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The document covers various aspects of project management, including the Triple Constraints (scope, time, cost), the role of project managers as facilitators, and the project life cycle phases. It also discusses project selection models, team development stages, budgeting techniques, and project estimation and scheduling methods. Overall, it emphasizes the importance of effective planning, communication, and management strategies in achieving project success.

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0% found this document useful (0 votes)
21 views47 pages

PM Answers

The document covers various aspects of project management, including the Triple Constraints (scope, time, cost), the role of project managers as facilitators, and the project life cycle phases. It also discusses project selection models, team development stages, budgeting techniques, and project estimation and scheduling methods. Overall, it emphasizes the importance of effective planning, communication, and management strategies in achieving project success.

Uploaded by

Saurabh20
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

MODULE 1

Q1) Triple constraints in Project Management. 5M


Ans:
1. Introduction:
 Project management involves balancing various aspects of a project.
 The Triple Constraints, also known as the Project Management Triangle,
represent the core elements that must be balanced for project success.
2. Definition of Triple Constraints:
The three constraints are:
1. Scope – Work to be done and features to be delivered.
2. Time – Project schedule or deadline.
3. Cost – Budget or financial resources.
These three factors are interdependent — changing one affects the others.
3. Explanation:

Constraint Description Example

Defines project Adding a new feature to software


Scope
deliverables and features. increases scope.

Duration to complete the A shorter deadline may reduce quality


Time
project. or require more resources.

Hiring more skilled people increases


Cost Total budget allocated.
cost but may reduce time.

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:
sql
CopyEdit
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.

Q2) Why project manager’s role is more of a facilitator rather than a


supervisor? 5M
Ans:
1. Introduction:
 A Project Manager (PM) ensures the project progresses smoothly.
 Modern PMs are considered facilitators, not just supervisors.
2. Key Differences:

Supervisor Facilitator

Controls work Guides team

Directs tasks Coordinates resources

Focuses on authority Focuses on collaboration

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:

Challenge PM’s Strategy

Unclear requirements Use iterative development and prototyping.

Resource issues Develop contingency plans.

External risks Use risk management tools.

Unexpected delays Apply buffer time or fast-tracking.

4. Tools Used by PMs:


 Risk Registers
 Critical Path Method (CPM)
 Project Management Software
5. Conclusion:
Even under uncertain conditions, effective planning, communication, and risk
management help PMs meet all three project goals.

Q4)Differentiate between the Functional, Pure Project, and Matrix


organizations.
Ans:
1. Introduction:
Organizational structure influences project execution. The three main types are:
2. Differences:

Feature Functional Org Pure Project Org Matrix Org

Based on Separate project Blend of both


Structure
departments teams structures

Functional
Authority Project managers Shared authority
managers

Team
To department To project Split loyalty
Loyalty

Resource Efficient, shared Dedicated,


Balanced
Usage resources sometimes idle

IT, HR, Finance Construction Software development


Example
divisions project company

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

1. Initiation Define purpose and feasibility.

2. Planning Develop roadmap, resources, schedule.

3. Execution Perform project work.

4. Monitoring & Controlling Track progress and make adjustments.

5. Closing Finalize and deliver output.

3. Diagram:
mathematica
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Initiation → Planning → Execution → Monitoring → Closing
4. Cost of Change vs. Time:

Phase Cost of Change

Early Phase Low

Later Phase High

Reason: Early changes are less disruptive than late rework.


5. Risk vs. Time:

Phase Risk Level

Early Phase High


Phase Risk Level

Later Phase Low

Reason: Risks are high in uncertainty; decrease as project progresses.


6. Stakeholder Influence vs. Time:

Phase Influence

Early Phase High

Later Phase Low

Reason: Key decisions are made early; later, changes are harder to implement.
7. Combined Graph (Text version):
pgsql
CopyEdit
|↑ 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.

➤ Key Elements of a Project Charter:


 Project purpose and justification
 Objectives and success criteria
 High-level requirements
 High-level project description
 Major stakeholders
 Assigned Project Manager
 Assumptions and constraints
 Approval requirements
3. Project Sponsor:
 The Project Sponsor is a senior person or group who:
o Provides funding and resources.
o Supports and champions the project.
o Resolves escalated issues.
o Approves major deliverables.

