OCTOBER/NOVEMBER 2014

ANSWER ANY TWO OF THE FOLLOWING THREE QUESTIONS.

QUESTION 1

1.1 Identify and briefly describe the stages of the project life cycle. Further illustrate the project life
cycle by means of a figure. (10)

1) Defining stage

Specifications of the project are defined; project objectives are established; teams are formed;
major responsibilities are assigned.

2) Planning stage

The level of effort increases, and plans are developed to determine what the project will entail,
when it will be scheduled, whom it will benefit, what quality level should be maintained, and what
the budget will be.

3) Executing stage

A major portion of the project work takes place-both physical and mental. The physical product is
produced (a bridge, a report, a software program). Time, cost, and specification measures are use
for control.

4) Closing the project

Closing include three activities: delivering the project product to the customer, redeploying project
resources, and post-project review. Delivery of the project might include customer training and
transferring documents. Redeployment usually involves releasing project equipment/materials to other
projects and finding new assignments for team members. Post project reviews include not only
assessing performance but also capturing lessons learned.

1.2 Identify and briefly describe the six factors that are increasing the demand for project management.
(6)

The Importance of Project Management

a) Compression of the Product Life Cycle

One of the most significant driving forces behind the demand for project management is the
shortening of the product life cycle. For example, today in high-tech industries the product life cycle
is averaging 1 to 3 years. Only 30 years ago, life cycles of 10 to 15 years were not uncommon. Time
to market for new products with short life cycles has become increasingly important.

b) Knowledge Explosion

The growth in new knowledge has increased the complexity of projects because projects encompass
the latest advances. For example, building a road 30 years ago was a somewhat simple process.
Today, each area has increased in complexity, including materials, specifications, codes, aesthetics,
equipment, and required specialists.

c) Triple Bottom Line (planet, people, profit)

The threat of global warming has brought sustainable business practices to the forefront. Businesses
can no longer simply focus on maximizing profit to the detriment of the environment and society.
Efforts to reduce carbon imprint and utilize renewable resources are realized through effective
project management.

d) Corporate Downsizing

The last decade has seen a dramatic restructuring of organizational life. Downsizing (or rightsizing if
you are still employed) and sticking to core competencies have become necessary for survival for
many firms.

e) Increased Customer Focus

Increased competition has placed a premium on customer satisfaction. Customers no longer simply
settle for generic products and services. They want customized products and services that cater to
their specific needs.

f) Small Projects Represent Big Problems

 Many firms have no idea of the problems involved with inefficient management of small projects.
Small projects typically carry the same or more risk as do large projects.

1.3 Identify and explain the four activities of the strategic management process (8)

Four Activities of the Strategic Management Process

The typical sequence of activities of the strategic management process is outlined here; a description of
each activity then follows:

1. Review and define the organizational mission.

2. Set long-range goals and objectives.

3. Analyze and formulate strategies to reach objectives.

4. Implement strategies through projects.

Review and Define the Organizational Mission

The mission identifies “what we want to become,” or the raison d’être. Mission statements identify the
scope of the organization in terms of its product or service. A written mission statement provides focus
for decision making when shared by organizational managers and employees.

Set Long-Range Goals and Objectives

Objectives translate the organization mission into specific, concrete, measurable terms. Organizational
objectives set targets for all levels of the organization. Objectives pinpoint the direction managers
believe the organization should move toward.

Analyze and Formulate Strategies to Reach Objectives

Formulating strategy answers the question of what needs to be done to reach objectives. Strategy
formulation includes determining and evaluating alternatives that support the organization’s objectives
and selecting the best alternative.

Implement Strategies through Projects

Implementation answers the question of how strategies will be realized, given available resources.

QUESTION 2

2.1 Check the table and answer questions (15)

2.2 Identify and briefly describe the three elements that are traditionally used to measure the ultimate
success of a project. (6)
 a) Cost (budget)
To get the project done quickly or less expensively.

b) Time (schedule)
Often the longer a project takes, the more expensive it becomes.

c) Performance (scope)
with regard to performance, enhancing means adding value to the project.
Project managers must define and understand the nature of the priorities of the project. They
need to have a candid discussion with the project customer and upper management to establish
the relative importance of each criterion.

2.3 Briefly discuss three factors which influence the quality of budgeting. (3)

2.4 What is meant by a Work breakdown structure and how does it help manage projects? (2)

Once the scope and deliverables have been identified, the work of the project can be successively
subdivided into smaller and smaller work elements. The outcome of this hierarchical process is called
the work breakdown structure (WBS). The WBS is a map of the project.

Use of WBS helps to assure project managers that all products and work elements are identified, to
integrate the project with the current organization, and to establish a basis for control. Basically, the
WBS is an outline of the project with different levels of detail.

2.5 Identify and briefly describe the two classifications of scheduling problems. (4)
A time-constrained project is one that must be completed by an imposed date. If required, resources
can be added to ensure the project is completed by a specific date. Although time is the critical factor,
resource usage should be no more than is necessary and sufficient.

A resource-constrained project is one that assumes the level of resources available cannot be exceeded.
If the resources are inadequate, it will be acceptable to delay the project, but as little as possible.

QUESTION 3

3.1 What is meant by the term “groupthink?” Further identify the four symptoms related to groupthink.
(6)

The term refers to the tendency of members in highly cohesive groups to lose their critical evaluative
capabilities. This malady appears when pressures for conformity are combined with an illusion of
invincibility to suspend critical discussion of decisions. As a result, decisions are made quickly with little
consideration of alternatives; often the practice leads to fiascoes that, after the fact, appear totally
improbable.

