IFETCE-R 2019 Academic year 2024-2025

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING

QUESTION BANK

SUB CODE: 19UCSPC702

SUB NAME: Software Project Management
YEAR/SEM: IV / VII

UNIT – IV – SOFTWARE PROJECT MONITORING AND CONTROL

Creating the Framework – Collecting the Data: Partial Completion Reporting – Risk Reporting –
Visualizing Progress: Gantt chart – Slip chart – Ball Charts – The Timeline – Cost Monitoring –
Earned Value Analysis – Prioritizing Monitoring – Getting the Project Back to Target – Change
Control
PART – A
Creating Framework
1. Define a checkpoint (R)
Checkpoints provide a basis for analysis and evaluation, to determine whether the project
is proceeding as planned, and to take corrective action as needed.
Checkpoint is a scheduled meeting or review session where the project team assesses the
current progress of the project against its planned objectives and milestones. Checkpoints
are used to ensure that the project is on track, identify any issues or risks, and make
necessary adjustments to the project plan.

2. Mention the purpose of checkpointsused in monitoring (R)

These checkpoints generally provide following things :
• It simply synchronizes management and engineering perspectives.
• It also verifies that goal every phase has been achieved or not.
• It provide basis for analysis and evaluation so as to determine whether or not
project is proceeding as planned, and also to make correction and right action as per
requirement.
Decision Points: Checkpoints often serve as decision points where project managers

3. List out the categories of reporting (U)

Progress Reports: Provide updates on the current status of a project or task, including
what has been completed, what is in progress, and what is planned next.
Performance Reports: Focus on the performance metrics of a project or operation,
comparing actual performance against targets or benchmarks.
IFETCE-R 2019 Academic year 2024-2025
Budget Reports: Detail the financial status of a project or department, including budget
allocations, expenditures, and variances.
Expense Reports: Document and analyze expenses incurred during a specific period or
for a particular project.
Executive Reports: Summarize high-level information for senior management, focusing
on key metrics, strategic insights, and major issues.
Operational Reports: Provide detailed information on day-to-day operations, often used
by middle management to monitor and manage activities.

4. Figure out the phases of control cycle model. (A)

 Project Initiation
 Project Planning
 Project Execution
 Project Monitoring and Control
 Project Closure

5. Why is it important for project managers to understand the strategy of the

organization that uses their services? (S)
Alignment with Organizational Goals: Knowing the organization's strategy helps
project managers ensure that their projects are aligned with the broader goals and
objectives of the organization. This alignment is essential for ensuring that the project
delivers value and contributes to the overall success of the organization.
Informed Decision-Making: Understanding the strategic priorities allows project
managers to make informed decisions that support the long-term vision of the
organization. This includes prioritizing tasks, allocating resources, and making trade-offs
that align with strategic goals.
Enhanced Communication: Awareness of the organization's strategy enables project
managers to communicate more effectively with stakeholders, including senior
management, team members, and clients. It helps in framing project updates and
decisions in a context that resonates with stakeholders' strategic concerns.

6. Define control points. (R)

Control points therefore provide the project manager with his mandate to drive the
project through to the conclusion of the ensuing stage. It is the project manager's
opportunity to ensure that top management is behind him and that he is proceeding in the
right direction.

7. How would you identify and assess the impact of the new data privacy regulation
risk? (A)
Identify the risk by staying informed about regulatory changes and consulting legal
experts if needed. Assess the impact on project timelines, data handling practices, and
compliance requirements.
IFETCE-R 2019 Academic year 2024-2025
8. Write about staff time. . (U)
The staff time booked to a project indicates the work carried out and the charges to the
project. It does not, however, tell the project manager what has been produced or whether
tasks are on schedule.
It is therefore common to adapt or enhance existing accounting data collection systems to
meet the needs of project control. Weekly timesheets, for example, are frequently adapted
by breaking jobs down to activity level and requiring information about work done in
addition to time spent
Visualizing progress and cost monitoring
9. A project has a budget of $100,000. After two months, you find the following
expenditures: (A)
Planned Budget: $50,000
Actual Expenditure: $60,000
Calculate the budget variance and explain its implications for the project.
Planned Budget (PV): $50,000
Actual Expenditure (AC): $60,000
Budget Variance (BV): BV = PV - AC = $50,000 - $60,000 = -$10,000
The project is over budget by $10,000.
This indicates that costs are higher than planned, potentially impacting resource
allocation and future budgeting decisions.
It may necessitate corrective actions such as revising spending plans, reallocating
resources, or negotiating costs with vendors.

10. How to Visualize Progress? (S)

A Gantt chart shows the current schedule status, measures task duration in the project,
and represents cost, time and scope. It is useful for planning, scheduling, and monitoring
projects by laying out task order and allowing visualization of progress.

11. Distinguish between Earned Value Analysis and Earned Value Management (U)
Earned Value Analysis Earned Value Management
EVA is a quantitative technique used to EVM uses EVA as one of its tools, but is
evaluate project performance by analyzing larger in scope
schedule and cost variances
EVA stops with the compute portion EVM is all about using that data in trends
analysis and forecasting.
EVA is a technique focused specifically on EVM is a broader management
performance measurement. methodology that encompasses EVA along
with other management processes.
EVA is used for periodic analysis of EVM is used for overall project control,
project performance. integrating planning, measurement,
forecasting, and management.
IFETCE-R 2019 Academic year 2024-2025
12. What are the levels of prioritizing monitoring? (R)
Prioritizing monitoring in software project monitoring and control involves establishing
different levels of priority to ensure that the most critical aspects of the project receive
appropriate attention
Critical, High, Medium, Low, Deferred

