Examination Paper: Construction Management
6
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Project Management in Construction
Section A: Objective Type (30 marks)
•This section consists of Multiple Choice questions & short note type questions.
•Answer all the questions.
•Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. It included Manpower, material and machinery that is necessary to perform the work:
a. Scope
b. Quality
c. Resources
d. Completion time
2. In this analysis a project is formulated and appraised based on the estimates generated from past
data, experience & analysis.
a. Risk analysis
b. Sensitivity analysis
c. Probability analysis
d. Economic analysis
3. It is a verbal written or on-line document that shows the up-to-date performance status of a task
that has been entrusted to a responsibility/accounting centre.
a. Trends Forecasting
b. Reporting Performance
c. Performance Variance Analysis
d. Recording Performance
4. In this contract, the architectural and engineering design and drawings are provided by the
Employer/Client to the contractor at the time of tendering as a part of the contract documents:
a. Build-only contracts
b. Build-own transfer contracts
c. Engineering Procurement
d. Construction Contract
5. These arise where no ground exists either in the contract or in common law:
a. Contractual claims
b. Extra contractual claims
c. Ex-gratia claims
d. None of the above
Examination Paper: Construction Management
7
IIBM Institute of Business Management
6. In this case, both the parties willingly discuss the dispute and arrive at a settlement without the
intervention of any third party:
a. Conciliation through negotiations
b. Conciliation through mediation
c. Conciliation by setting up Dispute Review Board (DRB)
d. Conciliation through others
7. The claim which is registered by giving a notice is known as:
a. Registering claims
b. Establishing claims
c. Presentation claims
d. None of the above
8. This term covers the entire electronic and electro-mechanical equipment used in the computerized
data processing system:
a. Hardware
b. Software
c. Operators
d. Procedure
9. This enables the electronic transfer of a complete file from one computer to another:
a. Internet
b. Intranets
c. telnet
d. File Transfer Protocol (FTP)
10. It is an assurance to the owner that selected the contractor will actually proceed with the contract
at the bid price:
a. performance Bonds
b. Bid Bonds
c. Claim Bonds
d. Contract Bonds
Part Two:
1. What are the main causes of a Project Failure?
2. What is Responsibility assignment Matrix (RAM) chart?
3. Define Professional Construction Management (PCM) approach.
4. Differentiate between Project Management & General Management.
END OF SECTION B
Examination Paper: Construction Management
8
IIBM Institute of Business Management
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
Huge Electronics Company (HEC) is a designer and manufacturer of electronics equipment that is sold
primarily to government/military customers. Located in the Western United States, HEC grew rapidly in
the 1970s to become one of the nation’s largest government contractors with employees in excess of
50,000. Partly because of HEC’s rapid growth, the company organization chart was constantly in a state
of flux. Despite the changes, the engineering divisions remained fairly stable in a classic project
management structure. The manufacturing division was structured in a matrix organization because of the
large investments in manufacturing equipment necessary. Duplicating these equipment purchases for
every project would not be cost effective.
Naturally, the project managers in the engineering division’s wieded a great deal of power to set policy
and make decisions. The manufacturing project managers did not possess the total authority shared by
their engineering counterparts; they did, however, have a strong say in controlling the destiny of their
projects, if not the operating policy of the division. Due to of the matrix structure, functional and project
managers coexisted at the same level in the management hierarchy, both reporting directly to the division
manager. While the power in the division was spread evenly between functional and project management,
when push came to shove, the project mangers’ possessed up what through the project structure I led to
the influential edge that seemed to exist.
Make Versus Buy Decisions
As a result of the fast growth experienced by HEC, production capacity could not keep pace with demand
in many cases. Some of the company’s product designs had to be off loaded either completely or partially
for the production phase of a contract. The question of who should/would make the decision whether to
manufacture in-house or off-load a particular product was always a point of contention. At least three
parties influenced the decision: (1) the manufacturing project manager (MPM) (2) the manufacturing
functional managers, and (3) the engineering project manager. Initially a manufacturing project plan is
published by the MPM. The engineering project manager can influence make-buy decisions by the way
the products are specified on the drawings to be used for manufacturing facility is incapable of producing,
the MPM has no alternative but to have the product fabricated by a firm with the necessary capability.
