mba-3-sem-project-management-dec-2013

mba-3-sem-project-management-dec-2013

Master of Business Administration (MEA) Examination

III Semester

Project Management

Time : 3 Hours]                                                                                               [Max. Marks : 80


Section A )

1.      Discuss in brief project identification, planning and selection process.

2.      What aspects are considered in technical analysis ? What are the various ways of acquiring technology ? Discuss.

3.      Management has to successfully handle problems and challenges relating to (a) Authority (b) Orientation (c) Motivation (d) Group Functioning.' Explain these aspects and show how these problems and challenges can be met ?

4.      Write short notes on : (any two)

(a) Project Financing                              (b) Demand Forecasting

(c) Social Cost Benefit Analysis            (d) Appraisal Criteria.

5.      The Normal and Crash times an are given below : erect cost for activities of a project

                                 Time                               Cost Rs.)

Activity                    Normal         Crash         Normal            Crash

(1-2)                         5                   2                6,000               9,000

(2-4)                         6                   3                7,000               10,000

(1-3)                         4                   2                1,000               2,000

(34)                           7                   7                4,000               8,000

(4-7)                         9                   5                6,000               9,200

(3-5)                         12                 3                16,000             19,600

(4-6)                         10                 6                15,000             18,000

(6-7)                         7                   4                4,000               4,900

(7-9)                         6                   4                3,000               4,200

(5-9)                         12                 7                4,000               8,500

 

(a) Draw the network diagram (b) Determine all normal and critical path (c) Find the minimum cost project schedule if the indirect costs are Rs. 1,000 per week.

6.      ABC Ltd. Is planning for the most desirable capital structure. The cost of debt (after tax) and equity capital at various levels of debt-equity mix are estimated as follows :

Debt as Percentage     Cost of Debt               Cost of Equity

Of Total Capital          (%)                              (%)

0                                  10                                15

20                                10                                15

40                                12                                16

50                                13                                18

60                                14                                20

Determine the composite cost of capital for each level of debt. Identify the optimal debt-equity mix.

7. To meet the growing demand of electricity Mumbai Suburban Electric Supply Ltd. has decided to expand its generating capacity. The required capacity can be provided by consructing two thermal plants (Alternative I), OR one Hydro Plant (Alternative II). The following information has been compiled for analysis (Amounts in Crore of Rupees).

Alternativel                 Alternative II

Initial investment                                80                                900

Yearly Operating

Costs (Excluding Depreciation)

Operations                                           160                              80

Maintenance                                        40                                20

Transmission                                       60                                50

Cost to dismantle plant

At the end of useful life

of 20 years 10 30

What alternative should the firm select ? Its cost of funds is estimated at 10 percent. Ignore Taxes.

8.         Given below are (a) Optimistic Time (b) Most Likcly Time (c) Pessimistic

Time in Respect of Related Activities of a Project :

Activity        to                to                  tp

1-2                9                  12                 21

1-3                6                  12                 18

2-4                1                  1.5                5

3-4                4                  8.5                10

2-5                10                14                 24

4-5                1                  2                   3

Taking the estimated time (te) of these activities show for each :

(a)        Earliest Start Time

(b)        Earliest Finish Time

(c)        Latest Start Time

(d)       Latest Finish Time.

9.         Strategic position and action evaluation (space) considers four domains to hammer out strategic postures for a firm and its individual businesses. When should a company adopt aggressive posture W. R. to domains. (Give Diagrammatic Representation)