Student ID ________________

Semester / Year: Semester 1 2018

Faculty / Dept: Management and Marketing

Subject Code: MGMT20003

Subject Name: Project Management

Writing Time: 2 hrs

Reading Time: 15 minutes

Open Book Status: Yes / No

Number of Pages (including this page): 11 pages

Authorised Materials:
Any written or published material. Calculator

Instructions to Students:
This examination contributes 60 % to the final subject mark.

This examination paper includes 4 sections:

Section A Contains 20 multiple choice questions. You are required to answer all 20 questions.
This section accounts for 10 marks

Section B: Contains 6 short answer questions. You are required to answer 5 short answer
questions. This section accounts for 10 marks.

Section C: Contains 2 questions. You are required to answer both questions. This section
accounts for 20 marks.

Section D: Contains 3 essay type questions based on a common case study. You are required
to answer all 3 questions. This section accounts for 20 marks.

Instructions to Invigilators:
Student may keep the paper: Yes / No
Student may annotate the paper during reading time: Yes / No
Paper to be held by Library: Yes / No

Extra Materials Required:

Multiple Choice Answer form

Page 1 of 11
 Section A 10 Marks

This section contains 20 multiple choice questions. Answer all questions on the multiple choice
sheet provided.

1) While agile project management does not consist of one set method, most methods are based on
similar principles. Which of the following agile project management principles would be described
when testing assumptions early and building working prototypes to solicit customer feedback and
refine product requirements?

A. Focus on customer value

B. Iterative and incremental delivery
C. Experimentation and adaptation
D. Self-organization
E. Continuous improvement

2) The ________ distribution is used by PERT analysis to calculate expected activity times and variances.

A. Normal
B. Binomial
C. Alpha
D. Gaussian
E. Beta

3) A local project being analyzed by PERT has 42 activities, 13 of which are on the critical path. If the
estimated time along the critical path is 105 days with a project variance of 25, what is the probability
that the project will be completed in 95 days or less?

A. -0.4
B. 0.0228
C. 0.3444
D. 0.9772
E. 4.2

4) When the project may be completed early with some parts of the project eliminated this is considered
to be ___________ closure.

A. Normal
B. Failed project
C. Perpetual
D. Changed priority
E. Premature

5) Researchers have found that high-performance teams have norms for team interaction. Which of the
following is NOT one of those norms?

A. Hard work does not get in the way of having fun

B. No information is shared outside the team unless all agree to it
C. It is acceptable to be in trouble, but not to surprise others
D. When a decision has to be made, everyone should agree before moving forward
E. There is no tolerance for bulling a way through a problem or issue

Page 2 of 11
6) One difference between project management and project leadership is that project management
includes

A. Recognizing the need to alter direction.

B. Aligning people to meet new directions.
C. Monitoring results against plans.
D. Motivating people to meet new objectives.
E. Deviating from the plan.

7) Which of the following is NOT a rational reason to reduce project duration?

A. Incentive contracts
B. High network sensitivity
C. Imposed deadlines
D. High overhead costs
E. Unforeseen delays

8) These are all guidelines a project manager should consider when assigning project work EXCEPT

A. Select people with compatible work habits and personalities.

B. Always assign the best people to the most difficult tasks.
C. When possible, team veterans up with new hires.
D. Select individuals with skillsets that complement each other.
E. Have people work together early so that they can become familiar with each other.

9) In a resource-constrained project the third priority in assigning resources is usually given to activities
with the

A. Smallest duration.
B. Least slack.
C. Most slack.
D. Lowest identification number.
E. Highest cost.

10) Why is it necessary to have a time-phased budget baseline?

A. It allows proper resource allocation

B. It shows how much work was accomplished for the money spent
C. It reduces schedule slippage when scheduling multiproject resources
D. It is not necessary to have a time-phased budget baseline
E. It reduces fluctuations in cash flow during the project

11) In a resource-constrained project the third priority in assigning resources is usually given to activities
with the

A. Smallest duration.
B. Least slack.
C. Most slack.
D. Lowest identification number.
E. Highest cost.

Page 3 of 11
12) The risk associated with the unlikelihood that one of the key members will be struck by lightning
would most likely be handled by which of the following?

A. Mitigating
B. Retaining
C. Ignoring
D. Transferring
E. Avoiding

13) A network has been crashed to the point where all activities are critical. Additional crashing:
A. is unnecessary.
B. may require crashing multiple tasks simultaneously.
C. is prohibitively expensive.
D. is impossible.
E. can be done, but all critical tasks must be reduced in duration.

