Project Management

Set I

1. A project is different from routine and regular activities. Draw a list of characteristics and distinguish the projects from other activities.

2. A project comprising of eight tasks (A to H) has the following characteristics:

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Tasks Predecessor Time duration (weeks)
Optimistic Most Likely Pessimistic
A None 2 4 12
B None 10 12 26
C A 8 9 10
D A 10 15 20
E A 7 7.5 11
F B,C 9 9 9
G D 3 3.5 7
H E,F,G 5 5 5

(a) Calculate the time duration of each activity and the variance.

(b) Draw the network diagram, determine the critical path and mark in the network. What is the total project duration?

(c) What is the probability of achieving the project within the deadline of 30 weeks?

3. How does resource leveling differ from resource allocation? Discuss various methods of resource leveling in project management.

4. Contract planning and contract negotiation stages are usually located in a control project office and contract administration is done at remote construction sites. What are the disadvantages of this distance gap?

5. What are the factors, which control the cost of a project? Discuss briefly on each. How does time over-run affect the project cost?

6. Write short notes on three of the following:

(i) Advantages of matrix organisation
(ii) PERT time estimate
(iii) Total float in the project network
(iv) Crashing of project
(v) Project management software packages
(vi) Quality control in project management

SECTION B

7. (a) What are the objectives of project management information system? (b) The time and cost estimates of different activities of a project and their precedence relationship are ' given below:

Activity Preceding activity Time (weeks) Cost (Rs.)
Normal Crash Normal Crash
A –– 6 4 10,000 14,000
B –– 4 3 5,000 8,000
C A 3 2 4,000 5,000
D B 8 3 1,000 6,000
E B 14 6 9,000 13,000
F C,D 8 4 7,000 8,000

Overhead costs amount to Rs. 1,000 per week. It is stipulated that the contractor will have to pay a penalty of Rs. 2,000 per week for completing the project beyond 16 weeks

(i) Show the critical path in the network Diagram.

(ii) Find out the cost slope for every activity using normal and crash date for time and cost.

(iii) Crash the project to 16 weeks, Estimate the total cost of crashing.

Set II

1. What are the important phases of a project life cycle? Discuss each phase briefly with key issues involved in it.

2. Detailed Project Report (DPF) forms the foundation on which the entire superstructure of the project is built --- if it is weak, the project cannot with stand the turbulent times ahead. Bring out the dos and don'ts of a good DPR.

3. Bring out the difference between CPM (Critical Path Method) and PERT (Program Evaluation and Review Techniques and their suitability of use. Explain critical path for the above with suitable examples).

4. What quality control methods prevalent in project management? Explain why TQM is important in project management,

5. Explain the following key elements while controlling the projects:

(I) Establishing the standards

(II) Measuring performance against standards

(III) Correcting variation from standards

SECTION B

6. In a transmission line project, the normal estimate and the 'crash' estimate are as given below:

Activity Normal Estimate ‘Crash’ Estimate
Time (Weeks) Direct cost for the activity (Rs. lakhs) Time (weeks) Direct cost for the activity (Rs. lakhs)
(1,2) 12 1 9 2.5
(2,3) 4 ––- 3 0.4
(2,4) 20 ––– 20 –––
(3,5) 20 5 14 6.5
(3,6) 8 ––– 4 0.2
(3,7) 8 ––– 4 0.2
(4,7) 8 0.5 4 1.0
(6,7) 8 0.4 5 1.0
(7,8) 12 3 9 4.0
(8,9) 4 0.1 1 0.5

Indirect costs: Rs. 35,000 per week

(i) Draw the project network. Find out the critical path and its duration.

(ii) Calculate the cost slope of various activities.

(iii) Crash the project to 43 weeks and calculate the total cost.