BF

B7
B7

B
X7
Paper / Subject Code: 56901 / Project Management 20-06-2024

3E
3E

3Y
3Y

BF

B7
B7

74

B
74

3E
3E
MMS - IV

3Y
3Y

FX
FX

B7
B7

74
74

B
EB

3E

Y
3Y

X
University Examination

X
73

43
BF
F

B7
74
B
Time: 3 hrs Marks: 60

YB

X7
E
E

3Y
X

73
73

BF
43

74
B

YB
B

7
X7

3E
Note: Q 1 is compulsory and carries 20 marks. Attempt any 4 questions from remaining 6

X
Y

X
3

43

BF
43

BF
BF

B7
B7
questions each carrying 10 marks. Use of scientific calculator is permitted. All necessary values

X7
7

E
E

Y
3E

3Y
X

73
are provided in the question paper.

3
BF
F

B7
B7

74
74

YB
B
Normal Table positive Z Value 0 0.82 1 1.04 1.28 1.5 1.65 1.96

3E
3E

FX
3Y

FX

43
3

B7
Area from Z =0 till positive Z 0 0.30 0.34 0.35 0.40 0.43 0.45 0.475

B7

74

EB
74

B
EB

X7

3Y
3Y
Y

X
FX
Discounting factor for 10% year 0 1 2 3 4 5

73
3

BF
3

BF
7

74
74
74

YB
EB

B
1 0.909 0.826 0.751 0.683 0.621

3E
3E

FX
Y

X
FX
73

43
3

BF

B7
B7

EB
4
B
Q 1 ( a ) Consider a project with following details . Use Crashing or project compression YB

X7
X7

3E

3Y
E

3Y

73
73
technique to reduce project duration by 3. 10

BF
43

BF

B7

74

B
4

YB
B

7
X7

3E
3E
3E
act prec NT NC CT CC

FX
Y

43
43
3

B7
BF

B7
B7

EB
4
A - 4 33 3 34

EB

X7
7
X7

3Y
Y
3E

3Y

73
73
B - 6 37 5 44

BF
BF
BF
B7

74
4
4

YB
YB

7
7

3E
E
C A 5 13 4 17
3E

FX
X
3Y

FX

73

43
3

BF

B7
B7

EB
D A,B 12 61 12 4 61
74

EB

X7
X7

3E

3Y
Y
Y
X

73
73

E C 11 35 8 53
3

BF
3

BF
BF

B7

74
4
4

YB
YB

7
7

F D,E 6 37 5 39

3E
E

Y
3E

FX
FX
FX

73

43
3
3

7
B7

4
G D 8 37 8 37

EB
4

B
EB

X7
7
7

3E

Y
3Y

FX
3Y

73
H E 9 58 8 64
73

BF
BF

4
4

EB
74

YB
YB
YB

X7
7

I F,G 6 13 4 31

3E
3E

FX
FX

73

43
43

BF
43

B7
7

J F,H 12 25 10 45
B

B
EB

X7
7
X7

3E

3Y
3E

3Y
3Y

FX

K I,J 10 23 8 43
73

BF
BF

7
7

74
4
4

B
B
YB

X7
7

3E
E

3Y
3E

FX
Y
FX

73
3

( b) A company will launch new product with life of 3 years. All units produced are sold in
43

7
B7

EB
4

EB

YB
EB

7
X7
X7

same year. Sales quantity for year 1 is 10000 units which will increase by 1000/year.
3Y

FX
3Y

73
73
73

43
BF
BF

Selling Price for year 1 is 200 and it will increase by 7/year. Operating cost/unit for year 1
B
74

YB
B
YB

X7
X7

E
E

3Y
3E

FX

is 23 which will increase by 2/unit each year. Project is financed by Equity 12 lakh and
73
73

43
BF
43

BF
B7

YB
EB

X7

Term Loan 12 lakh which carries interest at rate 8% per year and loan is to be repaid in 3
7
X7

