TEST ID: 504

ESE- 2020 (Prelims) - Offline Test Series Test- 8

GENERAL STUDIES AND ENGINEERING APTITUDE
SUBJECT: BASICS OF PROJECT MANAGEMENT
SOLUTIONS

01. Ans: (b) Planned value after 3 weeks = 6000.

Sol: Carrying cost includes (i) Storage cost Schedule variance (SV) = EV – PV
(ii) Insurance = 5000 – 6000
(iii) Depreciation =  1000
(iv) Interest  Behind the schedule.
Ordering cost includes
(i) order preparation cost 04. Ans: (c)
(ii) cost of negotiations Sol: D1 = 2D C01 = C0 CC1 = 2 CC
(iii) transportation cost 1
2 D1C0
(iv) inspection cost EOQ  1
1
CC
02. Ans: (d) 2(2 D)  C0
Sol: Sum – of – years digit method: 
2(CC )
n(n  1) 5(5  1)
SOY    15 1
EOQ = EOQ
2 2
EOQ 1
Annual depreciation (Dm) = (PSV) × dm 1
n  (m  1) 4 EOQ
dm =  d2 
SOY 15
05. Ans: (b)
D2 = 50000  5000  
4
Sol:
15
4
 45000  = 12000/- 3
15 C(6) F(4)
03. Ans: (b) A(7) D(8) G(3)
Sol: Planned value (PV) 1 2 5 6

Week 1 2 3 4 5 B(5) E(5)

PV 2000 2000 2000 2000 2000
Cumulative 4
2000 4000 6000 8000 1000
PV

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 :2: General Studies & Engineering Aptitude

Path Duration 11. Ans: (c)

Sol: In Internal rate of return, Net present value
ACF 17 will become zero for which rate of discount
ADG 18 is calculated.

BEG 13 12. Ans: (c)

Critical path duration = 18 days. Sol: WBS will aid the project manager to
understand the sequence, which inturn help
in rough estimation of time. Cost of each
06. Ans: (c) work replacing corresponding work is called
Sol: cost breakdown structure.
A C E H 13. Ans: (d)
D Sol: For minor works line organisation (Military
B organisation) is best suitable.
G
F
14. Ans: (b)
Sol: In a matrix organisation, functional manager
07. Ans: (a) is responsible for skills improvement.
Sol: Length of the bar chart = Project  duration
15. Ans: (c)
08. Ans: (b) Sol: Project charter is used for quick reference. It
Sol: Two different activities cannot be identified is summary of PEP.
by the same beginning and end events.
16. Ans: (a)
09. Ans: (b) Sol: A person who is involved in or may be
Sol: Total float ……. Without affecting the affected by the activities or anyone who has
project duration something to gain or lose by the activity of
Free float …….. Without Next activity project is stakeholder. Competitor may get
Independent ….. Without next & preceding affected, but is not main stakeholder.
activity
17. Ans: (d)
10. Ans: (a)
Sol: D = 52 × 20 = 1040 Sol: Rate of depreciation
C0 = 200   C 1 / n 
Cc = 2/unit/month R D  1   s  
= 2 × 12 / unit / year = 24   Ci  
 
2 DC0
EOQ  Initial cost, Ci = 32, 000
Cc
Salvage value, Cs = 4,000
2  1040  200
 n=3
24 1/ 3
= 131.6 units.  4000 
RD  1     0.5
 32000 

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 :3: ESE - 2020 (Prelims) Offline Test Series

18. And: (d) 28. Ans: (c)

Sol: All the above organisations are suitable for Sol: Training will reduce the likelihood of risk.
both projects and major projects. Military Imposing penalty is passive strategy.
and lines staff organisation are not suitable.
29. Ans: (c)
19. Ans: (b) Sol: By the time termination of project starts
Sol: Decision making on procurement of execution is completed. Therefore, it is
resources is part of scheduling. meaningless to do monitoring and risk
analysis.
20. Ans: (d)
Sol: WBS quantifies scope through tree diagram. 30. Ans: (c)
It will help as a checklist regarding Sol: In the functional audit, customer will check
completeness of project. whether
(i) Installation is done
21. Ans: (d) (ii) Training is provided
Sol: Brainstorming is qualitative tool used in risk
analysis. 31. Ans: (a)
Sol: P/V Ratio = Contribution/sales x 100
22. Ans: (c) = (40– 24)/40 x 100
Sol: Each sub-contractor is given weightage = 16/40 x 100 or 40%
based on delivery, quality and other factors. Break even sales = S×P/V Ratio = Fixed
Cost (At break even sales, contribution is
23. Ans: (d) equal to fixed cost) Putting these values:
Sol: Quality management plan is a document S x 40/100 = 16,000
which deals with quality policy. It is part of S = 16,000 x 100 / 40
project execution plan. = 40,000

