Final Exam 1 February 2016 PDF

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University of Sunderland BACHELOR OF ENGINEERING (HONS) ELECTRONIC & ELECTRICAL ENGINEERING/ BACHELOR OF ENGINEERING (HONS) MECHANICAL ENGINEERING FEBRUARY 2016 FINAL EXAMINATION PROJECT MANAGEMENT, PLANNING AND CONTROL SUBJECT CODE: ENX314 TIME ALLOWED: 2 HOURS INSTRUCTIONS TO CANDI...

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University of Sunderland BACHELOR OF ENGINEERING (HONS) ELECTRONIC & ELECTRICAL ENGINEERING/ BACHELOR OF ENGINEERING (HONS) MECHANICAL ENGINEERING

FEBRUARY 2016 FINAL EXAMINATION

PROJECT MANAGEMENT, PLANNING AND CONTROL SUBJECT CODE: ENX314 TIME ALLOWED: 2 HOURS

INSTRUCTIONS TO CANDIDATE: 1.

Time allowed - 2 hours

2.

There are 6 questions set. You must attempt 4 questions.

3.

This is a closed book examination - this means you are not permitted to use any text books or study aids in the examination.

4.

You are forbidden to use programmable calculators or dictionaries.

5.

You must answer the required number of questions only. Any additional answers will not be marked. 6.

You should put a cross through any work you do not wish to be marked.

Question 1 a)

Name the nine areas of Project Management Body of Knowledge and in what way those areas might be subdivided. (9 marks) Answer Burke suggests that the PMBOK areas can be sub-divided into two groups of knowledge that, 1). concerned with deliverables (i.e. Scope, Time, Cost, and Quality), 2). relate to the means of achieving the deliverables (i.e. Integration, Human Resources, Communications, Risk, Procurement and Contract). b)

How does the PMBOK define Project Management?

(4 m arks) Answer PMBOK defines Project Management as the application of knowledge, skills, tools, and techniques to project activities in order to meet stakeholders’ needs and financial expectations from a project. c)

What are the four phases making up the Project Life Cycle? (4

m

arks) Answer 1). Concept and Initiation Phase. 2). Design and Development Phase. 3). Implementation or Construction Phase. 4). Commissioning and Handover Phase. d)

Burke divides numeric selection models into financial and scoring models. What are the four financial models he identifies? (4 m arks) Answer 1). Payback period, 2). Return on Investment, 3). Net Present Value, and 4). Internal Rate of Return. e)

Identify the 2 internal and 2 external stakeholders of a project (i.e. building a new bridge over a river). (4 m arks) Answer Internal Stakeholders (i.e. project team members, any employee affected by the completed project). External Stakeholders (i.e. the client, contractors, and suppliers). (Total 25 marks)

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Question 2

a)

How does the Project Management Body of Knowledge define Integration Management? (4 marks) Answer Integration Management includes the processes required to ensure that the various elements of the project are properly coordinated. It consists of 1) Project plan development - integrating and coordinating all project plans to create a consistent, coherent document 2) Project plan execution - carrying out the project plan by performing the activities included in the plan. 3) Integrated change control - coordinating changes/adaptation across the entire project. b)

List the 5 main sections of a project specification.

(5 marks) Answer 1). Title of the project, 2). Scope, 3). Objectives, 4). Any conditions under which the project is to be carried out, 5). Priority in relation to other projects, 6). Authority. c)

How can project planning and control help to establish the power and authority of the project manager? (3 m arks) Answer Project team members are often drawn on a part-time basis from other departments or companies. This can lead to difficulties in establishing the authority or power of the project manager. Project planning and control can be used to enhance the power of the project manager. This is because commitments agreed to in the planning process, effectively give power to the project manager to enforce them. d)

Why does Burke argue that effective scope management is one of the key factors determining project success? (3 m arks) Answer Failure to accurately interpret the client’s needs or problem will produce a misleading definition (scope of work). If this causes rework and additional effort, there may be project cost and time implications. e)

Briefly describe the 3 benefits from a good configuration management system.

(6 marks) Answer Any 2 of the following, 1). A comprehensive framework to monitor, evaluate and update the scope baseline to accommodate any scope changes. 3

2). A control system that formally documents a procedure defining the steps by which official project documents may be changed. 3). A current and up-to-date description of the product. 4). Traceability of previous baseline configurations. 5). A record and an audit trail of approved changes. 6). Detailed lists the people who have authority to make changes to the scope of work, both internal and external supports. 7). Automatic approval for emergency situations. f)

Name the 4 ways of breaking down the scope of work that Burke identifies.