3E
E
3Y

FX
3Y

3
73

BF

years by Equal Annual Installment. Interest for the year will be charged on Opening balance
F

7
7

74
74

B
74

B
EB

YB
YB

3E
E

3Y

of loan of that year. The Project assets are Land 2 lakh and depreciable FA 22 lakh.
FX
FX
FX

3
73

3
43

B7
7

74
4

Depreciation is charged at 20% per year by Written Down Value (WDV) method. Income
B
EB

YB
EB

YB

7
X7

3E

3Y
FX
FX

tax is 35 %. Calculate Debt Service Coverage Ratio (DSCR) and Interest Coverage Ratio
73

3
43
BF

74
4

EB
EB

B
YB

X7

(ICR) for all 3 years. 10

X7

3Y
3E

FX
3
73
43

F
BF

B7
B7

74

EB
B
YB
X7

3Y
3E

FX

Q 2 Answer any 2 from below:

3Y

73
3
43
BF

7
7

74
EB
74

A new product is to be released in the market. Activities involved in a product

YB
B
YB

X7
3E

3Y

FX
3

launch and their interdependence and probabilistic time estimates are given below.
43
43

7
B7

EB
EB

YB

X7
X7
X7

Activity Predecessor Optimistic Most Likely Pessimistic

3Y

73
73

43

BF
BF
BF

time(weeks) time(weeks) time(weeks)

74

YB
YB

X7

3E
3E
3E

A - 1 1 7
FX

43
43

B7
B7
B7

B A 3 6 9
B
EB

X7
X7

3E

3Y
3Y

C A 3 6 9
73

F
F

74
74

B
EB

YB
YB

D C 2 2 2
E

FX
FX

73
73

E B, C 4 7 10
43
43

EB
EB

YB
YB

X7
X7

F B, C 2 5 8
73
73

43
43

BF
BF

G D, E 3 5 13
YB
YB

X7
X7

3E

H D, E 4 4 4
43
43

F
BF

B7

I F, G 4 6 8
X7
X7

3E
3E

3Y

55974 Page 1 of 3
BF
BF

B7
B7

74

3E
3E

3Y
3Y

FX

B7
B7

74
74

EB

3Y
3Y

FX
73

4
74

X743YB73EBFX743YB73EBFX743YB73EBFX743YB73EBF
EB
YB

X7
 F

7
7

74

EB
EB

YB
YB
Paper / Subject Code: 56901 / Project Management

FX

73
73

43
43

B
EB

YB
YB

X7
X7

3E
73

43
43

BF
BF

B7
YB

7
7

3Y
3E

X
X

73
43

F
F
B7

74
B
B
A What are the chances that product will be launched before the end of 29.8 weeks?

YB
7

3E
3E

FX
3Y

X
B What should be the launch date if you want to be 90% sure?

43
F

B7
B7

EB
74

X7
7
C What are the chances that product will be launched with delay of 5.27 weeks?

3Y
3Y

FX
FX

73
73

BF
74
74

B
EB

3E
E

Y
Y

FX
X
Q 3. Answer any 2 from below:

3
73

43
43
BF

B7
7

EB
The following are details of project when performance is measured at end of 15.

B
YB

X7
X7

3Y
E

73
73
NC or % act by AC by

43

BF
43

BF

74

YB
YB
B

7
X7

3E
act prec NT BC 15 15

3E

FX
Y

FX

43
43
43
BF

B7
B7
A - 8 24 100 25

EB
EB

X7
7
X7

3Y
3E

73
3
B - 7 12 100 10

BF
3

F
F

7
B7

74
74

EB

YB
B

YB
C - 3 20 100 22

3E
3E

FX
3Y

FX

73

43
3

B7
B7
D A 6 29 100 30

EB
4

EB
74

EB

X7
X7

3Y
3Y
Y
FX

73
E A 8 26 80 20

73
73

BF
3

BF

74
4
4

YB
B
EB

YB

7
7

F B,D 6 34 20 7

3E
3E

FX
X
FX
73

43
3
3

B7
B7
G B,D 4 27 20 6

EB
4

B
B
YB

X7
7
X7

3E

3Y
E

3Y

FX
H C 14 34 85 28

73
73

BF
43

BF

74
4

EB

YB
YB
YB

7
I F,H 6 18 0 0
X7

3E
3E

FX
FX

73

43
43
43

B7
BF

J E,F,G 8 20 0 0
B7

EB
B

X7
X7
X7

3Y
3E

Y
3E

3Y

(a) Calculate Cost Performance Index (CPI).