➤ Responsibilities of a Project Sponsor:


 Approving project charter and plans
 Defining strategic goals
 Monitoring project progress
 Supporting the project manager in securing resources
 Ensuring project aligns with business goals
4. Conclusion:
 A well-documented Project Charter, supported by a strong Project
Sponsor, is key to initiating a successful project and maintaining
stakeholder alignment.

Q2) Explain non numeric project selection models. 5M


Ans:
1. Introduction:
 Project selection models help in deciding which projects to undertake.
 Non-numeric models do not use financial data but focus on qualitative
aspects.
2. Types of Non-Numeric Models:

➤ 1. Sacred Cow Model:


 Projects proposed by senior management are accepted without analysis.
 Example: CEO wants an app – no formal evaluation is done.

➤ 2. Operating Necessity Model:


 Project is selected if it is essential to continue business operations.
 Example: Replacing a broken server.

➤ 3. Competitive Necessity Model:


 Projects are taken up to stay competitive in the market.
 Example: Upgrading systems because competitors did.

➤ 4. Product Line Extension Model:


 Used when extending product offerings or improving services.
 Example: Adding new features to an existing software.

➤ 5. Comparative Benefit Model:


 Projects are compared based on subjective criteria like strategic
importance, risk, etc.
3. Advantages:
 Easy to use and understand.
 Useful when financial data is unavailable or irrelevant.
4. Limitations:
 Lack of objectivity.
 May lead to biased decisions.
5. Conclusion:
Non-numeric models are ideal for strategic, non-financial, or qualitative project
evaluations, especially in early decision-making stages.

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.

Part A: Stages of Team Development (Tuckman's Model)


Stage Description

Team members meet and understand the project. Roles are


1. Forming
unclear.

2. Storming Conflicts may arise. Personalities and work styles clash.

3. Norming Team starts resolving conflicts, builds trust, and sets norms.

4.
Team operates effectively and achieves goals.
Performing

5. Adjourning Project ends. Team disbands and reflects on accomplishments.

➤ 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.

Part B: Advantages of an Effective Team


1. Improved Communication – Smooth flow of information.
2. Better Decision Making – Multiple perspectives help.
3. Increased Productivity – Coordinated efforts lead to faster delivery.
4. Enhanced Innovation – Creative ideas from diverse members.
5. High Morale – Mutual respect and support.

Part C: Barriers to Team Effectiveness


Barrier Description

Poor Communication Misunderstandings or lack of information.

Lack of Trust Team members don’t rely on each other.

Conflicting Goals Misaligned individual vs. team objectives.

Role Ambiguity Confusion about duties and responsibilities.

Cultural Differences Differences in values or behaviors.

Ineffective Leadership No clear guidance or conflict resolution.

Part D: How to Overcome Barriers


 Define clear roles and responsibilities.
 Encourage open and honest communication.
 Establish team norms early.
 Use team-building exercises.
 Provide leadership training.

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:

Feature Top-Down Budgeting Bottom-Up Budgeting

Senior management sets the total Budget is estimated at


Definition
budget and allocates it down task level and summed up

Starts from detailed


Approach Starts from overall view
components

Time
Less time-consuming More time-consuming
Required

More accurate, detailed


Accuracy Less accurate, based on assumptions
estimation

More flexible and


Flexibility Less flexible
adaptable

Best Used Project is complex or


Project is standard or repetitive
When large

High involvement of team


Involvement Limited involvement of team
members

Lower risk due to detailed


Risk Higher risk of under/overestimation
inputs
3. Conclusion:
 Top-down is good for quick estimates.
 Bottom-up is ideal when precision is needed.
 Many organizations use a hybrid approach for better control and accuracy.

Q2) State various project estimation and scheduling techniques. 5M


Ans:
1. Introduction:
 Estimation and scheduling help in planning time, cost, and resources
effectively.

2. Project Estimation Techniques:


1. Expert Judgment:
o Based on experience of professionals.
o Quick and efficient.
2. Analogous Estimation:
o Compares with similar past projects.
o Useful in early stages.
3. Parametric Estimation:
o Uses mathematical models.
o Example: Cost per square foot in construction.
4. Three-Point Estimation:
o Based on optimistic, pessimistic, and most likely values.
o Formula:
E=O+4M+P6\text{E} = \frac{O + 4M + P}{6}E=6O+4M+P
5. Bottom-Up Estimation:
o Estimates each task, then aggregates.
o High accuracy.

