Project Planning and Project Management

Past examination papers

Questions from Past Examination Papers

Question 1. (January 2002: Risk) ........................................................................... 2 Question 2. (January 2002: DCF/NPV) ................................................................. 2 Question 4. (January 2002: Motivation, STEEP & SMART)................................ 2 Question 5. (January 2002: Network diagrams, CPM, PERT) .............................. 3 Question 2. (May 2002: Risk) ................................................................................ 5 Question 3. (May 2002: Gantt charts) .................................................................... 5 Question 4. (May 2002: Belbins team roles) ........................................................ 6 Question 5. (May 2002: Network diagrams, CPM, resources) .............................. 6 Question 2. (January 2003: Risk) ........................................................................... 8 Question 3. (January 2003: Gantt charts) ............................................................... 9 Question 4. (January 2003: Scope, Work Breakdown Structure) ....................... 10 Question 5. (January 2003: Network diagrams, CPM, resources) ....................... 10 Question 2. (May 2003: Risk) .............................................................................. 12 Question 3. (May 2003: DCF/NPV) .................................................................... 12 Question 4. (May 2003: Leadership and motivation) .......................................... 13 Question 5. (May 2003: Network diagrams, CPM) ............................................. 13 Question 1. (January 2004: Risk) ......................................................................... 17 Question 2. (January 2004: DCF/NPV) ............................................................... 17 Question 3. (January 2004: Management/leadership, SMART & STEEP) ......... 17 Question 4. (January 2004: Gantt charts)............................................................. 18 Question 5. (January 2004: Network diagrams, CPM) ........................................ 18 Question 1. (May 2004: Risk) .............................................................................. 21 Question 2. (May 2004: DCF/NPV) .................................................................... 21 Question 3. (May 2004: Cost of work performed/scheduled).............................. 22 Question 4. (May 2004: Gantt charts) .................................................................. 22 Question 5. (May 2004: Network diagrams, CPM) ............................................. 23

Project Planning and Project Management Question 1. (January 2002: Risk)

(a) (b)

Past examination papers

How can risk be managed within a project? Use a diagram to illustrate your answer. (15 Marks) A new MS Access/Visual Basic system for a chemical development company will take 1 week for requirements capture, 7 weeks for development and 3 weeks for acceptance testing. There is an 80% chance that this is insufficient because the MS Access specialist may be required to support a different project of higher priority. If this were to happen the 7 weeks development would extend to 10 weeks, at a cost of 6 person-weeks. (i) Draw a diagram to demonstrate the impact of the risk, and calculate how the project plan would need to be modified in terms of additional effort and duration. (8 Marks) (ii) A two-week training course on Advanced MS Access could be booked and would reduce the risk to 50% at a cost of 4 person-weeks. The training could take place in parallel with the requirements capture. Draw a diagram to show the containment action and the recalculate the revised impact on effort and duration. (8 Marks) (iii) Should the training course be booked? Justify your answer. (2 Marks)

Question 2. (January 2002: DCF/NPV)

Barter and Haggle are a printing company producing business cards, small numbers of books and greetings cards; they wish to update their computer system to deal with customer accounts while retaining their traditional printing facilities. Barter and Haggle have examined the options open to them, and have narrowed the choice to the following: Option 1 Option 2 12 workstations purchased from Linkway Computers at 1200 per machine 12 workstations rented from Hiram Safely at 200 per machine per annum in the first year, rising by 25 per annum per machine for each subsequent year.

Whichever option is chosen, insurance will need to be paid at 15% per machine per annum of the purchase price. Barter and Haggle plan to replace the equipment after seven years, and have negotiated with Hiram Safely that they will be paid 250 per machine if they renew a new rental option at that time with that company; no similar deal has been negotiated with Linkway Computers. When you undertake the cost calculations, you will also need to take into account any income generated from the collection of the workstations. You are required to calculate the apparent costs, and the Net Present Value for: Option 1 (purchase) Option 2 (rental) given the Discounted Cash Flow rates of 12% and 15% below. Which option would you recommend, and why? DCF Factors Year DCF 12% DCF 15%

(13 marks) (16 marks)

(4 marks)

0 1.0 1.0

1 .89 .87

2 .80 .76

3 .71 .66

4 .64 .57

5 .57 .50

6 .51 .43

7 .45 .38

8 .40 .33

Question 4. (January 2002: Motivation, STEEP & SMART)

(a) Outline the concepts of Herzberg's Motivation-Hygiene Theory and Maslow's Hierarchy of Needs. You should use diagrams to illustrate your answer. How do these two theories correspond? (17 marks) (b) In the context of project management, explain what is meant by the acronyms "STEEP" and "SMART". Give an example of each of the STEEP characteristics, and one example fulfilling all the SMART criteria. (16 marks)

Project Planning and Project Management

Past examination papers

Question 5. (January 2002: Network diagrams, CPM, PERT)

