the lowest element in a schedule,
which is not further subdivided. Those items are often estimated in terms of resource
requirements, budget and duration, linked by dependencies and scheduled events. Project
schedule can be created; the schedule maker should have a work breakdown
structure (WBS), an effort estimate for each task, and a resource list with availability for
each resource. If these components for the schedule are not available, they can be created
with a consensus-driven estimation method like Wideband Delphi. The reason for this is
that a schedule itself is an estimate: each date in the schedule is estimated, and if those
dates do not have the buy-in of the people who are going to do the work, the schedule
will be inaccurate.
In many industries, such as engineering and construction, the development and
maintenance of the project schedule is the responsibility of a full time scheduler or team
of schedulers, depending on the size of the project. Though the techniques of scheduling
are well developed, they are inconsistently applied throughout industry. Standardization
and promotion of scheduling best practices are being pursued by the Association for the
Advancement of Cost Engineering (AACE), the Project Management Institute (PMI).


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3. State the essential elements/steps involved in the project planning process. Dec/Jan 2010

4. Illustrate in detail the skills and competencies required by a project manager
June/July 2011
The skills that a good project manager possesses are many and varied,
covering the entire spectrum of the human personality. We can divide
these skills into a number of specific categories, namely: Personal Skills, Technical
Skills, Management Skills

5. What are EOT & LOT in Network Techniques? Dec/Jan 2010
Network Techniques
PERT
(Program Evaluation Review Technique)
Designed to handle risk and Uncertainty
Probabilistic
CPM
(Critical Path Method)
Concerned with trade-off between cost and time
Deterministic


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6. What is a GANTT chart in project management? Dec/Jan 2009

A Gantt chart is a type of bar chart, developed by Henry Gantt, that illustrates a project
schedule. Gantt charts illustrate the start and finish dates of the terminal elements and
summary elements of a project. Terminal elements and summary elements comprise
the work breakdown structure of the project. Some Gantt charts also show
the dependency (i.e., precedence network) relationships between activities. Gantt charts
can be used to show current schedule status using percent-complete shadings and a
vertical "TODAY" line as shown here.

7. What is a work schedule and what is its purpose? Dec/Jan 2009
Work schedules are up to an employer to set and enforce, i.e., scheduling of employees
is entirely within the employer's control, and it is up to the employees to comply with
the schedule that is given to them.
With only extremely narrow exceptions relating to certain regulated industries or
collective bargaining agreements, adults, as well as youths ages 16 or 17, may work,
and/or may be required to work, unlimited hours each day (the only limits are employee
morale, practical realities, and common sense in general).

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Project, Appraisal, Planning & Control

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