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Friday 5 January 2018

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DOM03
PROJECT MANAGEMENT
Assignment – I

Assignment Code: 2017DOM03B1                                 Last Date of Submission: 15th November 2017
                                                    Maximum Marks: 100
Section-A
Each question carries 25 Marks.
1.       a.      What   are some of  the key environmental forces that have changed the way projects?
are managed? What are the effects of these forces on the management of projects?

b.    What do you understand by the term Demand Forecasting? Enumerate various methods
of demand forecasting. How are you going to cope up with the uncertainties in demand forecasting?

2.    a.    Why it is important to assess the culture of an organization before deciding what project
management structure should be used to complete a project ‐ Discuss.
b.    What considerations go in for a project to be taken as a part of The Functional Organization, The Pure Project Organization and The Matrix Organization? Explain their advantages & disadvantages.

Section-B (50 Marks)
Case Study

Apache Metals is an original equipment manufacturer of metal working equipment. The majority of Apache's business is as a supplier to the automotive, appliance, and building products industries. Each production line is custom designed according to application, industry, and customer requirements.

Project managers are assigned to each purchase order only after the sales department has a signed contract. The project managers can come from anywhere within the company. Basically, anyone can be assigned as a project leader. The assigned project leaders can be responsible for as many as ten purchase orders at one time.

 In the past, there has not been enough emphasis on project management. At one time, Apache even assigned trainees to perform project coordination. All failed miserably. At one point, sales dropped to an all-time low, and cost overruns averaged 20--25 percent per production line.

 In January 1997, the Board of Directors appointed a new senior management team that would drive the organization to excellence in project management. Project managers were added through recruitment efforts and a close examination of existing personnel. Emphasis was on individuals with good people and communication skills.





The following steps were implemented to improve the quality and effectiveness of the project management system:

•     Outside formal training for project managers.
•     Development of an apprenticeship program for future project manager.
•    Modification of the current methodology to put the project manager at the focal point
•    involvement of project managers to a greater extent with the customer


Case Questions:

1.    What problems can you see in the way project managers were assigned in the past?
2.    Will the new approach taken in 1997 put the company on a path to excellence in project management?
3.    What skill set would be ideal for the future project managers at Apache Metals?
4.    What overall cultural issues must be considered in striving for excellence in project management?
5.    What time frame would be appropriate to achieve excellence in project management? What assumptions must be made?

DOM03
PROJECT MANAGEMENT
Assignment – II

Assignment Code: 2017DOM03B2                                 Last Date of Submission: 15th November 2017
                                                    Maximum Marks: 100
Section-A
Each question carries 25 Marks.
1.    a.     “Cost   of   a   project  represents the total of all items of outlay associated with a project
which are supported by long-term funds”? List and briefly describe these items.  

b.    Discuss   the   application of capital asset pricing model (CAPM) to the calculation of cost
of equity? Discuss the factors affecting the weighted average cost of capital (WACC).   

2.    a.    Describe various components which make up working capital requirement.
b.    Discuss broad sources of finance available for project financing.   

Section-B (50 Marks)
Case Study

Rocket Aerial Target System (RATS)

An introduction to the RATS project is found at the beginning of Chapter 10.

Bill Williams immediately called a staff meeting of his key people to get their ideas on proceeding with the project. It was generally agreed that this was a piece of business the operation should pursue. The question was: How could the operation go after this new business and still successfully produce and deliver its other products? It was conceded that the new business was so important that if the key personnel were satisfied with what they heard from marketing tomorrow, an all out effort should be expended to win the contract.

The meeting the next morning resolved most of the operation's questions. Ivor Kaney informed Williams that Corporate was so impressed with the prospects of RATS that the operation had Corporate's approval to spend up to a half million dollars in securing the contract, a very high trust, and high priority allotment. All the department heads agreed that some sacrifice would have to be made by them to succeed in this new effort. Each of them would be asked to give up one or two key employees to serve on the project team. Williams decided to commit the operation to an all out effort on the project.

The next day the project team was announced:

Project manager—Cris Jacobs, a young recent MBA with an undergraduate degree in management. She was selected because she was perhaps the best administrator in the operation and she had great rapport with the other units of the company.

Flight engineer—Jim Sherry, head of quality assurance/propulsion.

System design specialist—Roberto Mendez, expert design engineer, brilliant development specialist.

Production engineer—Jim Dawson, production manager of the propulsion generator department.

Safety and security officer—Inez Thompson, director of loss prevention.

Cost engineer—Wallace Potter, industrial engineer.

These individuals would be assigned to the project full time for its duration. If the contract were won, all of them would carry their knowledge about RATS back to their home departments, thus aiding in the conversion from development to production.

Rocket Aerial Target System (RATS)  Continued

The team developed the following list of project activities, time estimates, and precedence relationships as part of the project plan:
                                                       Estimated
                                                        Time To
                                           Immediate    Complete
                                           Predecessor  Activity
Activity                                   Activities)   (Weeks)
─────────────────────────────────────────────────────────────────
Product Development
a. Preliminary propulsion design                --         4
b. Preliminary flight system design             --         5
c. Static tests A                                a         2
d. Propulsion design modifications               c         2
e. Static tests B                                d         2
f. Flight tests A                                b         3
g. Flight system design modifications           e,f        3
h. Flight tests B                                g         3
i. Demonstration to customer                     h         2

Bid Package
j. Material and component costs                 e,f        6
k. Labor and overhead costs                     e,f        6
l. Processing of bid package through company    j,k        2
m. Delivery of bid package to customer           l         1
════════════════════════════════════════════════════════════
Case Questions:

1.    Draw a CPM network for the project.

2.    Use the CPM computer program in the POM Software Library, to develop a CPM analysis of the project. What is the estimated duration of the project? What activities are on the critical path?


3.    How long would the project take to complete if Activity b were delayed 2 weeks? How long would the project take to complete if Activity f were delayed 2 weeks? How long would the project take to complete if both Activities b and f were delayed 2 weeks? Discuss the care that must be taken in interpreting the meaning of the activity slack values.

4.    Explain how the project would be affected if some resources could be shifted to Activity j and that activity's duration was reduced by 1 week.

5.    Discuss how the assumptions and criticisms of CPM should cause us to modify our interpretation of our analysis of the RATS project.



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