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Paper / Subject Code: 56901 / Project Management 06-06-2023

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2
MMS - IV (University Examination)

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70

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C

E
91
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1A
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(3 Hours) Total Marks - 60

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19

4
70

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Instructions for students

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a. There are in all seven questions.

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b. Question No. 1 is Compulsory and carries 20 marks.

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12
c. Attempt any four questions out of the remaining six questions from Q2 to Q7. All questions

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1D

8
carry 10 marks each. Each sub-question carries 5 marks.

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E

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3

D
A
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d. Calculators are allowed to be used.

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e. Specify the question number and the sub-question number clearly that you attempt.

0
1

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f. Figures to the right indicate marks.
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5

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2

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91

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Q1. Attempt ALL sub-questions from the following:

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D

72

70
23
( a) The following data is available for a R & D project. (10 Marks) 3
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27
70

25
Expected Duration

0C
3D
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19
Activity Variance Predecessor Activity

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23
8D

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D7
(weeks)
D
C

70
F

41
D1
DF
19

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70

98
A 16 0:69 -

32
72

E
1
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3
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1A

01
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12
F
B 5 Nil -
4D
C
32

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19

25

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C 10 0.25 B
7
12

23
70

8D

7
3

1A
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F
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0C

D 11 0.69 A

41
32

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9

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C
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12

E 18 0.25 B
0

3
F

9
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98

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F 14 0.36 C C4

5
3

3D
1A

7
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72
12

91
G 24 0.11 D
0

8D

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7

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D
25

4
1D

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2
AE

H 26 0.11 E
19

4
0
3
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3D
C
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F9

72
12

I 12 0.11 F
CF
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DF

27

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9 8

0
91

Determine the probability that project completion probability will be 85 %.

3
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1A

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7
2

70

8D
5F

41
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4D
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2
72

9
23

( b) Consider the data given below of a small part of project. The actual performance is measured at end of 5
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01

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41
1

27
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months in terms of percentage actual completion and actual cost incurred. Calculate cost performance index
70

25

0C
8
3D

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19
91

23
8D

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and schedule performance index. Calculate revised project duration and cost.
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4D

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F

41
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19

70

Activity preceding activity NT NC AC % actual completion

98
32
FC

72

AE
1
8D

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01
F9

12

A - 4 6 6 100
F
0C

1
F

27
19

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25

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1D

B - 12 15 6 40
D
D7

23
70

7
3
CF

1A
F9
F
D

C - 4 3 3 95
98

41
32

DF
C4
70

1D
01

D A 10 15 2 7
72

AE
12

8D

3
CF

9
27

FF
D
E4

E C 6 10 0 0
F

D1
19

C4
70

25
23

3D

F A 14 11 8 7
91
70

8D

7
41

CF

FF
D

5F

G B , D, E 8 10 0 0
32
AE

19

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0

3D
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72
12

(10 Marks)
70

CF
D1

FF
4D
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8
32

19

0
91

3D
1A

FC
7
12

Q2. Attempt any TWO sub – questions from the following –

70

8D
5F

4D
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1D

0C
32

(a) Calculate Internal Rate of Return if investment is 200 & cash inflows for 2 years are 120 & 144 .
1A

01

FC
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12

(b) Calculate discounted payback period in months of project with initial investment 240 and inflows
27
25

4
1D

0C
8
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19
23

25, 55, 155 & 200. Assume rate of discounting 10 % per year
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70
41
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( c ) Calculate NPV if initial investment is 500 & cash inflow for subsequent years are 50, 75, 125, 225,
25

98
32
AE
91

& 300 . Assume rate of discounting is 10% per annum.

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12
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27
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72

91

23
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A
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41
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72

AE

32611 Page 1 of 8
91
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4D

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D1
70

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72

91
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0C

5F

98D70CFC4D3DFF725F91D1AE41232701
3D
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D7

72
 27
5

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72

23
Paper / Subject Code: 56901 / Project Management

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25

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2
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41
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70

25
Q3. Attempt any TWO sub – questions from the following –

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C

E
91
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D
The past demand for 6 months is given of a product

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F
19

4
70

D
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Month 1 2 3 4 5 6

1
70

8D

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Demand 32 29 27 36 34 32

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32

F
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25
D
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7
12
( a ) Calculate Mean Squared Error and sales for month 7 using Moving Average method with period 3.