Your computer manager, Lee Constable, has produced the following network diagram for the next programming project that you will be working on together. Lee has specified the most likely time for each activity in Table I below, and has asked you to complete the table and network diagram by doing the following: (a) Using the Most Likely Time from Table I below, calculate the Earliest Event Time (EET), the Latest Event Time (LET) and float or slack associated with each activity (15 marks) Identify the critical path for Lee's network diagram (3 Marks)

(b)

Note: You may enter the results of your calculations in the table or on the network diagram and attach these pages to your answer booklet. You may assume the times are in days, all activities are appropriate, and the network diagram is correct. Table I Activity A B C D E F G H I J Most Likely Time 2 5 6 4 3 9 8 7 1 3 EET LET Float

Project Planning and Project Management

Past examination papers

Lee Constable's network diagram: 40

C
30

6 D 4

B A
10 20

5 E 3 G H 8 7
60

50

F 9

70

I 1

80

J 3

90

Note: You may enter the results of your calculations in the table or on the network diagram and attach these pages to your answer booklet.

Project Planning and Management

Past examination papers

Now that you have finished the calculations for the network diagram, Lee has asked you to carry out the following tasks: (c) Calculate the expected time (using the PERT formula) from the optimistic, most likely and pessimistic times Lee has identified in Table II below. (10 marks) Specify and comment on the effect of using the Expected Time as opposed to the Most Likely Time on the critical path for Lee's network diagram. (5 marks)

(d)

Note: You may enter the results of your calculations in the table or on the network diagram and attach these pages to your answer booklet. Table II Activity A B C D E F G H Most Likely Time 2 5 6 4 3 9 8 7 1 3 Optimistic Time 1 1.5 2.5 3 2 8 7.5 6.5 0.5 1.5 Pessimistic Time 3 5.5 6.5 5 4 10 14.5 13.5 1.5 4.5 Expected Time

Question 2. (May 2002: Risk)

(a) Explain with the aid of a diagram one possible way of managing risks within a project. (15 Marks) (b) A new Java and Oracle based system for a bank will take 2 weeks for requirements capture, 8 weeks for development and 2 weeks for acceptance testing. There is a 75% chance that this will be insufficient because the Oracle developer may be required to support a different project of higher priority. If this were to happen the 8 weeks of development time would extend to 12 weeks, at a cost of 8 person-weeks.

(i) (ii)

(iii)

Draw a diagram to demonstrate the impact of the risk, and calculate how the project plan would need to be modified in terms of additional effort and duration. (8 Marks) The Java developer could attend a two-week Oracle training course before requirements capture. This would reduce the risk to 25% at a cost of 2 person-weeks. Draw a diagram to show the containment action and recalculate the revised impact on effort and duration. (8 Marks) Should the training course be booked? Please explain your answer. (2 Marks)

Question 3. (May 2002: Gantt charts)

Consider the following activities, scheduled as a project that starts on Friday 24 May 2002. Note that Saturday and Sunday are not working days, and that Monday 3 June and Tuesday 4 June are Bank Holidays (and are therefore not working days). Activity A B C D E F Start day 0 3 1 6 9 16 Duration (days) 3 5 5 5 7 2

Project Planning and Management

Past examination papers

There are dependencies between certain activities, as given below: Activity B cannot start until Activity A has finished Activity D cannot start until Activity C has finished For technical reasons, there must be 3 consecutive working days between the end of Activity C and the start of Activity E (e.g. if the last day Activity C runs is a Monday, Activity E could not start until Friday, but if the last day Activity C runs is a Friday, Activity E could not start before the following Thursday) Activity F cannot start until Activity E has finished (a) Draw a Gantt chart showing each activity for this project. How many working days does the project take, and when does the project finish? (11 marks) (b) If additional resources are made available so that Activity C starts 1 working day earlier and its duration is reduced from 5 days to 4, what effect does this have on the project? Draw a Gantt chart to illustrate your answer. (10 marks) (c) If Activity C is delayed by 1 working day, based on the original start plan, what effect does this have on the project? Use a Gantt chart to illustrate your answer. (12 marks)

Question 4. (May 2002: Belbins team roles)

(a) Specify each of the nine team roles identified by Belbin, highlighting two strengths and one allowable weakness in each case. You may give your answer in tabular format or as a sequence of paragraphs. (18 marks) (b) Comment on the balance between the strengths and allowable weaknesses for each team role, and indicate how strengths and weaknesses may compensate for each other across the team roles. (15 marks)

Question 5. (May 2002: Network diagrams, CPM, resources)

Your Project Manager, Alex Midway, has produced the following network diagram for a programming project. Alex has specified the duration for each activity in Table I below, and has asked you to complete the table and network diagram by doing the following: (a) Using the Duration from Table I below, calculate the Earliest Event Time (EET), the Latest Event Time (LET) and the float or slack associated with each activity. (15 marks) Identify the critical path for Alex's network diagram. (3 Marks)

(b)

Note: You may enter the results of your calculations in the table or on the network diagram and attach these pages to your answer booklet. You may assume the times are in days, all activities are appropriate, and the network diagram is correct. Table I Activity A B C D E F G H I J Duration 2 3 5 4 6 9 8 6 3 1 EET LET Float/ Slack Staff Resources 3 1 3 5 7 4 3 6 3 2

Project Planning and Management

Past examination papers

Alex Midway's network diagram:

30

E 6

B A
10 20

3 C 5 D 4
60 50

F 9 H

70

I 3

80

J 1

90

G 8

40

Note: You may enter the results of your calculations in the table or on the network diagram and attach these pages to your answer booklet.