Some of the symptoms of groupthink include the following:

• Illusion of invulnerability. The team feels invincible. It is marked by a high degree

of esprit de corps, an implicit faith in its own wisdom, and an inordinate
optimism that allows group members to feel complacent about the quality of
their decisions.
• Whitewash of critical thinking. The group members discuss only a few solutions,
ignoring alternatives; they fail to examine the adverse consequences that could
follow their preferred course of action; and they too quickly dismiss any alternatives
that, on the surface, appear to be unsatisfactory.
• Negative stereotypes of outsiders. “Good guy/bad guy” stereotypes emerge in
which the group considers any outsiders who oppose their decisions as the bad
guys, who are perceived as incompetent and malicious and whose points are
unworthy of serious consideration.
• Direct pressure. When a team member does speak out or question the direction in
which the team is headed, direct pressure is applied to the dissenter. He or she is
reminded that speed is important and that the aim is agreement, not argument.

3.2 What are the six major activities that need to be considered when implementing project closedown?
(6)

Implementing closedown includes the following six major activities:

1. Getting delivery acceptance from the customer.
2. Shutting down resources and releasing to new uses.
3. Reassigning project team members.
4. Closing accounts and seeing all bills are paid.
5. Delivering the project to the customer.
6. Creating a final report.

3.3 Identify and briefly discuss the two basic forms of contract used in project management. State the
advantages and disadvantages of each type. (4)

The first is the “fixedprice” contract

A price is agreed upon in advance and remains fixed as long as there are no changes to scope or
provisions of the agreement.

Fixed-price contracts are preferred by both owners and contractors when the scope of the project is
well defined with predictable costs and low implementation risks. Fewer potential changes reduce
project uncertainty and allow the contractors to more efficiently manage their resources across multiple
projects.

The disadvantage of a fixed-price contract for owners is that it is more difficult and more costly to
prepare.

The primary disadvantage of a fixed-price contract for contractors is that they run the risk of
underestimating.

The second is a “cost-plus” contract

The contractor is reimbursed for all or some of the expenses incurred during the performance of the
contract. Unlike the fixedprice contract, the final price is not known until the project is completed.

Buyers have the most risk with cost-plus percentage of cost contracts because they do not know in
advance what the suppliers’ costs will be and suppliers may be motivated to increase costs. From the
suppliers’ perspective, the cost-plus contract offers the least risk and the firm fixed-price contract entails
the most risk.

3.4 Briefly explain the rationale for reducing project duration (2)

There are many good reasons for attempting to reduce the duration of a project. One of the more
important reasons today is time to market. Intense global competition and rapid technological advances
have made speed a competitive advantage. To succeed, companies have to spot new opportunities,
launch project teams, and bring new products or services to the marketplace in a flash. Perhaps in no
industry does speed matter as much as in the electronics industry.

3.5 Identify and briefly describe five of the selection criteria generally used in proposal evaluation and
selection. (5)

 project price
 the solution’s ability to satisfy the stated needs (solutions or technical approach)
 return on investment
 project plan and management
 qualifications and reputation of the contractor
  likelihood of success or failure (risks)
 fit to contractor resources and technological capability

MAY/JUNE 2015

ANSWER ANY TWO OF THE FOLLOWING THREE QUESTIONS.

QUESTION 1

1.1 Identify the four common characteristics between project and operations management. (4)

 performed by individuals
 limited by constraints, including resource constraints
 planned, executed, monitored and controlled
 performed to achieve organizational objectives or strategic plans

1.2 Outline five characteristics of project management and explain how each of the characteristic is
different from business as usual activities. (10) Repeat

1. An established objective.

2. A defined life span with a beginning and an end.

3. Usually, the involvement of several departments and professionals.

4. Typically, doing something that has never been done before.

5. Specific time, cost, and performance requirements.

First, projects have a defined objective—whether it is constructing a 12-story apartment complex by

January 1 or releasing version 2.0 of a specific software package as quickly as possible. This singular
purpose is often lacking in daily organizational life in which workers perform repetitive operations each
day.

Second, because there is a specified objective, projects have a defined endpoint, which is contrary to the
ongoing duties and responsibilities of traditional jobs. In many cases, individuals move from one project
to the next as opposed to staying in one job. After helping to install a security system, an IT engineer
may be assigned to develop a database for a different client.

Third, unlike much organizational work that is segmented according to functional specialty, projects
typically require the combined efforts of a variety of specialists. Instead of working in separate offices
under separate managers, project participants, whether they be engineers, financial analysts, marketing
professionals, or quality control specialists, work closely together under the guidance of a
project manager to complete a project.
The fourth characteristic of a project is that it is nonroutine and has some unique elements. This is not
an either/or issue but a matter of degree. Obviously, accomplishing something that has never been done
before, such as building a hybrid (electric/gas) automobile or landing two mechanical rovers on Mars,
requires solving previously unsolved problems and breakthrough technology. On the other hand, even
basic construction projects that involve established sets of routines and procedures require some
degree of customization that makes them unique.

Finally, specific time, cost, and performance requirements bind projects. Projects are evaluated
according to accomplishment, cost, and time spent. These triple constraints impose a higher degree of
accountability than you typically find in most jobs. These three also highlight one of the primary
functions of project management, which is balancing the trade-offs between time, cost, and
performance while ultimately satisfying the customer.

1.3 What are the three major steps required to construct a project cost-duration graph? Further on
illustrate the project cost duration graph. (10) (Repeat 2.4 May/June 2017)

1. Find total direct costs for selected project durations.

2. Find total indirect costs for selected project durations.
3. Sum direct and indirect costs for these selected durations.

1.4 Identify three elements of the recommended project scope checklist. (3) Repeat

six elements of a project scope checklist:

1.5 Indicate the eight rules to follow when developing an AON project network for your organization. (8)

1. Networks flow typically from left to right.

2. An activity cannot begin until all preceding connected activities have been completed.
3. Arrows on networks indicate precedence and flow. Arrows can cross over each other.
4. Each activity should have a unique identification number.
5. An activity identification number must be larger than that of any activities that precede it.
6. Looping is not allowed (in other words, recycling through a set of activities cannot take place).
7. Conditional statements are not allowed (that is, this type of statement should not appear: If
successful, do something; if not, do nothing).
8. Experience suggests that when there are multiple starts, a common start node can be used to indicate
a clear project beginning on the network. Similarly, a single project end node can be used to indicate a
clear ending.