13. Differentiate Budgeted cost of work scheduled and Budgeted cost of work
performed. (U)
Budgeted cost of work scheduled Budgeted cost of work performed
BCWS represents the planned value of the BCWP, also known as Earned Value (EV),
work scheduled to be completed by a represents the budgeted cost of the work
specific point in time. that has actually been completed by a
specific point in time
BCWS is used to establish a baseline BCWP is used to assess how much of the
against which actual progress can be planned work has been completed and to
measured. compare it with the planned schedule
(BCWS) and actual cost (AC).
BCWS is calculated by summing the BCWP is calculated by summing the
budgeted costs for all the tasks that are budgeted costs for all the tasks that have
scheduled to be completed by a certain date been actually completed by a certain date.
Formula: BCWS = Σ (Planned Cost of Formula: BCWP = Σ (Planned Cost of
Scheduled Tasks) Completed Tasks)

14. Elaborate the techniques used in visualizing progress. (R)

Gantt charts are widely used for visualizing project progress. They provide a visual
timeline representation of tasks, milestones, and dependencies. Gantt charts allow project
teams to track task durations, identify critical paths, and adjust project schedules when
necessary

15. What is a Slip chart. Mention its use. (R)

A slip chart is simply a chart of a product's schedule slips, connecting points made by the
pair of a ship date and the date it was announced.
Visual indication of activities that are not progressing to schedule.
The Y axis shows the planned end-date for each milestone / project phase.
The X axis shows the date when the data have entered or changed.

16. The Slip chart indicates that the current rate of task slippage is 2 days per week. If
the project is 10 weeks long and is currently at week 5, how much longer will the
project take to complete if the slippage rate continues? (A)
Remaining Duration: 5 weeks
Slippage Rate: 2 days per week
Total Additional Days: 5 weeks * 2 days/week = 10 days
Extended Completion Time: 10 days beyond the original schedule
IFETCE-R 2019 Academic year 2024-2025
The project will take an additional 10 days to complete beyond the original end date.

17. Compare and contrast Ball chart and Gantt chart. (U)
Ball chart Gantt chart

Scheduling and task management Data analysis and project portfolio

management

Horizontal bars on a timeline Bubbles on a two-dimensional grid

Typically two dimensions (tasks vs. Three dimensions (X, Y, bubble

time) size)

High, detailed view of project tasks Moderate, overview of data

and dependencie relationships

18. You have three teams (Team A, Team B, Team C) working on different projects. A
Ball chart represents the workload (X-axis) vs. efficiency (Y-axis) with the size of the
balls indicating the number of team members. (A)

Team A: (Workload: 8, Efficiency: 7, Members: 5)

Team B: (Workload: 6, Efficiency: 8, Members: 4)
Team C: (Workload: 5, Efficiency: 6, Members: 6)
Which team might need additional resources?
Team A has a high workload with moderate efficiency and a smaller team size.
Team B has a moderate workload with high efficiency and a small team.
Team C has a lower workload and efficiency with a larger team.
Team A might need additional resources due to their high workload and relatively small
team size.

19. Why is cost monitoring important? (U)

Cost monitoring helps project managers control and manage project costs, ensuring that
the project remains within the approved budget. It allows them to track expenses in real-
time and make adjustments as needed to avoid cost overruns.

20. How the Pareto chart is used? Why is it called as 80-20 rule? (A)
A Pareto chart is a special example of a bar chart. For a Pareto chart, the bars are ordered
by frequency counts from highest to lowest. These charts are often used to identify areas
to focus on first in process improvement.
The 80-20 rule, also known as the Pareto Principle, is a familiar saying that asserts that
80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given
event.
IFETCE-R 2019 Academic year 2024-2025

21. What is the formula for earned value analysis? (R)

It is typically based on the progress of completing the project's tasks or deliverables. EV
= BAC * Actual % Complete, where BAC is the Budget at Completion, and Actual %
Complete is the percentage of actual work completed up to the current reporting period.

22. How EVA is used to measure the performance of the Organisation? (R)
EVA is the incremental difference in the rate of return (RoR) over a company's cost of
capital. Essentially, it is used to measure the value a company generates from funds
invested in it. If a company's EVA is negative, it means the company is not generating
value from the funds invested into the business.

23. A project with a BAC of $500,000 has reached its completion. The EV is $500,000,
and the AC is $450,000. What can you infer from these values, and what are the
final CPI and CV? (A)
Cost Performance Index (CPI): CPI = EV / AC = $500,000 / $450,000 = 1.11
Cost Variance (CV): CV = EV - AC = $500,000 - $450,000 = $50,000

24. A project with a BAC of $200,000 has an EV of $80,000, an AC of $100,000, and a

CPI of 0.8. Calculate the Estimate at Completion (EAC) and the Estimate to
Complete (ETC) assuming the project continues to perform at the same CPI. (A)
Estimate at Completion (EAC): EAC = BAC / CPI = $200,000 / 0.8 = $250,000
Estimate to Complete (ETC): ETC = EAC - AC = $250,000 - $100,000 = $150,000

25. What is cost variance (CV) and schedule variance (SV)? (U)
The schedule and cost variance formulas are expressed as follows: Schedule Variance
(SV) = Earned Value (EV) - Planned Value (PV) Cost Variance (CV) = Earned Value
(EV) - Actual Cost (AC)
Cost variance (also referred to as CV) is the difference between project costs estimated
during the planning phase and the actual costs.
Schedule Variance (or SV) is a metric that shows whether a project is ahead or behind
schedule. It is used in conjunction with Earned Value Management (EVM) to help project
managers monitor the schedule and cost of the project.
26. A project has a total budget (Budget at Completion, BAC) of $100,000. After two
months, the Planned Value (PV) is $40,000, the Earned Value (EV) is $35,000, and
the Actual Cost (AC) is $50,000. Calculate the Schedule Variance (SV), Cost
Variance (CV), Schedule Performance Index (SPI), and Cost Performance Index
(CPI). What do these values indicate about the project's performance? (A)
Schedule Variance (SV): SV = EV - PV = $35,000 - $40,000 = -$5,000
Cost Variance (CV): CV = EV - AC = $35,000 - $50,000 = -$15,000
Schedule Performance Index (SPI): SPI = EV / PV = $35,000 / $40,000 = 0.875
IFETCE-R 2019 Academic year 2024-2025
Cost Performance Index (CPI): CPI = EV / AC = $35,000 / $50,000 = 0.7

