mba-3-sem-project-management-march-2012

mba-3-sem-project-management-march-2012

Master of Business Administration (NBA) Examination

III Semester

Project Management

Time : 3 Hours]                                                                                               [Max. Marks : 80

                                   


Section A)

1.        Discuss the five broad phases of Capital Budgeting. Also explain the difficulties faced in capital, expenditure decisions.

2.        Discuss the uncertainties in Demand Forecasting. How one can cope with them? Also explain Delphi method.

3.        Why is a Project Feasibility Study undertaken? Discuss the approaches used in conducting a project feasibility study.

4.        Explain Project Time and Cost Over-runs. How government projects are analyzed ?

(Section B)

5.        A small project is composed of seven activities whose time estimates in hours are given below :

a Optimistic Time             b Pessimistic Time         c Most Likely Time.

 

Activity     1-2          1-3        1-4          2-5              3-5           4-6             5-6

a                1             1            2             1                  2               2                3

b                7             7            8             1                  14             8                15

c                1             4            2             1                  5               5                6

(i)          Draw the project network.

(ii)         Find the expected duration and variance of each activity.

(iii)        Determine critical path.

(iv)        Calculate total float and free float.

6.         A machine costing Rs. 110 lakhs has a life of 10 year, at the end of

which its scrape value is likely to be Rs. 10 lakhs. The firm's cut-off rate is 12%. The machine is expected to yield an annual profit after tax of Rs. 101akhs, depreciation will be charged on straight line basis. At 12% p.a. the present value of the rupee received annually for ten years is Rs. 5.650, and the value of one rupee received at the end of the 10th year is Rs. 0.3222. Ascertain the net present value of the project.

7.         The following data is related to a project:

Activity      Activity Time (days)            Activity Cost (Rs.)

                    Regular          Crash             Regular             Crash

1 - 2            7                     6                     700                    750

1 - 3            8                     6                     650                    750

2 - 4            9                     7                     800                    900

2 - 5            11                   8                     1,600                 1,800

3 - 5            8                     5                     750                    1,000

3 - 6            10                   7                     1,900                 2,100

4 - 7            12                   10                   1,200                 1,300

5 - 7            13                   11                   1,300                 1,400

6 - 7            14                   10                   1,500.                1,800

(a)        Find the critical path, normal duration of the project and normal cost of project.

(b)        If the project is to be completed in 25 days, which activities should be Crashed? What is the cost involved?

8.         A project schedule has the following characteristics :

Activity         Time             Activity         Time

1-2                 4                   5- 6                4

1-3                 1                   5-7                 8

2-4                 1                   6-8                 1

3-4                 1                   7-8                 2

3-5                 6                   8-10               5

4-9                 5                   9-10               7

(a)        Construct a network diagram.

(b)        Compute the earliest and latest event times.

(c)        Find the critical path and total project. duration.

(d)       Find total and free float for each activity.

9.         SS Computer System Limited has forecasted return on its share with following probability distribution :

Return (%)                                          Probability

-20                                                       0.05

-10                                                       0.05

-05                                                       0.10

05                                                        0.10

10                                                        0.15

18                                                        0.25

20                                                        0.25

30                                                        0.05

Calculate the expected return, variance and standard deviation of returns for SS Computer.