QUESTION 2

2.1 Identify the five steps in defining the project. (5)

2.2 Define the concepts of: (6)

(a) Project

A project is a temporary endeavor undertaken to create a unique product, service, or result. Like most
organizational effort, the major goal of a project is to satisfy a customer’s need.

(b) Project scope

Defining the project scope sets the stage for developing a project plan. Project scope is a definition of
the end result or mission of your project—a product or service for your client/customer. The primary
purpose is to define as clearly as possible the deliverable(s) for the end user and to focus project plans.
As fundamental and essential as scope definition appears, it is frequently overlooked by project leaders
of well-managed, large corporations.

(c) Scope creeping

Is the tendency for the project scope to expand over time—usually by changing requirements,
specifications, and priorities.

(d) Scope statement

Include specific cost, completion dates, and performance requirements.

2.3 Define the significance of a work breakdown structure (WBS) and list the seven guidelines for
estimating time, cost and resources. (9)

The WBS defines all the elements of the project in a hierarchical framework and
establishes their relationships to the project end item(s). The WBS is a map of the project. Use of WBS
helps to assure project managers that all products and work elements are identified, to integrate the
project with the current organization, and to establish a basis for control.

seven guidelines to develop useful work package estimates:

1. Responsibility.
2. Use several people to estimate.
3. Normal conditions.
4. Time units.
5. Independence.
6. Contingencies.
7. Adding risk.

2.4 Refer to Question Paper and Solve.

2.5 Identify the four steps in the risk management process. (4)
2.6 Objectives pinpoint the direction managers believe the organization should move toward. What
questions does a project objective answer? Provide an example with your answer. (5)

Objectives answer in detail where a firm is headed and when it is going to get there. Typically, objectives
for the organization cover markets, products, innovation, productivity, quality, finance, profitability,
employees, and consumers. In every case, objectives should be as operational as possible. That is,
objectives should include a time frame, be measurable, be an identifiable state, and be realistic.

QUESTION 3

3.1 REFER TO QUESTION PAPER FOR DETAILS & Also compare with Question 2.4 above!

3.2 What are the basic steps followed when developing a project communication plan? (5)Repeat Oct 16

1. Stakeholder analysis. Identify the target groups.

2. Information needs. What information is pertinent to stakeholders who contribute to the project’s
progress?
3. Sources of information. When the information needs are identified, the next step is to determine the
sources of information. That is, where does the information reside? How will it be collected?
4. Dissemination modes. In today’s world, traditional status report meetings are being supplemented by
e-mail, teleconferencing, Lotus Notes, SharePoint, and a variety of database sharing programs to
circulate information.
5. Responsibility and timing. Determine who will send out the information.

3.3 What is the difference between budget reserves and management reserves? (4)

Budget Reserves: These reserves are identified for specific work packages or segments of a project
found in the baseline budget or work breakdown structure. Budget reserves decrease as the project

progresses.
Management Reserves: These reserve funds are needed to cover major unforeseen risks and, hence,
are applied to the total project. Management reserves are established after budget reserves are
identified and funds established. These reserves are independent of budget reserves and are controlled
by the project manager and the “owner” of the project.

3.4 Identify, in order from the broadest to the most specific, the six levels of the hierarchal breakdown
of the Work Breakdown Structure (WBS). (6)

3.5 List and briefly explain the five core principles for ethical behavior. (10)

Purpose. Have your own personal mission statement. Decide what kind of business
you are in as a person. Picture yourself as an ethical person, somebody who is happy to
take a look at yourself critically in a “mirror test” at any time.
Pride. Develop a sense of satisfaction from your accomplishments. Believe in
yourself and your abilities. Confidence in yourself gives you the strength to make good
ethical decisions despite external pressure to act otherwise.
Patience. Have confidence in your decisions and take the time to wait out the results. Do
not second guess yourself and undo good decisions. Take the long-term view of the
consequences of your actions. Ethically based decisions do payoff in the long run.
Persistence. Keep to your commitments and make your actions consistent with your
guiding principles. Consistently act in a way that lives up to your mental image. Behave
ethically at all times, not only when it is convenient. Show the trait of ethical toughness.
Perspective. Take time away from the daily rush to awaken your inner self. Develop the
capability to see what is really important in any given situation.

OCTOBER/NOVEMBER 2015

ANSWER ANY TWO OF THE FOLLOWING THREE QUESTIONS.

QUESTION 1

1.1 The role of a project manager is different to that of a so-called “functional manager” Explain
whether you agree or disagree with this statement. (5)

Project managers perform the same functions as other managers. That is, they plan, schedule, motivate,
and control. However, what makes them unique is that they manage temporary, nonrepetitive activities,
to complete a fixed life project. Unlike functional managers, who take over existing operations, project
managers create a project team and organization where none existed before.

1.2 Explain the eight rules to follow in developing project networks. (8)

1. Networks flow typically from left to right.

2. An activity cannot begin until all preceding connected activities have been completed.
3. Arrows on networks indicate precedence and flow. Arrows can cross over each other.
4. Each activity should have a unique identification number.
5. An activity identification number must be larger than that of any activities that precede it.
6. Looping is not allowed (in other words, recycling through a set of activities cannot take place).
7. Conditional statements are not allowed (that is, this type of statement should not appear: If
successful, do something; if not, do nothing).
8. Experience suggests that when there are multiple starts, a common start node can be used to indicate
a clear project beginning on the network. Similarly, a single project end node can be used to indicate a
clear ending.

