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DRIVE-Fall 2014
PROGRAM/SEMESTER -MBADS (SEM 4/SEM 6)
MBAFLEX/ MBAN2 (SEM 4)
PGDPMN (SEM 2)
SUBJECT CODE & NAME PM 0015 QUANTITATIVE METHODS IN PROJECT
MANAGEMENT
BK ID-B1344
CREDIT AND MARKS-4 CREDITS AND 60 MARKS

Q1. Write short notes on:

(Graphical Evaluation and Review Technique (GERT), Cost control) 5, 5
Answer.

Graphical Evaluation and Review Technique (GERT)

Graphical Evaluation & Review Technique (GERT) deals with probabilistic situations. Although PERT
technique also deals with uncertainties in timing of the projects its calculations are based on the
assumption that each activity contemplated will materialize without any omission and there is no
allowance for a probabilistic choice of a path between nodes. PERT can not deal with a situation where
the activities already dropped at a subsequent stage to

Q2. Describe CPM technique of project planning.
(Explain what is the CPM, Steps in CPM planning, Benefits of CPM, Limitations of CPM)
1,6,1.5,1.5

Answer.

CPM technique of project planning
In 1957, this project management method was designed in order to address the challenge of shutting down
the chemical plants for maintenance and then restarting the plants once the maintenance work was
completed. The main benefits of the CPM are as follows:
CPM provides a graphical view of the project
CPM predicts the time required to complete the project
It shows the activities which are critical to maintaining the schedule and which are not

Q.3. what do you understand by managing cash flow?
(Description of Moving Averages and, Exponential Smoothing.) 5,5

ANS:

Moving Averages

The method of moving averages for smoothing a time series is highly subjective and dependent on L, the
length of the period selected for constructing the averages. If cyclical fluctuations are present in the data,
the value of L chosen should be an integer value that corresponds to (or is a multiple of) the estimated
average length of a cycle in the series. For example, suppose we want to compute 5-year moving averages
from a series containing n = 11 years.

Q.4. Describe how you can choose an appropriate forecasting model. (2 marks each)

Guidelines for Selecting a Model for the Purpose of Forecasting:
Performing a Residual Analysis
Measuring the Magnitude of the Residual Error Through Squared or Absolute Differences
Mean Absolute Deviation
Principle of Parsimony

ANS:

Guidelines for Selecting a Model for the Purpose of Forecasting

The guidelines are as given below:

1. Perform a residual analysis
2. Measure the magnitude of the residual error through the squared differences
3. Measure the magnitude of the residual error through absolute differences

Q.5. Describe how you can display data using Gantt chart and Network Diagram Chart in MS
Project.

( Description of displaying data using Gantt chart, Description of displaying data using network
diagram chart) 5, 5

ANS:

Description of displaying data using Gantt chart

The Gantt chart is a horizontal bar chart that represents each task in the time scale of the project. Each
task entered in the project will be shown. The Gantt Chart can be used to visually keep track of the tasks
and also may be used to identify important points about each task. Those tasks that together control the
completion date are known as the

Q.6. How to create a report on the project activities in the MS Project.

(A Setting Up of Reports, Process of Creating or Editing Reports , Reports that can be printed,
Check the Reports Available , Print a Report, Reports by Report Type) (2 marks each)

ANS:

Editing Reports: Most of your reports will be available from the pre-selected ones. The Custom choice
will allow you to design a very specific report if required. Using this feature will hopefully now be
familiar to you as the principle is not dissimilar to and easier than editing tables and filters. When creating
a custom report format the Custom Report box will display 25 options which can be used directly or
edited according to your needs. When the required settings have been made the new report will be
available for printing.
DRIVE Fall 2014
PROGRAM/SEMESTER- MBADS (SEM 4/SEM 6) MBAFLEX/ MBAN2 (SEM 4) PGDPMN
(SEM 2)
SUBJECT CODE & NAME-PM 0016 PROJECT RISK MANAGEMENT

Q1. Mention the steps followed in the risk identification process.
(Explain the five steps followed in the risk, identification process) 10
Ans-
Steps followed in the risk identification process
The identification of the risks can be done by following the below steps.
Step 1: Identifying the right project manager for the risk management task forms the first step. The
project manager is the chief anchor of any project. The person must be capable of handling the entire
project and must be aware of all possible risks. The choice of the project manager should be based on not
just eligibility but also the persons availability (dedicated time to be allotted) to handle the task.

Q2. What are the strategies used in risk response planning process.
(Explain the strategies for negative risks, Explain the strategies for positive risks) 5,5
Ans-
Strategies for negative risks
The first three strategies mentioned are used to deal only with risks that have negative impacts on project
objectives. The fourth strategy can be used for both negative as well as positive risks and opportunities.
Avoid: This plan involves making alteration in the project management plan that eradicates the threat
completely from the project. This also involves making changes to the project objectives. Most of the
organisations plan to shut down the project to avoid risk.

