Sikkim Manipal University - DDE

Master of Business Administration

II Semester
Project Management - MB0049 4 credits
(Book ID 1632)

Duration : 2 hours

Total marks: 140

____________________________________________________________________

Section A
1.

50 X 1= 50 marks

________________is a set of activities which are networked in an order and aimed

at achieving the defined goals for which the project is undertaken.
a. Project
b. Project cycle
c. Process
d. Resource

2.

________________is the job of organising, coordinating, and managing the various

tasks and resources in order to complete a project successfully.
a. Project management
b. Project cycle
c. Process
d. Project

3.

What is the primary reason for commencing a project?

a. Earn revenue
b. Increase sales
c. Fulfill a specific goal
d. Increase market share

4.

Which of these statements are true?

a. Project ideas are mere day dreams

b. Project ideas are not mere day dreams
c. Project ideas are nothing but false realisations
d. Project ideas are mere day dreams unless appropriate steps are considered to
make them see the light of the day.

5.

At___________stage of project identification, over ambitious and cumbersome ideas

are filtered out.
a. Conceptual
b. Screening
c. Identification
d. Pre-feasibility

6.

Which of these statements is false?

a. Good projects fuel economic growth
b. Good projects foster creativity and innovation
c. All projects can be implemented universally
d. Availability of suitable resources is a must for any project to take off.

7.

The __________________process helps draw a blue print to get executed with little
or no modifications.
a. Project development
b. Project planning
c. Project implementation
d. Feasibility analysis

8.

All these tools are used in project planning and scheduling except
a. PERT
b. Gantt chart
c. SWOT
d. CPM

9.

All of these represent a type of organisational structure except,

a. Functional
b. Product
c. Line
d. Collinear

10.

___________of the product is a major driving force for any project to take off.
a. Price
b. Distribution
c. Communication
d. Sale

11.

If production, R&D, sales and finance are used as bases to organise a company,
then it is a ______________organisation.
a. Line
b. Line and staff
c. Functional
d. Product

12.

The number of steps in a project depends upon its ________________________.

a. Magnitude
b. Complexity
c. Magnitude and complexity
d. Significance

13.

A network diagram is also referred to as a __________________.

a. Timeline graph
b. Review graph
c. Project graph
d. Performance graph

14.

Resource _______________ is a plan for using available resources.

a. Planning

b. Management
c. Allocation
d. Levelling

15.

If the resources are limited or there are constraints, then the project manager might
face _______________situation.
a. Resource levelling
b. Resource smoothing
c. Resource levelling or resource smoothing
d. Resource levelling and resource smoothing

16.

Scheduling the scarce resource is a method for developing the _____________

schedule when the number or quantity available is fixed.
a. Shortest
b. Longest
c. Most efficient
d. Most productive

17.

The project scope statement includes all of these except,

a. Constraints
b. Assumptions
c. Requirements
d. Recommendations

18.

Which of these statements is true about risk?

a. A potential loss might also be termed as risk
b. Risk marks a potential positive impact to some characteristic value that may arise
from a future event.
c. Risk is often used synonymously with the chance of an expected profit
d. Not every project involves risk

19.

Which of these is an internal risk?

a. Change in interest rate
b. Rise in level of inflation
c. Vendor backing off at the last moment
d. An employee leaves the organisation

20.

Which of these is a systematic risk?

a. Change in consumer preference
b. Employees' strike
c. Fall of government
d. Non-availability of raw materials

21.

In bull market, the index moves _________________.

a. From a low level to the peak.
b. From peak to low level
c. In a straight line
d. In a cyclic manner

22.

Quality begins with designing a product as per _____________________.

a. Company's goals
b. Company's vision
c. Market standards
d. Customer specifications

23.

In an efficient system, the ____________ develops a unique identification code for

each material needed for the project right from the beginning.
a. Design section
b. Purchase section
c. Billing section
d. IT section

24.

Energizer's tagline that says, 'It keeps going, and going, and going', stresses on the
_______________of the brand.
a. Reliability
b. Durability
c. Safety
d. Serviceability

25.

