IIBM Institute of Business Management
Examination Paper MM.100
Project Management
Section A: Objective Type (30 marks)
•This section consists of multiple choices
questions and short answer type questions.
•Answer all the questions.
•Part One questions carry 1 mark
each and Part Two questions carry 5 marks each.
Part One:
Multiple choices:
1. During _________formal tools and techniques were
developed to help and manage large
complex projects.
a. 1950s
b. 1980s
c. 1920s
d. 1990s
2. PERT stands for:
a. Program Evaluation and Reverse Technique
b. Progress Evaluation and Review Technique
c. Program Evaluation and Review Technique
d. None of the above
3. The most basic model of any Operating System is:
a. Project Model
b. Input-output model
c. Output-input model
d. None of the above
4. Overall complexity =
a. Organizational complexity*resource complexity*technical
complexity
b. Organizational complexity+technical complexity-resource
complexity
c. Technical complexity+resource complexity/organizational
complexity
d. Organizational complexity*resource complexity/technical
complexity
5. Relevant areas of the APM body of knowledge are:
a. Quality Management
b. Budgeting and cost Management
c. Project Cost Management
d. Both ‘a’ and ‘b’
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6. Costs associated with the planning process include:
a. Planer’s tools
b. Opportunity cost
c. Planned labour and associated expenses
d. All of the above
7. CPA stands for:
a. Critical Path Analysis
b. Common Path Analysis
c. Critical Path Algorithm
d. Common Problem Analysis
8. The project duration with the normal activity time is
____days.
a. 11
b. 16
c. 17
d. 21
9. The nature of the work organization is important as it:
a. Defines responsibility and authority
b. Outlines reporting arrangements
c. Determines the management overhead
d. All of the above
10. Matrix Management was invented by
a. Mullins
b. Belbin
c. Drucker
d. Frederick Taylor
Part Two:
1. Define ‘Cost Estimating Techniques’.
2. Write a note on ‘Critical Path Analysis’.
3. Differentiate between General Management and Project
Management.
4. What is ‘Team Life Cycle’?
END OF SECTION A
Examination Paper: Project Management
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Section B: Caselets (40 marks)
•This section consists of Caselets.
•Answer all the questions.
•Each Caselet carries 20 marks.
•Detailed information should form the part
of your answer (Word limit 150 to 200 words).
Caselet 1
It’s a Risky Business
Four friends wanted to start a business. After much
discussion, they had hit upon the idea of launch a
mail-order toys and games business. They were in the
development stage of their business plan and
wanted to be sure that they had been through with their planning.
To reinforce this, they had just received
a letter from a group of venture capitalists, agreeing to
fund the start up. It concluded its review of their
plan by stating:
The business plan presents a credible opportunity for all
involved and we are prepared to approve the
funding request, subject to a risk analysis being carried
out on the project to start the business.
The group was stunned-the funding that they had been hoping
for was suddenly a reality. Just one thing
stood in their way- that damned risk analysis process.
They started with identifying the key risk elements that
could face the business during in start up phase.
They considered the process between the time that they
received the funding and day one of trading. What
could possibly go wrong? Lots of things. They brainstormed
the possibilities and recorded them. They
then considered the effect that these would have on the
project as a whole. The list they generated
prothings going wrong and not enough making sure that the
positive steps towards the business opening
were happening. They needed to priorities’ the events. As
importantly, what would happen, when they
eventually occurred? Who would be responsible for each of
them? On what basis could they rank each
risk, in order to identify the most important risks for
which they would develop mitigation and
ownership?
They decided to use a table to show the risk event, the
likelihood, the severity and by multiplying the two
providing a risk priority number (RPN). This would the allow
ranking of the risk elements. For the three
highest ranked elements, the group then generates a
mitigation process with someone in the group taking
ownership of that process.
