MB0049 – Project Management - Set 1 - SMU Solved Assignments

MB0049 – Project Management - Set 1 Q1. Describe the CPM model. Briefly explain Answer: Network analysis technique used in complex project plans with a large number of activities. CPM diagrams (1) all activities, (2) time required for their completion, (3) and how each activity is related to the previous and next activity. A sequence of activities is called a 'path,' and the longest-path in the diagram is the critical path. It is 'critical' because all activities on it must be completed in the designated time, otherwise the whole project will be delayed. Also called critical path analysis or critical path methodology. PERT/Cost Systems The traditional cost variance analysis alone is insufficient for evaluating performance; information also is needed on work progress. Early attempts to correct for this using PERT/CPM went to the opposite extreme by ignoring costs and focusing entirely on work progress. If PERT/CPM users wanted to integrate cost control with network planning methods they had to develop their own system. In 1962 the U.S government developed a PERT-based system which combined cost-accounting with scheduling, called PERT/Cost system. The system became mandatory for all military and R&D contracts with the Department of Defense and National Aeronautics and space administration. PERT/Cost was a major improvement over traditional cost-accounting techniques because it blended cost with work schedules Steps to construct a PERT chart for a project 1. Identify all tasks or project components. Have a brainstorming session to capture all tasks needed to complete the project. Document the tasks on small note cards. 2. Identify the first task that must be completed. Keep the appropriate card at the extreme left of the working surface. 3. Identify any other tasks that can be started simultaneously with the first task. Line up these tasks either above or below the first task on the working surface. 4. Identify the next task that must be completed. Select a task that must wait until one of the tasks identified in steps 2 and 3 is completed. Place the appropriate card to the right of the card showing the preceding task. 5. Identify any other tasks that can be started simultaneously with the task identified in step 4. Place these tasks either above or below the said task on the working surface. 6. Continue this process until all component tasks are sequenced.

Q2. Define risk management. What are the different types of risks that can affect a project? Answer: Risk management is all about the systematic process of identifying, analysing, prioritising and responding to risk by applying risk management principles and controlling the probability and/or impact of unfortunate events at the project level. It attempts to maximise the probability and consequences of positive events and to minimise the probability and consequences of adverse events. The goal is to prevent or reduce risk in a cost-effective manner without compromising quality or harming the mission or timeline. The benefits of proper risk management in projects are huge. Organisations can generate a lot of profit if they deal with uncertain project events in a proactive manner. The result will be that they minimise the impact of project threats and seize the opportunities that exists. Proper risk management enables you to deliver the project on time, on budget and with the quality results one’s project sponsor/client demands. In addition to this, other project team members can be also happy and motivated enough to perform better and better. All this would essentially boil down to increase in the productivity of team members and in the efficiency and effectiveness of the resources. In this unit you will learn more about project risk management. a) Project Risks: This is the risk pertaining to pure project related parameters and activities. They may arise from changes in the scope of the project, in the work quantities, and in the resource requirements. Risk may also originate from estimation error or unexpected developments in a project. As you have already studied, project success depends on three major parameters including Cost, Resources and Timelines. b) Market Risk: This is the risk which is external to project but related to it. It is the risk arising out of a change in any of the following market parameters – price change, changes in market regulations, economic changes, competition, and competitors product changes. c) Industry Risk: This is an industry specific risk. It is the risk arising out of a change in scientific instruments used in a business activity or changes in company policies because of changes in the industry. d) Social and Political Risk: These are the risks pertaining to society at large. Although the probability is very low but it may have a big impact on the project. These risks may arise out of changes in labour situation, labour laws, environmental laws, and so on. Q3. Briefly discuss the steps to close the project Q4. Discuss the various steps of PMIS planning.

Q5. What are the important approaches to project control? Q6. Describe the project planning process and explain it in detail.

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