14) Scrum uses a series of coordinated meetings to manage the development process. During which of the
following is it discussed what was done since the last meeting, what will be done before the next
meeting, and if anything is limiting performance?

A. Sprint planning meeting

B. Release planning meeting
C. Sprint review meeting
D. Sprint retrospective meeting
E. Daily Scrum meeting

15) Activity D on a CPM network has predecessors B and C, and has successor F. D has duration 6. B's
earliest finish is 18, while C's is 20. F's late start is 26. Which of the following is definitely true?

A. B is a critical activity.
B. C is completed before B.
C. D has no slack but is not critical.
D. D is critical, and has zero slack.
E. F is critical, and has zero slack.

16) A project whose critical path has an estimated time of 120 days with a variance of 100 has a 20%
chance that the project will be completed before which day (rounded to nearest day)?
A. 98
B. 112
C. 120
D. 124
E. 220

17) Change management systems are designed to accomplish all of the following EXCEPT

A. Track all changes that are to be implemented.

B. Review, evaluate, and approve/disapprove proposed changes formally.
C. Identify expected effects of proposed changes on schedule and budget.
D. Reflect scope changes in baseline and performance measures.
E. All of these are examples of what change management systems are designed to accomplish.

Page 4 of 11
18) The following are responsibilities of the governance team when managing a portfolio system EXCEPT

A. Deciding how they wish to balance the available organizational resources among the different
types of projects.
B. Publishing the priority of every project and ensuring the process is open and free of power
politics.
C. Evaluating the progress of the projects in the portfolio.
D. Constant scanning of the external environment to determine if organizational selection criteria
need to be changed.
E. Communicating which projects are approved.

19) At Peter’s Bike’s contract requirements state that a project must be completed within 180 working
days, or it will incur penalties for late completion. Analysis of the activity network reveals an
estimated project time of 145 working days with a project variance of 400. What is the probability that
the project will be completed before the late-payment deadline?

A. 0.0401
B. 0.4599
C. 0.8056
D. 0.9599
E. near 1.0000, or almost certain

20) Two critical path activities are candidates for crashing on a CPM network. Activity details are in the
table below. To cut one day from the project's duration, activity ________ should be crashed first,
adding ________ to project cost.

Activity Normal Time Normal Cost Crash Time Crash Cost

One 8 days $6,000 6 days $6,800
Two 10 days $4,000 9 days $5,000

A. One; $400
B. One; $6,800
C. Two; $1,000
D. Two; $5,000
E. One or Two should be crashed; $1,400

(20*.5 =10 Marks)

Page 5 of 11
 Section B 10 Marks

This section contains 6 short answer questions. You need to answer 5 out of the 6 questions.

Q1. After constructing a project network based on technical constraints and reviewing resource
requirements throughout the project, Anne realizes many peaks and valleys in regard to resource
usage. At one point Anne needs 6 developers, but top management has made it very clear that she
will not have access to more than 4. Classify Anne's project in terms of her scheduling problem. What
are her options at this point?

Q2. What does it mean to say that a project network is sensitive and why is that important to a project
manager who needs to reduce the duration of his or her project?

Q3. What is the percent complete rule and what role does it play when developing an earned value
cost/schedule system?

Q4. What are three common barriers to effective lessons learned from projects?

Q5. During the closure process, how can a project manager meet the challenge to keep the project team
focused on the remaining project activities and delivery to the customer until the project is complete?

Q6 Compare and contrast traditional approaches to project management and agile approaches to project
management.

(2 +2+2+2+2 =10 Marks)

Page 6 of 11
 Section C 20 Marks

This section contains two question you are to answer both questions

Q1. As part of a new product development project a team has identified 8 initial activities
(All times are in days). Indirect costs are $ 700 per day
Crash
Normal Normal $ Time Crash $
Activity Predecessor Time Days Cost Days Days Cost Days
a — 5 $500 2 $2500
b — 4 200 1 2000
c a 7 700 5 1600
d a, b 2 200 1 1500
e a, b 3 800 — —
f b, c 8 800 3 3700
g d 5 500 3 1000
h e, f, g 6 600 2 1800

(a) Draw the network diagram for normal time and provide clear answers to the following
questions:
(i) Find each activity's ES, EF, LS, and LF and slack time.
(ii) Identify all paths. Identify the critical and near paths?
(iii) For an all-normal level of project activity calculate the time and cost
3 marks

(b) Calculate the crash cost-per-day (all activities may be partially crashed). Find the optimal
project duration. What is the project cost? Calculate the shortest delivery time for the
project. What is the cost? Clearly explain the rational for the steps used.
3 Marks