73
3

BF
BF
BF

7
B7

74
4
4

B
(b) Calculate Schedule Performance Index (SPI)
YB

X7
X7

3E
E

3Y
3E

FX
3Y

73

(c) Find Revised Project Duration and Revised Project Cost.

3

F
BF

B7
B7

EB
4

EB
4

7
7
X7

3Y
3E

3Y

FX
3Y

73
73
BF
BF

B7

Q 4. Answer any two of the below:

74
4

EB
4

YB
YB
X7
X7

E
3E

FX
3Y

The past demand for 6 months is given of a product

73
73

43
43
F
BF
B7

B
4

Month 1 2 3 4 5 6
B

YB
B

X7
7
X7

E
3E
3E

3Y

FX
3Y

Demand 132 129 127 136 134 132

73
3

BF
BF

7
B7

74
4

B
4

B
B

(a) Calculate Mean Squared Error and forcast for month 7 using Moving Average method
X7
X7

3E
E

3Y
3E

FX
3Y

73

with period 3.
3
BF

B7
BF

B7

74
4

EB
74

YB
7

(b) Calculate estimated sales for month 7 using exponential smoothing method with
3Y
3E
3E

FX
3Y

FX
FX

73
3

smoothing constant 0.1. Assume forecast for month2 as initial value of 132.
B7
B7

74
4

EB
4

B
EB

X7
X7

3E

(c) Explain Mean Absolute Percentage Error as a measure of accuracy in forecasting.

3Y

FX
3Y
3Y

3
73

BF
BF

B7
B7

EB
74
74

YB

7
E

3Y
3E

3Y

FX
FX
FX

Q 5. Answer any two of the below:

73
3
43

7
B7

74
74

EB

YB
EB

B
EB

Details of a small project are given below.

X7

3Y

FX
3Y

FX

3
73

43
BF

act prec Duration

7
4

B
74

EB

YB
YB

X7
X7

3E
3E

FX

A - 5
73

43

BF
43

BF

7
B7

YB
EB

YB

B - 10
X7
X7

3E
3E
3Y

73

43
43

C - 15
BF

B7
B7

B
74

YB

X7
X7

3E

3Y
3E

3Y

D B 4
F
43

BF

7
B7

74
74

EB
B

E B 5
X7

3E

3Y

FX
3Y

FX

73

F A,D 5
BF

B7

74

EB
74

EB

YB
3E

G A,D 2
3Y

FX
FX

73
73

43
B7

74

EB

YB
EB

H A,D 6
YB

X7
FX

73
73

43

J A,C,D,E 10
43

F
EB
EB

YB
YB

X7
X7

K F 10
73
73

43

BF
43

L G,K 3
EB

YB
YB

X7
X7

3E

(a) Determine project duration.

73

43
43

BF
BF

B7
YB

X7

(b) Determine critical path.

X7

3E

3Y
43

BF
BF

(c) Calculate total float for each activity.

