Project Management

APR 2024

1Q: Using a suitable example discuss the difference between Technical analysis and Financial analysis of
a project.

(10 Marks)

ANS: Technical analysis and Financial analysis are two very important aspects of the review of the project.

Financial analysis:

Analysing financials involves assessing companies, undertakings, spending plans, and other financial
dealings to ascertain their viability and appropriateness. An entity's suitability for a financial investment is
often determined by its stability, solvency, liquidity, and profitability.

This basically involves:

a. PO
b. Budgeting
c. Invoicing
d. Cash flow
e. Hedging etc.

Technical analysis:

Technical analysis is done to test whether the project is technically sound and viable. It aims to ascertain
whether the requirements for the project's successful commissioning have been taken into consideration
and whether reasonably good decisions have been made about location, scale, etc.

The technical analysis primarily involves the followings:

a. Material inputs
b. Manufacturing process
c. Plant capacity
d. Deliverables
e. Quality of the product
f. Agreed specifications from the customer
g. Timeline etc.

For example, in a project there are delivery of Electrical switchgears are involved. The technical analysis
involves to analyze the quality, design, specifications etc, to be matched as per the customer requirements.
On the other hand, financial analysis involves the analysis of the financial conditions of the project whether
it running within the budget or not. Also to analyze the invoicing status, cash flow etc.

For a successful completion of the project, it is essential that both technical and financial should be in a
good shape.

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2Q: The “billing department” of a chain of department stores prepares the monthly inventory report for
use by the stores’ purchasing agents. Given the following information, use the “critical path method”
to determine:

a. How long the process will take.

b. Which jobs can be delayed without delaying the early start of any subsequent activity?

c. Explain how the project can be fast tracked.

(10 Marks)

ANS:

A: Start

B: Get computer printouts of customer purchases

C: Get stock records for the month

D: Reconcile purchase printouts and stock records

E: Total stock record by the department

G: Prepare stock report for purchasing agents

H: Finish

a. The process will take total time of = 20+30+40+20 = 110 Hours

b. From the flow diagram of the activities, it is found that following activities can be delayed
without delaying the overall project are:
• Activity B
• Activity E
• Activity D

The above activities can be delayed as they are not falling on the critical path of the project.

c. It is found that there the activities which are falling on the critical path must be expedited to
keep the project fast tracked. These activities involves activity C, D, F and G.

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3Q: Rail Vikas Nigam (RVNL) has given Larsen and Toubro Construction (L&T) an Rs

2,447 crore contract to design and construct the Kolkata underground metro project in the

city’s Joka-Esplanade Metro Corridor.

According to an L&T press statement, the major works for the project include the design

and construction of the Ramp and Underground Metro railway works from Mominpur to

Esplanade, covering a distance of 5.05 km. The works comprise constructing four

underground stations, namely Khidderpore, Victoria, Park Street, and Esplanade, along with

tunnels created using Tunnel Boring Machine (TBM) and Cut & Cover methods.

The scope of the contract also includes architectural finishing works, track works, and other

related activities.

3a. Explain the various characteristics of Kolkata underground metro project.

(5 Marks)

3b. Discuss in brief the different activities executed during the project life cycle of the
Kolkata underground metro project.

(5 Marks)

ANS 3A:

The nation lacked the expertise necessary to build an underground metro railway system. Nevertheless,
the task was accomplished and Metro's labour was over.

The building of the Kolkata Metro will use two techniques: driven shield tunnelling and cut-and-cover
tunnelling. While the second method was employed to create the about one kilometre long tunnels on
either side of Chitpur Railway Yard up to Belgachia and Shyambazar Five-Point Crossing, the first method
was utilised to construct the majority of the alignment. Most surface traffic must be rerouted to other
parallel roads in order to implement the Cut and Cover technique. In order to build the southern segment
from Esplanade to Tollygunge, this was done. However, because there weren't enough parallel roadways
that were wide enough, the Northern leg of Chittaranjan Avenue, which went from Esplanade to Shyam
Bazar, could not accomplish the same.

The intricate nature of metro construction necessitates the application of numerous innovative
technologies in the domains of telecommunication, electrical, civil, and signalling engineering. In the
following areas, Indian engineers pioneered the use of cutting-edge technology for the first time in India,
supported by both their own expertise and study elsewhere.

Utilizing sheet piles and diaphragm walls, the Cut and Cover building method is employed. The use of
substantial decking to maintain traffic over the cut while work is being done underneath. Shield tunnelling
with airlocks and compressed air. Rubber pads, nylon inserts, epoxy cement, and elastic fastenings are
used in the ballast less track.

ANS 3B:

A number of well planned actions are carried out at various stages of the massive infrastructure project,
the Kolkata Underground Metro Project. This project, like many large construction projects, has a defined
project life cycle with multiple phases from start to finish. Precise actions designed to fulfil the particular
needs and goals of the project are part of each phase. A wide range of tasks are involved in these activities,
from preliminary planning and design to building and final operation. To fully comprehend the intricacy
and synchronization of these actions, one must understand the complexity of the project.

It involves a quite complex design, engineering, coordination and syn with different project disciples to
complete such projects.

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