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70

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( b ) Calculate Mean Absolute Deviation and estimated sales for month 7 using exponential smoothing

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1A

C
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2
12
method with smoothing constant 0.2.

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27
4
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8
( c ) Explain Mean Absolute Percentage Error as a measure of accuracy in forecasting.

F
E

19

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70
3

D
A
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12

8D

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3
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4D
25

2
Q4. Attempt any TWO sub – questions from the following –

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19

0
1

3
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F9

12

D3
1
Consider following data of a small project given below:
DF

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5

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8
2

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91

3
Activity preceding activity duration(days)

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0
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41

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A nil 5

27
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98
3D

72

70
23
B nil 7
F

01

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F
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41
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C A 3

25

0C
3D
FC
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19
91

23
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D A 3

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D
0C

70
98

41
D1
DF
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5
E B 2

98
32
01

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72

E
1
3
F

1A

01
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12
F B 2
27

F
4D
C
98

27
0

25

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23

D
G D, E 2
01

FC
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23
7
3
1

1A
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27

F
H F, G 3 4D
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0C
98

41
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1D
23
1A

01

C
Answer any 2 from below:
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72

AE
3
41

9
27

FF
D
1D

0C
98

( a) Calculate critical path and project duration.

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5
23

3D
1

7
F9

72
( b ) Calculate Total and Free Float for all activities.

91
0

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41

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D
25

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2

( c ) Plot a Gnatt chart.

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4
0
91

23
F7

3D
C
D7

72
0
5F

CF
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DF

27

FF
4D
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Q5. Attempt any TWO sub – questions from the following –

72

0
91

3
D3

3D
1A

FC
7
2
FF

70

8D
5F

A company intends to produce a single product whose estimated demand in year 1 is 1700 units. It is
41
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4D
1D

0C
3D

2
72

expected to increase by 85 units each subsequent year. Estimated price for year 1 is Rs 600/unit which is
23
CF

01

FC
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41
1

expected to increase by Rs 15/unit each subsequent year. Operating expenses excluding depreciation and
27
70

25

1D

0C
8
3D
FC

AE

19
23

interest on term loan for year 1 are estimated to be Rs 178000/- which are expected to increase by Rs 20000
8D

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41
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each subsequent year. At the beginning of project (at end of year 0 ) liabilities include equity capital of Rs 6
19

25

98
32
FC
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AE
1
F7
D3

lakhs and Term loan of Rs 12 lakh. Assets include Land Rs 1 lakh and other Fixed assets Rs 17 lakh. Term
01
F9

12
0C
98

1
DF

27
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loan is to be repaid in 5 years with equal annual installments and carries 12 % rate of interest charged on
5

E4
1D
01

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23
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1A
F9

opening balance of that year. Other fixed assets are depreciated at 10 % per year by written down value
27

98

41
DF
4
70

1D
23

method.
01

FC

72

AE
8D

D3
1

9
27

Answer any 2 from below:

FF
E4

0C

D1
19

25
23

3D

( a) Calculate Equity Capital/ Term Loan for years 1 and 2.

FC
D7

91
70

7
41

FF
D

(b) Calculate Debt Service coverage ratio (DSCR) for years 1 and 2.
0C
98

5F
32
AE

3D
01

FC
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72

( c) Calculate Interest Coverage Ratio for years 1 and 2.

12
D1

27

FF
4D
E4

0C
98

Assume income tax rate is 30 %. All units produced are sold in same year. All payments and expenses
91

23

3D
1A

01

FC
D7

realized in same year.

