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Ques1. Explain the phases of project management life cycle?

Answer:Project management is a rationally planned and organised effort to attain a specific goal. It
comprises of organising, coordinating and managing different tasks and resources for successful
completion of project. A project lasts for a definite period of time and then finishes. Projects are
usually made of different diverse elements or mini-tasks that are completed separately and finally
combined together to make the completed project. Following are the phases of project
management life cycle
1. PROJECT INITIATION: - Project initiation is the first step in the project development
cycle, and in simple terms: starting up the project. A project is initiated by definition its
reason, business goals, and scope. The cause for initiation and the suggested solution to
be implemented must be defined. A project team is put together to define early
milestones, and preliminary budget proposal. The information in project initiation assists
in performing an end of phase study for getting a GO No GO decision.
2. PROJECT PLANNING: - Once the project is defined and project team is assembled,
the next phase is the in-depth project planning phase. This includes developing the PMP
(project management plan), for guiding the team throughout the project development
stage. In this phase the required skills of development team, non-labour resources, and
risks plan.
3. PROJECT DEVELOPMENT:- On the basis of inputs received in the shape of project
feasibility study, preliminary project evaluation, project proposal and customer
interviews. The following outputs are produced:

System design specification

Programme functional specification

Programme design specification

Project plan

4. PROJECT IMPLEMENTATION:- In this phase, the requirement are built and

programmed. The product is presented for client acceptance and full implementation after
the quality assurance analysis. If the client has accepted the final product, the project is
finished and closed down.
5. PROJECT CLOSURE:- It includes giving the final output to the customer, handing the
project documentation, manuals, source code, and network layouts. At last a post
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implementation review is to be carried out to identify the extent of project success and
document review outcomes.

Question (2):- Write short notes on

Economic feasibility of a project
The economic feasibility aspect of a project relates to the earning capacity of the project.
Earning of the project depends on the volume of the sales. Here, the following important
indicators are taken into consideration:
Present demand of the goods. A projection through the project i.e. market facility
(or) getting a feel of the market.
Future demand of the goods. A projection may be made about the future demand.
The period normally depends upon the scale of investment.
Determining the extent of supply to meet the expected demand and arriving at the
gap.
Deciding in what way the project under consideration will have a reasonable
chance to share the market.
Anticipated rate of return on investment. If it is positive, the project justifies the
economics norm in the relationship between cost and demand.
Need of project planning
The purpose of project planning is to identify various areas of the project work and the
influencing factors, and subsequently define the boundaries of the project performances.
Brainstorming on various possible alternatives courses of action.
Choosing the most appropriate one( or ones)
Agreeing what you can expect to achieve
Calculating the human and material resources needed to reach your objectives.
Anticipating possible problems, and
Getting agreement among all concerned about clear targets and timetables for the
work in view.
Diversity management
Diversity management is the management strategy to promote and maintain a positive
workplace environment in the organisation. It is crucial for growth in todays competitive
marketplace.
Diversity management works on the principle of acceptance. Diversity management
inspires the employees to recognize that everyone is different. They should not be afraid
or be biased about these difference. Employees are encouraged to live with the fact that

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there are different interests, different values, and different physical and emotional
characteristics present in the organisation.
A strong diversity management programme encourages the development of skills and
talents of the employees. It boosts the communication among employees and in the long
run, increases the productivity of the department.
Rules for network construction
Every activity must have a preceding and a succeeding event. An activity is numerically
represented by the pair of preceding and succeeding events. In the dinner project, for
instance, the activity send invitation is designated as (1-2).
Each event must have a distinct number. The number specified to an event can be
chosen in any way, provided this condition is fulfilled. In practice, yet, events are
numbered in the manner that the number at the head of the arrow is greater than
that at its tail.
There must not be any loops in the project network; a situation similar to the one
is not permissible.
The preceding and succeeding events are not same for the same than one activity.
This signifies that every activity is represented by a uniquely numbered arrow and
a situation depicted is not permissible.

Question (3):- What are key steps for effective risk management? Explain any
five risk identification techniques?
Answer:The first thing to understand in risk management is that it's an on-going activity. It's not about
identifying risks upfront and then forging ahead regardless. It's too easy to forget the risks once
the project is started and fail to recognize and raise new risks when the project is underway.
After the initial shock of seeing all the things that could go wrong, we had awareness. Half the
battle won. The other half, action didn't quite happen. Although the actions for each risk were
detailed, very few of them were followed up (the majority of the actions were the responsibility
of the client). When the risks started to impact on the project, the client wasn't happy. They had
accepted the risk, but hoped it would not surface and did not take any action to prevent it
occurring. Unfortunately when the risk did arise, it took more work to repair the damage done
than if preventative measures had been put in place. As the project manager, although I had
raised awareness, I hadn't continued to report on the risks so that the client was in a false state of
security assuming that the risk was no longer there.