27. After three months, a project manager finds that the EV is $120,000, the PV is
$150,000, and the AC is $140,000. The BAC is $300,000. What corrective actions
might the project manager consider based on the EVA metrics? (A)
Schedule Variance (SV): SV = EV - PV = $120,000 - $150,000 = -$30,000
Cost Variance (CV): CV = EV - AC = $120,000 - $140,000 = -$20,000
Schedule Performance Index (SPI): SPI = EV / PV = $120,000 / $150,000 = 0.8
Cost Performance Index (CPI): CPI = EV / AC = $120,000 / $140,000 = 0.857

28. Your timeline chart for a project includes several milestones: (A)
Initial Planning: January 15
Design Phase Completion: February 28
Development Phase Completion: April 15
Testing Phase Completion: May 31
Final Review and Launch: June 30
If the Design Phase is delayed by two weeks, how will this affect the subsequent
milestones?
Initial Planning: January 15 (no change)
Design Phase Completion: February 28 → March 14 (delayed by two weeks)
Development Phase Completion: April 15 → April 29 (shifted accordingly)
Testing Phase Completion: May 31 → June 14 (shifted accordingly)
Final Review and Launch: June 30 → July 14 (shifted accordingly
All subsequent milestones will be delayed by two weeks to accommodate the delay in the
Design Phase.

29. Name the popular visual tools used for monitoring and tracking the project
progress. (A)
 Network Diagrams.
 Critical Path Method or CPM
 Gantt Chart
 PERT Chart
 Project Management Software for Calendar

Change Control
30. You are leading a construction project to build a new residential complex. During
the project execution, unforeseen weather conditions delay the foundation work.
Explain how change control can mitigate risks associated with schedule delays and
cost overruns. (A)
IFETCE-R 2019 Academic year 2024-2025
Impact Assessment: The first step is to assess the impact of the weather delay on the
project schedule and budget. This involves understanding how the delay affects
subsequent construction activities, critical path timelines, and resource availability.
Change Request Initiation: Initiate a formal change request to document the delay and
its impact on the project. This includes detailing the revised project schedule, adjustments
needed in resource allocation, and any additional costs incurred due to the delay.
Evaluation and Approval: Necessity ,Feasibility, Cost Implications

PART- B

1 Describe the various ways in visualizing the progress of a project. 16 R

.
Gantt chart – tracking project progress .It is the simple and the oldest form of
representing the progress of the project. It consists of activity bar that indicates the
scheduled activity dates and the duration along with the activity floats.

Slip chart – visual indication of activities that are not progressing to schedule.
Alternative view of Gantt chart by providing a visual indication of those activities
which are not on schedule. The more bend in the greater the variation in the project
plan. If the slip line deviates more towards the non achievement of project objectives
then it has to be reconsidered. Additional slip lines can be included at regular
intervals.

Ball charts – way of showing or not targets have been met or not. It is represented in
the form of circles that indicate the start and the end point completion of activities.
Circles of the ball chart mostly contain only two dates the original and the revised
one. An activity is denoted by a red circle and green color denotes that the activity is
ahead of its schedule. Slippage in the project completion date but it is overcome by
the timeline charts.

Gantt Chart Technique

 Gantt chart is the most simple and the oldest form of representing
the progress of the project.
 It consists of an activity indicate the scheduled activity dates and
the duration along with the activity floats.
IFETCE-R 2019 Academic year 2024-2025

Gantt Chart
Theprogressreportsoftheactivityarenormallyrepresentedasashadedactivitybar
which indicates the percentage of activity completion.

Slip Chart Technique

 ASlipchartprovidesanalternativeviewofGanttchartbyprovidingavis
ualindicationofthoseactivitieswhicharenoton schedule.
 The chart indicates that, the more there is a bend in the line the
greater the variation in the project plan.
 If the slip lined aviates more towards then on achievement of
project objectives, then it has to be reconsidered. A very jagged slip line
indicates a need for rescheduling.
 ThesamefigureusedtorepresentGanttchartismodifiedtoSlipchartand
depictedbelow:
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The slip chart emphasizes the relative position on of each activity

Additionalsliplinescanbeincludedatregularintervalsastheyarebuild
provides the project manager a clear idea about the projects progress.
Ball Chart Technique
 Ballchartsarerepresentedintheformofcirclesthatindicatethestartandt
heendpointcompletion of activities.
 Initially,thecirclescontaintheoriginalscheduleddatesandwhenrevisi
onsaredone,theseconddates are introduced inside the circle until the
activity is started or completed.
 Circles of bar chart will at most contain only two dates the original
and the revised one or the original and the actual dates.
 Ball charts are pictorially shown as below:
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BallChart
 An activity is denoted by a red circle (colored darker in the figure)
when the start and the end dates are later than the target dates whereas
green circle (colored lighter in the figure)denotes that the activity is ahead
of its schedule.
 The color to the circles reminds the project team about the status of each
activity.
 In general, all the three types of chart techniques do not show
clearly the slippage in the project completion date for the project lifecycle.
This is overcome by timeline charts

Time line Charts

The timeline chart is a method of recording and displaying the way in which
targets have changed throughout the duration of the project.
 Timeline usually records and displays the target changes during the project
lifecycle.
 The chart represents the planned time along the horizontal axis
and the actual time along the vertical axis.
 Alinedownthehorizontalaxisrepresentsthescheduledactivitycomplet
iondatesandthe slip in the line indicates a delay in there respective
activities.
 This timeline chart is used to calculate the duration of execution of
IFETCE-R 2019 Academic year 2024-2025
the project as a part of post-implementation review.

