1. What does project management software do? Solution : 1. 2. 3. 4.

At the most basic level, project management products will help your organization to manage projects from start to finish, and allow employees at different levels to have an input into the process. Project management software has been around for a number of years now and as a result, it does far more than just manage the projects themselves. Project applications can also carry out scheduling, cost control and budget management, resource allocation, collaboration, communication, quality management and documentation or administration. The aim with these is to handle all aspects and complexities of larger projects and help keep costs down.

2. Define scheduling of a project. In project management, a schedule is a listing of a project's milestones, activities, and deliverables, usually with intended start and finish dates. Those items are often estimated in terms of resource allocation, budget and duration, linked by dependencies and scheduled events. Accurate definition of the project schedule provides realistic milestones for the completion of tasks through the lifespan of the project. It allows applicable resources to be identified, a anticipated timeframe to be established and provides the basis for budgeting individual tasks and the project as a whole. During project or task execution, the schedule identifies elements that are ahead, behind and on-schedule and allows appropriate adjustments to be made. 3. How can we create relationship between tasks in MS project.
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After creating project tasks and set durations, the next step in building project plan is to link tasks together. Link two tasks together can be done in four different ways. These are Finish to Start, Start to Start, Finish to Finish and Start to Finish.
n 1. Finish to Start which means that one task is finished before the A B Lag next can start. If you delay the finish of the first task, this will Finish to Start AON delay the start of the second. To see this in action, start a new project file and create two tasks, with your own choice of names and task durations of 1 day each. Now highlight both, and then click on the "Link Tasks" button in the toolbar.

2. The 2nd task link type is the Start to Start, shown as S-S. Although both are carried out at the same time the start of the second task is triggered by the start of the first task. So the first task start drives A B the second task start. So if the start of the first task is delayed, the Start to Start AON start of the second task is also delayed. To create this second type we'll first create the link in the same way as above. Highlight both tasks and click the Link Tasks button. This will create a Finish to Start link which you can see in the Gantt chart. To change the type of link, carefully move the cursor over the link linking the tasks on the Gantt chart and double click. Click on the pop down to the right of Type and choose Start to Start and click OK to finish. 3. The third task link type is the Finish to Finish, shown as F-F. This link is used to plan task completions at the same time. This type is often used to plan completion of jobs at the same time such as for a A B product launch or a building completion. Delay the first task finish Finish to Finish AON and the second task finish is also delayed. To create this third type we'll create a F-S as described earlier and then edit the link type by double clicking the line in the Gantt chart and this time choosing Finish to Finish. 4. The fourth task link type is the Start to Finish, shown as S-F. This A B link type is used more rarely in project planning. So if the first task start is delayed, the planned finishing of the second task is also Start to Finish AON delayed. To create this fourth type we'll create a F-S as described earlier and then edit the link type by double clicking the line in the Gantt chart and this time choosing Start to Finish.