Risk Assessment
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The goal of risk assessment is to identify the risk factors that are a part of the activity being
undertaken. Basically, it's about working out what could go wrong. For example, the task could
be attending a client meeting. The possible risk factors would include

Distance from office to client's premises

Number of people having to attend meeting

What materials are required for meeting (eg. Laptop, projectoretc)

Availability of cabs

Availability of public transport

Time of meeting, eg. Midday, peak hour

The more risk factors there are with a given task, the more that can go wrong.
Risk Evaluation
Once you have identified the risk factors, then you have to work out what impact they can have
on the task. Following the previous example, what would be the impact of arriving at the meeting
late?

Would you lose the account?

Would you get fired by your boss?

Would it have an impact on your next review?

Nothing, the client didn't mind.

If the impact is low, the risk doesn't require much attention.

Risk Reduction
Risk reduction can also be considering risk containment or minimization. What term you use
doesn't matter as long as you are consistent. There are two parts to risk reduction

Plans or actions that can be taken to reduce the risk

Introduction of strategies that will minimize the impact of the risk

In getting to our client meeting on time we could take the following actions

Leave earlier (allow more travel time)

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Shift the meeting to non-peak travel time

Call the client to let them know we are running late

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The idea is to avoid the risk altogether but if that's not possible, have plans in place that can
minimize the impact.
Risk Monitoring
Risk monitoring has two dimensions to it. Firstly it's about keeping an eye on the risks that
you've already identified to see if anything has changed, if the impact has increased or decrease,
which could require action. And secondly, to see if there are any new risks that have arisen
during the project.
For example, while we're on our way to the client meeting, we could be keeping an eye on the
time while listening to traffic reports for any potential traffic delays. The most important thing to
remember is that just because we have identified a risk upfront, that doesnt mean new ones
won't emerge.
Risk Reporting
Risk reporting is about ongoing awareness and the effectiveness of any actions or strategies
taken to contain or reduce risk. For example calling your colleagues about traffic delays or train
cancellations. The goal of risk reporting is to keep an eye on the existing risks to help any new
ones arising.

Following are the risk identification techniques:1. Brainstorming:- Brainstorming involves a group of people working together to identify
potential risks, causes, failure modes, hazards and criteria for decisions and/or options for
treatment. Brainstorming should stimulate and encourage free-flowing conversation amongst a
group of knowledgeable people without criticizing or rewarding ideas. It is one of the best and
most popular ways to identify both risks and key controls and is the basis for most risk
workshops.
2. Interviews:- During a structured interview, interviewees are asked a set of prepared questions
to encourage the interviewee to present their own perspective and thus identify risks. Structured
interviews are frequently used during consultation with key stakeholders when designing the risk
management framework. As an example, structured interviews are good to gauge risk appetite
and tolerance when developing risk appetite statements.
3. Checklists:- Checklists are pre-populated lists of hazards, risks or control failures that have
been developed usually from experience, either as a result of a previous risk assessment or as a
result
of
past
failures
or
incidents.

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Auditors often prepare checklists of key controls to aid in their assessment of control
effectiveness and the internal control environment.
4. Structured What-if Technique (SWIFT):- This is a systematic, team based exercise,
where the facilitator utilizes a set of prompt words or phrases to stimulate participants to
identify risks. One organisation was looking at reducing service levels in a number of areas to
reduce its operating costs and SWIFT was used to analyze the impact of each reduced service
level. Risks were then identified and assessed. Where risks could not be reduced to a tolerable
level, the service level was maintained.
5. Scenario Analysis:- Closely related to SWIFT. Here a scenario is a short story or description
of a situation of how a future event or events might turn out or look like. For each scenario,
participants reflect and analyze the potential consequences and potential causes when analyzing
risk. Scenario analysis can be used to identify opportunities for fraud. For example, a scenario
could be A staff member has just admitted to defrauding or company of $50,000 over 8 years
through fictitious expense claimshow can this happen?
6. Fault Tree Analysis (FTA):- This method is similar to a form of creative thinking called
reverse brainstorming. This technique is used for identifying and analyzing factors that can
contribute to a specified undesired event (called the top event). Causal factors are then
identified and organized in a logical manner and represented pictorially in a tree diagram. For
example, if you want to improve customer service, state the objective in reverse e.g. How can
we really annoy our customers? and from this statement, use brainstorming to identify causes
that could annoy customers.
7. Bow Tie Analysis:- They say a picture is worth a thousand words and this method is a
perfect example. Bow tie analysis is a diagrammatic way of describing, linking and analyzing
the pathways of a risk from causes to effects/consequences. Unlike the risk register, there are no
numbers in this analysis i.e. there is no risk or control evaluation involved. This keeps the focus
on understanding the relationships between the causes, event and consequences.
8. Direct Observations:- Simply looking out for risks and being situational aware is not
included in ISO/IEC 31010 as a risk identification technique. This relatively simple technique is
used daily in the workplace by staff who may observe risky situations and hazards regularly. It is
also used by emergency services when attending to an emergency and is a form of dynamic risk
assessment. It is also heavily used by Workplace Health & Safety professionals during
inspections and audits. A risk aware culture and well trained staff will improve peoples ability to
observe potential risks and implement controls before the risk eventuates into an incident.
9. Incident Analysis:- Incidents are risks that have now occurred. Recording incidents in a
register, conducting root cause analysis and periodically running some trend analysis reports to
analyze incidents, can potentially enable new risks to be identified. In addition, a high frequency
of like incidents can be a lead risk indicator to a potentially larger problem.
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Question (4):- Write short notes on

