What is learning curve?
A learning curve is a graphical representation or concept that shows how performance
improves over time with experience or practice.
Example: If a worker takes 10 hours to make their first product, but only 5 hours after doing it
many times — that’s a learning curve in action.
2. Project Crashing
Project crashing is a project management technique used to reduce the total project
duration by shortening the time of one or more critical path activities, usually by adding
extra resources.
What is pure project organization? Briefly write down the advantages and
disadvantages of pure project organization.
A Pure Project Organization is a structure where the project works like a separate unit, away
from the main company. It has its own team, managers, and resources. The main company
checks on it sometimes, but the project team handles most things by themselves.
Advantages of Pure Project Organization
1. Full authority for the project manager: The project manager is the main boss and can
make all decisions for the project.
2. Faster communication: Team members can talk directly to each other, which saves
time and avoids confusion.
3. Keeps experts for similar future projects: If the company often does similar projects,
it can keep skilled people on the team long-term.
4. Team members are highly committed: Everyone in the project works with strong
focus and dedication.
5. Quick decision-making: Since the team is independent, decisions can be made fast
without waiting for approval from others.
6. One clear boss: Each person reports to only one manager, which avoids confusion.
7. Simple and flexible structure: The setup is easy to manage and can quickly adjust if
needed.
8. Looks at the whole project: The team focuses on the project as a whole, not just their
part, which improves overall results.
Disadvantages of Pure Project Organization
1. Work is repeated in many areas: Each project may do the same kind of work
separately, which wastes time and resources.
2. Experts are hired based on availability, not timing: Skilled people may be hired too
early or too late, which increases the cost of the project.
3. Hard to get technical support: The main company’s technical experts and tools are
not always available to help the project team.
4. Different ways of doing things: Each project may follow its own rules and methods,
causing confusion and inconsistency.
5. “Projectitis” can happen: People may focus only on their project and ignore the rest
of the organization, which creates problems.
6. Worry about what happens after the project: When the project ends, team members
may feel unsure about their future role or job in the company.
Elucidate Matrix organization. Briefly write down the advantages and disadvantages
of matrix organization.
Matrix Organization
A Matrix Organization is a special kind of structure that combines the best features of both
functional and project-based organizations.
In this system, an employee works under two managers at the same time:
• A Functional Manager (like from Marketing, HR, or Finance)
• A Project Manager (who manages a specific project)
This helps companies use people more flexibly and efficiently.
Advantages of Matrix Organization
1. Project is the Main Focus: Everyone works together with a clear goal: to complete the
project successfully. It helps improve performance and teamwork.
2. Access to All Department Resources: The project team can use technology,
knowledge, and experts from all departments (like HR, IT, Finance). This improves the
quality and speed of the project.
3. Less Stress When Project Ends: Employees don’t lose their jobs after the project is
done—they go back to their regular departments. This gives a sense of job security.
4. Quick Response to Client Needs: Since people from different areas work together, it’s
easier and faster to solve client problems or make changes. This makes clients happier.
5. Follows Company Rules and Policies: Projects include members from administration
units (HR, Accounts, etc.), so they help ensure the project follows company rules and
procedures.
6. Balanced Use of Resources: Resources like people, tools, and money can be shared
wisely across projects and departments. No waste or overload in one area.
7. Flexible Design: Matrix organization can be adjusted easily depending on the
company’s size, type of work, or project complexity. It can be strong, weak, or balanced,
depending on the situation.
Disadvantages of a Matrix Organization
1. Conflict between functional and project managers: Sometimes both managers want
to make decisions, which can lead to arguments or confusion.
2. Difficult to balance time, cost, and performance: It’s hard to manage everything
perfectly at the same time. One thing might suffer while focusing on another.
3. Uncertainty and “projectitis”: People may feel unsure about their roles or become too
focused only on their project, ignoring the bigger picture.
4. Confusing authority: The Project Manager looks after daily work, and the
Functional Manager takes care of technical parts. So the project manager must often
negotiate or ask for help, which slows things down.
Cost Estimation Variants?
• Scaling: Scale economies or diseconomies exist.
– If the average cost per unit of capacity is declining, then scale economies
exist. Conversely, scale diseconomies exist if average costs increase with
greater size.
• Parametric Estimation: A method for estimating future proceedings based on
analysis of past events and trends.
• Historical Cost Data
• Cost Indices: Consumer Price Index and Producer Price Index
• Earned value Analysis: Takes into consideration the project context for the planned
and actual expenditures and integrates the project scope, schedule, and resource
characteristics into a comprehensive set of measurements.
Define Budget?
A budget is a plan that shows how much money you expect to earn and how much you plan to
spend over a certain period of time.
Top-Down Budgeting:
• Collecting the judgments & experiences of top & middle managers and available past
data concerning similar activities.
• The cost estimates are then given according to WBS to follow.
• But lower managers argue for insufficient funds and sometimes feel forced to comply.
• Aggregate budgets can be quite accurate.
Bottom-Up Budgeting:
• Elemental tasks, schedules and budgets are constructed following the WBS.
• Mostly accurate as the people performing the task provide the budget.
• All aspects are covered.
• Participative management.