(4 marks) Answer 1). Product Breakdown Structure, 2). Organisation Breakdown Structure, 3). Cost Breakdown Structure, 4). Contract Breakdown Structure, 5). Location Breakdown Structure, 6). Transport Breakdown Structure, 7). System Breakdown Structure, 8). Project Life-Cycle Structure. (Total 25 marks)

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Question 3

a)

Define the meaning of terms i). Early Start, ii). Early Finish, iii). Late Start and iv). Late Finish. (4 marks) Answer 1). Early Start is the earliest date or time by which an activity can start assuming all the preceding activities are completed as planned. 2). Early Finish is the earliest date or time by which an activity can be completed assuming all the preceding activities are completed as planned. 3). Late Start is the latest date an activity can start to meet the planned project completion date. 4). Late Finish is the latest date an activity can finish to meet the planned project completion date. b)

Describe the three processes involved for the project quality management as PMBOK suggested. (6 marks) Answer Quality planning: identifying which quality standards are relevant to the project and determining how to satisfy them, 2). Quality assurance: evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards, 3). Quality control: monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. c)

State three positive features of Gantt Charts. (3

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arks) Answer Any 3 of the following, i). Easy to assimilate and understand, ii). Displays activity progress clearly and simply, iii). Float is easily comprehended when shown on a chart, iv). Communicate and disseminate schedule information. d)

List the four main attributes of good control information, according to Dixon (1993). (3

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arks) Answer Accuracy, 2). Timeliness, 3). Conciseness, 4). Comprehensiveness. e)

What is Procurement Planning ? (3 marks)

Answer Procurement planning is the process of identifying what products and services are best procured outside the project organisation. It is the buy-or-make decision that involves what, how much, when, and how to procure (contract). f)

Assume that as project manager you have been advised that there is a supply problem and that the lead-time for the topsoil as in Table 3e, has increased to eight days.

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Table 3e Explain the effect, before and after the lead time on the completion of the project. (5 marks) Answer In the original plan, the topsoil was require on day 1 in order that it would be available for use on day 2. The completion of the project overall would have been at the end of day 10. The lead-time was however understood to be 3 days, which gave a variance of –2 days. Soil is to be used on days 4 & 5, with the overall project completion being at the end of day 12. The new lead time of 8 days will result in a variance of -7 days, the top soil being delivered on day 8 and being available for use on day 9 & 10. This will delay that start of activity 7 to day 11. However, as activity 7 will take only 1 day, it will be possible to completed it by the end of day 11, which is the same day that alarm testing will be completed. The increase in the lead-time for topsoil will therefore not cause any delay in the completion of the project overall. (Total 25 marks)

Question 4

a)

Define Direct Costs and Indirect Costs. Give two examples of Direct and Indirect Costs. (4 m arks) Answer

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Direct Costs - costs that can be specifically identified with an activity or project. It can be budgeted, charged to an activity, monitored and controlled far more effectively than indirect costs. 1). Direct labour costs refer to the people working on an activity (i.e. welders, operators, etc). 2). Direct material costs (i.e. materials, consumables components for completing an activity, etc). 3). Direct equipment costs (i.e. machinery, plant and tools). Indirect Costs (or overheads) cannot be directly booked to an activity or project, but are required to keep the company operational. 1). Indirect labour costs (i.e. reception, maintenance, security, cleaners, etc). 2). Indirect material/equipment (i.e. computers, stationery, cleaning materials, photocopiers, etc). 3). Indirect expenses (i.e. training, insurance, depreciation, rent, etc). b)

List the 2 reasons why might an organisation be prepared to take a project that yields less than a normal profit? (4 m arks) Answer 1). accept a loss on the basic contract price, but expect to make good profits on the extras, 2). enter a new field of business, using this project to gain experience and technology transfer, 3). to gain credibility, stepping stone for more lucrative projects, 4). be associated with a prestigious project, which may be seen as free marketing. c)

What is resource smoothing?

(1 marks) It is not possible to smooth for more than one resource at a time, name the 3 priority of resources might you focus in smoothing the resource load. (3 marks) Answer Resource smoothing is the process of moving activities to improve the resource loading profile. The resource that is most overloaded, 2). The resource that is most used in the project, 3). The least flexible resource, 4). The most expensive resource to hire. d)

What do you understand by the term “Earned Value”? (3 marks) Draw a fully labelled Earned Value Curve, ensuring you include the following information on your graph. · BCWS, BCWP and ACWP · Schedule Variance (SV) and Cost Variance (CV) · Estimate at completion (EAC) and Budget at Completion (BAC) · Overrun and Slippage · Timenow. (10 marks)

Answer “Earned Value” is a method of providing the integrated progress & cost information for an identified project. 7

(2 marks) Earned value is also often termed the “Budgeted Cost for Work Performed” (BCWP). It is a measure of the value of the work that has been performed to date (i.e. up to timenow). It may be calculated as a proportion of the total project “Budget at Completion” (BAC), depending on how much of the project has actually been completed at that time. Very simply, if a project is 50% complete, the Earned Value is 50% of the total project BAC. Earned Value (BCWP) = Percentage Complete (PC) × BAC. The graph as shown below.