Timeline chart

The timeline chart is useful both during the execution of a project and as part of
the post-implementation review. Analysis of the timeline chart, and the reasons
for the changes, can indicate failures in the estimation process or other errors that
might, with that knowledge, be avoided in future.
Heatmaps:

Heatmaps use color gradients to represent data values across a matrix. In project
management, they can show resource utilization, task priorities, or risk severity.

Benefits: Offers a quick visual summary of where attention or action is needed most
urgently based on predefined criteria. Highlights outliers or areas of concern.

Burndown Charts:

Description: Burndown charts track the progress of completing project tasks or

backlog items over time. They show the total work remaining versus time until
project completion.

Benefits: Indicates if the project is on track to finish within the estimated timeframe.
IFETCE-R 2019 Academic year 2024-2025
Helps in predicting project completion based on current progress rates.

2 Explain in detail about Earned Value Analysis and also list the various parameters 16 R
. used for EVA.

Earned Value Analysis (EVA) is a powerful technique used in project management to

assess a project's performance and progress by integrating measurements of scope,
schedule, and cost. It provides insights into whether a project is on track, over budget,
or behind schedule, enabling proactive management decisions to be made.

The main indicators of the Earned Value Analysis technique are

Earned Value (EV),

Planned Value (PV),

Actual Cost (AC) and

Budget at Completion (BAC).

Overview of Earned Value Analysis (EVA)

Earned Value Analysis involves comparing the planned performance of a project (as
per the baseline) against actual performance to determine variances and forecast
future performance. It integrates three key elements: Planned Value (PV), Earned
IFETCE-R 2019 Academic year 2024-2025
Value (EV), and Actual Cost (AC).

1. Planned Value (PV):

o Also known as Budgeted Cost of Work Scheduled (BCWS).
o PV represents the authorized budget assigned to scheduled work up to
a specific point in time.
o It is the value of the work that was planned to be done by a certain
date, according to the project schedule.
2. Earned Value (EV):
o Also known as Budgeted Cost of Work Performed (BCWP).
o EV represents the value of the work actually completed to date.
o It is measured in terms of the budget assigned to the work that has
been completed and accepted.
3. Actual Cost (AC):
o Also known as Actual Cost of Work Performed (ACWP).
o AC represents the actual costs incurred for the work completed up to a
specific point in time.
o It includes all costs directly attributed to the work completed,
regardless of whether they were budgeted or not.

Parameters Used in Earned Value Analysis

Earned Value Analysis uses several parameters to measure project performance and
calculate variances:

1. Cost Variance (CV):

o Formula: CV = EV - AC
o Interpretation: CV measures the difference between the earned value
(value of work performed) and actual cost incurred. A positive CV
indicates cost efficiency, while a negative CV suggests cost overrun.
2. Schedule Variance (SV):
o Formula: SV = EV - PV
o Interpretation: SV measures the difference between the earned value
(work performed) and planned value (work scheduled). A positive SV
indicates ahead-of-schedule performance, while a negative SV
suggests delays.
3. Cost Performance Index (CPI):
o Formula: CPI = EV / AC
o Interpretation: CPI measures the efficiency of cost performance
relative to the budget. A CPI greater than 1 indicates cost under-run,
while a CPI less than 1 indicates cost over-run.
4. Schedule Performance Index (SPI):
o Formula: SPI = EV / PV
o Interpretation: SPI measures the efficiency of schedule performance
relative to the planned schedule. An SPI greater than 1 indicates
IFETCE-R 2019 Academic year 2024-2025
ahead-of-schedule performance, while an SPI less than 1 indicates
behind-schedule performance.
5. Estimate at Completion (EAC):
o Formula: EAC = BAC / CPI or EAC = AC + (BAC - EV)
o Interpretation: EAC forecasts the total project cost based on current
performance. It adjusts the original budget (BAC) by considering the
cost performance to date (CPI) or the variance from the budgeted cost
(BAC - EV).
6. Variance at Completion (VAC):
o Formula: VAC = BAC - EAC
o Interpretation: VAC measures the projected cost variance at the end
of the project. A positive VAC indicates the project is under budget,
while a negative VAC indicates the project is over budget.

3 During a routine project review, you identify a potential risk related to supplier 16 A
. delays in delivering critical materials. How would you report this risk to
stakeholders and propose contingency plans to minimize its impact on project
timelines?

Reporting the Risk to Stakeholders

Risk Identification and Assessment:

During the routine project review, identify and document the risk of supplier delays in
delivering critical materials. Assess the potential impact of these delays on project
timelines, milestones, and overall project objectives.

Prepare a Detailed Risk Report:

Create a structured risk report that outlines:

Nature of the Risk: Describe the specific supplier delays and their potential causes
(e.g., production issues, logistics challenges).

Impact Assessment: Quantify the potential impact on project timelines, including

delays in construction phases or dependencies on critical materials.

Probability and Severity: Assess the likelihood of the delays occurring and the
severity of their impact on project deliverables.

Root Causes: Identify any underlying reasons contributing to the supplier delays to
provide context for stakeholders.

Visual Aids and Data:

IFETCE-R 2019 Academic year 2024-2025
Use visual aids such as charts or graphs to illustrate the risk's potential impact on
project timelines. Include data points such as estimated delays in delivery dates and
the ripple effect on subsequent project tasks.

Stakeholder Communication:

Schedule a meeting or presentation to communicate the identified risk to relevant

stakeholders, including project sponsors, team members, and key decision-makers.

Clearly articulate the implications of the supplier delays on project schedules and
milestones, ensuring stakeholders understand the severity and urgency of the
situation.

Proposing Contingency Plans

Mitigation Strategies:

Propose specific contingency plans to mitigate the impact of supplier delays on

project timelines:

Alternative Suppliers: Identify backup suppliers or vendors who can provide similar
critical materials within the required timeframe.

Expediting Delivery: Explore options to expedite delivery of critical materials, such

as air freight or express shipping services.

Inventory Management: Evaluate the feasibility of increasing inventory levels for

critical materials to buffer against potential delays in future deliveries.