In Shewhart Cycle (P-D-C-A), what do P, D, C, A stand for?

a. Plan-Do-Control-Assess
b. Plan, Do-Correct-Assess
c. Programming-Direct-Control-Ask
d. Plan-Do-Check-Act

26.

_________________is a diagram that depicts how different elements of a system

relate to each other.
a. Product description
b. Flowchart
c. Scope statement
d. Benchmarking

27.

A Project Management Information System consists of people, equipment and

________________.
a. Finance
b. Procedure
c. Top management's support
d. Technology

28.

Which of these is a secondary stakeholder of a firm?

a. Creditors
b. Employees
c. Suppliers

d. Competitors

29.

Which of these is a part of the selection phase of a project?

a. Statutory approvals and clearances
b. Project cost
c. Project schedule and budget
d. Project organisation

30.

Which of these is a modern method of communication?

a. Meeting
b. Written reports
c. Blogs
d. Face-to-face interaction

31.

______________ is at the core of procurement.

a. Product specification
b. Purchase order
c. Purchase receipt
d. Sales invoice

32.

____________ authorises the purchase engineer to procure the material.

a. Product specification
b. Indent
c. Product description
d. Sales invoice

33.

What is the primary task of a buyer?

a. Check the product description

b. Check the product specification

c. Identify a supplier
d. Invite bid

34.

Negotiation bid starts with ___________.

a. Negotiation
b. Bidding
c. Debate
d. Procurement

35.

Performance measurement is an _______________ process.

a. Static
b. Complex
c. Continuous
d. Cyclic

36.

__________________measures the degree to which a service or product meets the

requirements and expectations of the user.
a. Effectiveness
b. Efficiency
c. Quality
d. Productivity

37.

Once the project is finalised, the execution part begins. At the onset of this phase,
the project manager organises a meeting called ____________meeting to announce
the start of the project.
a. Onset
b. Start-up
c. Kick-off
d. Initiation

38.

Proportion of an activity (as used for calculating BCWP) equals

a. (work completed in physical units)/(Total work planned in physical units)

b. (work completed in physical units) x (Total work planned in physical units)
c. (work completed in financial units)/(Total work planned in financial units)
d. (work completed in financial units) x (Total work planned in financial units)
39.

The close-out phase is also termed as _____________________.

a. Reserved
b. Diminishing phase
c. Commissioning
d. Extra phase

40.

When does a project end?

a. When the project objective has been attained and is ready to hand over to
customer
b. When the budget allocated for the project has been used up
c. When the costs begin to overrun the expected benefits
d. When the project manager shifts to another project

41.

A project organisation uses a _______________ to calculate the schedule for the

project.
a. Watch
b. Calendar
c. Computer
d. Calculator

42.

What does Finish-Start type relationship indicate?

a. It means that the succeeding activity can start along with the preceding activities
b. It means that the succeeding activity can start only if all preceding activities to it
have been completed.
c. It means that the succeeding activity can start only if some of the preceding
activities to it have been completed.

d. It means that the succeeding activity can start only if none of the preceding
activities to it have been completed.
43.

____________________is an individual or organisation, which will ultimately use the

product or service.
a. Project manager
b. Beneficiary
c. Client organisation
d. Sponsor

44.

Which of these is a knowledge area explained by Project Management Body of

Knowledge?
a. Supply chain
b. Distribution
c. Procurement
d. Sales

45.

Which of these is a disadvantage of functional organisational structure?

a. Expansion
b. No unit of command
c. Economy
d. Specialisation

46.

The probability of project risk depends on the project _____________.

a. Charter
b. Scope statement
c. Lifecycle
d. Profitability

47.

What does NPV > 1 indicate?

a. The present cash outflow and the present value of future cash inflows are equal.
b. The present value of future cash inflows is less than the present cash out flow.
c. The present value of future cash inflows is more than the present cash out flow

d. The present value of future cash inflows is more than the present cash inflow

48.

The time when the event can be completed at the earliest is known as
___________________.
a. EOT
b. LOT
c. Optimistic time
d. Pessimistic time

49.

_______________is action taken to bring a defective or non-conforming item into

compliance with requirements or specifications.
a. Flowcharting
b. Trend analysis
c. Rework
d. Value engineering

50.