Project tiger and the Cable Shop
The decision faced by the Tiger MPM regarding the selection of a production location for the Tiger
electronic cables is a dramatic example of the make-buy decisions faced by HEC managers. Below is a
description of the cast of characters who attempt to influence the Tiger MPM’s decisions.
Final Assembly Project Engineer: Wally Carr has 25 years experience with the company, worked his way
up through the ranks, and has an inherent distrust for the wire and cable shop because of bad past
experiences. His advice to the MPM is: ‘We should set up our own shop over in the new Tiger final
assembly building. This can have control over our own destiny. That’s what we did on the old Stingray
project and it worked great. Those cable guys never meet their schedules.”
Cable Project Engineer: Charlene Rain has five years experience in the firm and was previously in sales
for a small electronics distributor. It known to anyone at the time, she has purchased an interest in a local
wire and cable subcontractor that specializes in doing overflow work from large prime contractors. Her
advice to the MPM is: “We should off-load these cables to a local vendor. They are a simple design and
we need to concentrate our manufacturing engineering efforts on the more complicated designs.”
Examination Paper: Construction Management
9
IIBM Institute of Business Management
Wire and cable department Manager: Richard Treese, who recently took over the wire department, has
already shown signs of improving a department that definitely needed some improvement. He is also the
direct manager of the wire project engineer who is in favour of off-loading. His advice to the MPM is: “I
know the department is near capacity right now, but some months from now when the Tiger project
comes down the pike, we will be ready to handle it. We will deliver quality cables to meet your schedules.
Questions:
You are the project manager: you know how important project is for, both, the company and your career.
1. Should you go with a department that has been chronically delaying when the contract has a large
incentive/penalty clause for on-time delivery?
2. Can you risk sending out a design to a supplier when the design is to be proved?
Caselet 2
In mid-1998, the personal products divisions of HLL launched campaign called ‘Project Bharat’ to be
carried out by the end of 1999. ‘Project Bharat’ was a direct marketing exercise undertaking to address
the issues of awareness, attitudes and habits of rural consumers and increase the penetration level of HLL
products. It was the first and the largest rural home-to-home operation to have ever been taken up by any
company carried out its direct marketing operations in the high potential districts of the country to attract
first-time users.
Under ‘Project Bharat,’ HLL vans villages and sold small packs consisting of low-unit-price pack each of
its detergent, toothpaste, face cream and talcum powder for Rs. 15. During the sales, company
representatives also explained to the people how to use these products with the help of a video show. The
villagers were also educated about the superior benefits of using the company’s products as compared to
their current habits. This was very helpful for HLL, as it created awareness of its product categories and
the availability of the affordable packs.
However, the company sensed that the sampling campaign was not enough to attract first time users.
Therefore, it rolled out a follow-up program called the ‘Integrated Rural Promotion Van’ (IRPV), which
further enhanced the awareness about LL’s products in village with an population above 2000.
Another program targeted at villages with a population of less than 2000 was simultaneously launched.
Under this program, the company provided self-employment opportunities to villagers through Self-Help
Groups (SHG). SGHs operated like direct-to home distributors wherein groups of 15-20 villagers who are
the poverty line (those people whose monthly income was less than Rs. 750 per month) were provided
with an opportunity to take micro-credit from banks. Using this money, villagers could buy HLL’s
products and sell them to consumers, thereby, generating income as well as employment for themselves.
This activity also helped the company increase the reach of its products.
Questions:
1. What are the significant features of HLL’s ad campaign ‘Project Bharat’?
2. How has HLL identified itself with India’s Economic Development?
END OF SECTION B
Examination Paper: Construction Management
10
IIBM Institute of Business Management
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 from the part of your answer (Word limit 200 to 250 words).
1. Who is a Project Manager? Describe the Role of a Project Manager.
2. What is PMIS Report? Explain the benefits of establishing PMIS.
S-2-210311
END OF SECTION C
6
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Project Management in Construction
Section A: Objective Type (30 marks)
•This section consists of Multiple Choice questions & short note type questions.