Q-3. What are the steps to balance short term and long term plans? What are the risk impacts?
Give examples.10
A. Listing of the steps to balance short term and long term plans-5
B. Examples of risk impact 5
Ans-

A. Steps to balance short term and long term plans

There are various steps to balance short-term plans with long-term plans.
This balancing also helps the risk management of such goals. Some of them include:
Discussing with a higher authority to determine how much time you and your team should be
allocating towards short-term issues versus longterm plans along with their respective risk
management plans.


Q-4. Explain contract management? List the differences between a program and a project in
business.
(Explanation of contract management including types of contracts-5, Listing the differences
between a program and a project in business -5) 10

Contract management
There are many things involved in a project risk policy. One of them is contract management. Various
kinds of contract can have an impact on the success of risk management strategies. As shown in the
figure, the buyer and a seller risk is associated with a variety of contract types. For Example fixed price
contracts create risk for the seller, while cost reimbursement contract creates risk for the buyers. Time and
materials (T&M) Contracts fall in between.

Q-5. Pavan Misra is a project manager in Latitude Software Pvt Ltd Company. Pavan attended the
seminar conducted annually in HCF convention centre, Lucknow. One of the managers portrayed
the following situation at a company at which he had worked: In any organisation the project
managers were remunerated for rectifying the problems in troubled projects. A manager who took
a project that was not in good shape had refurbished it to good shape and it was appreciated by the
customers. He could foresee a sizable bonus at his next performance review. The management
analysed it to be a proper way to encourage their employees to outstanding performance.
One project manager at this company analysed this incentive system and, as should have been
expected by upper management, employed it in his own best interest. He would secretly allow his
projects to worsen slowly until they were on the edge of cancellation, then, with obvious, evident,
heroic effort, would revive them. His actions of which he made certain that his managers were
aware earned him considerable bonuses time and again. The higher management finally came to
know that he was the cause of the problems that his projects suffered, and he was immediately
dismissed. Pavans response to this presentation was twofold:
Good for the Manager
Top management at this company made it apparent to the project manager that it was his interest
to save a troubled project. If top management didn't analyse to provide him with a troubled
project, he had to provide it for himself. The manager showed discernment and cleverness in
supervising his projects in such a way that he could concurrently attain the company's goal and his
own (financial reward).
Shame on the Company
Top management at this company failed to guarantee that the project manager's best interest
overlapped with the company's best interest. If the company wanted to have projects that were in
good shape throughout their lifetimes, then their incentives to the project managers should have
been focused toward keeping projects healthy. Managers whose projects never weakened should
have received greater bonuses than managers whose projects suffered and later recovered.
Furthermore, they failed to distinguish the apparent skill that this manager had; rather than firing
this manager the company should have changed its incentive system and let this manager grow in a
situation that would simultaneously benefit the company.

What could have the company done to avoid such situation? Do you think that Risk mitigation is a
useful approach for this company? Justify.10

A. evaluation of what the company could have done(relate it to evidence from the case) 5,
statement whether risk mitigation is useful 1, state the reasons for this stand 4
Ans.
Work done to avoid such situation
Employee motivation is probably the most important single manageable factor for success and
profitability of all the facets of specialty store retailing. It is too vital to be handled on a hit or miss basis,
depending on the whim or spirit that stirs the store owner or manager from time to time. To be effective,
employee motivation must be promoted on a day-to-day, month-to-month basis. Most companies give lip
service to the importance of good employees, but they dont actually treat them as though theyre
important. So companies should keep most of their great people, at every level, treat them like valued
partners in the business success.


Q-6. Explain the need for documentation? 10
A. Why documentation is vital 1 ,Aspects of project to document 7, Benefits 2
Ans.
Need for Documentation
Documentation is a vital need in project management. There are many benefits in having proper
documentation in place. Accurate documentation provides easier usage and is the best reference point to
know the processes and procedures. It helps to standardise processes and facilitates reviews. It is very
useful for new employees during their knowledge-transfer. Hence, creating a well-structured and well-
written document makes things simple.
DRIVE-Fall 2014
PROGRAM/SEMESTER-MBADS (SEM 4/SEM 6) MBAFLEX/ MBAN2 (SEM 4) PGDPMN (SEM
2)
SUBJECT CODE & NAME-PM 0017 PROJECT QUALITY MANAGEMENT

Q1. What is quality assurance? Explain the inputs , outputs and tools of quality assurance process.
(Definition of quality assurance, Description of inputs to quality assurance Description of tools and
techniques used for quality assurance, Description of outputs of quality assurance)1, 3,3,3
Ans.
Quality assurance
Assurance is the process of gaining stakeholders confidence by providing evidence that the quality-related
activities are being performed effectively and the planned actions will be completed to produce a product
or service that will satisfy the stated quality requirements.

