Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

First Semester 2015-2016
Comprehensive Examination
(EC-3 Regular)
Course No.
Course Title
Nature of Exam
Weightage
Duration
Date of Exam
Note:
1.
2.
3.

: MM ZG523
: PROJECT MANAGEMENT
: Open Book
: 50%
: 3 Hours
: 08/11/2015
(AN)

No. of Pages
=2
No. of Questions = 6

Please follow all the Instructions to Candidates given on the cover page of the answer book.
All parts of a question should be answered consecutively. Each answer should start from a fresh page.
Assumptions made if any, should be stated clearly at the beginning of your answer.

Q.1. A manufacturing project consists of 9 activities. The three-time estimates are given in the
table below:
ACTIVITY OPTIMISTIC
TIME
1- 2
3
1-6
2
2-3
6
2-4
2
3-5
5
4-5
3
6-7
3
5-8
1
7-8
4
(a)
(b)
(c)
(d)

MOST LIKELY PESIMISSTIC

TIME
TIME
6
15
5
14
21
30
5
8
11
17
6
15
9
27
4
7
19
28

Draw the network diagram. Find the critical path and expected project duration?
Determine the free slack and total slack for non-critical activities.
What is the probability that the project will be completed in 45 days?
What due date has about a 95 percent chance of being met?
[3 + 3 + 2 + 2 = 10]

Q.2. A project consists of 4 activities. The normal and crash time of these activities and their
respective costs are given below. The indirect cost is Rs. 30 per day. Crashing is possible
for 1 day for each of the activities 1-2, 2-3 and 4-5; and 3 days for activities 3-4. Find the
lowest cost schedule by crashing step by step, assuming no fresh critical path is developed
on crashing the project.
[8]
Activity
1-2
2-3
3-4
4-5

Normal duration
(days)
2
4
9
5

MM ZG523 (EC-3 Regular)

3

Normal Cost
(Rs.)
50
160
270
100

Crash duration
(days)
1
3
6
4

First Semester 2015-2016

Crash Cost
(Rs.)
75
225
350
250

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Page 2

Q.3. For a given maintenance project, the precedence relationships, duration and the resources
requirement are given below:
[2 + 3 + 3 = 8]
Activity

Precedence

A
B
C
D
E
F
G
(a)
(b)
(c)

A
A
C
B
D
E, F

DURATION
(days)
1
3
2
2
1
2
1

RESOURCES
(Men)
7
4
3
8
5
2
8

Draw the time scale network according to EST.

Perform Resource Leveling for the project.
If only 8 Men are available, allocate the resources to minimize the project delay?

Q.4. For the following test marketing project at week 7, calculate the cost, schedule and time
variances. Also calculate the CPI, SPI, CSI, ETC, EAC, PCIB, PCIC and TCPI.
Activity
A
B
C
D
E

Predecessor
A
A
B
C

Duration
3
2
5
4
2

Budget
600
300
800
400
400

Actual Cost
680
270
850

Use 50-50 estimate for percent completion.

% Complete
100
100
100
40
20
[1 X 8 = 8]

Q.5. The company is currently handling risks in the following ways. Identify the risks involved
and the risk handling options that are being used in the below cases:
(a)
A company has decided to handle its marketing risks by offering a family of
products to its customer base. Different features exist for each product offered.
(b)
A company has large manufacturing costs for its high-tech products. The company
will not begin production until it has a firm commitment for a certain quantity. The
company uses learning curves and project management to control its costs.
(c)
A company is handling its high R & D financial risk by taking on partners and
hiring subcontractors. The partners/subcontractors are expected to invest some of
their own funds in the R & D effort in exchange for sole-source, long term
production contracts if the product undergoes successful commercialization.
[2 + 2 + 2 = 6]
Q.6 (a) What is the need of project audit and how it is different from Performance
measurement system and evaluation?
Q.6 (b) What are the advantages and disadvantages of outsourcing?
Q.6 (c) What is the difference between fixed price contracts and cost-plus contracts?
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Q.6 (d) What are the bottlenecks in implementing Agile Project Management for large
projects?
[2.5 X 4 = 10]
**************

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