(c) How might probabilistic rather than deterministic estimates change how you might calculate
the optimal project duration and the short delivery time for a project.
2 Marks

(d) Activities d and e both start at the same time but currently have resource loading problems and the
project however has a low staff utilization rate. Suggest a possible cost effective solutions to this problem.
How would this solution be effected if the project was fully crashed
2 Marks

(3+3+2+2 =10 Marks)

Page 7 of 11
Q2. Hogsworth Lighting and Earned Value

Hogswoth Lighting, Inc. develops stages, lighting systems, and special effects for the
concert tours of major musical acts. Recently, they were approached by Peacock, a popular
band, to develop the stage, lighting, and special effects for its upcoming tour.

The project to develop the stage, lighting, and special effects for a concert tour progresses
through four major phases. In the first phase, which lasts about a week, Hogswoth
develops a sound track for the concert based on the song list the band provides it for the
tour. Using the sound track, Hogswoth employees develop a synchronized lighting and
special effects show on a computer that allows them to view an animated stage with the
lighting and special effects as the sound track is being played.

In the second phase, the materials needed for the stage, lighting, and special effects are
ordered from outside suppliers. The lead time for receiving these materials is 4 weeks, and
during this period the project team members are assigned to other projects.

Once all the materials arrive, the third phase involves constructing the stage with the
lighting and special effects. Also, writing the computer code to control the lighting and
special effects is done in the third phase. This phase takes 3 weeks.

In the final phase, which takes a week, the lighting and special effects are tested and
enhanced. The total cost of the Peacock project is estimated to be $600,000 of which
$400,000 is for the stage, lighting equipment, and special effects, and $200,000 is for labor
costs.

Rupert Page was recently hired as Hogswoth’s VP of Operations. All the project managers
that oversee the stage and lighting projects report to Rupert. Prior to joining Hogswoth
Lighting, Rupert served as a project manager for a leading management consulting firm for
10 years. Based on his extensive project management experience, one of the first things
Rupert did in his new role as VP was implement a formal project reporting system that
would help him monitor the progress of the projects under way.

The Peacock project had been underway for 5 weeks, and all the materials had arrived. The
project team was now ready to start the third phase of the project and construct the stage
with the designed lighting and special effects.

In reviewing the most recent progress report for the Peacock project and based on his
project management experience, Rupert became gravely concerned. According to the
report, the project had an earned value of $120,000 based on the project manager Henry
Rush’s estimate that 20 percent of the project had been completed. In further studying the
report, Rupert observed that the planned value and actual costs incurred were both
$440,000.

Based on his concern, Rupert decided to walk down the hall to Henry’s cubicle and discuss
his concerns related to the progress on the project.

Rupert began:

Page 8 of 11
 I just reviewed the progress report for the Peacock project, and I am very concerned that
the project is falling way behind schedule. Based on my review, it appears there are very
significant cost and schedule variances. As you know, we have a hard deadline for
completing the project as the Peacock needs everything fully operational 2 weeks prior to
the start of their tour so they can rehearse with it.

Henry responded:

To be perfectly honest, I don’t know much about schedule and cost variances but I do have
a great deal of experience managing these projects. Again, I don’t know how you
calculated the variances you mentioned, but in my view we are exactly where we should
be.

To this Rupert replied:

I don’t see how you can possibly think the project is on track when it has an earned value
of only $120,000 and the planned value by this point in the project is $440,000? And I am
equally disturbed you don’t understand basic project management concepts such as
earned value.

Later that day, Henry shared his frustration about his new boss with one of the project
team members. “Rupert really chewed me out today. He questioned my ability to manage
a project. I wonder if he even understands the nature of these projects. Does he even get it
that two thirds of the project costs are for materials and that these costs are incurred in
the early part of the project?”

(a) Calculate the schedule variance and the schedule performance index (SPI) (SPI = EV/PV) and
cost variance and the cost performance index (CPI = EV/AC) for the Peacock project. What is
the projects critical ratio (CR = CPI * SPI)? Explain the steps and any assumptions you used to
determine your answers.

3 marks
(b) Calculate the estimated remaining cost to completion (ETC = (BAC – EV) / CPI) and the
estimated total cost at completion (EAC = ETC + AC). Explain the steps and any assumptions
you used to determine your answers. Identify and critically address the assumptions made
by Rupert and Henry. Explain what these answers mean in terms of project progress and
what management steps should be taken.

7 marks
(3 + 7 = 10 Marks)

Page 9 of 11
 Section C (20 Marks)

Alien and a new line of gaming laptops.