_______________reduces the scale of conflict by making differences seem less

important.
a. Forcing
b. Smoothing
c. Compromise
d. Problem-solving

Section B

25 X 2= 50 marks

51. A project management process ___________ and ______________ the work of the
project.
a. Selects, organises
b. Interprets, organises
c. Describes, selects
d. Describes, organises

52. The _______________ feasibility aspect of a project relates to the earning capacity
of the project, which depend on the ________________.
a. Economic, volume of sales
b. Technical, volume of sales
c. Financial, volume of sales
d. Economic, project idea

53. During project________________, a project proposal is raised by a client while

during project______________, the company looks for a project manager having
capabilities to make this project executable.
a. Origination, initiation
b. Initiation, planning
c. Origination, planning
d. Initiation, origination
54. Raj shares his vision with his team but permits them to use their respective ideas to
come up with a solution. Raj uses___________ style of leadership.
a. Coercive
b. Authoritative
c. Coaching
d. Democratic
55. What are the three measures of float?
a. Total, free and independent
b. Total, partial and free
c. Partial, free and dependent
d. Free, independent and dependent

56. Assertion (A): It is useful to break the project into some steps.
Reason (R): It is essential to detail all the activities of the project because activities are
the basic building blocks of a network diagram.
a. A is true, R is true

b. A is true, R is false
c. A is false, R is true
d. A is false, R is false
57. Planning of tasks from the date resources become available to determine the
shipping date or the due date is referred to as ______________scheduling, while
planning the tasks from the due date or required-by date to determine the start date
and/or any changes in capacity required is referred to as ________________
scheduling.
a. Forward, backward
b. Backward, forward
c. Vertical, Horizontal
d. Horizontal, vertical

58. Assertion (A): When the project includes a risky event, the cost of the project will
always decrease.
Reason (R): If the project includes a risky event, there is likelihood of delay in the
scheduled project.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false
59. Two factors that are essential to all human decision making are risk
_____________and risk _________________.
a. Communication, perception
b. Communication, management
c. Perception, alleviation
d. Perception, management

60. Assertion (A): Organisations can generate a lot of profit if they deal with uncertain
project events in a reactive manner.
Reason (R): There are a lot of benefits of proper risk management in projects.
a. A is true, R is true

b. A is true, R is false
c. A is false, R is true
d. A is false, R is false
61. Vodafone, 'Happy to help you' stresses on _____________of the brand while Punjab
National Bank, 'The name you can bank upon' stresses on ___________.
a. Reliability, durability
b. Serviceability, reliability
c. Serviceability, durability
d. Durability, reliability

62. Assertion (A): A good quality planning process starts with a clear definition of the
goals of the project.
Reason (R): Quality planning is the process of identifying the quality standards that are
related to the project and determining how to these standards can be achieved.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false

63. Which of these represents the correct sequence?

a. Input -output-processing-storage
b. Input-processing-output-storage
c. Processing-input-output-storage
d. Input-storage-processing-output

64. Which of these are primary stakeholders?

1 Contractors
2 Judiciary
3 Media
4 Environmentalists

5 Political parties
a. 1 and 2
b. 1, 2 and 3
c. 2 and 3
d. 1, 2 and 5
65. Which of these is/are included in the product specification?
1 Commercial design
2 Function
3 Indent
4 Performance
a. 1 and 2
b. 2 and 3
c. 3 and 4
d. 1, 2 and 4

66. Which of these is/are source/s of identifying suppliers?

1 Trade registers
2 Trade journals
3 Purchase records
4 Internet
5 Catalogues
a. 1,2 and 3
b. 2, 3 and 5
c. 1, 2, 4 and 5
d. 1, 2, 3, 4 and 5
67. Estimated cost performance index equals
a. BCWP / BCWS
b. (ACWP + ACC) / (BCTW)

c. ACWP/BCTW
d. ACWP +BCWP/BCWS
68. Which of these statements are true?
1 Work-to list is a list prepared separately for each agency
2 It is prepared before the resource scheduling process
3 A work-to list is generally prepared to cover a few years ahead.
4 It is a recommendation to the concerned managers of the sequence and timing of
work to be done
a. Statements 1, 2 and 3 are true
b. Statements 2, 3 and 4 are true
c. Statements 1 and 3 are true
d. Statements 1 and 4 are true