4. What are the advantages and limitations of MS Project? Solution : Advantages 1. It provides the flexibility to help manage your project, provides assistance in every phase of the project, and calculates schedules and other project information. 2. It helps to build the project plan and also helps in tracking it to its completion. Microsoft project supports calendar controls, allocation of resources, production of PERT, GANTT charts, resource charts, calendar charts and dozens of reports. 3. It is easy to navigate and similar to other MS packages. 4. MIS Project can be of substantial assistance in the management of projects. Disadvantages 1. Microsoft project which can't handle huge project. 2. MS Project is its lack of collaboration. Currently most PM tools have built in collaboration functionality, which makes it easier with the team members to communicate with each other, and with the Project Manager (and vice versa). 3. Another limitation is the cost factor in the sense is that the expenses in upgrading the project to newer versions and requirements needed to train a group of users are very high. It is also expensive to acquire a genuine MS Project. 5. List out the steps for scheduling a project using MS Project software. Steps for scheduling a project involve the following five steps. As prerequisite, the five steps to be followed assumes that a project is already defined with project start date, applied the appropriate base calendar, and set up the default task type and other settings in the Options dialog box (Tools menu). Then perform the following five steps: 1. Create a task list and work breakdown structure (WBS) - The WBS is the hierarchical list of the project's phases, tasks, and milestones. It's the core of the project schedule. The WBS is critical because it drives the scope of the project. To build WBS, start by listing the major tasks(summary tasks) of the project, and then the minor tasks within each major task. Continue to break down each major task. 2. Indent or outdent tasks to finalize the WBS - After entering tasks in the Task Name field, next steps is to create the hierarchy. Use the Indent Button image and Outdent Button image buttons on the Formatting toolbar to establish the right outline levels. 3. Enter task durations or work estimates - The next step is to specify the time that is estimated to complete the tasks. 4. Create dependencies between tasks - One of the most critical steps in scheduling is to create task dependencies, or links. Most tasks are dependent upon other tasks. When linking tasks, you can specify different types of dependencies. The most common dependency is Finish-to-Start (FS), which means that the predecessor task must finish before the successor task can start. 5. Assign resources- After creating the schedule the next step is to specify which resource(s) is associated with each task. How and which resources you want to assign depends upon your scheduling and tracking needs, for instance, a task called "Wire light fixtures" could be assigned the resource "Electrician." 6. Discuss the term post completion project review. / What is the purpose of project review meetings? A post-project review is performed by a project team at the end of the project's life cycle to gather information on what worked well and what did not, so that future projects can benefit from that learning. Information from this type of review becomes an organizational asset for future projects. Participants in the post-project review process are members of the project team, key stakeholders and users of the project deliverables or results. Lessons learned from the review should be archived so that it is easy for project team members, process improvement teams and managers to find useful information.

7. Briefly explain ABC analysis./ What are the significance of A type inventories in ABC analysis? Solution : The ABC classification system is grouping items according to annual sales/production volume and to identify the small number of items that will account for most of the sales/production volume and that are the most important ones to control for effective inventory management. As the size of the industry increases, the number of items to be purchased and to be taken care of also increases. ABC analysis helps to identify the values of items and how much effort is required to manage inventory. Under the ABC analysis the inventory items are categorized as A class items, B class items and C class items.

ABC Analysis 100

% of Total Inventory Cost

90

70

10 30 100 The A class items are high valued but Percentage of items are limited in number. They need careful and close inventory control. Such items should be purchased well in time. The A class items generally accounts for about 70-80% of the total inventory cost and they constitute about 10% of the total items. The B class items are medium valued and their number lies between A and C items. Such items need moderate inventory control. They are more important than C class items. These items are comparatively less costly. The B class items generally accounts for about 20-15% of the total inventory cost and constitute about 15-20% of the total items. The C class items are low valued but maximum numbered items like clips, pins etc. Such items need very less inventory control. The C class items generally accounts for about 10-15% of the total inventory cost and constitute about 75% of the total items. An inventory control system should be directed towards A class items because this is where the major economies can be achieved. Less elaborate procedures can do the job economically in case of C class items. Thus careful attention is paid for inventory control in case of A class items, less attention for B class items and the least attention is paid for C class items.

Benefits of ABC analysis : 1. 2. Less capital will be tied up in inventories. Ensures that all materials would be available when required.

8. Explain the major project management software used in India. Solution : Five Popular Project Management Applications 1. Microsoft Project - Microsoft Project is one of the more popular packages and it now offers a web interface and deep Office, Outlook and Sharepoint integration. 2. Matchware MindView MindView has an easy-to-use spreadsheet-like layout, and its mind map option lets you see your project in visuals, reminiscent of brainstorming bubbles. 3. Project Kickstart Project KickStart is an easy-to-use project management package that integrates with other applications like PowerPoint, Outlook, Excel, Word, Microsoft Project, and ACT!. 4. RationalPlan Multi Project - RationalPlan Multi Project has features to manage resources and budgets as well as multiple projects. It has an interactive Gantt chart, normally available only in higher-end suites. 5. Basecamp - Basecamp is a low-cost web-based project management and collaboration package which is gaining momentum.

