FUNDAMENTAL OF PROJECT
MANAGEMENT
MIDTERM-EXAM
AROOMA MAHJABEEN
MSPM
1A
2067175
Question No. 1
Answer the short questions:
1. Explain the triple constraint concept of project management?
Answer: - The triple constraint concepts of project management comprises of scope,
cost and time. According to this theory, all the projects operate within the boundaries of
scope, time, and cost. And a change in one factor will invariably affect the other two.
For instance, if a client wants to add a bunch of new features to the project’s scope,
they’ll have to budget more time and money to get ‘er done.
This constraint is also called as project management triangle. As each side of the
triangle represents the triple constraints of project management i.e., scope, time, and
cost.
Scope defines the features of the project, time or schedule defines the deadlines,
timelines, start time or end time of the project. Whereas, cost defines the budget and
resources of the project.
2. What is project crashing?
Answer: - This is mainly to reduce the critical path by applying extra resources. It is a
term in the project management and it occurs when you shorten the duration of a
project by reducing the time of one or more tasks. It can be done by increasing the
resources to the project, which helps make tasks take less time than what they were
planned for. This is important when the triple constraint usually comes into play; scope,
time and budget. If one falls behind, the others have to make up the slack.
This includes the inclusion of extra machines or human resource. By doing so, we
can achieve the maximum work or productivity via bearing minimum cost. We will do
scheduling in a way that we will utilize maximum a day on a single activity not more
than that. For instance, if we want to finish the project in one month then we will do the
project crashing.
3. What are the major components of project charter?
Answer: - The main components of the project charter are as follows:
a. Executive summary
b. Project purpose/justification
i. Business need/case
ii. Business objectives
c. Project description
i. Project objectives and success criteria
ii. Requirements
iii. Constraints
iv. Assumptions
v. Preliminary scope statement
d. Risks
e. Stakeholder analysis
f. Project deliverables
g. Summary milestone schedule
h. Summary budget
i. Project manager and assigned team
j. Authorization
4. Differentiate between Work Breakdown Structure and Project Network Diagram?
Answer: -
Work Break Down is the most important aspect of setting up a project and It takes
similar approach but shows the work required to create the product.
Whereas, Project Network Diagrams prefer technique for showing activities
sequencing and also, it is a schematic display of logical relationships among or
sequencing of project activities.
Question No. 2
What are the Project Management Knowledge Areas? Write and briefly explain all knowledge
areas?
Solution: - Project Management comprises of 10 parts and they are also called as knowledge
areas of Project Management.
Knowledge Areas of Project Management:
Following are the knowledge areas of Project management
1. Project Integration Management:
Project integration management includes basic plans as developing the project charter
that is created during project initiation phase.
2. Project Scope Management:
Project Scope management defines the total amount of work required to deliver a
product, service or result with specified functions and features. By defining scope you’ll
create a management plan that defines, validates, and controls scope.
3. Project Time Management:
This knowledge area defines the timelines for the project deliverables to make more
effective schedule for project completion. It directly impacts the quality, scope, and cost
of a project, making it one of the most important knowledge areas.
4. Project Cost Management:
Cost management in project is the process of planning, estimating, budgeting, and
controlling project costs. Cost management is a very critical knowledge area but it helps
the project teams plan and control budget of the project.
5. Project Quality Management:
Project Quality Management defines the measures to maintain the quality of the
product to meet the needs of stakeholders.
6. Project Resource Management:
Resource Management in project management involves managing and assigning your
organization’s resources like budgets, capacity, and team members.
7. Project Communication Management:
Project Communication Management includes the processes to ensure the information
needs to be effectively exchanged between the stakeholders of the project and plays
the important role in keeping the entire project team on same page.
8. Project Risk Management:
Project Risk Management includes the processes which calculates the risk analysis of the
project because it is very unrealistic to say that the project will go smoothly. Risk
analysis and its work around to be defined to make sure that project does not go
unhandled at any point.