69. In which cases, follow-up to the project becomes more important?

1 Project benefits have relatively low visibility
2 Project benefits are not clear to stakeholders
3 Project also has very high costs
4 The business environment is not dominated by the political environment
a. 1, 2 and 3
b. 1, 2 and 4
c. 1, 3 and 4
d. 2, 3 and 4
70. "In resource _______________, activities are scheduled to minimise the variation in
level of resource deployment whereas in resource_______________problem is
concerned with scheduling activities in such a way so as to find the shortest project
schedule."
a. Levelling, allocation
b. Allocation, levelling
c. Allocation, optimisation
d. Levelling, optimisation

71. Assertion (A): Team members have this tendency to leave a number of small work
outstanding.
Reason (R): As the project nears completion, the project manager works really hard
and conducts regular meetings to be in focus.
a. A is true, R is true
b. A is true, R is false
c. A is false, R is true
d. A is false, R is false
72. Which of these can errors cannot be detected by error detection routines?
1 An incorrect activity duration
2 An incorrect activity name
3 An Incorrect precedence logic
4 An Incorrect cost data
a. 1, 2 and 3
b. 1, 3 and 4
c. 2, 3 and 4

Cumulative BCWS

d. 1, 2, 3 and 4

73.

Time

Label this baseline plan that plots BCWS versus time.

a. Time on x axis and BCWS on y axis
b. Time on y axis and BCWS on x axis
c. Time on x axis and cumulative BCWS on y axis
d. Time on y axis and cumulative BCWS on x axis

74. __________________indicates the degree to which a process output, i.e., a service

or product conforms to the set requirements whereas indicates the degree to which
the required service or product is produced, the required service or product is
produced at minimum resource cost.

a. Effectiveness, efficiency
b. Quality, effectiveness
c. Efficiency, quality
d. Productivity, quality
75. Data collected from balance sheet of the company is known as _____________ data
while data collected from interviewing employees is known as ______________ data.
a. Primary, secondary
b. Secondary, primary
c. Internal, external
d. External, internal

Section C

Answer all the questions

4*10=40 marks

Case Study (Compulsory)

Reliance Petro Jamnagar Refinery Ahead of Schedule
For the June quarter, Reliance Petroleum Ltd. has overshot its budget by Rs.1,390 crore for
setting up the Greenfield refinery at Jamnagar.
The refinery project is expected to be completed ahead of the December deadline. It has
achieved 94% overall progress in implementing the project, the company said in a BSE
statement.
Reliance Petroleum is setting up the export-oriented refinery with a capacity to process
580,000 barrels a day of crude. It is also setting up a 900,000 tonnes a year polypropylene
plant.
Reliance Petroleum in the statement said, As on June 30, the company has utilised Rs.
25,515 crore for the project against a projected utilisation of funds of Rs. 24,125 crore. The
variation is mainly due to payments in advance under project contracts for continued,
efficient, and speedy implementation of the project.
The company added that the project engineering, procurement, and contracting activities
have been completed for the refinery.
Pre-commissioning Activities
Construction activities are progressing rapidly to meet the pre-commissioning requirements.
Planning for project start-up is completed.
The statement said the pre-commissioning activities are proceeding at a fast pace with
necessary infrastructure facilities already under commissioning. The company has mobilised

sufficient resources to sustain the pre-commissioning and commissioning activities on fast

track.
The quarter witnessed a close-out of procurement and contracting activities for equipment
and bulk materials.
Deliveries of equipment are nearly complete. Deliveries of bulk materials including pipes,
fittings, electrical, and instrumentation bulks matched the pace of equipment deliveries and
their installation at site. Focus has now shifted towards achieving a rapid close-out on this
front, the statement added.
Each Question carries 10 marks

76. Why Reliance Petroleum Ltd. has overshot its budget?

77. Why are the pre-commissioning activities are proceeding at a fast pace?
78. What is project control? (5 marks)Describe the process of project performance
evaluation.(5 marks)
79. Discuss the advantages of using PM software package.