9. Explain the main features and facilities available in MS project Software packages. Solution : Microsoft Project is a project management software program, developed and sold by Microsoft, which is designed to assist a project manager in developing a plan, assigning resources to tasks, tracking progress, managing the budget, and analyzing workloads. Features 1. The application is designed to assist project managers in developing plans, assigning resources to tasks, tracking progress, managing budgets and analysing workloads. 2. Resource definitions (people, equipment and materials) can be shared between projects using a shared resource pool. 3. Each resource can be assigned to multiple tasks in multiple plans and each task can be assigned multiple resources. Microsoft Project schedules task work based on the resource availability as defined in the resource calendars. All resources can be defined in an enterprise resource pool. 4. Microsoft Project creates budgets based on assignment work and resource rates. As resources are assigned to tasks and assignment work estimated, Microsoft Project calculates the cost equals the work times the rate. This rolls up to the task level, then to any summary tasks and finally to the project level. 5. Microsoft Project has been extended with Microsoft Office Project Server and Microsoft Project Web Access. Project server stores Project data in a central database. 6. Project Web Access allows user to display and update this data over the Internet. Web Access allows authorised users to access a Project Server database across the Internet. Web Access includes timesheets, graphical analysis of resource workloads and administrative tools. 7. Microsoft recognises different classes of users. These different classes of users can have differing access levels to projects, views and other data. 8. Custom objects such as calendars, views, tables, filters and fields are stored in an enterprise global database, which is shared by all users. 10. How is a work breakdown structure used to create network? Explain with an example. Solution : A work breakdown structure (WBS) is a hierarchical outline of the tasks needed to deliver the projects product or service. It breaks-down the project into low-level subtask units of work that will be scheduled, executed and controlled. The diagram here shows that the entire project, represented as a Level 1 component, can be subdivided into Level 2 components, and some or all Level 2 components can be subdivided into Level 3 components.

Steps for developing a work breakdown structure: 1. Determine your strategy for developing a work breakdown structure (WBS) 2. Identify the highest level components of work to be accomplished. Example of highest-levelProduct deliverables such as Project Charter, Project Plan Life Cycle Phases such as Analyze, Design, Build etc. 3. Break work process into small components-Under each high-level component, break the work into small components until each component is defined to a level of detail that allows accurate estimating for the time and cost required for its completion. 4. Name the component-The component name should adequately describe the task to be completed. Use the noun-verb format. 5. Examples: Document User Manual,Install Network Routers etc. 6. Make sure work has been broken down to the lowest level desired-

11. Explain the salient features of decision trees. Support your answer with an example of your choice. Solution : The decision tree diagram consists of nodes and connecting branches. The nodes, displayed as small squares or circles, represent decision points, such as whether to invest in new technology or whether to construct a new production facility. The connecting branches represent each possible choice or outcome related to the node to which it is connected. For the new technology node, the corresponding branches represent investing and not investing. An analyst can report the costs and probabilities of success associated with each decision alternative in the decision tree. Visually, a decision tree begins with a single node from which branches can extend horizontally or vertically. Most decision trees in business, government and academia, however, extend horizontally. Decision makers can use the decision tree method in medical diagnosis, game theory, engineering, public policy analysis, business management and more. Decision trees also can supplement other strategic planning and project management tools. The decision tree method is a visual, easy-to-understand alternative to the numerical charts and statistical probabilities in other decision analysis methods, such as spreadsheets. Decision trees also are adaptable, meaning they can be modified as new decisions present themselves or as new information becomes available and changes the scenarios. In addition, decision trees do not require computers or special software, but only pen, paper and a calculator.

A tree showing survival of passengers on the Titanic ("sibsp" is the number of spouses or siblings aboard). The figures under the leaves show the probability of survival and the percentage of observations in the leaf. 12. Identify the several resources that may need to be considered when scheduling a project. Solution : In project management, resources are required to carry out the project tasks. They can be people, equipment, facilities, funding, or anything else capable of definition (usually other than labour) required for the completion of a project activity. The lack of a resource will therefore be a constraint on the completion of the project activity. Resources may be storable or non storable. Storable resources remain available unless depleted by usage, and may be replenished by project tasks which produce them. Non-storable resources must be renewed for each time period, even if not utilised in previous time periods. Resource scheduling, availability and optimisation are considered key to successful project management. Allocation of limited resources is based on the priority given to each of the project activities.