Risk Response Actions:

Outline actionable steps and responsibilities for implementing each contingency plan.
Assign roles to team members responsible for monitoring supplier communications
and executing alternative sourcing strategies if necessary.

Cost and Resource Implications:

Estimate the additional costs and resource requirements associated with implementing
contingency plans. Provide a cost-benefit analysis to justify the proposed strategies
and ensure alignment with project budget constraints.

Timeline Adjustment:

Discuss potential adjustments to project timelines or critical path activities to

accommodate the anticipated delays in critical material deliveries. Present revised
IFETCE-R 2019 Academic year 2024-2025
schedules or milestone targets based on the chosen contingency plan.

Monitoring and Review:

Establish a monitoring mechanism to track the progress of contingency actions and

supplier responsiveness. Schedule regular updates to stakeholders to keep them
informed of any changes in the risk status or mitigation efforts.

4 (i) Explain the process of prioritizing monitoring. 8 U

.
Prioritizing monitoring in project management involves systematically determining
which aspects of a project require the most attention and focus for effective oversight
and control. This process ensures that resources, time, and effort are allocated
efficiently to areas that have the greatest impact on project success.

Process of Prioritizing Monitoring

1. Identify Project Objectives and Goals:

o Definition: Begin by clearly understanding the overarching objectives
and specific goals of the project. These serve as the foundation for
determining what needs to be monitored closely to achieve successful
outcomes.
o Example: For a construction project, objectives may include
completing phases on time, within budget, and meeting quality
standards.
2. Define Key Performance Indicators (KPIs):
o Selection: Identify and define the KPIs that directly align with project
objectives. These indicators should be measurable, relevant, and
provide critical insights into project performance.
o Example: KPIs for a construction project could include schedule
adherence (percentage of tasks completed on time), cost performance
(variance from budget), and quality metrics (defect rates).
3. Assess Risks and Prioritize:
o Risk Analysis: Conduct a thorough risk assessment to identify
potential threats and opportunities that could impact project success.
Prioritize risks based on their likelihood of occurrence and potential
impact on project objectives.
o Example: Risks such as supplier delays, regulatory changes, or
resource constraints may be prioritized due to their significant impact
on project timelines or costs.
4. Stakeholder Input and Expectations:
o Consultation: Gather input from project stakeholders, including
clients, sponsors, and team members, to understand their priorities and
expectations for monitoring.
o Alignment: Ensure that the prioritization of monitoring aligns with
IFETCE-R 2019 Academic year 2024-2025
stakeholder interests and key concerns to maintain project alignment
with organizational goals.
o Example: Stakeholders may emphasize monitoring financial metrics
closely to ensure budget adherence or quality metrics to maintain
brand reputation.
5. Establish Monitoring Frequencies and Methods:
o Frequency: Determine how often each KPI and risk will be monitored
throughout the project lifecycle. Some aspects may require continuous
monitoring, while others may be reviewed periodically.
o Methods: Define the monitoring methods and tools to be used, such as
progress reports, performance dashboards, meetings, or automated
systems.
o Example: Weekly progress meetings to review schedule performance
and monthly financial reports to monitor cost variances.
6. Allocate Resources and Responsibilities:
o Resource Planning: Allocate adequate resources, including personnel,
time, and budget, to support effective monitoring activities.
o Responsibilities: Assign roles and responsibilities to team members
for monitoring specific KPIs and risks, ensuring accountability and
clear communication channels.
o Example: Designate a project manager to oversee overall project
monitoring and task team leads with responsibility for monitoring
specific aspects like schedule adherence or risk mitigation.
7. Review and Adjust Monitoring Plan:
o Continuous Improvement: Regularly review the effectiveness of the
monitoring plan and adjust priorities as project conditions change or
new risks emerge.
o Adaptation: Be prepared to adapt monitoring strategies based on
lessons learned from previous projects or evolving project
requirements.
o Example: After encountering unexpected delays, revise monitoring
priorities to emphasize risk mitigation strategies or adjust schedules
accordingly.

4 (ii) During the development phase of a software project, you discover that the cost of 8 A
hiring additional developers is higher than initially budgeted. This is due to an
unforeseen increase in market rates for skilled developers. How would you handle
this unexpected increase in resource costs to ensure the project remains within
budget?

Assess Impact on the Budget

 Review Current Budget: Analyze the current budget to understand how the
IFETCE-R 2019 Academic year 2024-2025
increased cost affects the overall project budget.
 Identify the Shortfall: Calculate the difference between the initially budgeted
amount and the new, higher cost for hiring additional developers.

2. Reallocate Resources

 Identify Non-Critical Areas: Look for areas within the project where funds
can be reallocated without impacting critical deliverables. This may include
non-essential features or phases that can be deferred.
 Optimize Resource Utilization: Evaluate if existing team members can take
on additional responsibilities to reduce the need for hiring extra developers.

3. Negotiate Rates

 Engage with Hiring Agencies: Negotiate with hiring agencies or freelance

developers to see if lower rates or bulk hiring discounts can be secured.
 Flexible Contracts: Consider offering flexible working arrangements or
longer-term contracts that might be more attractive and reduce the hourly rate.

4. Adjust Project Scope or Schedule

 Scope Reduction: Prioritize core features and functionalities. Temporarily

reduce the scope by deferring non-essential features to future phases or
releases.
 Extended Timelines: Extend the project timeline to spread out the cost over a
longer period, which may help in managing the budget better.

5. Implement Cost-Saving Measures

 Increase Efficiency: Look for ways to increase the efficiency of the

development process, such as adopting agile methodologies, automating
repetitive tasks, or using productivity tools.
 Reduce Overheads: Cut down on overhead costs like office expenses, travel,
and non-essential team activities.