3. Project Scheduling Techniques:


1. Gantt Charts:
o Bar chart showing timeline and task progress.
o Easy to understand.
2. PERT (Program Evaluation Review Technique):
o Uses probabilistic time estimates.
o Focuses on event-based planning.
3. CPM (Critical Path Method):
o Identifies longest path of dependent tasks.
o Helps find task float and project duration.
4. Work Breakdown Structure (WBS):
o Breaks project into manageable tasks.
5. Milestone Charts:
o Shows key events or stages.

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
markdown
CopyEdit
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:

Task Start Date End Date Duration

Requirements May 1 May 3 3 days

Design UI May 4 May 6 3 days

Develop Backend May 7 May 12 6 days

Testing May 13 May 15 3 days

Deployment May 16 May 17 2 days

Gantt chart shows these tasks as horizontal bars on a timeline.

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.

Q4) Explain the work breakdown structure. 5M


Ans:
1. Introduction:
 Work Breakdown Structure (WBS) is a core project planning tool.
 It organizes work into smaller, manageable parts.

2. Key Features:
 Hierarchical structure.
 Represents 100% of project scope.
 Helps in scheduling, cost estimation, and resource planning.

3. Example:
Project: Mobile App Development
markdown
CopyEdit
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.

Q5) Project Management Information system 5M


Ans:
1. Introduction:
 Project Management Information System (PMIS) is software that helps
manage project data and processes.

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.

3. Examples of PMIS Tools:


 Microsoft Project
 Primavera
 JIRA
 Trello
 Monday.com
 Asana

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.

Q2) How communication is planned and managed in project management?


10M
Ans:
1. Introduction:
 Communication in project management is essential to ensure smooth
coordination among stakeholders, team members, and clients.
 It involves planning, executing, and monitoring the communication flow.

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.

4. Key Elements of Communication Planning:

Element Description

Who Stakeholders involved

What Type of information

When Frequency (daily/weekly/monthly)

How Method (email, call, meeting, document)

Responsible Person Who sends the information

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.

Q3) Explain the risk breakdown structure. 5M


Ans:
1. Introduction:
 A Risk Breakdown Structure (RBS) is a hierarchical representation of
potential project risks.
 It organizes risks by categories to help in risk identification and analysis.

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:
markdown
CopyEdit
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:

Aspect Resource Loading Resource Leveling

Amount of resource Adjusting project schedule to


Definition
required over time resolve resource conflict

Shows demand of
Focus Balances demand with availability
resources

To optimize usage and avoid over-


Purpose To analyze resource usage
allocation

Impact on
Schedule remains fixed May extend project duration
Schedule

Less flexible, used in More flexible, used to handle


Flexibility
planning phase constraints

Conflict resolution, resource


Use Case Capacity planning
optimization

Project scheduling tools (e.g., MS


Tools Used Resource histograms
Project)

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.

2. Steps in Purchasing Cycle:


1. Need Identification:
o Recognizing the requirement for goods or services.
2. Specification of Requirements:
o Clearly stating what needs to be purchased (quantity, quality,
delivery time).
3. Supplier Identification and Selection:
o Finding and choosing vendors through research, tenders, or
previous experience.
4. Request for Quotation (RFQ) / Proposal (RFP):
o Inviting bids from suppliers for the required items.
5. Evaluation and Negotiation:
o Comparing quotes, negotiating prices, and selecting the best value
supplier.
6. Purchase Order Creation:
o Issuing a formal order to the selected vendor.
7. Delivery and Inspection:
o Receiving goods/services and checking for quality and accuracy.
8. Invoice Approval and Payment:
o Matching the invoice with the PO and goods received before
making payment.
9. Record Keeping and Review:
o Maintaining records and evaluating supplier performance for future
purchases.

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.

Q2) Project audits 5M


Ans:
1. Introduction:
A project audit is a formal review of a project’s performance to determine
whether the objectives are being met and processes are being followed.

2. Objectives of Project Audit:


 Ensure compliance with project scope, schedule, and budget.
 Evaluate quality, risk management, and resource use.
 Identify lessons learned and improvement areas.

3. Types of Project Audits:


1. Internal Audit:
o Conducted by in-house auditors.
2. External Audit:
o Conducted by third-party or regulatory bodies.
3. Technical Audit:
o Checks the technical quality of the work done.
4. Financial Audit:
o Reviews budgeting, spending, and cost control.