Parametric estimating tool of cost estimating
Parametric Cost Estimating couples a structured estimating process with statistically based
parametric/predictive modeling methods to provide a basis for high confidence estimates.
Parametric modeling takes its name from the parameters (or variables) that are modified during
the project simulation process. Parametric models are built from a set of mathematical equations.
These may be standard equations found in reference books, proprietary equations developed by
consultants or vendors, or some combination of the two.
Parametric cost estimating is a method for estimating future proceedings based on analysis of
past events and trends. Parameters (conditions) that appear to have driven what happened in
the past are identified, and connected to past experience through mathematical relationships.
In order for parametric models to have any validity, they must be based on or proven using actual
project data. It is largely the sophistication of the data analysis methods and the extensiveness of
the underlying project data which determines the effectiveness of a modeling solution.

Procurement Process
A Procurement Management Process, or Procurement Process, is a method by which items are
purchased from external suppliers. The procurement management process involves managing the
ordering, receipt, review and approval of items from suppliers. A procurement process also
specifies how the supplier relationships will be managed, to ensure a high level of service is
received. This is a critical task in Procurement Management. In essence, the procurement process
helps you "get what you have paid for".
You need to implement a Procurement Process any time you want to buy items from external
suppliers. By using this Procurement Management Process, you can ensure that the items
provided meet your need. It also helps you manage the supplier relationship, ensuring that any
issues are resolved quickly. By implementing a Procurement Process, you can ensure you get the
maximum value from your supplier relationship.
Project teams responsibilities in project execution
The project team members are expected to assist in the management of the project as well; albeit,
at a more functional level. The critical project management elements for the project team to
provide assistance with include:
Performance monitoring: - Implement an execution plan to measure the actual
performance as compared to planned performance. For example, the actual project

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schedules will need to be reviewed periodically and compared to baseline

schedule in order to discern if the project is performing according to plan. If the
project is not performing according to baseline, steps will be taken to get the
project back on track. The same monitoring and analyzing should take place on
budgets, quality, risks, scope, etc.
Provide project status: - While the project manager is responsible for relaying
project status to parties outside the project team, the project team is expected to
report the status to the project manager. This includes communicating information
both on a formal and an informal basis.
Project Termination
Project termination is one of the most serious decisions a project management team and its
control board have to take. It causes frustration for those stakeholders who sincerely believed and in most cases still believe that the project could produce the results they expected, or still
expect. The project manager and his or her team members, very important stakeholders of the
project as well, will feel that they personally failed. They also will be scared of negative
consequences for their careers; their motivation and consequently, productivity will decrease
significantly.
In contrast to that, we are convinced that conscious project termination at the right time, based on
clear and well communicated criteria, profoundly discussed with the whole project management
team, and finally mutually decided, is one of the boldest actions the involved or affected
members of an organization can take.
The last step in closure process management is preparing the lessons learned report. That should
be an interactive process, where all project team members and active stakeholders participate and
share their views on what went well and what didnt. Project managers role is to gather these
statements, combine them, and add an additional description is clarity is needed and report back
to the entire team. It is a very beneficial project to all team members and aids a learning process
like no other project training. Surely the team members learn during the project anyway, and
often know the better way to perform the task right after something goes wrong during the
project, but the lessons learn report allows for sharing of this knowledge and more importantly
keeping it for future reference. This process is equally, if not more, important on terminated
projects. It is especially important when the project is closed because of the errors in the project
plan or project management.