6. Seek Additional Funding

 Stakeholder Communication: Communicate the issue and its implications

clearly to stakeholders. Present a detailed analysis of the cost overrun and its
impact on the project.
 Justify Additional Funds: Request additional funding by demonstrating the
value that the additional developers will bring to the project and the risks of
not hiring them.
IFETCE-R 2019 Academic year 2024-2025
7. Update Project Plan and Baseline

 Revise Budget: Update the project budget to reflect the new costs and
reallocated funds.
 Adjust Schedule: Make necessary adjustments to the project schedule to
accommodate changes in resource allocation and timelines.
 Baseline Documentation: Ensure all changes are documented and baselines
are updated to reflect the revised budget and schedule.

8. Monitor and Control

 Regular Reviews: Conduct regular budget reviews and variance analyses to

ensure the project remains on track.
 Use EVM: Utilize Earned Value Management (EVM) to track project
performance and cost efficiency continuously.
 Contingency Planning: Develop contingency plans for future potential cost
increases or delays.

5 Describe Earned Value Analysis (EVA). What is its purpose in project 16 S

. management?

Earned Value Analysis (EVA) is a project management technique that integrates

scope, time, and cost data to provide a comprehensive view of project performance
and progress. EVA allows project managers to quantify the value of work performed,
compare it to the planned schedule and budget, and predict future performance trends.

Stages in Earned Value Analysis

Creating the baseline budget: This is the first stage in setting up EVA. This budget is
based on the project plan. It predicts the earned value through time. Normally, it is
measured in person hours or workdays, for example: in a software development
project.

Monitoring Earned Value: The second stage is monitoring the earned value as the
project progresses. This is achieved by monitoring the completion of each task.
Actual cost(AC) is the actual cost of each task and it can be analyzed and collected.

Schedule Variance(SV): This is the third stage which is measured in cost as EV-PV
which is the deviation between planned work and completed work.

Example: Consider these values,

IFETCE-R 2019 Academic year 2024-2025
PV =40000

EV=35000

SV=35000-40000 = -5000

Here the calculated SV value is negative and hence we conclude that the project is
behind the original schedule.

Time variance(TV): The difference between the current time and the time when the
achievement of the earned value was planned to occur.

Cost Variance(CV): This value is the difference between the actual cost and the
earned value. Using this value we can estimate the accuracy of the original cost
scheduled for the project. If the CV values are found to be negative, we conclude the
project is over cost.

 Planned Value (PV)

 Definition: The budgeted cost for the work scheduled to be completed by a

specific date.
 Purpose: Represents the authorized budget assigned to scheduled work.

Earned Value (EV)

 Definition: The budgeted cost for the work actually completed by a specific
date.
 Purpose: Measures the value of work performed in terms of the budget
assigned to it.

Actual Cost (AC)

 Definition: The actual cost incurred for the work completed by a specific
date.
 Purpose: Tracks the real expenditures for work done.

Budget at Completion (BAC)

 Definition: The total budget for the project.

 Purpose: Provides a baseline for measuring overall project performance.

Cost Variance (CV)

 Formula: CV=EV−ACCV = EV - ACCV=EV−AC

 Purpose: Indicates the difference between the budgeted cost of work
IFETCE-R 2019 Academic year 2024-2025
performed and the actual cost. Positive CV means under budget; negative CV
means over budget.

Schedule Variance (SV)

 Formula: SV=EV−PVSV = EV - PVSV=EV−PV

 Purpose: Shows the difference between the work performed and the work
planned. Positive SV means ahead of schedule; negative SV means behind
schedule.

Cost Performance Index (CPI)

 Formula: CPI=EVACCPI = \frac{EV}{AC}CPI=ACEV

 Purpose: Measures cost efficiency. CPI greater than 1 indicates cost
efficiency; less than 1 indicates cost overrun.

Schedule Performance Index (SPI)

 Formula: SPI=EVPVSPI = \frac{EV}{PV}SPI=PVEV

 Purpose: Measures schedule efficiency. SPI greater than 1 indicates ahead of
schedule; less than 1 indicates behind schedule.

Estimate at Completion (EAC)

 Formula:
o Typical formula: EAC=BAC×ACEVEAC = BAC \times
\frac{AC}{EV}EAC=BAC×EVAC
o Alternative formula: EAC=AC+(BAC−EV)EAC = AC + (BAC -
EV)EAC=AC+(BAC−EV)
 Purpose: Forecasts the total cost of the project at completion based on current
performance.

Estimate to Complete (ETC)

 Formula: ETC=EAC−ACETC = EAC - ACETC=EAC−AC

 Purpose: Predicts the additional cost required to complete the project.

Variance at Completion (VAC)

 Formula: VAC=BAC−EACVAC = BAC - EACVAC=BAC−EAC

 Purpose: Indicates the difference between the budget at completion and the
forecasted cost at completion. Positive VAC means the project is expected to
be under budget; negative VAC means over budget.
IFETCE-R 2019 Academic year 2024-2025
Advantages of Earned Value Analysis (EVA)

 Project Performance Measurement: EVA provides a comprehensive method

for measuring and assessing the performance of a project. It helps project
managers gain a clear understanding of how well a project is progressing in
terms of cost and schedule.
 Objective Performance Metrics: EVA relies on objective metrics, making it
less susceptible to subjective interpretations. This can lead to more accurate
assessments of project performance.
 Integration of Cost and Schedule: EVA combines cost and schedule
performance, allowing project managers to see the relationship between these
two critical aspects of project management. This integration can help in
identifying issues early and making informed decisions.
 Early Issue Identification: EVA can highlight problems in project execution
early, enabling project managers to take corrective actions promptly. This can
prevent cost overruns and schedule delays.
 Benchmarking: EVA allows for benchmarking project performance against
planned targets and historical data. It helps project managers assess whether
their project is on track compared to similar projects.
 Effective Communication: EVA provides a standardized way to communicate
project performance to stakeholders. Charts and reports generated from EVA
data can make it easier for stakeholders to understand the project’s status.

6 (i) Write about Project control cycle 8 U

.
The project control cycle is a systematic process used in project management to
ensure that a project stays on track, meets its objectives, and is completed
successfully. It involves continuous monitoring, evaluation, and adjustment of project
activities to align with the project plan and goals.