1.3 In the network computation process, what is meant by a forward pass? Also describe the three
aspects that it determines. (5)

Forward Pass—Earliest Times

1. How soon can the activity start? (early start—ES)
2. How soon can the activity finish? (early finish—EF)
3. How soon can the project be finished? (expected time—TE)

1.4 Define the term “organic nature of projects” Also describe the two properties that all project
organizations must have in order to be “organic” (4)

The integration of resources into a project is dynamic in nature and central to project management.
Cross-functional teams are common practice and the co-ordination of the multi-directional flow of work
and communication is crucial.

To be organic, all project organizations must have two properties:

(1) They integrate sub-units by using horizontal relations.

(2) They have organizational structures that are differentiated to suit the unique requirements of each
project and its environment.

1.5 Illustrate a project portfolio matrix and identify the major elements of such a matrix (10) Repeat

The grid has four quadrants, each with different project dimensions.
Bread and butter projects typically involve evolutionary improvements to current products and services.
Examples include software upgrades and manufacturing cost reduction efforts.

Pearls represent revolutionary commercial advances using proven technical advances. Examples include
next-generation integrated circuit chip and subsurface imaging to locate oil and gas.

Oysters involve technological breakthroughs with high commercial payoffs. Examples include embryonic
DNA treatments and new kinds of metal alloys.

White elephants are projects that at one time showed promise but are no longer viable. Examples
include products for a saturated market or a potent energy source with toxic side effects.

1.6 Identify and roughly illustrate the three basic project management structures. (3)
 Functional organization
 Weak Matrix organization
 Balanced Matrix organization

QUESTION 2

2.1 Read the diagram in the question paper and answer Repeat

2.2 Define “Project management philosophy” Explain why can project management be considered as
dynamic? (4) (Repeat May/June 2017 & Oct/Nov 2014)

The fundamental nature and reality of what project management really is. A study of the theoretical
basis of project management is important to describe this philosophy. The characteristics of a project
and the role of the project manager provide a set of theoretical truths about project management.

The nature of projects and project management explains its dynamics in terms of its importance and
characteristics. the dynamics with respect to change, new occurrences, challenges, risks, conflicts and
results. All these are inherently part of projects.

2.3 Explain the difference between work breakdown structure WBS and a project network. (4)

WBS: Once the scope and deliverables have been identified, the work of the project can be successively
subdivided into smaller and smaller work elements. Basically, the WBS is an outline of the project with
different levels of detail.

The WBS will serve as the database for developing the project network which establishes the timing of
work, people, equipment, and costs. The project network is the tool used for planning, scheduling, and
monitoring project progress. The network is developed from the information collected for the WBS

2.4 What is meant by the term “lag” and why would a project need to use it? (4)

A lag is the minimum amount of time a dependent activity must be delayed to begin or end.
The use of lags has been developed to offer greater flexibility in network construction. The use of lags in
project networks occurs for two primary reasons: Repeat

1. When activities of long duration delay the start or finish of successor activities, the network designer
normally breaks the activity into smaller activities to avoid the long delay of the successor activity. Use
of lags can avoid such delays and reduce network detail.

2. Lags can be used to constrain the start and finish of an activity. The most commonly used relationship
extensions are start-to-start, finish-to-finish, and combinations of these two.

2.5 If your actual cost of work performed of a project is R750 000.00, its budgeted cost of work
performed is R600 000.00, and the budgeted cost of work scheduled is R700 000.00- What is the current
status of the project in terms of cost and time? Show your calculations. (4) Repeat 3.6 MAY/JUNE 2016

2.7 List the different types of project closure. (5) (Repeat 2.2 May/June 2017)

 Normal: The most common circumstance for project closure is simply a completed project.
 Premature: For a few projects, the project may be completed early with some parts of the
project eliminated.
 Perpetual: Some projects never seem to end. The major characteristic of this kind of project is
constant “add-ons,” suggesting a poorly conceived project scope.
 Failed Project: Failed projects are usually easy to identify and easy for a review group to close
down. Many projects will fail because of circumstances beyond the control of the project team
 Changed Priority: Organizations’ priorities often change and strategy shifts directions.

QUESTION 3

3.1 Explain what the process of monitoring of projects entail in terms of the Schedule Variance (SV), Cost
Variance (CV), and the Earned Value (EV) concepts. (3)

SV-Schedule variance presents an overall assessment of all work packages in the project scheduled to
date.
CV- Cost variance tells us if the work accomplished costs more or less than was planned at any point
over the life of the project.
EV- is the budgeted value of the work actually completed to date.

3.2 Illustrate the two performance indexes used to measure project performance efficiency. (4)
3.3 Identify and describe three differences between teams and work groups. (6)

3.4 Project leaders wear different “hats”, List and briefly describe the seven traits (distinct
characteristics) of project leaders that these “hats” represent (7) (Repeat Oct/Nov 2014)
3.5 Fiona (a PMP certified project manager) has known her friend Thandi for many years and is proud
that she wants to entrust her with a budget of R10 million for a new cosmetic product launch project.
Thandi wants to know what a “RFP” is and what will be included in order to decide to either go ahead
with the new launch or not? (10) Repeat

Request for Proposal. The RFP will be announced to external contractors/vendors with adequate
experience to implement the project. government projects frequently advertise with a “request for
proposal” to outside contractors for roads, buildings, airports, military hardware, space vehicles.
Similarly, businesses use RFPs to solicit bids for building a clean room, developing a new manufacturing
process, delivering software for insurance billing, conducting a market survey. In all of these examples,
requirements and features must be in enough detail that contractors have a clear description of the final
deliverable that will meet the customer’s needs.

3.6 Explain the importance and significance of an organizational culture. (5) Repeat May/June 2014)

a) Culture provides a sense of identity for its members.

b) Helps legitimize the management system of the organization
c) Clarifies and reinforces standards of behavior.
d) Helps create social order within an organization.
e) Binds people together, thereby creating shared meanings. is also one of the defining aspects of
an organization that sets it apart from other organizations even in the same industry.
MAY/JUNE 2016

SECTION A (Compulsary)

QUESTION 1

10 MCQs

SECTION B

ANSWER ANY TWO OF THE FOLLOWING THREE QUESTIONS.