•Answer all the questions.
•Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. It included Manpower, material and machinery that is necessary to perform the work:
a. Scope
b. Quality
c. Resources
d. Completion time
2. In this analysis a project is formulated and appraised based on the estimates generated from past
data, experience & analysis.
a. Risk analysis
b. Sensitivity analysis
c. Probability analysis
d. Economic analysis
3. It is a verbal written or on-line document that shows the up-to-date performance status of a task
that has been entrusted to a responsibility/accounting centre.
a. Trends Forecasting
b. Reporting Performance
c. Performance Variance Analysis
d. Recording Performance
4. In this contract, the architectural and engineering design and drawings are provided by the
Employer/Client to the contractor at the time of tendering as a part of the contract documents:
a. Build-only contracts
b. Build-own transfer contracts
c. Engineering Procurement
d. Construction Contract
5. These arise where no ground exists either in the contract or in common law:
a. Contractual claims
b. Extra contractual claims
c. Ex-gratia claims
d. None of the above
Examination Paper: Construction Management
7
IIBM Institute of Business Management
6. In this case, both the parties willingly discuss the dispute and arrive at a settlement without the
intervention of any third party:
a. Conciliation through negotiations
b. Conciliation through mediation
c. Conciliation by setting up Dispute Review Board (DRB)
d. Conciliation through others
7. The claim which is registered by giving a notice is known as:
a. Registering claims
b. Establishing claims
c. Presentation claims
d. None of the above
8. This term covers the entire electronic and electro-mechanical equipment used in the computerized
data processing system:
a. Hardware
b. Software
c. Operators
d. Procedure
9. This enables the electronic transfer of a complete file from one computer to another:
a. Internet
b. Intranets
c. telnet
d. File Transfer Protocol (FTP)
10. It is an assurance to the owner that selected the contractor will actually proceed with the contract
at the bid price:
a. performance Bonds
b. Bid Bonds
c. Claim Bonds
d. Contract Bonds
Part Two:
1. What are the main causes of a Project Failure?
2. What is Responsibility assignment Matrix (RAM) chart?
3. Define Professional Construction Management (PCM) approach.
4. Differentiate between Project Management & General Management.
END OF SECTION B
Examination Paper: Construction Management
8
IIBM Institute of Business Management
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
Huge Electronics Company (HEC) is a designer and manufacturer of electronics equipment that is sold
primarily to government/military customers. Located in the Western United States, HEC grew rapidly in
the 1970s to become one of the nation’s largest government contractors with employees in excess of
50,000. Partly because of HEC’s rapid growth, the company organization chart was constantly in a state
of flux. Despite the changes, the engineering divisions remained fairly stable in a classic project
management structure. The manufacturing division was structured in a matrix organization because of the
large investments in manufacturing equipment necessary. Duplicating these equipment purchases for
every project would not be cost effective.
Naturally, the project managers in the engineering division’s wieded a great deal of power to set policy
and make decisions. The manufacturing project managers did not possess the total authority shared by
their engineering counterparts; they did, however, have a strong say in controlling the destiny of their
projects, if not the operating policy of the division. Due to of the matrix structure, functional and project
managers coexisted at the same level in the management hierarchy, both reporting directly to the division
manager. While the power in the division was spread evenly between functional and project management,
when push came to shove, the project mangers’ possessed up what through the project structure I led to
the influential edge that seemed to exist.
Make Versus Buy Decisions
As a result of the fast growth experienced by HEC, production capacity could not keep pace with demand
in many cases. Some of the company’s product designs had to be off loaded either completely or partially
for the production phase of a contract. The question of who should/would make the decision whether to
manufacture in-house or off-load a particular product was always a point of contention. At least three
parties influenced the decision: (1) the manufacturing project manager (MPM) (2) the manufacturing
functional managers, and (3) the engineering project manager. Initially a manufacturing project plan is
published by the MPM. The engineering project manager can influence make-buy decisions by the way
the products are specified on the drawings to be used for manufacturing facility is incapable of producing,
the MPM has no alternative but to have the product fabricated by a firm with the necessary capability.