Q2. Write short notes on
(PDCA cycle, Quality audits)5,5
Ans.

PDCA cycle

The Plan-Do-Check-Act (PDCA) cycle is as follows:
Plan: This is the beginning point where the process will have to be selected. This process if executed
correctly indicates the greatest opportunity for success, at first; it may be useful to select the process
which indicates the biggest potential for the successful improvement and also maybe the easiest one.
The team may face less difficulty while working through the model the first time, and both the team and
the management will be encouraged by the success. After selecting the right process, the change should
be analysed and planned.

Q3 Describe the Enterprise Project Management Model(EPM)
(Definition-2, Model which supports EPM-2, Implementation of EPM-3, Advantages of EPM-3) 10
marks
Answer.
Definition
It gives an overall view of the resources and the project management activities and brings in quality and
success of the project management i organisation. Enterprise project management operation is a strategic
choice by the organisation to modify the way decisions are made, resources allocated to projects, projects
are being selected, and the way projects are folded down. EPM is the dedication of the organisation to
doing work through projects, where appropriate, and obtaining more benefits from projects.


Q4 Explain the project management value initiative
(General description of project management value initiative-4, six steps in the project initiative
program -6) 10 marks
Answer.
Project management value initiative

The value initiative program focuses on educating the measurement team on the project management
value measurement program. This helps the team to understand the program and enables them to clearly
recognise the programs goals and objectives. The organizational construct which will affect the project
management value measurement program are the stakeholders, the organisational mission and strategies,
the organisational structure, the key business process, the project

Q5 Briefly explains the seven forces involved in the success of quality in project management.
(Explanation of: Placing the budgetary considerations ahead of the quality-2, Placing schedule
considerations ahead of quality-1, Placing political considerations ahead of quality-1, Being
arrogant-1, Lack of fundamental knowledge, research or education, the principles of quality
assurance-2, Pervasively believing in entitlement-2, Practicing autocratic behaviours, resulting in
enrolment-1) 10 marks
Answer.
Placing the budgetary considerations ahead of the quality: As per this root cause category,
management does not understand the fundamental concept of the cost of quality, as defined by Philip
Crosby and Frank Gryna. Obtaining quality in performance and service is still viewed as an expense,
rather than an indispensable element for profitability. Major decisions are made based on accounting
principles that do not recognise the idea of the cost of (poor) quality.
Placing schedule considerations ahead of quality: When quality processes are in place, schedules will
be met. But

Q6. UK based Sonifex has been manufacturing equipments to broadcast audio for the radio, TV,
security and telecommunications for more than 40 years. A reputation for building high quality,
reliable professional audio products, 100% engineering and manufactured in their UK factory and
is being used in facilities all over the world has been earned by Sonifex. Sonifex is in private owned
by its directors and headed by Marcus Brooke. Sonifexs finest known products comprises of the
award winning Courier portable flash-card recorder, which was chosen as the millennium product
by the UKs design council. The Red Box range of audio interfaces, that are designed for systems
integrators and the lately introduced reference monitor range, a new series of rack-mount audio
monitors that utilise the latest DSP (digital signal Processing) technology is also one of Sonifexs
product.
In the late 1990s, during the drift towards overseas manufacturing, the need to overhaul its
complete operation if it were to maintain its status as a leading UK manufacture and to retain its
expert manufacturing staff was recognised by Sonifex. Of late, the company realised that a
modification needed in the way the manufacturing process was controlled so that stock control,
invoicing and accounts can be incorporated. An Excel system called EFACS, allowed to do a lot of
what was needed in terms of stock control and production planning. However, the system was very
cumbersome and wasnt really suited to the needs of a smaller company where one person usually
has more than one task to be performed. Sonifex had its own in-house software expert that could
perform a thorough inspection and take a look at the system to see how on the improvements. A
new front end was created.

Sonifex was the first to invest in Dscope Series III audio analysers. In fact they were involved in
helping to incorporate beta testing in the unit. A prototype was seen at a broadcast convention and
the beta test was advised to perform as a must. The price was a factor- it is incredibly competitive
when compared to the test equipment offered by other manufactures, but that wasnt the only
reason to be chosen. They were also convinced by its incredible feature-set and by its user
friendliness, but the main deciding factor was that the system could be easily integrated into their
test systems, enabling them to develop their own user interface, integrating the scope seamlessly
into their own software system.

