CONFIDENTIAL EHIDEC 2016/CHE620/CPE520 UNIVERSITI TEKNOLOGI MARA FINAL EXAMINATION COURSE : PROJECT MANAGEMENT ‘COURSE CODE : CHE620/CPE520 EXAMINATION : DECEMBER 2016 TIME : 3HOURS INSTRUCTIONS TO CANDIDATES 1. This question paper consists of five (5) question 2. Answer ALL questions in the Answer Booklet. Start each answer on a new page. 3. Do not bring any materia into the examination room unless permission is given by the invigilator. 4, Please check to make sure that this examination pack consists of i) the Question Paper ji) _ an Answer Booklet — provided by the Faculty il) a two-page graph paper — provided by the Faculty 5. Answer ALL questions in English. DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO This examination paper consists oF 4 printed pages (© Hak Cipta Universiti Toknolog! MARA CONFIDENTIALCONFIDENTIAL 2 EHIDEC 2016/CHE620/CPE520 QUESTION 1 (PO10, CO1, C5, C6) Bumi Aromatic Petrochemicals (BAP) Sdn. Bhd is a local chemical industry that focuses their business to produce a wide range of chemicals. Due to the high competition in this particular industry, the management is concern about the competitiveness of their products in the market. Therefore, the manager of production has been requested to provide a list of potential projects to be added to their current products portfolio as well as to develop ideas for new products. The manager has to estimate the development costs of various projects, product revenues, and the likelihood that BAP can retain or obtain position a leadership for the given products. The manager has to evaluate also the extent to which the products make the significant environmental issues. One opportunity for new product project and two projects to update their existing products have been identified. The details of projects are listed in the following table. Table 1 Detail of the Potential Projects Updating Existing Products New Project Project reer anne aerate ean rene anette ane nnn eeeieTacEs —— Chemical formulation | New packaging design | New pesticide Development time 1,500 1,000 1,500 (hour) | First year revenue 1,200,000 | 1,000,000 2,000,000 (RM) ‘ Annual sales growth increase 10 % increase 7 % decrease 5 % Market high Moderate high position/leadership Environment Issue I low Moderate high In evaluating the projects, the manager believes that it is reasonable to assume each project had a five-year life. He also feels that a discount rate of 10 percent fairly reflected the company’s cost of capital. Refer to his experiences, the cost of the development of the Project is RM400 per hour including salary and purchasing the required materials. The manager assumes that the total development hours allocated for the approval projects is limited to be 3,000 hours. a) Provide the cash flow and NPV for each project and recommend which project can be pursued by the BAP, (15 marks) b) Assume the manager weighs the criteria of the project’s NPV by three score, two score for leadership position in the market sale and level of environmental issue impact by one score. Using the Scoring Method, rank the proposed projects and select the projects that you recommend to be funded. Use score of 1-3 for level of contribution. (8 marks) (© Hak Cipta Universiti Teknologi MARA CONFIDENTIALCONFIDENTIAL, 3 EHIDEC 2016/CHE620/CPE520 QUESTION 2 (PO10, CO1, C2, C3) A project manager is a person who has the overall responsibilty for the successful planning, design, execution, monitoring, controlling and closure of a project. a) Discuss briefly the general characteristics of a successful project manager. (6 marks) b) Explain the three (3) main responsibilities of a project manager in a particular project. (6 marks) ¢) Differentiate between project manager and functional manager. (6 marks) QUESTION 3 (PO10, CO1, C2, C4, C3) The success of a project is influenced by the planning of the project. The PM will use the planning as a map of the route from start to finish of the project. Therefore, the plan should contain the sufficient information that is needed by the PM. ) A project plan contains at least nine key elements of information. Point of any faur (4) of the elements, (8 marks) b) Analyze on the problems that might be raised if these elements are incomplete in the planning. (2 marks) ¢) There are many systematic procedures that may be used in preparing a project plan. One of the procedures is “Hierarchical planning process”. Outline the step involved in preparing the project plan by using this procedure and give an example of a project and construct a work breakdown structure (WBS) with at least two levels for the project. (8 marks) QUESTION 4 (PO10, CO1, C3, C3, C5) The financial status report of a chemical plant construction project at the end of its 24" week is given in Table 3. Using the data in the table: a) Construct the AOA network diagram (on the graph paper) for the project activites. (5 marks) (© Hak Cipta Universiti Teknologl MARA CONFIDENTIAL