5F

41

27

4D
1D

0C
98
AE

23

01

FC
D7
F9

Q6. Attempt any TWO sub – questions from the following –

41
D1

27
25

0C
98
AE
91

23
F7

01

D7
5F

1
D1
DF

27
E4

98
72

91

23
D3

1A

01
FF

5F

41

27
1D
3D

72

AE

23
F9
FF
4D

41
D1
25
3D
C

AE

32611 Page 2 of 8
91
F7
CF

4D

5F

D1
DF
70

FC

72

91
D3

FF
0C

5F
4

98D70CFC4D3DFF725F91D1AE41232701
3D
FC
D7

72
 70 D3 5F E4 19
CF DF 91 1 23 8D
C 4D
F7 D1 27 70
D7 25 AE 01 CF
0C 3D F9 41 98 C4
FC FF 1D 23 D7 D3

I
72 1A 27

F
E
C
B
0C

H
G
D
A
4D 5F E4 01 DF
3D 91 98 FC F7
12 4D

32611
FC FF D1 32 D7 25
4 Activity
72 AE 70 0C 3D F9
D3 5F 41 19 FC FF 1D
DF 91 23 8D 4D 72 1A
F7 D1 70 5F E4

C
B
A
A
25 AE 27 3D 91 1

E,F
01 CF ----

B,C

D,E
23

H,G
3D F9 41 98 C4 FF D1
FF 1D 23 D7 72 AE 27
1A 27 D3 5F 01
Activities

72 0C 41 98
Preceding

5F E4 01 DF 91 23
FC D1 D7
91 1 98 F7

Answer any 2 from below:

23 4 25 AE 27 0C

6
4
4
3
1
5
2
3
4

D1 D7 D3 01 F
72 27 0C F9 41 98 C4
costs for a construction project:

5F AE 01 DF 1D

final project cost be?

41 98 FC F7 23 D7 D3
91 4 1A 27 0C
Normal

D1 23 D7 D3 25 E4 01 DF
27 F9 FC

(a) Calculate project duration.

0C 1 F7 98
Time(wks)

AE 01 DF 1D 23 25 4D
41 98 FC F7 1 2
D7
4 D 2 A 7 0 0 C
F9 3D
5
1
2
2
1
3
1
2
2

23 D7 5 E
27 3D F9 41 1 F 1D FF
01 0C 1 2
98 C4 72 1A
FF 3 D 5
Crash

98 FC D1 27
D7
3D F9 E4
72 0C

(c) Define a project stating its characteristics.

D7 4D 5 AE 0 F 1 12
19 FC F
Time(wks)

0C 3D F9 41 D1 32
FC FF 1D 23 8D 4D 72 A E 70
1 2 7 3 5F
(b) Calculate slope of crashing of each activity.
7 0C 4 19

Page 3 of 8
4D 25 AE 70 DF 91 12 8D
3D F9 41 1 9 F C F7 D 1 32
8 70
Cost

7000
9000
4000
6000

FF 1D 23 4D 25 AE 70
Q7. Attempt any TWO sub – questions from the following –
D7 CF
20,000
11,000
13,000
14,000
10,000

3 4
Normal

72 1A 27 0 D F9 12
19 C4
5F E4 01
9
CF F F 1D 3
8D
70 D3
91 12 8D C4 72 1A 27 D
D1 32 7 D 5 F 01 C F
AE 70 0 CF 3 DF 91
E4
12 98D C
19 F 3 4D
C 7
Cost

D1 2

98D70CFC4D3DFF725F91D1AE41232701
41 7
8000
9000
6000
9000

8 4 A 7 0 3D
Crash

23 D 25 0 C
29,000
18,000
25,000
18,000
11,000

27
D7
0C 3D F9 E 41 19 FC FF
01 1 2 8 4 D
72
98 FC FF
72
D1 3 27
D7
3D 5
4D 0 0C
Paper / Subject Code: 56901 / Project Management

D7
3D 5 F9
AE
41 19 FC FF7
0C 8D
(b) Explain how uncertainties are handled in PERT approach to project planning.

FC FF 1D 23 4D 25
(a) Explain different examples of Project Management in launch of new products.

4D 72 1A 27 70 3D F9
5 F E 0 1 CF F 1D
3D 9 1D
41 98 C 4D
F7
FF 23 D7 25
72 1A 27 0 3D F9
5F E4 01
98
CF FF7 1D
91 12 C4
2 1A
(c) To shorten the project by 2 weeks which tasks would be shortened and what would the
Following are the precedence requirements, normal and crash activity times, and normal and crash

D1 32 D7 D3 5F E4
AE 70 0C DF 91
41 19 FC F7 D1
23 8D 4D 25 AE
27 70 3D F9 41
01 CF FF7 1D 23
98 C4 1A 27
D7 D3 2 5F E
0C DF 91 41
FC 23
F7 D1 2