9. Project Procurement Management:
It includes the processes necessary to procure resource for the project to deliver project
within timelines defined because you won’t have every resource in-house to complete a
task.
10. Project Stakeholder Management:
Stakeholder are not only the project members but all the team members which are
directly or indirectly connected to the project. It includes the processes to manage the
stakeholders efficiently with the needs to be taken care of during project cycle.
Question No. 3
The network and durations given below shows the normal schedule for a project. You can
decrease (crash) the durations at an additional expense. The Table given below summarizes
the time-cost information for the activities. The owner wants you to finish the project in 110
days. Find the minimum possible cost for the project if you want to finish it on 110 days.
(Assume that for each activity there is a single linear, continuous function between the crash
duration and normal duration points)?
Solution: -
Path A takes 120 days
PATH B-C-D-E takes 120 days
PATH B-F-E takes 130 days
To complete project in 110 days:
Activity Normal Crash Normal Crash Cost Days Saved Crash Cost
duration Duration Cost Per Day
(days) (days)
A 120 100 12000 14000 20 100
B 20 15 1800 2800 5 200
C 40 30 16000 22000 10 600
D 30 20 1400 2000 10 60
E 50 40 3600 4800 10 120
F 60 45 13500 18000 15 300
From first path we will decrease 10 days from A costing us 1000
From second path 10 days from D, 10 days from E, 5 days from B and 5 from C costing us
600+1200+1000+3000=5800
From third path 10 days from E, 5 days from B and 5 days from F costing us
1200+1000+1500=3700
Total Crashing Cost=1000+5800+3700=10500
Individual costs are:
A= 14000-12000 = 2000/20=100 per day.
120-100
B= 2800-1800/20-15= 1000/5=200 per day
C= 22000-16000/40-30=600 per day
D= 2000-1400/30-20=60 per day
E= 4800-3600/50-40=120 per day
F= 18000-13500/60-45=300 per day
CRITICAL PATH B C D E
20 40 30 50 140 DAYS
Project crashed to critical path to 110 days, so we need to crash the 30 days on critical path
Activity Crash Cost Can be Crash Days Minimum
Per Day Crash Days Crash Cost
B 200 5 5 1000
C 600 10 5 3000
D 60 10 10 600
E 120 10 10 1200
Total 35 30 5800
Minimum Possible Cost = 5800+22800 = 28600
Question No. 4
Solve the case study and answer the following.
1) What problems can you see in the way project managers were assigned in the past?
Answer: - In my view, there are many problems regarding project assignment to project
managers as:
a. First of all, there was a communication gap between managers and clients. Also, the
agreement has already been signed and then handed over to project managers. So,
the project managers got the project too late in the process.
b. Moreover, the project was just handed to the project managers without any detailed
discussion with the clients. It mainly happened due to the communication gap i.e.,
the managers did not have much contact with the client.
c. In any organization, Project management expertise is the key to project success. But
in Apache Metals, Inc., there was no criteria defined to be the manager. Any person
could be a project manager, even new trainees in the company. Whereas, project
manager should be an experienced and skilled person, who can handle and manage
a project. There should not be an inexperienced person leading important projects.
2) Will the new approach taken in 2007 put the company on a path to excellence in
project management?
Answer: - In my view, the new approach is very necessary and good for the company.
Following new approach, they identified and fixed their discrepancies and flaws. Which
helped a lot put the company on a path to excellence in project management. Also, the
training of project managers and lessening the communication gap is another good step.
Last but not least they could do is involve the project manager in the writing of the
contract with the sales person.
3) What skill set would be ideal for the future project managers?
Answer: - As we know, project management expertise is the key to project success in
terms of meeting project objectives on time, within budget and according to the
required quality standards. So, the new project managers need to have excellent
communication and leadership skills. Also, they need to be able to motivate people and
let them visualize the whole picture of the project.