As can be seen, the top three risks were identified and
mitigation tasks put in place to either prevent the
risk event happening or to reduce its effect. The initials
of the ‘owners’ of that risk in the last column
show who has agreed to monitor that set of events and ensure
that the mitigation is put into place before
the project suffers from that event occurring.
Questions:
1. What further methods could have been used to generate
ideas for the identification part of the risk
process?
2. What should happen as the project progresses to manage
risk?
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Caselet 2
Fast-track Product Redevelopment at Instron
Background
Instron designs and manufactures machines for testing the
properties of all types of material. One
particular plastic testing instrument has been selling
around 250 units per year worldwide. In 1992 at the
height of the recession, with margins being squeezed and
sales volume dropping, Instron decided to
redesign the instrument to reduce its cost and make it
easier to manufacture.
The Project
Instron began to undertake change in the late 1980s, which
included a programme to institute concurrent
new product development. This was accompanied by pressure
for cost reduction, the introduction of
manufacturing changes, and the breaking of the firm into
business teams.
The team was highly transient and changing environment,
there were few restrictions on the way the
redesign project had to be handled. It was one of the first
projects in Instron to be run from the beginning
as a concurrent engineering project. A small
multi-functional team was formed, consisting of a
manufacturing engineer, a design engineer, a marketing
engineer and a draughtsman. The design rief was
to improve the ease of manufacture of the product such tat a
cost reduction of 20 percent could be
achieved.
The team was co-located in an area adjacent to the
manufacturing facility. Although there was some
initial resistance, the comment was made that ‘they don’t
know how they ever worked without it’. The
ease of communication and sharing of ideas became a more
natural part of working life.
Adverse Effects
The principles of concurrency were, in general, favorably
accepted by departments downstream of the
design process and with some notable exceptions, unfavorably
viewed by the design department.
Individuals had concurrency imposed on them in the initial
projects selected; be tried out. Senior
management staff was selected as champions of the cause,
with the objective of overcoming the resistance
to change that existed. This came in a number of forms:
1. Passive resistance- summarized as ‘don’t show reluctance
to apply the new ideas, attend all the
group meetings, nod in agreement, then carry on as before.
2. Active resistance- ‘do what you like, but don’t ask me to
do it’
3. Undermining the initiative- through overstating the
apparent problems.
They began by carrying out brainstorming sessions with
manufacturing engineers, buyers, members of the
shop floor, suppliers and additional design engineers, to
find new and innovative ways to improve the
product. The outcome of these investigations was to draw up
a list of areas where improvements were
thought possible.
The Benefits Achieved
The results of this team’s action were:
•Cost reduced by 49 percent
•Product range rationalized from 12 to 2
versions
•Unique part count reduced from 141 to 98
and total number of parts reduced from 300 to 189
•Assembly/machining time reduced by 55
percent
•Project completed on time, with
last version being released in April 1994.
Once operational, few problems were encountered and those
that did occur were minor in nature. The
success was attributed by the firm to two decisions:
•The selection of the right project- one
that made it easy to demonstrate concurrency
•The selection of the right people- those
who were prepared to be open-minded and have some
enthusiasm for the changes.
The company now views this as a simple project that restored
the profitability of an established product
through the use of innovation, ingenuity and new design
techniques by the whole concurrent team. What
Examination Paper: Project Management
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is also clear is that the product was subject to technical
change in only one area- the materials used. The
other benefits have all been due to the approach tat the
firm’s management has taken to its new product
development (NPD) Process. The firm felt that the project
has been a success and that this method of
working would become an institutionalized methodology.
Questions:
1. Identify the steps the firm took in this project. How did
this contribute to the success?
2. How might the main adverse effects be identified?
END OF SECTION B
Section C: Applied Theory (30 marks)
•This section consists of Applied Theory
Questions.
•Answer all the questions.
•Each question carries 15 marks.
•Detailed information should form the part
of your answer (Word limit 200 to 250 words).
1. What is the role of strategy in Project Management?
2. Identify the different roles that cost, price and profit
can play in determining project costs.
END OF SECTION C
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