PM Answers
PM Answers
4. Interrelationship:
Scope-Time-Cost are in balance.
If scope increases, either time or cost must also increase.
If time is reduced, either scope must be reduced or cost must increase.
5. Diagram:
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Scope
/ \
Cost---Time
A triangle showing how all three are connected.
6. Conclusion:
Understanding and managing triple constraints is crucial for a project manager.
It helps in making trade-off decisions and ensures the delivery of a successful
project.
Supervisor Facilitator
3. Why PM is a Facilitator:
Encourages team participation.
Resolves conflicts and dependencies.
Ensures communication flow.
Aligns stakeholders with goals.
Helps teams make decisions rather than issuing orders.
4. Real-World Example:
In Agile teams, PMs often play the role of Scrum Masters who facilitate daily
stand-ups and remove blockers.
5. Conclusion:
Project managers today are collaborators, not commanders. Their role as a
facilitator improves team performance and project outcomes.
Q3) What are the three basic goals of a project and how do project managers
achieve them in conditions of uncertainty? 5M
Ans:
1. Introduction:
Every project strives to meet three essential goals.
2. The Three Basic Goals:
1. Time – Complete within schedule.
2. Cost – Stay within budget.
3. Performance/Scope – Meet desired outcomes.
3. Achieving Goals Amid Uncertainty:
Functional
Authority Project managers Shared authority
managers
Team
To department To project Split loyalty
Loyalty
3. Conclusion:
Each has pros and cons.
Matrix structure is common today for balancing flexibility and resource
efficiency.
Q5) What is project life cycle? how does cost of change, risk and influence of
stakeholders are affected with Project time during the life cycle of project? 10
Ans:
1. Introduction:
The Project Life Cycle (PLC) represents the phases a project goes through
from start to finish.
2. Phases of Project Life Cycle:
Phase Description
3. Diagram:
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Initiation → Planning → Execution → Monitoring → Closing
4. Cost of Change vs. Time:
Phase Influence
Reason: Key decisions are made early; later, changes are harder to implement.
7. Combined Graph (Text version):
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|↑ Risk/Influence
|\
|\ Cost of Change
| \ /
| \ /
| \ /
| \ /→ Time →
8. Conclusion:
Understanding how cost, risk, and stakeholder influence change over time
helps PMs manage each stage wisely, reducing surprises and ensuring
smoother project execution.
MODULE 2
Q1) Project charter and Project sponsor. 5M
Ans:
1. Introduction:
A Project Charter and a Project Sponsor are essential elements in the
initiation of any project.
They both provide the foundation for authorization and support.
2. Project Charter:
A Project Charter is a formal document that:
o Authorizes the existence of a project.
o Gives the Project Manager authority to use organizational
resources.
o Summarizes project objectives, scope, stakeholders, risks,
timeline, and budget.
Q3) Explain stages of team development and growth. What are the advantages
of effective team and barriers to team effectiveness? 10M
Ans:
1. Introduction:
Team development is a dynamic process.
A strong team goes through different stages to become productive and
collaborative.
3. Norming Team starts resolving conflicts, builds trust, and sets norms.
4.
Team operates effectively and achieves goals.
Performing
➤ Example:
In a software project:
Forming: Members are introduced.
Storming: Developers argue over coding styles.
Norming: Agree on coding standards.
Performing: Work smoothly to build the app.
Adjourning: Celebrate and close project.
Conclusion:
Understanding the stages of team development helps managers guide
teams effectively.
By promoting strong collaboration and addressing barriers, project
success can be ensured.
Q4) Explain the significance of IRR method in project selection. 5M
Ans:
1. Introduction:
IRR (Internal Rate of Return) is a financial metric used in project
evaluation.
It represents the rate at which the Net Present Value (NPV) of a project
becomes zero.
2. Definition:
IRR is the discount rate at which the sum of cash inflows = sum of cash
outflows.
It measures the profitability and efficiency of a project.
3. Formula:
There is no simple formula; IRR is calculated using iterative methods or software
like Excel.
4. Decision Rule:
If IRR > Required Rate of Return → Accept the project.
If IRR < Required Rate of Return → Reject the project.
5. Significance in Project Selection:
Helps compare different investment opportunities.
Easy to interpret as a percentage.
Useful when project cash flows vary over time.
Preferred when ranking projects with equal capital cost.
6. Example:
If a project has IRR = 18% and the company’s minimum return requirement is
12%, the project is accepted.