Planning:

 Establish Baselines: Define the project scope, schedule, and budget. Create
detailed plans for how the project will be executed, monitored, and controlled.
 Set Objectives and KPIs: Determine the key performance indicators (KPIs)
and project milestones that will be used to measure project progress and
success.

Monitoring and Data Collection:

 Progress Tracking: Regularly gather data on project activities, including task

completion status, resource utilization, costs incurred, and time spent.
 Use Tools and Techniques: Employ project management tools like Gantt
IFETCE-R 2019 Academic year 2024-2025
charts, earned value management (EVM), and performance dashboards to
track and visualize progress.

Analysis and Evaluation:

 Compare with Baselines: Compare actual project performance against the

baselines established during the planning phase. Identify variances and
deviations from the plan.
 Evaluate Impact: Assess the impact of these variances on the project’s scope,
schedule, and budget. Determine the root causes of any issues or delays.

Reporting and Communication:

 Regular Updates: Provide regular updates to stakeholders on project status,

progress, and any issues identified. Use reports, meetings, and visual tools like
charts and graphs.
 Transparency: Ensure transparent communication to keep all stakeholders
informed and engaged, which helps in maintaining trust and support for the
project.

Corrective Actions and Adjustments:

 Develop Action Plans: Based on the analysis, develop corrective actions to

address variances and bring the project back on track. This may involve
reallocation of resources, schedule adjustments, or scope changes.
 Implement Changes: Execute the necessary adjustments promptly. Ensure
that the team understands the changes and their roles in implementing them.

Control and Follow-Up:

 Continuous Monitoring: Continue to monitor the project’s progress after

implementing corrective actions to ensure that the issues have been resolved
and the project is back on track.
IFETCE-R 2019 Academic year 2024-2025
 Iterative Process: Recognize that the project control cycle is iterative. Repeat
the cycle of monitoring, analysis, reporting, and corrective actions throughout
the project lifecycle.

(ii) Describe a scenario where effective cost monitoring led to project success. 8 U

Initial Challenges: During the initial phases of the project, the project
manager and team identified several challenges:

1. Cost Escalation Concerns: Due to market fluctuations, prices of construction

materials and labor increased unexpectedly.
2. Scope Adjustments: The client requested minor scope adjustments, such as
changes in interior design specifications and additional security features.
3. Timeline Pressures: The construction schedule faced potential delays due to
adverse weather conditions and permitting issues.

Implementation of Cost Monitoring:

IFETCE-R 2019 Academic year 2024-2025
1. Establishing Baselines: At the project outset, the team set clear budget
baselines and scheduled milestones using a detailed cost estimation process.
This included defining the Planned Value (PV) for each phase of the project.
2. Regular Monitoring: The project team implemented a rigorous cost
monitoring system. They tracked Actual Costs (AC) against Planned Value
(PV) and Earned Value (EV) using Earned Value Analysis (EVA) techniques.
3. Identifying Variances: As the project progressed, the team continuously
monitored Cost Variance (CV) and Cost Performance Index (CPI). They
identified potential cost overruns early by comparing actual expenditures with
the budgeted amounts.
4. Proactive Adjustments: Upon noticing deviations from the budget, the
project manager initiated corrective actions promptly. For instance, they
negotiated better pricing with suppliers for bulk material purchases and
optimized labor schedules to reduce overtime costs.
5. Stakeholder Communication: Regular updates on cost performance were
shared with stakeholders, including the client, to maintain transparency and
manage expectations. Discussions included the impacts of scope changes on
project costs and timelines.

Outcome and Success:

1. Cost Control: Effective monitoring allowed the project team to keep costs
within the approved budget despite initial market uncertainties and scope
adjustments.
2. Timely Decision-Making: Early identification of cost variances enabled the
team to make informed decisions swiftly, minimizing the financial impact on
the project.
3. Adherence to Timeline: By managing costs effectively, the project
maintained progress according to the revised schedule, ensuring timely
completion.
4. Client Satisfaction: Transparent communication and proactive cost
management strategies enhanced client trust and satisfaction. The client
appreciated the project's adherence to financial constraints without
compromising quality.

7 i)Suppose you have a budgeted cost of a project as Rs.9,00,000. This project is to 8 A

. be completed in 9 months after a month, you have completed 10 percent of
project at a total expense Rs.1,00,000. This planned completion should have been
15 percent. You need to determine whether the project is on time and on-
budget? Use Earned Value Analysis (EVA) approach and interpret.

SOLUTION
IFETCE-R 2019 Academic year 2024-2025
GIVEN,
BAC= 900000, AC = 100000
PV = planned completion % * BAC
= 15% * 900000
= 15/100 * 900000
=135000
EV = actual completion % * BAC
= 10% * 900000
= 10 / 100 * 900000
= 90000
CPI = EV / AC
= 90000 / 100000
= 0.9
SPI = EV / PV
= 90000/ 135000
= 0.67
0.67 * 60
= 40 mins

ii) Assume you are project manager and you are asked to compute EVA for project 8 A
contains 20 tasks. The project schedule indicates15 tasks should have been
completed, due to continuous change requests 9 tasks are completed by the defined
dead line. Assume the actual cost of work performed is 50 dollar. Calculate the values
of schedule performance index, schedule variance, cost performance index, cost
variance, percent scheduled for completion and percent complete. The following
scheduling data (in person days) are available.