Project Planning and Management

Past Examination Papers

Now that you have finished the calculations for the network diagram, Alex has asked you to carry out the following tasks: (c) (d) What are the staff resources used each day for the project? (12 marks)

What is the peak day for staff resources? What would the effect of starting Activity E four days later than the EET? (3 marks)

Question 2. (January 2003: Risk)

(a) A new MS Access/Visual Basic development for a financial services company will require 2 weeks for the Feasibility Study, 3 weeks for analysis, 10 weeks for prototyping and 2 weeks for implementation. There is a 70% chance that this is insufficient because the MS Access specialist may be required to support a different project of higher priority. If this were to happen the 10 weeks prototyping would extend to 13 weeks with an additional 5 person-weeks. (i) (ii) Draw a diagram to demonstrate the impact of the risk, and calculate how the project plan would need to be modified in terms of additional effort and duration. (8 Marks) A 4 week training course could be booked and would reduce the risk to 30% requiring an additional 4 person-weeks. The training could take place in parallel with the Feasibility Study. Draw a diagram to show the containment action and the recalculate the revised impact on effort and duration. (8 Marks) Should the training course be booked? Please explain your answer. (5 Marks)

(iii) (b)

This question refers to figure 1 and figure 2, shown on the following page. (i) (ii) (iii) Compare and contrast figure 1 and figure 2. (5 Marks) Briefly explain the difference between containment and contingency as depicted in figure 1 (3 Marks) Briefly explain what is meant by the terms risk assessment and risk monitoring in figure 2 (4 Marks)

Identify Not Significant Project Member

Assess Upwards Allocate

Containment

Control

Project Plan

Trigger

Contingency

Figure 1

Project Planning and Management

Past Examination Papers

Start

Risk assessment Risk prioritisation

Risk reduction Risk management planning

Risk resolution

Risk monitoring

End

Figure 2

Question 3. (January 2003: Gantt charts)

Consider the following project activities, starting on Monday 7 April 2003. Note that Saturday and Sunday are not working days, and that Friday 18 April and Monday 21 April 2003 are Bank Holidays (and are therefore not working days). There are further Bank Holidays on Monday 5 May and Monday 26 May 2003. Activity A B C D E F Start day 0 2 5 0 13 16 Duration (working days) 5 6 5 7 3 3

There are dependencies between certain activities, as given below: Each activity must start as soon as possible after any preceding activities, given the following constraints Activity C cannot start until Activity A has finished Activity A and Activity D must start at the same time For technical reasons, there must be 3 consecutive working days between the end of Activity C and the start of Activity E (e.g. if the last day Activity C runs is a Monday, Activity E could not start until Friday, leaving Tuesday, Wednesday and Thursday as the 3 consecutive working days, but if the last day Activity C runs is a Friday, Activity E could not start before the following Thursday, leaving Monday, Tuesday and Wednesday as the 3 consecutive working days) Activity F cannot start until Activity E has finished (a) Draw a Gantt chart showing each activity for this project. How many working days does the project take, and when does the project end (i.e. what is the first working day after all activities are finished)? (11 marks) (b) If additional resources are made available so that Activity B starts 1 working day earlier and its duration is reduced from 6 days to 4, what effect does this have on the project? How many working days does the project now take, and when does the project end (i.e. what is the first working day after all activities are finished)? This change to the project will cost an additional 500; justify your reasons as to whether you would recommend this proposed change. Draw a full Gantt chart to illustrate your answer. (11 marks)

Project Planning and Management

Past Examination Papers

(c) Based on the original plan outlined in (a) above, if Activity A overruns by 2 working days, what effect does this have on the project? Draw a full Gantt chart to illustrate your answer. How many working days does the project now take, and when does the project end (i.e. what is the first working day after all activities are finished)? (11 marks)

Question 4. (January 2003: Scope, Work Breakdown Structure)

(a) Explain what is meant by each of the following terms from the perspective of a project manager, and give an example to clarify your answer: (i) scope (or "scope of work") (5 marks) (ii) scope definition (5 marks) (iii) scope verification (5 marks) (b) Give two possible work breakdown structures for each of the following: (i) a programme of studies for a University degree course (ii) the construction of a house.