Project tiger and the Cable Shop
The decision faced by the Tiger MPM regarding the selection of a production location for the Tiger
electronic cables is a dramatic example of the make-buy decisions faced by HEC managers. Below is a
description of the cast of characters who attempt to influence the Tiger MPM’s decisions.
Final Assembly Project Engineer: Wally Carr has 25 years experience with the company, worked his way
up through the ranks, and has an inherent distrust for the wire and cable shop because of bad past
experiences. His advice to the MPM is: ‘We should set up our own shop over in the new Tiger final
assembly building. This can have control over our own destiny. That’s what we did on the old Stingray
project and it worked great. Those cable guys never meet their schedules.”
Cable Project Engineer: Charlene Rain has five years experience in the firm and was previously in sales
for a small electronics distributor. It known to anyone at the time, she has purchased an interest in a local
wire and cable subcontractor that specializes in doing overflow work from large prime contractors. Her
advice to the MPM is: “We should off-load these cables to a local vendor. They are a simple design and
we need to concentrate our manufacturing engineering efforts on the more complicated designs.”
Examination Paper: Construction Management
9
IIBM Institute of Business Management
Wire and cable department Manager: Richard Treese, who recently took over the wire department, has
already shown signs of improving a department that definitely needed some improvement. He is also the
direct manager of the wire project engineer who is in favour of off-loading. His advice to the MPM is: “I
know the department is near capacity right now, but some months from now when the Tiger project
comes down the pike, we will be ready to handle it. We will deliver quality cables to meet your schedules.
Questions:
You are the project manager: you know how important project is for, both, the company and your career.
1. Should you go with a department that has been chronically delaying when the contract has a large
incentive/penalty clause for on-time delivery?
2. Can you risk sending out a design to a supplier when the design is to be proved?
Caselet 2
In mid-1998, the personal products divisions of HLL launched campaign called ‘Project Bharat’ to be
carried out by the end of 1999. ‘Project Bharat’ was a direct marketing exercise undertaking to address
the issues of awareness, attitudes and habits of rural consumers and increase the penetration level of HLL
products. It was the first and the largest rural home-to-home operation to have ever been taken up by any
company carried out its direct marketing operations in the high potential districts of the country to attract
first-time users.
Under ‘Project Bharat,’ HLL vans villages and sold small packs consisting of low-unit-price pack each of
its detergent, toothpaste, face cream and talcum powder for Rs. 15. During the sales, company
representatives also explained to the people how to use these products with the help of a video show. The
villagers were also educated about the superior benefits of using the company’s products as compared to
their current habits. This was very helpful for HLL, as it created awareness of its product categories and
the availability of the affordable packs.
However, the company sensed that the sampling campaign was not enough to attract first time users.
Therefore, it rolled out a follow-up program called the ‘Integrated Rural Promotion Van’ (IRPV), which
further enhanced the awareness about LL’s products in village with an population above 2000.
Another program targeted at villages with a population of less than 2000 was simultaneously launched.
Under this program, the company provided self-employment opportunities to villagers through Self-Help
Groups (SHG). SGHs operated like direct-to home distributors wherein groups of 15-20 villagers who are
the poverty line (those people whose monthly income was less than Rs. 750 per month) were provided
with an opportunity to take micro-credit from banks. Using this money, villagers could buy HLL’s
products and sell them to consumers, thereby, generating income as well as employment for themselves.
This activity also helped the company increase the reach of its products.
Questions:
1. What are the significant features of HLL’s ad campaign ‘Project Bharat’?
2. How has HLL identified itself with India’s Economic Development?
END OF SECTION B
Examination Paper: Construction Management
10
IIBM Institute of Business Management
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 from the part of your answer (Word limit 200 to 250 words).
1. Who is a Project Manager? Describe the Role of a Project Manager.
2. What is PMIS Report? Explain the benefits of establishing PMIS.
S-2-210311
END OF SECTION C
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