7. Limitations:
May give multiple values if cash flows change signs multiple times.
Not suitable when comparing mutually exclusive projects.
8. Conclusion:
The IRR method is widely used for evaluating project profitability and is a key
tool for financial decision-making in project selection.
MODLUE 3
Q1) Compare the top-down budgeting and bottom-up budgeting. 5M
Ans:
1. Introduction:
Budgeting is an essential part of project planning.
There are two main approaches: Top-Down and Bottom-Up budgeting.
2. Comparison Table:
Time
Less time-consuming More time-consuming
Required
4. Conclusion:
Choosing the right estimation and scheduling techniques improves project
reliability and efficiency.
Q3) Explain work breakdown structure and Gantt chart with example. 10 M
Ans:
A. Work Breakdown Structure (WBS)
1. Introduction:
WBS is a hierarchical breakdown of a project into smaller components or
tasks.
2. Importance:
Helps in clear task allocation.
Supports time and cost estimation.
Increases visibility and control.
3. Levels of WBS:
1. Project Name
2. Major Deliverables
3. Sub-deliverables
4. Work Packages
5. Activities
4. Example:
Project: Website Development
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1. Website Development
1.1 Planning
- Requirements gathering
- Feasibility analysis
1.2 Design
- UI/UX mockups
- Approval
1.3 Development
- Frontend coding
- Backend coding
1.4 Testing
- Unit Testing
- Integration Testing
1.5 Deployment
- Hosting
- Maintenance
5. Benefits:
Better control over tasks.
Easier tracking and estimation.
B. Gantt Chart
1. Introduction:
Gantt Chart is a bar chart used to visualize a project schedule.
2. Features:
Displays tasks vs time.
Shows start and end dates.
Helps track task progress.
3. Example:
4. Conclusion:
WBS is for planning what needs to be done.
Gantt Chart is for visualizing when tasks will be done.
Together, they improve clarity, scheduling, and tracking in project
management.
2. Key Features:
Hierarchical structure.
Represents 100% of project scope.
Helps in scheduling, cost estimation, and resource planning.
3. Example:
Project: Mobile App Development
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1. Mobile App Project
1.1 Requirements
1.2 UI/UX Design
1.3 Development
1.3.1 Android
1.3.2 iOS
1.4 Testing
1.5 Deployment
4. Benefits:
Provides a clear vision of the project.
Enhances coordination among team members.
Helps identify dependencies and risks.
5. Conclusion:
WBS improves project planning by breaking down large tasks into simpler units,
improving management and control.
2. Functions of PMIS:
1. Planning – Creating schedules, budgets, and resources.
2. Tracking – Monitoring progress and performance.
3. Reporting – Generating status updates and documentation.
4. Collaboration – Allows teams to share files and messages.
5. Risk Management – Identifies and analyzes risks.
4. Benefits:
Centralized data access.
Improved decision-making.
Real-time tracking and updates.
Enhanced communication and documentation.
5. Conclusion:
PMIS is essential for modern project management, enabling better planning,
execution, and control of projects using digital tools.
MODULE 4
Q1) What is Goldratt’s critical chain method? 5M
Ans:
1. Introduction:
Developed by Dr. Eliyahu M. Goldratt, the Critical Chain Method (CCM) is
an approach to project scheduling that focuses on resource availability
and project constraints rather than just task order.
2. Definition:
The Critical Chain is the longest path of tasks considering both task
dependencies and resource constraints.
It is a modified version of the Critical Path Method (CPM).
3. Key Concepts:
1. Buffer Management:
o Adds project buffer at the end and feeding buffers before non-
critical chains.
o These protect the critical chain from delays.
2. Focus on Resources:
o Prioritizes non-multitasking.
o Ensures resources work on one task at a time.
3. Project Buffers:
o Allow flexibility and reduce pressure on individual tasks.
o Prevents project delays due to individual task slippage.
4. Benefits:
Reduces project duration.
Improves on-time delivery.
Efficient use of limited resources.
Minimizes multitasking and overload.
5. Conclusion:
Goldratt’s Critical Chain Method is an effective way to manage project schedules,
emphasizing buffer usage and resource optimization for successful project
completion.
2. Planning Communication:
1. Identify Stakeholders:
o Who needs information?
o E.g., project sponsor, team members, clients.
2. Define Information Needs:
o What type of information each stakeholder requires.