24. Ans: (a) 32. Ans: (c)

Sol: Trying to know more about the issue will Sol: In item rate contract the payment is on basis
help manager to resolve it. It is management of the item rate quoted by the contractor in
approach. the contract and the actual work done at site.

25. Ans: (b) 33. Ans: (c)

Sol: AV can be assessed beyond today but EV Sol: To calculate Net present value we discount
can't be assessed beyond today. all values to initial year.
NPV = –30 + 13/1.1 + 13/1.12 + 13/1.13
26. Ans: (d) = 2.33 lakhs
Sol: Regression is suitable for short range
forecast. Remaining methods are suitable for 34. Ans: (d)
long range forecast. Sol: GERT is a network analysis technique used
in project management that allows
27. Ans: (d) probabilistic treatment for both network
Sol: Risk avoidance strategy will reduce logic and estimation of activity duration and
likelihood of risk. it can be used for research and development
projects.

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 :4: General Studies & Engineering Aptitude

35. Ans: (b) Maximum Stock Level = Safety Stock +

Sol: Drawback of the milestone chart is that it EOQ
does not show relation among milestones of = 40 + 60
different activities. = 100 tons

36. Ans: (c) 43. Ans: (b)

Sol: ABC analysis is based on total material cost T  TE
Sol: Z  s ;
of items, which is a combination of quantity 
(Demand) of item and unit cost of the item.
  vairance  9  3
T  90
37. Ans: (c) 1.647  s
Sol: In PERT, for an activity -distribution is 3
used but for entire project normal Ts = 94.94 weeks
distribution is used.
44. Ans: (a)
38. Ans: (c) Sol: Total float
 
 TLj  TEi  t ij  41  12  7  22
39. Ans: (a) Independent float
Sol: The Initiation process (concept phase) is  
 TEj  TLi  t ij  37  13  7  7
where stakeholders have the greatest ability
Infering float  TLi  TEi  41  37  4
to influence outcomes of the project and risk
is highest during this stage because of the
high degree of unknown factors. 45. Ans: (a)
to  4 tm  tp
Sol: t 
40. Ans: (a) 6
5  4  25  60
41. Ans: (a)   27.5 minutes
6
Sol: From the given figure,
(From plan) Centerline length 46. Ans: (d)
= ((4.6 –0.3)×2 +(5.6-0.3)×2) =19.2m Sol: The objectives of accident
Quantity of 150 mm thick PCC statistics(Frequency Rate, Severity Rate,
=L×B×H Incidence Rates etc) are:
= 19.2m × 0.625m × 0.15m 1. To help in evaluating the relative need
= 1.8 m3 for taking accident prevention measures
in different departments of an
42. Ans: (b) establishment
2.C o .A 2. To help in making an appraisa1 of the
Sol: Economic Order Quantity = . progress of an accident prevention
Ci
campaign and making people safety-
2  Rs.60  600 Tons conscious
Q
0.2  100 3. To provide encouragement when
= 60 tons approximate methods used for the prevention of
Minimum Stock Level = Safety Stock accidents are successful
= 40 tons 4. To enable comparisons to be made.

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 :5: ESE - 2020 (Prelims) Offline Test Series

47. Ans: (d)  Historical data

 Strength, weakness, opportunity, and
48. Ans: (a) threats analysis (SWOT analysis)
Sol: There are several techniques when  Risk rating scales
performing qualitative risk analysis to
determine the probability and impact of 49. Ans: (d)
risks, including the following:
 Brainstorming, interviewing, Delphi 50. Ans: (c)
technique

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