CM ZG523 (EC-2 Regular) First Semester 2009-2010 Page 1 of 2

Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

First Semester 2009-2010

Comprehensive Examination (EC-2 Regular)

Course No. : CM ZG523

Course Title : PROJECT MANAGEMENT

Nature of Exam : Open Book

Weightage : 60%

Duration : 3 Hours

Date of Exam : 24/10/2009 (AN)

Note: 1. Please follow all the Instructions to Candidates given on the cover page of the answer book. 2. All parts of a question should be answered consecutively. Each answer should start from a fresh page. 3. Mobile phones and computers of any kind should not be used inside the examination hall. 4. Use of any unfair means will result in severe disciplinary action.

Q.1. An activity on the critical path of a project was scheduled to be completed within 12 weeks with a budget of Rs 12,000. During a performance review that took

place 7 weeks after the activity was initiated , it was found that 50% of the work

had already been completed and that the actual cost was Rs 7,500.

(a) Calculate the earned value of the activity. (b) Calculate the cost and schedule indices for the activity. (c) Calculate the expected budget at completion . [4 + 4 + 4 = 12]

Q.2. Using the data in the following table, prepare a table for the weekly and cumulative direct expenses for the project and show graphical plots of your table

without using graph paper sheets. [6 + 6 = 12]

TASK Start Time

(Week)

Duration

(Weeks)

Direct Expense

( Rs 1,000/Week)

A 0 5 10

B 6 3 15

C 9 4 25

D 7 9 35

E 8 2 10

F 9 8 20

G 13 7 10

Q.3 (a). Explain accounting rate of return with a suitable example. [6]

Q.3 (b). Consider a project whose data is given below :

Year Book value of investment (Rs.) Profit after tax (Rs.)

1 90,000 20,000

2 80,000 22,000

3 70,000 24,000

4 60,000 26,000

5 50,000 28,000

Calculate the accounting rate of return for this project. [6]

No. of Pages = 2

No. of Questions = 5

CM ZG523 (EC-2 Regular) First Semester 2009-2010 Page 2 of 2

CM ZG523 (EC-2 Regular) First Semester 2009-2010 Page 2

Q.4. Describe three projects, one whose emphasis is on technology, one with emphasis on cost, and one with emphasis on scheduling. [4 + 4 + 4 = 12]

Q.5. The following table gives information on a project ( T in days , C in Rs 1000s ) :

Activity Predecessors Normal Tn Normal

Cn

Crash

Tc

Crash

Cc

A - 6 10 2 38

B - 4 12 4 12

C - 4 18 2 36

D A 6 20 2 40

E B,D 3 30 2 33

F C 10 10 6 50

G F,E 6 20 2 100

(a) What is the earliest the project can be completed? What is the lowest cost for completing it in this time?

(b) If overhead (indirect) costs are Rs 20,000 per day, for what project duration are total project costs lowest? [6 + 6 = 12]

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