QUESTION 2

2.1 Use the project information presented in the table to roughly draw the project network in order to
answer the questions that follow. Repeat

2.2 What are the six (6) major activities that should be included in order to ensure that nothing has been
overlooked? (6)

Implementing closedown includes the following six major activities:

1. Getting delivery acceptance from the customer.

2. Shutting down resources and releasing to new uses.
3. Reassigning project team members.
4. Closing accounts and seeing all bills are paid.
5. Delivering the project to the customer.
6. Creating a final report.

2.3 In order to be effective leaders, project managers must “walk the talk”. Explain any four (4) of the
aspects of leading by example. (8) Repeat

Priorities
Actions speak louder than words. Subordinates and others discern project managers’ priorities by how
they spend their time. If a project manager claims that this project is critical and then is perceived as
devoting more time to other projects, then all his verbal reassurances are likely to fall on deaf ears.
Urgency
Through their actions project managers can convey a sense of urgency, which can permeate project
activities. This urgency in part can be conveyed through stringent deadlines, frequent status report
meetings, and aggressive solutions for expediting the project.
Problem Solving
How project managers respond to problems sets the tone for how others tackle problems. If bad news is
greeted by verbal attacks, then others will be reluctant to be forthcoming.
Cooperation
How project managers act toward outsiders influences how team members interact with outsiders. If a
project manager makes disparaging remarks about the “idiots” in the marketing department, then this
oftentimes becomes the shared view of the entire team.
Standards of Performance
Veteran project managers recognize that if they want participants to exceed project expectations then
they have to exceed others’ expectations of a good project manager. They establish a high standard for
project performance through the quality of their daily interactions.
Ethics
How others respond to ethical dilemmas that arise in the course of a project will be influenced by how
the project manager has responded to similar dilemmas. In many cases, team members base their
actions on how they think the project manager would respond.

2.4 What are the core questions that the project communication plan aims to address? (6)

QUESTION 3

3.1 Calculate the activity’s crash cost (COST SLOPE) per time unit. Show all your calculations, including
the formula. (3)

3.2 The project manager has been informed that a new deadline has been imposed on his project. This
means that he will have to accelerate the completion of the project in order to meet the new deadline,
fortunately for the project manager, the resources are not constrained.

Explain the methods that can be used to crash project activities when resources are not constrained? (5)
Repeat

Adding Resources
The most common method for shortening project time is to assign additional staff and equipment to
activities.

Outsourcing Project Work

A common method for shortening the project time is to subcontract an activity. The subcontractor may
have access to superior technology or expertise that will accelerate the completion of the activity.

Scheduling Overtime
The easiest way to add more labor to a project is not to add more people, but to schedule overtime. If a
team works 50 hours a week instead of 40, it might accomplish 20 percent more.

Establish a Core Project Team

As discussed in Chapter 3, one of the advantages of creating a dedicated core team to complete a
project is speed. Assigning professionals full time to a project avoids the hidden cost of multitasking in
which people are forced to juggle the demands of multiple projects.
Do It Twice—Fast and Correctly
If you are in a hurry, try building a “quick and dirty” short-term solution, then go back and do it the right
way.

3.3 Identify and briefly describe the two (2) major classification of estimating project time and costs. (4)

Top-Down Approaches for Estimating Project Times and Costs

usually are derived from someone who uses experience and/or information to determine the project
duration and total cost. These estimates are sometimes made by top managers who have very little
knowledge of the processes used to complete the project.

Bottom-Up Approaches for Estimating Project Times and Costs

If the project is similar to past projects, the costs from past projects can be used as a starting point for
the new project. Differences in the new project can be noted and past times and costs adjusted to
reflect these differences.

3.4 Substantial evidence suggests that poor estimates are major contributor to projects that have failed.
What are the guidelines that a project manager can use to develop useful work package estimates? (7)
Repeat

1. Responsibility. At the work package level, estimates should be made by the person(s) most familiar
with the task.

2. Use several people to estimate. It is well known that a cost or time estimate usually has a better
chance of being reasonable and realistic when several people with relevant experience and/or
knowledge of the task are used.

3. Normal conditions. When task time, cost, and resource estimates are determined, they are based on
certain assumptions. Estimates should be based on normal conditions, efficient methods, and a normal
level of resources.

4. Time units. Specific time units to use should be selected early in the development phase of the
project network.

5. Independence. Estimators should treat each task as independent of other tasks that might be
integrated by the WBS.

6. Contingencies. Work package estimates should not include allowances for contingencies. The estimate
should assume normal or average conditions even though every work package will not materialize as
planned.

7. Adding risk assessment to the estimate helps to avoid surprises to stakeholders. It is obvious some
tasks carry more time and cost risks than others.

3.5 Read text in box on page 12 and answer

3.5.1 Identify and briefly describe the stages of the team development model that are evident from the
text (6) Repeat

1. Forming. During this initial stage the members get acquainted with each other and understand the
scope of the project.
2. Storming. As the name suggests, this stage is marked by a high degree of internal conflict.
3. Norming. The third stage is one in which close relationships develop and the group demonstrates
cohesiveness.
4. Performing. The team operating structure at this point is fully functional and accepted.
5. Adjourning. For conventional work groups, performing is the last stage of their development.

3.6 The actual cost of work performed of a project is R900 000.00, its budgeted cost of work performed
is R650 000.00, and the budgeted cost of work scheduled is R750 000.00 Repeat 2.6 OCT/NOV 2015

QUESTION 4

4.1 What are the steps that are followed for measuring and evaluating project performance? (4) Repeat

The project control steps for measuring and evaluating project performance are presented below.