Pina Colada is an expert in digital signal processing and was promoted to Senior Design Engineer just 18
months after Alien whose company motto is “ For gamers by gamers”. After serving as a Senior
Design Engineer a year, Pina was promoted to Project Manager and asked to oversee a product
development project involving a relatively minor product line extension one of Alien’s gaming
keyboards. Alien had a range of existing gaming laptops and gaming peripherals that are distributed
through a network of value-added resellers. After completing the gaming keyboard product line
extension project about nine months ago, Pina was asked to serve as the project manager for a project
to develop a new line of ”superlite” gaming laptops. This was the first time Pina was to lead a major
strategic project for the organization.

Pina wasted no time in planning the project. Based on the success of the product line extension
project, Pina decided to modify the work breakdown structure she had developed for the product line
extension project and apply it to this new project to develop a new line of notebook computers. Pina
recalled the weeks of planning that went into developing the work breakdown structure for the desk-
top product line extension project. The entire project team had been involved, and that was a
relatively straightforward product line extension. The current project was more complicated, and
there simply was not sufficient time to involve all team members. What was the point of wasting
valuable time and resources to re-invent the wheel? Pina thought between her experience and the
suggestions made by the Vice-President she had more than enough information to plan the project.

After modifying the work breakdown structure, Pina scheduled a meeting with the Vice-President of
Product Development to discuss staffing the project. As was typical of other product development
projects at Alien, Pina and the Vice-President agreed that the project should be housed within the
engineering division. In his capacity as project manager, Pina would serve as liaison to other functional areas
such as marketing, purchasing, finance, and production. However thought since they had finished the desktop
product line extension project they should have plenty of spare capacity for the new line of notebook
computers. Pina was concerned that half the engineers had already been assigned to other projects but
thought that if everything worked out well it should still work. She thought, “It was not worth worrying
about risks that had not yet occurred.”

As the project progressed, it continued to slip behind schedule but Pina was not confident that the SPI and CPI
numbers were correct. Pina thought it was necessary however to schedule another meeting each week to
address how unanticipated activities would be completed. For example, last week the team realized that no
one had been assigned to design a light system to allow the screen to attach and detach the base so that it could
be used as a touch screen. .

Indeed, Pina found himself increasingly in crisis mode. For example, this morning the manufacturing group
sent a heated email to Pina complaining about his conflict management style which was described as
aggressive. The manufacturing group noted that they just learned of the notebook computer project and based
on the design presented to them, they would not be able to manufacture the printed circuit boards because
of the extensive amount of surface mount components required. Pina responded to this message by noting that
the engineering group was doing its job and had designed a state-of-the-art notebook computer. He added
that it was the manufacturing group's problem to decide how to produce it. He thought some people just do
not have a "can do" attitude wanted to spend too much time talking about problems.

Just as troubling was the crisis that had occurred earlier in the week. The Vice-President of Product
Development had requested that the notebook computer incorporate a new type of interface that would
Page 10 of 11
allow the notebook computer to synchronize information with the new portable playing platform Alien was
about to introduce. Pina explained that incorporating new interfaces for high speed synchronize of large
would delay the introduction by a minimum of several months. Nevertheless, the Vice-President was adamant
that the change be made. The Vice-President of Product Development said to Pina it was pretty obvious from
Alien's President's speech last week that all Aliens products would interface with each other and expressed
concern that Pina seems to be losing his "can do" attitude and wanting to spend too much time talking about
problems. The Vice-President of Product Development thought it was time to get a new project
manager. He felt Pina did not know how to play the game.

Questions:

Q1 Good project management governance and auditing processes could have been used to
lessen or avoid a number of problems encountered in this project. Clearly identify three
problems and how these could be addressed. Define all terms used and specifically tied
action to specific aspects of the case.
6 marks

Q2. How could some of the problems facing Pina been avoided if she had used better project
team formation and conflict management skills? Define all terms and clearly identify how
two models discussed this semester could have been used by Pina to avoid specific
problems in the areas of project team formation and conflict management.
6 marks

Q3 What contribution does Alien’s project management maturity level and Pina Colada’s
competence as a project manager play in the creation and maintain of the problem encountered in
this project. Clearly define all terms used and link specific elements of the case to justify answer,

8 marks

(6 + 6 + 8 = 20 Marks)

END OF EXAMINATION

Page 11 of 11
Library Course Work Collections

Author/s:
Management and Marketing

Title:
Project Management - Open Book, 2018, Semester 1, Mgmt20003

Date:
2018

Persistent Link:
http://hdl.handle.net/11343/219591