(9 marks) (9 marks)

Question 5. (January 2003: Network diagrams, CPM, resources)

Your Project Manager, Chas Mildwood, has produced the following network diagram for a programming project. Note that the number of staff required each day for each activity is given in the table. Chas has specified the duration for each activity in Table I below, and has asked you to complete the table and network diagram by doing the following: (a) Using the Duration from Table I below, calculate the Earliest Event Time (EET), the Latest Event Time (LET) and the float or slack associated with each activity (10 marks) Identify the activities on the critical path for Chas's network diagram. (3 Marks)

(b)

Note: You may enter the results of your calculations in the table or on the network diagram and attach these pages to your answer booklet. You may assume the times are in days, all activities are appropriate, and the network diagram is correct. Table I Activity A B C D E F G H I J

Duration 3 4 6 5 9 3 2 6 4 2

EET

LET

Float

Staff resources 3 7 8 5 6 7 2 4 9 5

10

Project Planning and Management

Past Examination Papers

Chas Mildwood's network diagram:

30

C 6

B 4
10

A 3

20

D 5 G 2
60

50

E 9 I

70

F 3

80

J 2

90

H 6

40

Note: You may enter the results of your calculations in the table or on the network diagram and attach these pages to your answer booklet.

11

Project Planning and Management

Past Examination Papers

Now that you have finished the calculations for the network diagram, Chas has asked you to carry out the following tasks: (c) Assuming that all activities start at their Earliest Event Time (EET), what are the staff resources used each day for the project? What is/are the peak day(s) for staff resources? (You may use Table II to illustrate your answer). (10 marks) Assuming that all activities start at their Latest Event Time (LET), what are the staff resources used each day for the project? What is/are the peak day(s) for staff resources? (You may use Table III to illustrate your answer). (10 marks)

(d)

Question 5: Table II: Resources used, activities starting at EET

Day 0 1 : : 30 Activities & staff Resources per day Peak day

Question 5:Table III: Resources used, activities starting at LET

Day 0 1 : : 30 Activities & staff Resources per day Peak day

Question 2. (May 2003: Risk)

(a) Describe the four stages of the risk management process. (15 Marks) (b) A new Java/Oracle system for a sales company will take 3 weeks for requirements capture, 10 weeks for development and 5 weeks for acceptance testing. There is an 85% chance that this is insufficient because Oracle is unknown to the developers. This would result in a delay of 5 weeks in development, at a cost of 12 person-weeks. (i) Draw a diagram to demonstrate the impact of the risk, and calculate how the project plan would need to be modified in terms of additional effort and duration. (8 Marks) (ii) Formal training before requirements capture would reduce this risk to 25% at a cost of 5 person-weeks. The course lasts 1 week. Draw a diagram to show the containment action and then recalculate the revised impact on effort and duration. (8 Marks) (iii) Should the training course be booked? Please explain your answer. (2 Marks)

Question 3. (May 2003: DCF/NPV)

Walter Wall Carpets, a company supplying and fitting carpets and soft furnishings, wish to upgrade their computing facilities. The company uses its computers for processing customer orders and invoices, stock control and supplier records. Walter Wall Carpets have considered the available options, and need to decide between the following two: Option 1: 10 workstations rented at 150 per machine per annum in the first year, rising by 15 per machine per annum each year from PC Surprise PLC. Option 2: 10 workstations rented at a constant rate of 185 per machine per annum from IT4ALL. Whichever option is chosen, insurance will need to be paid at a rate of 10 per machine per annum. Walter Wall Carpets plan to replace the equipment after 6 years, and do not expect to receive any refund from the supplier at this time. Given the Discounted Cash Flow rates of 5 % and 8% (see the formula sheet), you are asked to calculate the apparent costs, and the Net Present Value for: Option 1 (from PC Surprise) (15 marks) Option 2 (from IT4ALL) (15 marks) Which option would you recommend, and why? (3 marks)

12

Project Planning and Management Question 4. (May 2003: Leadership and motivation)

Past Examination Papers

You have been appointed as project manager by Candle & Carver Ltd, a traditional furniture manufacturer, to design and develop a customer database system. You have outlined your project plans, which include training sessions for Candle & Carver's staff on using the new system. Barry Bullimore, Customer Services Manager, is in charge of the team of end users. He says he doesn't see the need for staff training. If staff can't find out how to use the system themselves, we'll just appoint new staff who can, says Barry. Candle & Carver acknowledge that they have a problem retaining staff in the customer services department. (a) Identify and describe each of the 6 leadership styles as discussed by Burke (1999). Specify which of these styles appears to be closest to Barry Bullimore's approach to leadership, and explain why. You may also refer to other styles of leadership in your answer. (18 marks) (b) The senior management of Candle & Carver Ltd have asked you to make a presentation lasting 20 to 30 minutes dealing with aspects of staff motivation. Barry Bullimore will be one of eight departmental managers attending your presentation. Identify and describe the issues that you would raise at this presentation. (15 marks)

Question 5. (May 2003: Network diagrams, CPM)

You are the Project Manager for a team working on the development of a new library system. You have specified the duration in days for each activity and constructed the network diagram for the project. Bob Bodgett, one of your project team, has been assigned to calculate the Earliest and Latest Event Times, and identify the critical path. Bob is not sure that the Earliest Event Times (EET) and Latest Event Times (LET) he has calculated are correct. Bobs EETs and LETs are shown in Table II and the network diagram II below. (a) Using Table I and/or Network Diagram I below, perform your own calculations for the Earliest Event Time (EET), the Latest Event Time (LET) at the start of each activity, and the float or slack associated with each activity. (10 marks) Identify the critical path based on your calculations. (4 Marks)