1. Setting a baseline plan.

2. Measuring progress and performance.
3. Comparing plan against actual.
4. Taking action.

4.2 Calculations.

4.3 Describe the three (3) common problems that are encountered in managing multiproject resource
schedules. (6) Repeat

1. Overall schedule slippage. Because projects often share resources, delays in one project can have a
ripple effect and delay other projects.

2. Inefficient resource utilization. Because projects have different schedules and requirements, there
are peaks and valleys in overall resource demands.

3. Resource bottlenecks. Delays and schedules are extended as a result of shortages of critical resources
that are required by multiple projects.

4.4 Discuss the types of resource constraints that play a role in managing projects. (6)

1. People. This is the most obvious and important project resource. Human resources are usually
classified by the skills they bring to the project—for example, programmer, mechanical engineer,
welder, inspector, marketing director, supervisor.

2. Materials. Project materials cover a large spectrum: for example, chemicals for a scientific project,
concrete for a road project, survey data for a marketing project.
3. Equipment. Equipment is usually presented by type, size, and quantity. In some cases, equipment can
be interchanged to improve schedules, but this is not typical.

4.5 What are change management systems designed to accomplish? 8)

change management systems are designed to accomplish the following:

1. Identify proposed changes.

2. List expected effects of proposed change(s) on schedule and budget.
3. Review, evaluate, and approve or disapprove changes formally.
4. Negotiate and resolve conflicts of change, conditions, and cost.
5. Communicate changes to parties affected.
6. Assign responsibility for implementing change.
7. Adjust master schedule and budget.
8. Track all changes that are to be implemented.

OCTOBER/NOVEMBER 2016

SECTION A (Compulsary)

QUESTION 1

10 MCQs

SECTION B

ANSWER ANY TWO OF THE FOLLOWING THREE QUESTIONS.

QUESTION 2

2.1 Briefly describe the stages of the project life cycle. (8) (Repeat Question 1 Oct/Nov 2014)

2.2 What are the symptoms of organizations struggling with strategy disconnect and unclear priorities(5)

2.3 At the strategic level, top-down estimating methods are used to evaluate the project proposal.
Explain how the learning curve approach can be used to estimate project time and cost. (2)

Most managers and workers intuitively know that improvement in the amount of time required to
perform a task or group of tasks occurs with repetition. A worker can perform a task better/quicker the
second time and each succeeding time she/he performs it (without any technological change). It is this
pattern of improvement that is important to the project manager and project scheduler. This
improvement from repetition generally results in a reduction of labor hours for the accomplishment of
tasks and results in lower project costs.

2.4 What are the two primary reasons for the use of lags in project networks? (2) Repeat 2.4 Oct 14

2.5 Closing put the project includes a number of tasks to ensure that all tasks and loose ends have been
completed and signed off. Describe the three major deliverables for project closure. (6) Repeat

1. Wrapping up the project. The major wrap-up task is to ensure the project is approved and accepted by
the customer. Other wrap-up activities include closing accounts, paying bills, reassigning equipment and
personnel, finding new opportunities for project staff, closing facilities, and the final report.

2. Evaluation of performance and management of the project. Evaluation includes team, individual team
members, and project manager performance.

3. Retrospectives. Retrospectives of lessons learned are designed to improve performance on current

and future projects. Today, most retrospectives are the responsibility of an independent facilitator.

2.6 Interpret the indexes provided in the table below to indicate the performance efficiency of projects
by simply completing the blank spaces. (The Cost Performance Index CPI & Scheduling Performance
Index SPI) (3)

2.7 What are some of the barriers that have been identified by practitioners to effectively capture
lessons learned? (4)

QUESTION 3

3.1 Refer to the diagram below and identify the type of organizational structure depicted in the diagram
(1)
3.2 What are the strengths and weaknesses that are attributed to the organizational structure that you
have identified in Question 3.1? (4)

Strengths (Advantages) Weaknesses (Disadvantages)

Simple. Other than taking away resources in the Expensive. Not only have you created a new
form of specialists assigned to the project, the management position (project manager), but
functional organization remains intact with the resources are also assigned on a full-time basis.
project team operating independently
Fast. Projects tend to get done more quickly Internal Strife. Sometimes dedicated project
when participants devote their full attention to teams take on an entity of their own and a
the project and are not distracted by other disease known as projectitis develops.
obligations and duties
Cohesive. A high level of motivation and Limited Technological Expertise. Creating self-
cohesiveness often emerges within the project contained teams inhibits maximum technological
team. expertise being brought to bear on problems.
Cross-Functional Integration. Specialists from Difficult Post-Project Transition. Assigning full-
different areas work closely together and, with time personnel to a project creates the dilemma
proper guidance, become committed to of what to do with personnel after the project is
optimizing the project, not their respective areas completed.
of expertise.
3.3 Explain the steps that are followed when developing a project communication plan. (10) Repeat May
15

3.4 Differentiate between the terms Total Slack (TS) and Free Slack (FS) (2)

Total slack tells us the amount of time an activity can be delayed and not delay the project. Stated
differently, total slack is the amount of time an activity can exceed its early finish date without affecting
the project end date or an imposed completion date.

Free slack (FS) is unique. It is the amount of time an activity can be delayed without delaying any
immediately following (successor) activity. Or, free slack is the amount of time an activity can exceed its
early finish date without affecting the early start date of any successor(s).

3.5 Use the information below to compute the Total Slack (TS) for activity C. Show all your calculations
and remember to include the formula in your workings. (2)

5 C 15

SL Description

10 10 20

3.6 Specify the information that is required in order to develop a time-phased budget using this
information from the WBS and resource schedule. (6)

1. Define work (what).

2. Identify time to complete a work package (how long).
3. Identify a time-phased budget to complete a work package (cost).
4. Identify resources needed to complete a work package (how much).
5. Identify a single person responsible for units of work (who).
6. Identify monitoring points for measuring progress (how well).