13. Explain how Monte Carlo simulations is carried out in project risk analysis. Solution : Monte Carlo analysis involves determining the impact of the identified risks by running simulations to identify the range of possible outcomes for a number of scenarios. A random sampling is performed by using uncertain risk variable inputs to generate the range of outcomes with a confidence measure for each outcome. This is typically done by establishing a mathematical model and then running simulations using this model to estimate the impact of project risks. This technique helps in forecasting the likely outcome of an event and thereby helps in making informed project decisions. While managing a project, you would have faced numerous situations where you have a list of potential risks for the project, but you have no clue of their possible impact on the project. To solve this problem, you can consider the worst-case scenario by summing up the maximum expected values for all the variables. Similarly, you can calculate the best-case scenario. You can now use the Monte Carlo analysis and run simulations to generate the most likely outcome for the event. In most situations, you will come across a bell-shaped normal distribution pattern for the possible outcomes. Let us try to understand this with the help of an example. Suppose you are managing a project involving creation of an eLearning module. The creation of the eLearning module comprises of three tasks: writing content, creating graphics, and integrating the multimedia elements. Based on prior experience or other expert knowledge, you determine the best case, most-likely, and worst-case estimates for each of these activities as given below: Tasks Writing content Creating graphics Multimedia integration Total duration Best-case estimate 4 days 5 days 2 days 11 days Most likely estimate 6 days 7 days 4 days 17 days Worst-case estimate 8 days 9 days 6 days 23 days

The Monte Carlo simulation randomly selects the input values for the different tasks to generate the possible outcomes. Let us assume that the simulation is run 500 times. From the above table, we can see that the project can be completed anywhere between 11 to 23 days. When the Monte Carlo simulation runs are performed, we can analyse the percentage of times each duration outcome between 11 and 23 is obtained. The following table depicts the outcome of a possible Monte Carlo simulation: Total Project Duration 11 12 13 14 15 16 17 18 19 20 21 22 23 Number of times the simulation result was less than or equal to the Total Project Duration 5 20 75 90 125 140 165 275 440 475 490 495 500 Percentage of simulation runs where the result was less than or equal to the Total Project Duration 1% 4% 15% 18% 25% 28% 33% 55% 88% 95% 98% 99% 100%

14. What you mean by crashing in network analysis? Solution : Reducing an activity completion time is known as "crashing" the activity. The time crashing in the network analysis aims at reducing project completion time with the least increase in cost. Unlike traditional methods where crashing implies speeding up all works, in network analysis, crashing is carried out for selected activities resulting in time saving with the least cost. 15. Explain the shortcomings of Accounting Rate of Return as an investment appraisal method and reasons for its popularity. Solution : Accounting rate of return (also known as simple rate of return) is the ratio of estimated accounting profit of a project to the average investment made in the project. ARR is used in investment appraisal. Accounting Rate of Return is calculated using the following formula: ARR = Average Accounting Profit Average Investment

Average accounting profit is the arithmetic mean of accounting income expected to be earned during each year of the project's life time. Average investment may be calculated as the sum of the beginning and ending book value of the project divided by 2. Another variation of ARR formula uses initial investment instead of average investment. 16. What are the different types of measures of project risk? Risk analysis is conducted in two significant ways qualitative and quantitative risk analysis. These two type of risk analysis can be conducted simultaneously or in a chosen order, and even within a defined period gap. The objective of conducting a qualitative risk analysis is to acquire safety against recognized risks and to increase the alertness of management, team members, and all personnel who are vulnerable to them. This method of risk analysis is designed to identify issues that are looked upon as project management impediments, but have the potential to become definite risk factors. A detailed qualitative analysis will also delve into the resources which are more susceptible to such risks. The purpose is to identify rectifying measures that can incorporated to restrict or remove the causes that have given rise to such risks and to ensure that these safety measures become a part of risk-related analytical protocol for future reference. Quantitative risk analysis is more focused on the implementation of safety measures that have been established, in order to protect against every defined risk. By using a quantitative approach, an organization is able to create a very precise analytical interpretation that can clearly represent which risk-resolving measures have been most well-suited to various project needs. This makes the quantitative approach favored by many management teams since risk assessments can be clearly represented in the empirical forms like percentages or probability charts, since it emphasizes using tools such as metrics. 17. Describe the relationship between forecasting and project management. 18. Differentiate between financial management and project management.