(b)

You may assume that the times are in days, the network diagram is correct in that the activities are in the right order, and the duration is accurate in each case. Note: You may enter the results of your calculations in Table I or on Network Diagram I and attach these pages to your answer booklet. Table I Activity A B C D E F G H I J Duration 3 4 6 2 3 2 6 3 5 2 EET LET Float/Slack

13

Project Planning and Management

Past Examination Papers

Network Diagram I

30

E B 4
10

3 C 6 H
70

A 3

20

50

F 2 I

80

J 2

90

D 2
60

G 6

40

Note: You may enter the results of your calculations in the Table I or on Network Diagram I and attach these pages to your answer booklet. Remember to add your student number, examination hall and seat number in the space provided.

14

Project Planning and Management

Past Examination Papers

(c)

Using your calculations from Table I and Network Diagram I above, identify and explain any errors in Bob's calculations for the Earliest Event Time (EET), the Latest Event Time (LET) and the float or slack associated with each activity as shown in Table II below. Your answer should demonstrate why any calculations are in error, not simply provide an amended version. (15 marks) Bob Bodgett has identified the critical path as B, E, H and J. Is this correct, given Bobs calculations? Explain your answer. (4 Marks)

(d)

Table II Activity A B C D E F G H I J Duration 3 4 6 2 3 2 6 3 5 2 Bob's EET

0 3 3 3 7 9 5 10 11 13

Bob's LET

-2 1 1 1 7 8 3 10 9 13

Bob's Float

-2 -2 -2 -2 0 -1 -2 0 -2 0

15

Project Planning and Management

Past Examination Papers

Network Diagram II Bob Bodgett's EETs, LETs and critical path. Bob Bodgett's critical path shown as a dotted line: B, E, H, J

7, 7

30

E 3

B 4
0, -2
10

A 3

3, 1

20

C 6 D

9, 8

50

F 2

10, 10

70

H 3

13, 13

80

J 2

15,15

90

I
5,3
60

G 6

11, 9

40

16

Project Planning and Management Question 1. (January 2004: Risk)

Past Examination Papers

(a) Describe two different models of risk management. You should illustrate your answer with diagrams. (Diagrams alone are not sufficient). What are the key features common to both the models you have chosen? (15 Marks) (b) A new Visual Basic/MS Access system for a sales company will take 5 weeks for requirements capture, 8 weeks for development and 4 weeks for acceptance testing. There is a 75% chance that this will be insufficient because the developers are not experienced in Visual Basic. This would result in a delay of 3 weeks, with an additional 12 person-weeks involved in development. (i) Draw a diagram to demonstrate the impact of the risk, and calculate the additional effort and duration that would need to be accommodated in the project plan. (8 Marks) (ii) A 1-week training course in parallel with requirements capture would reduce this risk to 20%, but it would involve 5 person-weeks. Draw a diagram to show the containment action and then calculate the revised impact on effort and duration. (8 Marks) (iii) Based on your calculations above, should the training course be booked? Please explain your answer. (2 Marks)

Question 2. (January 2004: DCF/NPV)

Repaint@Leisure, an interior design company, sells wallpaper, paint and associated home decorating products. They also offer a competitive interior design service for their clients. The company now wishes to upgrade its equipment to include the provision of notebook PCs for staff visiting clients in the homes. The company uses its computers for processing customer orders and invoices, stock control, supplier records, client appointments and interior design. Repaint@Leisure has considered the available options, and need to decide between the following two: Option 1: to purchase 5 PC workstations (1100 each) and 5 colour printers (275 each) for use in their offices, and rent 5 PC notebooks (120 each per annum) for use by their interior design consultants. The supplier is Gladiator Equipment. Option 2: to rent 10 PC notebook PCs (180 each per annum) and purchase 5 colour printers (275 each) from X-Calibre. Whichever option is chosen, insurance will need to be paid at a rate of 10 per machine per annum, whether it is a workstation or a notebook; no insurance premium is paid on the printers. Repaint@Leisure plans to replace the equipment after 5 years, and do not expect to receive any refund from the supplier at this time, neither will there be a collection charge for the disposal of equipment. (a) Given the Discounted Cash Flow rates of 4% and 6% (see the formula sheet), you are asked to calculate the apparent costs (giving the component parts of your calculations in full) and the Net Present Value for: Option 1 (from Gladiator Equipment) Option 2 (from X-Calibre) (b) Which option would you recommend, and why? (15 marks) (14 marks) (4 marks)

Question 3. (January 2004: Management/leadership, SMART & STEEP)

(a) How does management differ from leadership? Highlight the main characteristics of each, including the 6 leadership styles as discussed by Burke (1999). (19 marks) (b) What is meant by each of the following terms, and how are the techniques used? (i) SMART (give two full examples) (7 marks) (ii) STEEP (give two examples for each category) (7 marks)