3.7 The monthly status report for the Project Consulting for 2015 is given below. Use the figures in the
repost to calculate:

3.7.1 The Percent Complete Index (PCIB) show all your calculations and include the formula. (2)

3.7.2 Interpret what the answer you computed in question 3.7.1 represents.

3.7.3 The Percentage Complete Index (PCIC). show all your calculations and include the formula. (2)
QUESTION 4

4.1 Identify some of the factors that should influence the choice of project management structure (4)

• Size of project.
• Strategic importance.
• Novelty and need for innovation.
• Need for integration (number of departments involved).
• Environmental complexity (number of external interfaces).
• Budget and time constraints.
• Stability of resource requirements.

4.2 Explain the different types of response to an opportunity. (8) Repeat

Exploit. This tactic seeks to eliminate the uncertainty associated with an opportunity to ensure that it
definitely happens.

Share. This strategy involves allocating some or all of the ownership of an opportunity to another party
who is best able to capture the opportunity for the benefit of the project.

Enhance. Enhance is the opposite of mitigation in that action is taken to increase the probability and/or
the positive impact of an opportunity.

Accept. Accepting an opportunity is being willing to take advantage of it if it occurs, but not taking
action to pursue it.

4.3 Explain what is meant by the term crash time? (1)

The shortest possible time an activity can realistically be completed in is called its crash time.

4.4 What are the assumptions underlying the use of the project cost-duration graph? (5)

1. The cost-time relationship is linear.

2. Normal time assumes low-cost, efficient methods to complete the activity.
3. Crash time represents a limit—the greatest time reduction possible under realistic conditions.
4. Slope represents cost per unit of time.
5. All accelerations must occur within the normal and crash times.

4.5 The project portfolio matrix is used to assess a project portfolio in order to reflect the degree of
difficulty of a project in relation to its commercial potential.

4.5.1 Refer to project portfolio matrix below and complete it (2) Repeat Oct/Nov 2015

4.5.2 Explain any two of the types of projects that you inserted in the matrix in 4.5.1. Give a practical
example of each. (4) Repeat Oct/Nov 2015
4.6 The project information for the custom order project of the Airfresh Control Company is presented
below. Use the information to draw a project network for this project in order to answer the questions
that follow.

4.6.1 Use the info computed in 4.6 to fill the blank spaces in the table below. (5)

4.6.2 Determine the critical path for this project (1)

MAY/JUNE 2017

QUESTION 1

10 MCQs

SECTION B

ANSWER ANY TWO OF THE FOLLOWING THREE QUESTIONS.

QUESTION 2 (Repeat Question 2 May/June 2016)

2.1 Use the project information presented in the table to roughly draw the project network in order to
answer the questions that follow. (9)

2.1.1 Compute the ES and EF times for activities D, F and E. (3)

2.1.2 Compute LS and LF times for activities B, C and J. (3)

2.1.3 Determine the critical path (1)

2.1.4 Calculate the TOTAL SLACK (float) for activities C and E. Show all your calculations used to compute
the total slack. (2)

2.2 Identify and explain the different types of project closure? (10) (Repeat 2.7 Oct/Nov 2015 & 2014)

2.3 Explain any four (4) qualities of an effective project manager (8)

1. Systems thinker. Project managers must be able to take a holistic rather than a reductionist approach
to projects.
2. Personal integrity. Before you can lead and manage others, you have to be able to lead and manage
yourself.
3. Proactive. Good project managers take action before it is needed to prevent small concerns from
escalating into major problems.
4. High emotional intelligence (EQ). Project management is not for the meek. Project managers have to
have command of their emotions and be able to respond constructively to others when things get a bit
out of control.
5. General business perspective. Because the primary role of a project manager is to integrate the
contributions of different business and technical disciplines, it is important that a manager have a
general grasp of business fundamentals and how the different functional disciplines interact to
contribute to a successful business.
6. Effective time management. Time is a manager’s scarcest resource. Project managers have to be able
to budget their time wisely and quickly adjust their priorities.
7. Skillful politician. Project managers have to be able to deal effectively with a wide range of people
and win their support and endorsement of their project.
8. Optimist. Project managers have to display a can-do attitude.

2.4 Explain the three major steps required to construct a project cost-duration graph. (3) (Repeat 1.3
May/June 2015)

QUESTION 3

3.1 Briefly describe the three (3) types of matrices (6)

• Weak matrix—This form is very similar to a functional approach with the exception that there is a
formally designated project manager responsible for coordinating project activities.
• Balanced matrix—This is the classic matrix in which the project manager is responsible
for defining what needs to be accomplished while the functional managers are concerned with how it
will be accomplished.
• Strong matrix—This form attempts to create the “feel” of a project team within a matrix environment.
The project manager controls most aspects of the project, including scope trade-offs and assignment of
functional personnel.

3.2 Identify the methods that can be used to crash project activities when resources are constrained? (4)
Repeat May/June 2016

3.3 If work packages are defined, detailed cost estimates can be made. Identify two (2) of the typical
types of costs found in a project? (2)

1. Direct costs
a. Labor
b. Materials
c. Equipment
d. Other
2. Direct project overhead costs
3. General and administrative (G&A) overhead costs

3.4 Explain four (4) of the guidelines that a project manager can use to develop useful work package
estimates? (8) Repeat May/June 2016

3.5 Read the text in the box and answer questions that follows in 3.5.1

3.5.1 Identify and describe the role of three (3) stakeholders that are actively involved in the project
above. (6)

Stakeholders are people and organizations that are actively involved in the project, or whose interests
may be positively or negatively affected by the project.
• The project team manages and completes project work.
• Project managers naturally compete with each other for resources and the support of top
management.
• Administrative support groups, such as human resources, information systems, purchasing agents,
and maintenance, provide valuable support services.
• Functional managers, depending on how the project is organized, can play a minor or major role
toward project success.
• Top management approves funding of the project and establishes priorities
within the organization.