3. Select Communication Methods:
o Verbal (meetings), Written (emails, reports), Visual (charts).
4. Communication Plan Document:
o Includes frequency, responsibility, medium, and format.
3. Managing Communication:
1. Internal Communication:
o Regular team meetings, status updates.
2. External Communication:
o Progress reports to clients or sponsors.
3. Use of Tools:
o Slack, Teams, Emails, Project dashboards.
4. Feedback Mechanism:
o Ensures messages are understood correctly.
Element Description
5. Barriers to Communication:
Language differences
Lack of clarity
Information overload
Poor listening
6. Best Practices:
Use simple and clear language.
Encourage open communication.
Use visual aids and dashboards.
Regular feedback loops.
7. Importance:
Helps prevent misunderstandings.
Enhances team productivity.
Ensures all stakeholders are aligned with project goals.
8. Conclusion:
Effective communication planning and management are vital for project success.
It ensures the right message reaches the right people at the right time, helping
avoid delays and confusion.
2. Definition:
RBS is similar to a Work Breakdown Structure (WBS) but focuses on risk
sources and types.
Helps project managers understand risk distribution.
3. Structure Example:
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1. Technical Risks
1.1 Technology changes
1.2 Complexity
2. External Risks
2.1 Market fluctuation
2.2 Legal regulations
3. Organizational Risks
3.1 Resource availability
3.2 Communication issues
4. Project Management Risks
4.1 Poor scheduling
4.2 Budget estimation errors
4. Benefits:
Clear overview of potential risks.
Helps prioritize and plan mitigation strategies.
Enhances decision-making.
Aids in risk tracking and documentation.
5. Conclusion:
Risk Breakdown Structure is a valuable tool in project risk management. It helps
categorize, assess, and manage risks effectively, increasing the chances of project
success.
Q4) What is the difference between resource loading and resource leveling?
5M
Ans:
Shows demand of
Focus Balances demand with availability
resources
Impact on
Schedule remains fixed May extend project duration
Schedule
Conclusion:
Resource Loading is about analyzing how much resource is needed.
Resource Leveling is about balancing resource usage by changing
schedules.
Both are essential for effective resource management in project planning.
MODULE 5
Q1) Briefly describe the purchasing cycle. 5M
Ans:
1. Introduction:
The purchasing cycle refers to the series of steps involved in acquiring goods or
services for a project or organization. It ensures timely procurement and cost-
effective purchasing.
3. Conclusion:
The purchasing cycle ensures that goods/services are procured at the right time,
price, and quality, helping the project to meet its objectives.
4. Benefits:
Helps identify project weaknesses early.
Improves accountability and transparency.
Enhances decision-making for future projects.
5. Conclusion:
Project audits are essential for control, quality assurance, and stakeholder
confidence, ensuring project success and continuous improvement.
2. Key Components:
1. Planned Value (PV):
o Budgeted cost for work scheduled to be done by a certain date.
2. Earned Value (EV):
o Budgeted cost for actual completed work.
3. Actual Cost (AC):
o Actual money spent on completed work.
3. Performance Indicators:
1. Cost Variance (CV):
CV = EV - AC
o Positive CV = Under budget
o Negative CV = Over budget
2. Schedule Variance (SV):
SV = EV - PV
o Positive SV = Ahead of schedule
o Negative SV = Behind schedule
3. Cost Performance Index (CPI):
CPI = EV / AC
4. Schedule Performance Index (SPI):
SPI = EV / PV
4. Benefits:
Provides clear status of cost and schedule.
Early warning system for project issues.
Helps in forecasting and better decision-making.
5. Conclusion:
EVM is a powerful project control tool that helps track progress, control costs,
and ensure timely delivery.
3. Comparison Table:
4. Conclusion:
Contracts define the legal framework of the buyer-seller relationship. Choosing
the right type ensures effective risk sharing, control, and successful project
delivery.
Q5) What is life cycle of a project audit ? what are responsibilities of project
auditor ? What is essential for successful project audit? 10M
Ans:
1. Introduction: A project audit is a formal review of a project to assess whether
project activities comply with internal and external expectations. The audit
ensures efficiency, effectiveness, and accountability. It evaluates project
processes, outcomes, and adherence to objectives.
2. Project Audit Life Cycle: The project audit life cycle includes several distinct
phases:
1. Initiation Phase:
o Define scope and objectives of audit.
o Select audit team.
o Inform stakeholders about the audit.