17

Project Planning and Management Question 4. (January 2004: Gantt charts)

Past Examination Papers

Consider the following activities, which are part of a project scheduled to start on Tuesday 30 March 2004. Note that Saturday and Sunday are not working days, and that Friday 9 April, Monday 12 April and Monday 3 May 2004 are Bank Holidays (and therefore not working days). Only working days are numbered; you should number these on your Gantt charts. Activity A B C D E F Start Day 0 1 4 12 15 22 Duration (in working days) 3 3 4 3 6 3

You should note that all activities must start as soon as possible; you should also take into account the dependencies between certain activities described below: Activity B must start one day after Activity A has started; Activity C cannot start until both Activity A and Activity B have finished; Activity C must run on 4 consecutive working days (not split over a weekend); There must be a gap of two working days (which can be split over a weekend) between the end of Activity C and the start of Activity D; Activity D must run on 3 consecutive working days (not split over a weekend); Activity D must have finished before Activity E can start; Activity E must have finished before Activity F can start; Activity F must run on 3 consecutive working days (not split over a weekend).

(a) Draw one Gantt chart showing each activity for this project. (9 marks) (i) How many working days does the project take, and when does the project finish (i.e. what is the first working day when all activities have been completed)? (2 marks) (b) What happens if Activity B overruns by one day? Draw a complete Gantt chart to illustrate your answer. (6 marks) (i) How many working days does the project now take, and when does the project finish? Comment on your results. (5 marks) (c) The reallocation of a team member to Activity C, based on the original plan, means that this activity now takes 3 working days rather than 4, but Activity E now takes 7 working days rather than 6 as a result. What is the effect of this on the project as a whole? Draw a complete Gantt chart to illustrate your answer. (6 marks) (i) How many working days does the project now take, and when does the project finish? Comment on your results. (5 marks)

Question 5. (January 2004: Network diagrams, CPM)

Consider the following scenario. You work for a company that organises conferences for clients, and you are the project manager for a team organising a two-day conference on the risk posed by computer viruses. The client is a wellknown software developer, and expects delegates to attend from other companies, universities, as well as private individuals. You have been given a shortlist of names of possible speakers for the conference. The speakers need to be invited to the event, and will then require both travel arrangements and hotel facilities to be organised (at the same time) for them. As project manager, you will also need to investigate possible venues for the conference, and then hire the most appropriate one. When the venue has been hired, and the speakers have been organised (including their hotel and travel arrangements), it will be possible to advertise the conference, and then take bookings from delegates who wish to attend. When the venue has been hired, you will need to evaluate whether it is more cost-effective to buy or rent microphones for the speakers, and then acquire microphones for the event. After the conference has taken place, you will need to arrange payment of expenses for the invited speakers.

18

Project Planning and Management

Past Examination Papers

Identify 10 activities that have been specified from the above scenario. (You may specify these activities in your answer book, or in Table I below). Note that you do not need an activity to represent the conference itself. (5 marks) Table I Activity A B C D E F G H I J (a) Construct a network diagram for the 10 activities that you have identified in (a) above, using the Activity-on-Arrow convention. You must indicate which activities have to occur in sequence (dependencies), and which can run in parallel, but you do not need to consider the start time or duration of each activity. You may wish to indicate the predecessor of each activity in Table I above, or by a description to accompany your network diagram. (13 marks) (b) You are also working on another conference for a different client. You have specified the duration in days for each activity and constructed the network diagram for the project. (i) Using Table II and/or Network Diagram I below, calculate the Earliest Event Time (EET) and the Latest Event Time (LET) for the start of each activity, and the float/slack associated with each activity. (10 marks) (ii) Identify the critical path based on your calculations. (5 Marks) You may assume that the times are in days, the network diagram is correct in that the activities are in the right order, and the duration is accurate in each case. Note: You may enter the results of your calculations in Table II or on Network Diagram I and attach these pages to your answer booklet. Remember to add your student number, examination hall and seat number in the space provided. Do not write your name on the answer sheets. Table II Activity A B C D E F G H I J Description Predecessor

Duration 2 3 5 4 5 4 6 2 5 3

EET

LET

Float/Slack

19

Project Planning and Management

Past Examination Papers

Network Diagram I 60

H E 5
10

2
70

A 2

20

B 3 C 5
30

40

F 4 G

I 5

80

J 3

90

D 4

50

Note: You may enter the results of your calculations in the Table I or on Network Diagram I and attach these pages to your answer booklet. Remember to add your student number, examination hall and seat number in the space provided. Do not write your name to the answer sheets.