Task Planned effort Actual effort

1 8 6.5
IFETCE-R 2019 Academic year 2024-2025
2 12 14
3 10 13
4 5.5 7.5
5 13 9
6 10.5 8.5
7 12 11.5
8 7 8
9 9.5 8
10 8 -
11 7 -
12 9 -
13 12 -
14 7 -
15 12 -
16 10 -
17 5 -
18 9.5 -
19 7 -
20 13 -

SOLUTION:
GIVEN
Scheduled tasks= 15,
Completed tasks= 9,
Actual cost of work performed= 50 dollar
From that Tabular column,
BCWP= Sum of actual effort of completed tasks
= 86

BCWS= Sum of planned effort of completed scheduled tasks

= 87.5
BAC = Budget at completion of all the scheduled tasks
= 142.5
IFETCE-R 2019 Academic year 2024-2025
SPI = BCWP / BCWS
= 86 / 87.5
= 0.98285
SV = BCWP – BCWS
= 86 – 87.5
= -1.5 person. Day
Percent complete = BCWP – BAC
= 86 / 142.5
= 60%
Cost performance index, CPI = BCWP / ACWP
= 86 / 50
= 1.72
Cost variance = BCWP – ACWP
= 86 – 50
= 36
8 i) Explain the two strategies of getting back the project to target and how it is applied 8 R
. in project management

Recovery Planning

Definition: Recovery planning involves developing a comprehensive strategy to

recover the project from its current state to align with the original project goals,
timelines, and budgets.

Key Steps in Recovery Planning:

 Assessment: Conduct a thorough assessment to identify the root causes of the

deviations (schedule delays, cost overruns, quality issues, etc.).
 Reevaluation of Plans: Review the initial project plans, including the scope,
schedule, and budget, to identify where adjustments are necessary.
 Resource Allocation: Assess the availability and allocation of resources
needed to implement recovery actions effectively.
 Risk Analysis: Evaluate potential risks associated with the recovery plan and
develop mitigation strategies.
 Stakeholder Engagement: Engage stakeholders to communicate the recovery
IFETCE-R 2019 Academic year 2024-2025
plan, gain their support, and manage expectations.
 Implementation: Execute the recovery plan, monitor progress, and make
necessary adjustments as the plan is implemented.
 Monitoring and Control: Continuously monitor project performance using
metrics like Earned Value Analysis (EVA) to ensure the effectiveness of the
recovery efforts.

Application in Project Management: Recovery planning is applied when the project

requires significant adjustments to regain alignment with its original objectives. It is
crucial for handling complex situations where deviations threaten project success,
requiring a structured approach to realign resources, timelines, and deliverables.

2. Corrective Actions

Definition: Corrective actions focus on addressing specific issues or deviations that

are causing the project to veer off course. These actions are targeted responses aimed
at resolving identified problems promptly.

Key Steps in Implementing Corrective Actions:

 Problem Identification: Identify specific issues causing deviations from the

project plan (e.g., delays in task completion, budget overruns).
 Root Cause Analysis: Conduct a detailed analysis to determine the root
causes of the identified issues.
 Action Planning: Develop action plans outlining specific steps to address
each issue effectively.
 Implementation: Execute the action plans promptly, assigning
responsibilities and timelines for completion.
 Monitoring and Feedback: Monitor the implementation of corrective actions
closely, collecting feedback and adjusting plans as necessary.
 Documentation: Document all actions taken, outcomes, and lessons learned
for future reference and improvement.

Corrective actions are applied when immediate and focused interventions are needed
to address specific issues impacting project performance. They are often employed
for addressing isolated or urgent issues that, if left unattended, could escalate and
project success.

Integration and Synergy

In practice, these two strategies are often integrated and complement each other in
project management:

 Sequential Approach: Recovery planning sets the overall direction and

IFETCE-R 2019 Academic year 2024-2025
strategy for realigning the project with its original goals. Corrective actions
then provide the tactical responses to address specific issues identified during
the recovery planning phase.
 Continuous Improvement: Both strategies emphasize the importance of
continuous monitoring, evaluation, and adjustment to ensure that the project
remains on track and adapts to changing circumstances effectively.
 Stakeholder Engagement: Effective communication and stakeholder
engagement are critical throughout both strategies to maintain support,
manage expectations, and ensure alignment with project goals.

ii)AssumeYou are managing a project which is into six months of its execution. You 8 A
are now reviewing the project status and you have ascertained that project is behind
schedule. The actual cost of Activity A is 2,00,000 and that of Activity B is
1,00,000. The planned value of these activities are 1,80,000 and 80,000 respectively.
The Activity A is 100% complete. However, Activity B is only 75% complete.
Calculate the schedule performance index and cost performance index of the project.

SOLUTION

First tabulate the data provided in the problem

Tasks Planned Value (PV) Actual Cost (AC) % Completion

Activity A ₹ 1,80,000 ₹ 2,00,000 100%
Activity B ₹ 80,000 ₹ 1,00,000 75%

Since we have percentage completion data of each activity we can calculate the
earned value. In order to calculate earned value of each activity multiply %
completion and the planned value. Therefore, 100% x 1,80,000 = 1,80,000 and 75% x
80,000 = 60,000/-

Actual Cost
Tasks Planned Value (PV) % Completion Earned Value
(AC)
Activity A ₹ 1,80,000 ₹ 2,00,000 100% ₹ 1,80,000
Activity B ₹ 80,000 ₹ 1,00,000 75% ₹ 60,000

Now, calculate the cumulative data for the period. Thereafter add planned value,
actual costs and earned value of both the activities.

Tasks Planned Value (PV) Actual Cost (AC) % Completion Earned Value
Activity A ₹ 1,80,000 ₹ 2,00,000 100% ₹ 1,80,000
Activity B ₹ 80,000 ₹ 1,00,000 75% ₹ 60,000
Cumulative ₹ 2,60,000 ₹ 3,00,000 – ₹ 2,40,000
IFETCE-R 2019 Academic year 2024-2025

Therefore, Schedule Performance Index (SPI) = EV/PV = 2,40,000/2,60,000 = 0.92

And, Cost Performance Index (CPI) = EV/AC = 2,40,000/3,00,000 = 0.8

Schedule Performance Index (SPI) = 0.92

Cost Performance Index (CPI) = 0.8

Since both SPI and CPI are less than one, the project is behind schedule and is
experiencing cost overrun.