(8 marks) (Total 25 marks)

Question 5

a)

Name the 4 main risk identification techniques.

(4 marks)

Describe the 3 categories of responses to risk.

(3 marks)

Answer Any 4 of identification techniques, 1). analysing historical records, 2). structured questionnaires, 3). structured interviews, 4). brainstorming, 5). structured checklists, 6). flow charts, 7). judgement based on knowledge and experience, 8). system analysis, 9). scenario analysis (what-if). Any 3 of categories, 1). Risk Elimination (i.e. avoiding the risk completely by either removing the cause or taking an alternative course of action).

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2). Risk Mitigation (i.e. develop a plan or series of actions that will reduce the probability of the risk occurring and/or the impact if the risk does happen). 3). Risk Deflection (i.e. transfer the risk to 3 rd party, preferable one who is able to manage it). 4). Risk Acceptance (i.e. not possible to eliminate/mitigate risks, prepare a contingency amount with the formulation of a fallback plan should the risk occur). b)

What are the three fundamental processes in all management control systems?

(3 marks) Answer 1). Establishing standards, 2). Measuring performance against these standards, 3). Correcting variations from standards and plans. c)

Give three reasons for project failure.

(3 marks) Answer Not working closely with the client, 2).Poor  estimating, 3). Inadequate planning, 4). Insufficient reviews and control, 5). Lack of commitment (buy-in of participants and stakeholders), 6). Incomplete information. d)

List the four benefits that might arise from systematic risk identification and management. (4 marks) Answer more realistic business and accuracy/efficiency project planning, 2). greater certainty of achieving business goals and project objectives, 3). appreciation of, and readiness to exploit, all beneficial opportunities, 4). improved loss control, 5). improved control of project and business costs, 6). increased flexibility as a result of understanding all options and their associated risks, 7). greater control over innovation and business development. e)

Sales estimates for a project are given in Table Q5e. With the aid of this information prepare a cash flow statement for the months June to November.

Table Q5e Additional relevant information is given below: 1) Sales prices per unit are £40. Customers are given two months’ credit (i.e. they pay you 2 months later). 2) Material price per unit is £10. Suppliers allow you one month credit (i.e. you pay them 1 month later). 3) Labour costs per unit are £15. Labour is paid for in the month of use. 4) Overheads are £3,200 per month. 5) There is a scheduled loan repayment of £24,000 per month for the duration of this project. Use a template shown in Table Q5eii to construct your answer. 9

Table Q5eii (8 marks) Answer

(8 marks) (Total 25 marks)

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Question 6

a)

What are the 4 factors should be taken into account when deciding on the size of a team? (4 marks) Answer 1). How many people are required, 2). Project complexity, 3). What variety of technical expertise is required, 4). Crowded conflict/difficulties for team to reach agreement / may subdivide into cliques, 5). Team needs a balance of personalities.

b)

What is the role of the Project Office? (3 marks)

Answer The role approach as a central point for meeting people, collecting data, processing data, storing data and communicating project information to the project team, the client, suppliers and other stakeholders. c) What are the 3 main areas does Lock (1996) consider computers can make a useful contribution to project management? (3 marks) Answer Computers can make a useful contribution to project management in the following main areas, 1). Time analysis, 2). Resource scheduling, 3). Speed and flexibility, 4). Information management, 5). Multi-project scheduling. d)

Table Q6d shows the logic table for a particular project.

Table Q6d (i) Construct a Network Diagram showing the various logical activity relationships from this information. Perform a forward and backward pass to complete activity boxes (i.e. early start, early finish, late start, late finish, float, duration). (7 marks) (ii) Highlight the critical path on your diagram. (3 marks) (iii) It is suggested that the duration of the whole project could be shortened by 4 days by completing Activity B in 3 days rather than 7 days. Rework the Network Diagram and comment on whether this strategy would succeed. State the reasons for your answer. (5 marks) Answer (i) The completed Network Diagram

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(7 marks) (ii) Critical path is ABFG (highlighted in red). (3 marks) (iii) After crashing Activity B, the redrawn Network Diagram

(3 marks) The overall project would be shortened by 2 days (NOT 4 days) - (20 days to 18 days duration). This is because the change to the duration of activity B has changed the critical path (ABFG to ACFG). (2 marks) (Total 25 marks)

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