20

Project Planning and Management Question 1. (May 2004: Risk)

Past Examination Papers

(a) In the context of risk analysis and management, what is meant by each of the following the terms? i. risk (6 marks) ii. contingency plan (3 marks) iii. containment action (3 marks) iv. tracker (3 marks) (b) A new web-based holiday reservation system for a travel agency will take 3.5 weeks for requirements capture, 10 weeks for development and 5 weeks for acceptance testing. There is a 65% chance that the time allowed for development will not be sufficient because the developers are not experienced in Java. This would result in a delay of 4 weeks, with an additional 9 person-weeks involved in development. i. Draw a diagram to demonstrate the impact of the risk, and calculate the additional effort and duration that would need to be accommodated in the project plan. (8 Marks) A 2-week training course before requirements capture would reduce this risk to 10%, but it would involve an additional 3 person-weeks. Draw a diagram to illustrate the inclusion of the training course, and then calculate the revised impact on effort and duration. (8 Marks) Based on your calculations above, should the training course be booked? Please explain your answer. (2 Marks)

ii.

iii.

Question 2. (May 2004: DCF/NPV)

Carrie Vann, a new car valet company, offers a competitive car-cleaning service for their clients. The company wishes to acquire notebook PCs for use by car valet staff to organise their appointments while they are travelling between clients or in the office. The company also plans to acquire PC workstations for use at head office for booking customer appointments, issuing invoices and receipts, stock control and supplier details. Carrie Vann has considered a range of options, and needs to decide between the following two: Option 1: to purchase 5 PC workstations (975 each) for use at head office, and rent 5 PC notebooks (120 each per annum) for use by their car valet staff. The supplier is Camel Trading. Option 2: to rent 5 PC workstations (190 per annum) for use at head office, and rent 5 PC notebook PCs (180 each per annum) for use by their car valet staff. The supplier is Dune Computing. Whichever option is chosen, insurance will need to be paid at a rate of 8 per machine per annum, whether it is a workstation or a notebook. Carrie Vann plans to replace the equipment after 4 years, and there will be a collection charge of 20 for each purchased machine for the disposal of equipment in the fifth year. There is no collection charge for rented equipment. (a) Given the Discounted Cash Flow rates of 3% and 6% (see the separate formula sheet), you are asked to calculate the apparent costs (giving the component parts of your calculations in full) and the Net Present Value for: i. ii. Option 1 (from Camel Trading) Option 2 (from Dune Computing) (15 marks) (14 marks)

(b) Which option would you recommend, and why?

(4 marks)

21

Project Planning and Management

Past Examination Papers

Question 3. (May 2004: Cost of work performed/scheduled)

(a) Explain what is meant by each of the following variables, and what information each provides in the context of project management. i. BCWP ii. ACWP iii. BCWS (3 marks) (3 marks) (3 marks)

(b) Show how the above variables can be used to calculate the following values for a project, and what information each provides in the context of project management. i. ii. schedule variance (in cost terms) cost variance (4 marks) (4 marks)

(c) Explain how schedule variance and cost variance can be used to determine the status of a project. (16 marks)

Question 4. (May 2004: Gantt charts)

Consider the following activities, which are part of a project scheduled to start on Monday 26 April 2004. Note that Saturday and Sunday are not working days, and that both Monday 3 May and Monday 31 May 2004 are Bank Holidays (and therefore not working days). Only working days should be numbered; you should insert the number for each working day on your Gantt charts in the space provided. Activity A B C D E F G Start Day 0 2 6 14 14 19 22 Duration (in working days) 5 4 6 8 5 4 3 Staff required each working day 4 2 6 8 3 7 5

You should note that all activities must start as soon as possible; you should also take into account the dependencies between the activities described below: Activity B must start two days after Activity A has started; Activity C cannot start until both Activity A and Activity B have finished; There must be a gap of two working days (which can be split by a weekend) between the end of Activity C and the start of Activity D; Activity D and Activity E must start on the same working day; Activity E must run on consecutive working days (not split by a weekend); Activity E must have finished before Activity F can start; Activity F must run on 4 consecutive working days (not split by a weekend). Activity G must start on 27 May 2004. [Blank Gantt chart grids are attached in the examination]. (a) Draw a Gantt chart that shows each activity for this project. You may use the blank charts provided. (7 marks) i. How many working days does the project take, and when does the project finish (i.e. what is the first working day after all activities have been completed)? (2 marks) ii. Show how many staff are required on each working day of the project. (3 marks) iii. Identify the working day(s) where most staff are used. How many staff are involved on these days? (2 marks) iv. Identify the working day(s) where fewest staff are used. How many staff are involved on these days? (2 marks)

22

Project Planning and Management

Past Examination Papers

(b) What happens if Activity A overruns by two days? Draw a complete Gantt chart to illustrate your answer. You may use the blank charts provided. (7 marks) i. How many working days does the project now take, and when does the project finish? Comment on your results. (3 marks) ii. Show how many staff are now required on each working day of the project. (3 marks) iii. Identify the working day(s) where most staff are used. How many staff are involved on these days? (2 marks) iv. Identify the working day(s) where fewest staff are used. How many staff are involved on these days? (2 marks)

Question 5. (May 2004: Network diagrams, CPM)