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.

Q3) Describe Earned value management technique in Project Management.


5M
Ans:
1. Introduction:
Earned Value Management (EVM) is a technique used to measure a project's
performance by comparing planned work vs. completed work and actual cost.

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.

Q4) What is a contract? Explain different types of contracts in brief. 5M


Ans:
1. Introduction:
A contract is a legally binding agreement between two or more parties to
provide goods, services, or work within specified terms.

2. Types of Contracts in Project Management:


1. Fixed Price Contract:
o Pre-determined cost regardless of actual expense.
o Suitable when scope is clear.
o Sub-types: Firm Fixed Price (FFP), Fixed Price Incentive Fee (FPIF).
2. Cost-Reimbursable Contract:
o Buyer reimburses actual costs plus a fee.
o Useful when scope is uncertain.
o Sub-types: Cost Plus Fixed Fee (CPFF), Cost Plus Incentive Fee
(CPIF).
3. Time and Material (T&M) Contract:
o Payment based on time and materials used.
o Suitable for small or fast-changing projects.

3. Comparison Table:

Type Risk to Buyer Scope Clarity Flexibility

Fixed Price Low High Low

Cost-Reimbursable High Low High

Time & Material Medium Moderate High

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.

3. Responsibilities of Project Auditor:


 Ensure compliance with project objectives, scope, and constraints.
 Review project documentation and processes.
 Evaluate risks, cost performance, and schedule adherence.
 Recommend improvements in project governance.
 Maintain objectivity and ethical standards.
 Communicate findings clearly and effectively.
 Protect confidentiality and sensitive data.

4. Essentials for a Successful Project Audit:


 Clear Objectives: The audit scope and goals should be defined clearly.
 Qualified Auditors: Skilled and experienced auditors ensure quality
results.
 Stakeholder Cooperation: Engagement and openness from project team.
 Reliable Data: Accurate documentation and metrics are essential.
 Effective Communication: Transparent reporting of audit findings.
 Timely Execution: Audit should be conducted at the right phase of the
project.

5. Conclusion: A project audit is a powerful tool for project control and


improvement. When properly planned and executed, it helps identify deviations
and guides project managers toward better performance and governance.
Q6) What are four stages of team development and growth? What are the
barriers to team effectiveness? 10M
Ans:
1. Introduction: Team development is a critical part of project management. A
project team progresses through various stages, each contributing to overall
team effectiveness. Understanding these stages helps project managers to guide
teams effectively.

2. Stages of Team Development (Tuckman Model):


1. Forming:
o Team members meet and learn about the project.
o Roles and responsibilities are unclear.
o High dependence on the leader.
2. Storming:
o Conflicts arise due to differences in opinions.
o Competition and frustration are common.
o Team must resolve interpersonal issues.
3. Norming:
o Conflicts reduce and team cohesion improves.
o Team members accept roles and rules.
o Communication becomes more effective.
4. Performing:
o Team is fully functional and works towards goals.
o High autonomy and collaboration.
o Focus on achieving project objectives efficiently.
3. Advantages of an Effective Team:
 Improved productivity and innovation.
 Better decision-making and collaboration.
 High morale and motivation.
 Enhanced problem-solving and adaptability.

4. Barriers to Team Effectiveness:


1. Poor Communication:
o Leads to misunderstanding and conflicts.
2. Lack of Trust:
o Reduces cooperation and openness.
3. Unclear Goals and Roles:
o Causes confusion and inefficiency.
4. Cultural Differences:
o May lead to misinterpretation of behaviors.
5. Resistance to Change:
o Affects adaptability and performance.
6. Ineffective Leadership:
o Weak guidance leads to lack of direction.

5. Conclusion: Successful team development requires understanding of group


dynamics and proactive management. Removing barriers and supporting growth
stages ensures high team performance and project success.
Q7) What is a scope creep? How does a formal change control system work in
project management? 10M
Ans:
1. Introduction: Scope creep refers to uncontrolled changes or continuous
growth in a project's scope, often without adjustments to time, cost, or
resources. It is one of the main causes of project delays and failures.

2. Causes of Scope Creep:


 Poorly defined project scope.
 Lack of stakeholder agreement.
 Inadequate change control processes.
 Client requests for additional features.
 Miscommunication among team members.

3. Impact of Scope Creep:


 Budget overruns.
 Project delays.
 Resource exhaustion.
 Decreased team morale.
 Quality compromise.