B7

74
X7

3E
3E

3Y

FX

55974 Page 2 of 3
BF

B7
B7

74

EB
3E

3Y
3Y

FX

73
B7

74
74

EB

YB
3Y

FX
73

43
74

X743YB73EBFX743YB73EBFX743YB73EBFX743YB73EBF
EB
YB

X7
 74 BF B7 74 EB
3Y X7 3E 3Y FX
B7 43 BF B7 74
3E YB X7 3E 3Y
74 BF 73 43 BF B7
3Y X7 EB YB X7 3E
B7 43 73 43 BF
3E YB FX YB X7
74 EB
YB
BF
X7 73 3Y FX 73 4 3Y
43 EB B7 74 EB B7
73 YB FX 3E 3Y FX 3E
EB 74 BF B7 74
FX 73 3Y 3Y BF

55974
74 EB X7 3E X7
EB 3Y F X7
B7
3E 43
YB
BF
X7
B7
3E 4 3Y
FX B7
3E 43
YB
BF
X7 73 4 3Y BF B7
3E
74 EB X7
3Y BF
X7 73 43
YB FX B7
3E 4 3Y BF
B7 43 EB 74 BF B7 X7
X7 3E YB FX 73 3Y X7 3E 43
74 EB YB
43 BF B7 4 BF

are 2 , 6 , 8 , 12 and 15.

YB X7 73 3Y FX 3E 3Y 73
43 EB B7 74 BF B7 X7 EB
73 YB FX 3E 3Y 3E FX 43
EB 74 X7 YB
FX 73 3Y BF
3E
B7
3Y 4 BF 74
3Y 73
74 EB B X7
4 B B 4 E
X7
B
F 7 B7
Q 6. Answer any 2 from below:

3Y 3E 3Y FX 73 3Y FX
B7 X7
B B 7 4 E 7 3E
3E 43 F 7 3 3 Y
BF
X
B7 43 BF
YB X7 E B 7 3E Y X7
BF
X7 73 43
YB
BF
X7 7 3E 4 3 BF B7
3E 43
EB B YB X7 YB
43 F 7 3 4 3 F 7 4 3 B F 73
YB X7 EB YB X7 3E YB X7
73 43 FX 73 4 3Y B FX 73 43 EB
FX
E Y
(a) Calculate Normal Payback period in months.

EB
FX
YB
7 7 4 B B 73 7 4 EB B 74
3E 3Y FX 3Y FX 73 3Y
74 B B 7 E B7 74 E
(c) Explain Matrix type of project Organization.

43 BF BF B7
3Y FX 73 3 Y X
(a) Explain different phases of Project Life Cycle.

EB YB X7 3E 3E

Page 3 of 3
B7 74
***************
3E 3Y FX 73 43 BF B7 74 BF
3Y
Q 7 . Answer any 2 from below each carrying 5 marks.

74 EB YB X7 3E X7
BF
X7
B7
3 3 YB F X7 7 3E 43 BF B7
3E 43
EB B YB X7 YB
43 FX 73 4 3 F 7 43 B F 7
YB Y X 7 3 Y X
73 74
3Y
EB
FX B 73 4 EB B 73 743
3Y FX
EB B 7 4 EB B 7 E B YB
(c) Calculate NPV assuming rate of discounting is 10% per annum.

FX 73
E 3Y FX 73 43
Y FX 73
74 B B 7 4 EB B 7 7 EB
3 F

X743YB73EBFX743YB73EBFX743YB73EBFX743YB73EBF
3Y FX 73 3 43 F
Paper / Subject Code: 56901 / Project Management

Y X E
(b) Calculate discounted payback period at 10% in months of this project.

B7 74
3Y
EB
FX B 73 7 43 B YB
73
3E FX
BF B7 74
3Y
EB
FX
YB
73 743 EB
X7 3E EB YB FX
43 BF B7 74 73 74
3E 3Y FX
(b) Explain how uncertainties are handled in PERT approach to project planning.

YB X7
43 BF B7 74 E BF
73 YB X7 3E 3Y
EB BF B7 X7
FX 73 43 3E 43
EB YB X7 YB
74 B
A project has initial investment of 20 . Expected net returns from this project for next 5 years

3Y FX 73 43
Y F X 7
B7 74
3Y
EB
FX B 73 7 43
3E EB YB
BF B7 74 73
X7 3E 3Y FX
43 BF B7 74 EB
YB X7 3E 3Y
73 43 BF B7
EB YB X7 3E
B