Consider the following scenario. You work for a company that organises exhibitions, and you are the project manager for a team organising a two-day exhibition on computer graphics and animation. You are expecting visitors to attend from other companies, universities, as well as private individuals. You have a list of companies who wish to contribute by displaying their hardware and software at the exhibition. Representatives from these companies will need to be invited to the event, and they will then require both travel arrangements as well as hotel facilities to be organised for them (these last two activities should be carried out at the same time). As project manager, you will also need to investigate possible halls for the exhibition, and then hire the most appropriate one. After the hall has been hired, and the company representatives have been organised (including their hotel and travel arrangements), it will be possible to advertise the exhibition. After this, you will need to arrange for the exhibition guide to be printed. At the same time as advertising the exhibition and printing the exhibition guide, you will need to rent the display stands, and when they have been delivered you will need to erect them in the exhibition hall. After the exhibition has taken place, you will need to calculate the income generated by visitors to the exhibition. (c) Identify 10 activities that have been specified in the above scenario. (You may specify these activities in your answer booklet, or in Table I below). Note that you do not need an activity to represent the exhibition itself. (5 marks) Table I Activity A B C D E F G H I J Description Predecessor

23

Project Planning and Management

Past Examination Papers

(d) Construct a network diagram for the 10 activities that you have identified in (a) above, using the Activity-on-Arrow convention. You must indicate which activities have to occur in sequence (dependencies), and which can run in parallel, but you do not need to consider the start time or duration of each activity. You must indicate the predecessor of each activity. You may do this either in Table I above, or by a description to accompany your network diagram. (13 marks) (e) You are also working on another conference for a different client. You have specified the duration in days for each activity and constructed the network diagram for the project. (iii) Using Table II and/or Network Diagram I below, calculate the Earliest Event Time (EET) and the Latest Event Time (LET) for the start of each activity, and the float/slack associated with each activity. (10 marks) Identify the critical path based on your calculations. (5 Marks)

(iv)

You may assume that the times are in days, the network diagram is correct in that the activities are in the right order, and the duration is accurate in each case. Note: You may enter the results of your calculations in Table II or on Network Diagram I and attach these pages to your answer booklet. Remember to add your student number, examination hall and seat number in the space provided on these pages. Do not write your name on these pages. Table II Activity A B C D E F G H I J Duration 2 5 3 5 6 8 2 3 2 2 EET LET Float/Slack

24

Project Planning and Management

Past Examination Papers

Network Diagram I 60

H E 6
10

3
70

A 2

20

B 5 C 3
30

40

F 8 G

I 2

80

J 2

90

D 5

50

Note: You may enter the results of your calculations in the Table I or on Network Diagram I and attach these pages to your answer booklet. Remember to add your student number, examination hall and seat number in the space provided. Do not write your name to the answer sheets.

25

Project Planning and Management

Past Examination Papers

CC2005 Examination Formula Sheet 2007-08

DCF Rates to 2 decimal places Year 1% 2% 3% 4% 0 1.00 1.00 1.00 1.00 1 0.99 0.98 0.97 0.96 2 0.98 0.96 0.94 0.92 3 0.97 0.94 0.92 0.89 4 0.96 0.92 0.89 0.85 5 0.95 0.91 0.86 0.82 6 0.94 0.89 0.84 0.79 7 0.93 0.87 0.81 0.76 8 0.92 0.85 0.79 0.73 9 0.91 0.84 0.77 0.70 10 0.91 0.82 0.74 0.68 5% 1.00 0.95 0.91 0.86 0.82 0.78 0.75 0.71 0.68 0.64 0.61 6% 1.00 0.94 0.89 0.84 0.79 0.75 0.70 0.67 0.63 0.59 0.56 7% 1.00 0.93 0.87 0.82 0.76 0.71 0.67 0.62 0.58 0.54 0.51 8% 1.00 0.93 0.86 0.79 0.74 0.68 0.63 0.58 0.54 0.50 0.46 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.92 0.91 0.90 0.89 0.88 0.88 0.87 0.86 0.85 0.85 0.84 0.83 0.84 0.83 0.81 0.80 0.78 0.77 0.76 0.74 0.73 0.72 0.71 0.69 0.77 0.75 0.73 0.71 0.69 0.67 0.66 0.64 0.62 0.61 0.59 0.58 0.71 0.68 0.66 0.64 0.61 0.59 0.57 0.55 0.53 0.52 0.50 0.48 0.65 0.62 0.59 0.57 0.54 0.52 0.50 0.48 0.46 0.44 0.42 0.40 0.60 0.56 0.53 0.51 0.48 0.46 0.43 0.41 0.39 0.37 0.35 0.33 0.55 0.51 0.48 0.45 0.43 0.40 0.38 0.35 0.33 0.31 0.30 0.28 0.50 0.47 0.43 0.40 0.38 0.35 0.33 0.31 0.28 0.27 0.25 0.23 0.46 0.42 0.39 0.36 0.33 0.31 0.28 0.26 0.24 0.23 0.21 0.19 0.42 0.39 0.35 0.32 0.29 0.27 0.25 0.23 0.21 0.19 0.18 0.16 Formulae Additional Effort = Risk % * Delayed Effort Additional Duration = Risk % * Delayed Duration Expected Time = [Pessimistic Time + (4 * Most Likely Time) + Optimistic Time] / 6

26