4. Formal Change Control System: A formal change control system is a


structured process to evaluate, approve, and document changes to project
scope.
Steps in Change Control Process:
1. Change Request Initiation:
o Any stakeholder can submit a change request.
o It includes justification and impact analysis.
2. Change Log Entry:
o All requests are recorded in a change log for tracking.
3. Impact Assessment:
o Project manager evaluates effects on time, cost, and quality.
4. Change Control Board (CCB) Review:
o CCB approves or rejects changes based on feasibility and impact.
5. Implementation:
o Approved changes are integrated into project plan.
6. Communication:
o All team members and stakeholders are informed.

5. Best Practices to Manage Scope Creep:


 Clearly define scope in project charter.
 Involve stakeholders early.
 Use formal change control procedures.
 Maintain strong documentation.
 Regularly review project progress.

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.

2. Key Processes in Procurement Management:


1. Plan Procurement Management:
o Identify project needs and determine what to procure externally.
2. Conduct Procurements:
o Request bids, evaluate proposals, select vendors.
3. Control Procurements:
o Monitor contract performance, manage relationships.
4. Close Procurements:
o Complete and settle contracts, resolve disputes.

3. Importance of Procurement Management:


 Access to expert resources and technology.
 Better cost control and risk sharing.
 Faster delivery of components or services.

4. Contracting vs. Outsourcing:

Aspect Contracting Outsourcing

Agreement to procure specific Delegating entire function to


Definition
goods/services third party
Broader, includes entire
Scope Specific deliverables
processes

Control Higher control by buyer Less control, more dependency

Focus Short-term engagement Long-term strategic partnership

Outsourcing IT support or
Example Hiring a vendor for equipment
customer service

5. Conclusion: Effective procurement management is essential for delivering


project outcomes. While contracting is about purchasing goods/services,
outsourcing involves a strategic transfer of operations. Choosing the right
approach impacts cost, quality, and project success.
MODULE 6
Q1) List and briefly describe the ways project may be terminated. What are
some non-technical reasons for project termination? 10M
Ans:
1. Introduction
Project termination is the formal ending of a project. It is a crucial phase in the
project management life cycle where the project is either completed successfully
or discontinued due to various factors. Termination decisions are based on
performance, feasibility, cost-benefit analysis, or strategic direction.
Understanding the types and reasons for termination is essential for project
managers to plan exits effectively and avoid unnecessary losses.

2. Ways a Project May Be Terminated


There are four major ways through which a project may be terminated:

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.

3. Non-Technical Reasons for Project Termination


Projects are not always terminated due to technical issues. Often, business,
organizational, and political reasons drive this decision.

A. Change in Strategic Direction


 Organizational goals may shift.
 Management may decide to invest in different projects with better ROI.
Example:
A company exits the hardware business and cancels all related R&D projects.

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.

C. Poor Stakeholder Engagement


 If stakeholders lose interest, trust, or involvement, the project may lose
support.
Example:
A government e-governance project is terminated due to lack of coordination
between departments.

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.

E. Legal and Regulatory Barriers


 Changes in laws, compliance rules, or lawsuits may halt a project.
Example:
A social media platform feature is dropped after data privacy regulation changes.

F. Misalignment with Customer Needs


 The product being developed may no longer be needed or is outdated by
market changes.
Example:
A tech firm cancels a device launch due to newer competitor technology.

G. Cultural or Political Factors


 Internal politics, power struggles, or cultural resistance may stall the
project.
Example:
In multinational organizations, cultural misalignment can affect virtual projects
leading to cancellation.

4. Important Considerations During Project Termination


 Conducting a project review to gather lessons learned.
 Ensuring proper documentation of closure activities.
 Recognizing and appreciating team efforts.
 Conducting final audits, financial settlements, and stakeholder
communication.

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.

Q3) Why is ethics important in Project management? 5M


Ans:
1. Introduction
Ethics in project management refers to adherence to moral and professional
standards in the planning, execution, and closing of projects.

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

4. Role of PMI Code of Ethics


The PMI Code of Ethics and Professional Conduct emphasizes:
 Responsibility
 Respect
 Fairness
 Honesty
It serves as a guideline for ethical project behavior.
5. Conclusion
Ethics form the foundation of successful project management. Ethical practices
lead to better team morale, client satisfaction, and sustainable outcomes.

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