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Ajay Kumar Garg Institute of Management, Ghaziabad

Course: MBA Semester: III
Session: 2016-17 Section: 1& 2
Subject: Project Management Sub. Code: NMBA 034
Max Marks: 100 Time: 3 Hour

Section -A

Q1: Attempt all parts carrying equal marks. Write answers of each part in short. 10 *2 =20)
a) Project identification is same as Project formulation. Comment.
b) Discus the various forms of project organization.
c) What do you mean by Line of Balance? Also explain its application.
d) Distinguish between NPV and IRR method application for financial viability of a
e) Explain the Gantt chart.
f) How can technical analysis be beneficial for project analysis?
g) State the difference between Capital cost and operating cost of the product.
h) What is feasibility report? Also discuss various stages of project preparation.
i) What is Shadow Pricing?
j) Explain the Work Packaging Plan.


Note: Attempt any five questions from this section. (10×5=50)

Q2. Discuss in detail how project formulation can be done to decide viability of a project.
Q3. How can various demand forecasting techniques be used for estimating demand of a
Q4. Discuss in detail various tools and charts used for project management.
Q5. Discuss the various sources where the ideas for a project originate.
Q6. Explain how and why financial projection is needed for various projects.
Q7. Assuming that you are a Project Manager of a dam to be constructed in a village, what
problems you foresee and what corrective measures would you take to address the issues?
Q8. Explain various tools and techniques used for socio-cost benefit analysis of a project.
How human aspects effects project management?
Q9. Explain the pre-requisites for successful project implementation.
Section C
Note: Attempt any two questions from this section. (15×2 = 30)

Q10 A firm uses simple exponential smoothing α =0.1 to the forecast demand .The forecast
for the first week of February 1 was 500 units where actual demands turned out to be 450
units. Forecast the demand for the week of February onwards if the subsequent demand were
actually 505,516,488,467,554 and 510 units.

Q11 A company is considering two mutually exclusive projects. The Finance Director
thinks that the project with the higher NPV should be chosen whereas the Managing
Director thinks that the one with the higher IRR should be undertaken especially as both
projects have the same initial outlay and length of life.

Year 0 1 2 3 4 5
Flows: (200) 35 80 90 75 20
Project X (200) 218 10 10 4 3
Project Y

The cost of capital is 10% .Compute the NPV and IRR for each project. Which project
would you recommend and why?

The discount factors are as follows:

Year 0 1 2 3 4 5
Discount Factors (10%) 1 0.91 0.83 0.75 0.65 0.62
(20%) 1 0.83 0.69 0.58 0.48 0.41

Q12A project schedule has the following Characteristics:

Activity Time(weeks) Activity Time(weeks)

1-2 4 5-6 4
1-3 1 5-7 8
2-4 1 6-8 1
3-4 1 7-8 2
3-5 6 8-10 5
4-9 5 9-10 7

(a) Construct the network diagram.

(b) Compute E and L for each event, and find the critical path.