The companys Dscope series III is an inclusive and powerful measurement system for analog and
digital audio generation and analysis, consisting of digital audio carrier analysis, acoustic
transducer testing and testing of sound devices. The net result of Dscope III was very a rapid
diagnosis and correction of any manufacturing faults, with detailed test records being written
directly into the test system, giving a complete product that was ever built. This, in turn led to far
more effective component batch control of products on the manufacturing lines, and more efficient
technical support of products in the field. Each and every step of the phase of the Dscope III series
had to undergo a complete inspection, measurement of the devices and testing. Sonifex thus has
been able to standardise on the Dscope III series for both development and testing purposes,
allowing engineers to exchange results and test procedures between departments. The Dscope III
analysis was a important part of the companys performance criteria.

Sonifexs followed automated testing process and is now an integral part of its fresh software
package, which was developed in-house. By doing the right inspection, measurement and testing at
the right time Sonifex has retained their manufacturing operation in UK when many of the
competitors had to move overseas. In spite of all this Sonifex continued to develop quality design
and manufacture the quality products in such a way that customers come expecting them.
What were the challenges faced by Sonifexs measurement system? Describe the role of inspection,
measurement and testing in building Sonifex. (Listing of challenges-4, Description of the role of
inspection, measurement and testing-6) 10 marks
Answer.
Challenges faced by Sonifex
The first challenge is to maintain its status for the need to overhaul its complete operation in the
late 1990s
Next challenge is to retain its expert manufacturing process staff.
And also challenge to modify the manufacturing process so that stock control, invoicing and accounts can
be
DRIVE-Fall 2014
PROGRAM/SEMESTER-MBADS (SEM 4/SEM 6) MBAFLEX/ MBAN2 (SEM 4) PGDPMN (SEM
2)
SUBJECT CODE & NAME-PM 0018 CONTRACTS MANAGEMENT IN PROJECTS
Q1. What is procurement management? Explain the basic steps in procurement process.
(Definition of procurement management, Explain the six basic steps of procurement process)2.5, 7.5
(1.5 marks per step)
Ans.
Procurement management
Procurement management is an important knowledge area in project management and it is a formal
process by which many organizations acquire their goods and services from outside body. Hence, project
procurement management involves getting work done by people outside the project organisation. It
includes the management of purchasing or acquiring of product, services, or projects.

Q2 Explain condition for adopting National Competitive Bidding and the requirements of National
Competitive Bidding.
(Explanation of:
Condition for adopting National Competitive Bidding-4, requirements of National Competitive
Bidding-6) 10 marks
Answer.

Condition for adopting National Competitive Bidding
In National Competitive Bidding you as an employer or purchaser, invite bids for works and goods
through advertisement in electronic and print media within the country. However, foreign firms can
participate in the bidding process, provided they accept the bidding conditions. The bidders have to
submit their bids in national currency only and payment would also be made in national currency. You
can choose NCB method of procurement for goods and services under the following circumstances:

Q3 List the features of Item Rate contracts and demonstrate how they are different from Lump
Sum contracts.
(Listing of features of Item Rate contracts-5, Differences-5) 10 marks
Answer.

Features of Item Rate contracts
The salient features of item rate contracts:
Bidders are allowed to quote unit rates1 for carrying out various items of work or required goods.
Detailed measurements of all items of work executed by the contractor are recorded and
payments are made to the contractor as per the quoted rates.


Q4 What is RFP? What are the types of consultancy contract?
(Definition of RFP-4, what it includes Description of types of consultancy contracts, where it is best
suited-6) 10 marks
Answer.

Definition of RFP
It is an invitation for suppliers, requesting for detailed proposal on how the work will be accomplished,
company experience, price, and so on. The RFP document for procurement of consultant is similar to
tender document for procurement for works and goods. RFP provides all the instructions and information
necessary for the shortlisted consultants to prepare their proposals.

Q5. Briefly explain the areas of risk and causes of risk in contracts. Briefly describe five conditions
for termination of a contract?
(Explanation of various risks-5, Description of conditions for termination of contract-5) 10 marks
Answer.
Risk and causes of risk in contracts
From the point of view of where risk control lies, five classifications of risk can be listed:
External risks which are unpredictable like acts of god, third party risks and so on.
External risks which are predictable, but uncertain, like weather.

Q6. What is outsourcing? What are its benefits and draw backs? Write short notes on contract
compliances?
(Explanation of outsourcing, benefits and drawbacks-5, Short notes on contract compliance-5) 10
marks
Answer.
Outsourcing

Outsourcing is subcontracting a service, such as product design or manufacturing, to a third party
company. The decision whether to outsource or to do in-house is often based on achieving a lower
production cost, making better use of available resources, focusing energy on the core competencies of a
particular business, or just making more efficient use of labour, capital, information technology or land
resources. It is essentially a division of labour. Outsourcing became part of the business lexicon during
the 1980s.