2. Planning Phase:
o Develop audit plan and schedule.
o Identify key project documents and data to review.
o Schedule meetings with project personnel.
3. Fieldwork/Execution Phase:
o Collect data through interviews, document reviews, and system
analysis.
o Assess project management practices and controls.
o Identify risks, variances, and performance gaps.
4. Reporting Phase:
o Draft audit report with findings, observations, and
recommendations.
o Present report to project stakeholders.
o Include corrective actions and deadlines.
5. Follow-up Phase:
o Review implementation of recommended changes.
o Reassess project based on updated controls.
6. Conclusion: Scope creep can derail project success if not managed. A robust
change control system helps maintain scope integrity while allowing necessary
flexibility.
Q8) Explain Project Procurement Management. What is the difference
between contracting and outsourcing?10M
Ans:
1. Introduction: Project Procurement Management involves processes required
to acquire goods and services from external sources. It includes planning,
selecting vendors, negotiating contracts, and managing procurement
relationships.
Outsourcing IT support or
Example Hiring a vendor for equipment
customer service
A. Termination by Extinction
This is the most common form.
It occurs when the project has been successfully completed or when it fails
to meet objectives.
All deliverables are handed over, contracts are closed, and the team is
released.
Examples:
A construction project finishes the building and is officially closed.
A software project is cancelled due to poor performance.
B. Termination by Addition
The project ends when it becomes part of the organization’s operations.
The output is absorbed into the regular workflow or business process.
Example:
A company develops a successful prototype for a new mobile app. Post
development, the team is added as a new department to maintain and enhance
the app.
C. Termination by Integration
The output of the project is integrated into existing operations.
The project team is dispersed and allocated to other roles in the
organization.
Example:
A logistics tracking system is completed and integrated into the company’s daily
operations. The IT staff is reassigned to other projects.
D. Termination by Starvation
The project is intentionally “starved” of resources (budget, team, time),
forcing it to shut down.
It is a politically safe way to stop a project without officially declaring
failure.
Example:
A research project is no longer aligned with strategic goals, so funding is slowly
reduced until the project naturally halts.
B. Budget Constraints
Economic downturns, loss of funding, or higher priority investments can
lead to termination.
Example:
A startup loses investor funding and stops app development halfway.
D. Organizational Restructuring
Mergers, acquisitions, or management changes may cause project
portfolios to be re-evaluated.
Example:
A merged company cancels overlapping projects from each firm.
5. Conclusion
Project termination is not always a sign of failure. It is a strategic decision taken
for various reasons. Understanding both technical and non-technical causes
equips project managers with the ability to plan better, minimize risks, and
allocate resources effectively. It also ensures that even if a project doesn’t
achieve all goals, the organization gains from the experience and insights.
Q2) Explain multicultural and virtual projects. 5M
Ans:
1. Introduction
In today's global economy, many projects span across geographical and cultural
boundaries. Teams often work remotely and come from diverse cultural
backgrounds, making multicultural and virtual project management essential.
2. Multicultural Projects
Definition: Projects involving team members from different countries,
cultures, languages, and belief systems.
Challenges:
o Communication barriers
o Cultural misunderstandings
o Different work ethics and holidays
Benefits:
o Diverse ideas and innovation
o Broader market understanding
o Enhanced problem-solving skills
3. Virtual Projects
Definition: Projects executed by teams working remotely from different
locations using digital tools.
Tools Used: Zoom, MS Teams, Slack, Trello, Jira
Challenges:
o Time zone differences
o Lack of face-to-face interaction
o Trust and accountability
Best Practices:
o Use collaboration tools
o Schedule regular check-ins
o Clear documentation and goals
4. Conclusion
Multicultural and virtual project environments offer both opportunities and
challenges. A project manager must foster communication, cultural awareness,
and use technology efficiently to ensure project success.
2. Importance of Ethics
Builds Trust
Ethical behavior promotes trust among stakeholders, team members,
and clients.
Ensures Compliance
Ethical managers follow laws, industry standards, and policies.
Promotes Fairness
Ethical decision-making ensures fair treatment of all team members and
stakeholders.
Improves Reputation
Organizations known for ethical project practices attract more business
and talent.
Supports Sustainability
Ethical choices consider environmental, social, and economic impact.
3. Common Ethical Issues in Projects
Misuse of resources
False reporting of progress
Conflict of interest
Favoritism in team selection
Neglecting stakeholder interests