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Question (5):- What is the quality planning? Explain the inputs, tools and
techniques and outcomes of quality planning?
Answer:Quality planning is the process of identifying the quality standards that are related to the project
and determining how to these standards can be achieved. It is one of the significant processes of
project planning and should be performed on a continuous basis and in parallel with the other
project planning processes.
A good quality planning process starts with a clear definition of the goals of the project. What is
the product or deliverable likely to achieve? What does the product look like? What functions
will it perform? How do you evaluate customer satisfaction? What determines the success of a
project?
Answering these questions will help you in identifying and defining quality goals. It will also
allow you to discuss the approach and plans required to accomplish those goals. This includes
measuring the risks to success, setting high standards, documenting everything, and defining the
methods and tests to attain, control, forecast and validate success. You should make sure that you
include quality management tasks in the project plan and delegate the tasks to work groups
and/or individuals who will report and track quality metrics.
For example, the desired management quality may need cost or schedule adjustments, or the
desired product quality may need a detailed risk analysis of an identified problem. Before ISO
9000 Series was developed, the activities mentioned here as quality planning were broadly
considered as part of quality assurance.

Inputs to quality planning

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Quality policy
Quality policy refers to the overall intentions and direction of an
organisation pertaining to quality, as formally expressed by top
management.
Scope statement
The scope statement comprises the key objectives of the project that are
needed by different stakeholders.
Product description
It includes the details of technical issues and other concerns which may
influence quality planning.
Standards and regulations
The project management team must acknowledge all the relevant
standards or regulations that may influence the project.

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Tools and techniques to quality planning

Benefit/cost analysis
The quality planning process should acknowledge benefit/cost trade-offs.
The benefits should cover higher productivity, lower cost and higher
customer satisfaction.
Benchmarking
In this, we compare actual or planned project practices to practices of
other projects to produce ideas for improvement and to find a suitable
standard to measure performance.
Flowcharting
It is a diagram that depicts how different elements of a system relate to
each other.
Design of experiments
It is an analytical technique that helps identifying which variables affect
the overall income the most.

Outcomes from quality planning

Quality management plans

It provides input to the overall project plan and must deal with quality
control, quality assurance, and quality improvement for the project.
Operational definitions
It particularly explains what something is, and how it is measured by the
quality control process.
Checklists
It is a structured tool that helps in verifying if a set of required steps has
been performed.
Inputs to other processes
The quality planning process may discover a need for further activity in
some other area.

Question (6):- Describe the various types of project performance evaluation

techniques. List any FOUR benefits of performance measurement and
evaluation?
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Answer:Following are the types of project performance evaluation techniques.

a) Process(or implementation) evaluation
It is also called formative evaluations which are designed to improve the implementation
of a program, policy or strategy as it unfolds. In this type of evaluation we measure the
level to which a program is effective as it was planned. It usually considers the program
activities conformance to statutory and regulatory requirements, program design, and
professional standards or customer expectations.
b) Outcome evaluation
It is also called summative evaluations which are designed to judge a program, policy or
strategys relevance, success and/or cost effectiveness which includes its relatives
contribution to the intended outcomes. This type of evaluation measures the level to
which a program attains its outcome-oriented objectives. It mainly focuses on outputs and
outcomes including unintended effects to evaluate program effectiveness but may also
consider program process to understand how outcomes are produced.
c) Impact evaluation
This is a type of outcome evaluation that measures the net effect of a program by
evaluating program outcomes with an estimate of what would have happened in the
absence of the program. This type of evaluation is used when external factors are known
to influence the programs outcomes, in order to isolate the programs contribution to
achievement of its objectives
d) Cost-benefits and cost- effectiveness analyses
Cost-benefit and cost-effectiveness analyses compare a programs outputs or outcomes
with the costs (resources expended) in order to produce them. When applied to existing
programs, they are also regarded as a variety of program evaluation. It measures the cost
of meeting a single goal or objective, and can be used to identify the least cost alternative
to meet that goal. This analysis aims to recognize all relevant costs and benefits,
generally expressed in dollar terms.

Benefits of performance measurement and evaluation

Benefits of performance

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Policy and programme

planning and development

Results may confirm policy and programme

direction or identify gaps that need to be
addressed.

Decision making about

funding

Finding out what works well/not so well can be

used to guide future funding decisions/priorities.

Clarifying goals

At the outset, developing a road map clarifies

goals, explains the big picture and ensures that
everyone shares a common focus.

Tracking progress

Enables monitoring and if required, permits

adjustments to be made along the way.

Reporting results

Promotes accountability and communicates what

works well to facilitate improvement and ongoing
development.

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