3.6 The actual cost of work performed of a project is R800 000.00, its budgeted cost of work performed
is R550 000.00, and the budgeted cost of work scheduled is R650 000.00. Calculate the current status of
the project in terms of cost and time. Show your calculations. (4) (Repeat 3X)

QUESTION 4

4.1 Define “Project Management philosophy” (2) (Repeat)

4.2 Calculate the earned value for each activity in table below. (6)

4.3 With reference to the table in question 4.2, calculate the Cost Performance Index (CPI) of the
project. Show all your calculations (4)
4.4 Through the five-stage team development model, groups develop into teams. Identify and briefly
describe the stages of the team development model. (10) Repeat May/June 2016

4.5 Identify and explain the four (4) different types of responses to an opportunity. (8) Repeat Oct 2016

OCT/NOV 2017

QUESTION 1

10 MCQs

SECTION B

ANSWER ANY TWO OF THE FOLLOWING THREE QUESTIONS.

QUESTION 2

2.1 In your own words, briefly describe the elements that a project manager will include in the project
scope checklist in order to ensure that the scope definition is complete. (6) Repeat May/June 2015
2.3 Unexpected rain has resulted in a delay of 2 days in the duration of Activity E above. What would the
impact of this be on the project? Explain why? (2)

Delays in one project can have a ripple effect and delay other projects.

2.4 Describe the advantages of assigning dedicated project teams to managing projects within a
projectized structure? (4) Repeat 3.2 Oct/Nov 2016

2.5 Identify any three (3) characteristics of a project that differentiates projects from everyday
operational management. (3) Repeat 1.2 May/June 2015

QUESTION 3

3.1 A new deadline has been imposed on an existing project and this means that the project manager
will have to accelerate the completion of the project in order to meet the new deadline. After
considering all the options, the project manager has decided to crash an activity.

3.1.1 Explain what you understand by the term “crash point” (1)

The crash point represents the maximum time an activity can be compressed.

3.1.2 The normal time to complete an activity is 20 days with a cost of R500. The project manager has
advised his team that this activity should now be completed in 15 days. This reduction in the activity’s
duration time will now cost R800. Using the information, determine the cost slope for this activity. Show
all your calculations. (3)
3.2 How can the project manager alleviate communication problems and enhance the performance of
virtual teams? (5)

1. Keep team members informed on how the overall project is going. Use shareware or develop a
central access point such as either a Web site or LAN account to provide members with updated project
schedules. Team members need to know where they fit in the big picture.
2. Don’t let team members vanish. Virtual teams often experience problems getting in touch with each
other. Use an Internet scheduling software to store members’ calendars.
3. Establish a code of conduct to avoid delays. Team members need to agree not only on what, when,
and how information will be shared but also on how and when they will respond to it.
4. Establish clear norms and protocols for surfacing assumptions and conflicts. Because most
communication is nonvisual, project managers cannot watch body language and facial expressions to
develop a sense of what is going on. They need to probe deeper when communicating to force members
to explain.
5. Share the pain. Do not require everyone to conform to your time zone and preferences. Rotate
meeting times so that all team members have a turn working according to their clock.

3.3 Describe any four (4) of the less obvious factors that need to be considered when recruiting project
members for the team. (8)

• Problem-solving ability. If the project is complex and fuzzy, then a manager wants people who are
good at working under uncertainty and have strong problem identification and solving skills.

• Availability. Sometimes the people who are most available are not the ones wanted for the team.
Conversely, if members recruited are already overcommitted, they may not be able to offer much.

• Technological expertise. Managers should be wary of people who know too much about a specific
technology.

• Credibility. The credibility of the project is enhanced by the reputation of the people involved in the
project. Recruiting a sufficient number of “winners” lends confidence to the project.

• Political connections. Managers are wise to recruit individuals who already have a good working
relationship with key stakeholders.

• Ambition, initiative, and energy. These qualities can make up for a lot of shortcomings in other areas
and should not be underestimated.

3.4 The project manager will in this instance develop a request for proposal (RFP). Outline the content
that the project manager should include in a detailed RFP. (7) Repeat 3.5 Oct/Nov 2015
3.5 Briefly explain the aspects of leading by example. (6) Repeat 2.3 May/June 2016

QUESTION 4

4.1 You have been assigned as the project manager to lead a software development project in your
organization. In order to monitor the progress on your project, you make use of various indexes to
measure the performance of the project. Use the information provided by your project team to answer
the questions that follow:

EV AC PV BV CV SV
210 340 350 -250 -130 -140

4.1.1 Calculate the CPI for this project. Show all your calculations. (2) Repeat

4.1.2 What does this CPI computed in 4.1.1 indicate about your project status? (1)

4.1.3 With specific reference to project management, what does CPI measure? (1)

4.1.4 Compute the SPI for this project. Show all your calculations. (2)

4.1.5 What does the SPI computed in 4.1.4 indicate about your project status? (1)
4.1.6 With specific reference to project management, what does Scheduling Performance Index SPI
measure? (1)

Measure project which are:

Ahead of schedule
On schedule
Behind schedule

4.2 Explain the project control steps for measuring and evaluating project performance. (8) Repeat 4.1
May/June 2016

4.3 Why is important to include lessons learned when creating the final project report? (2)

Lessons learned are the most valuable contribution of the closure process. Given the process evaluation
and input from the stakeholder meetings, lessons learned should be succinctly and clearly set out.

Stress the need to help others in future projects. In practice, new project teams studying past project
reports similar to the project they are about to start have found past review reports very useful.

4.4 Discuss the three (3) major deliverables for project closure. (6) Repeat Oct 2016

4.5 Describe the problems encountered in managing multi-project resources schedules. (6) Repeat 4.3
May/June 2016