INDIAN INSTITUTE OF MANAGEMENT RANCHI

Post-graduate Programme in Management (MBA)

END-TERM EXAMINATION

PROJECT MANAGEMENT

MAX. MARKS: 35 TERM:-IV

Time: 120 mins.

INSTRUCTIONS

1. This is a closed-book examination. You are allowed to use only Calculator and Pen.
2. All questions are compulsory.
3. If a student is found guilty of being involved in any kind of academic dishonesty or malpractice
during the time of examination, his/her examination will be cancelled and the concerned faculty
will take the final decision regarding the matter.

Questions

1. The activities of a project network along with the predecessors and durations are given in Figure
1.
i) Compute the early, late and slack times for the activities in the network. What is the
duration of the project and what activities are in the critical path? [2 Marks]
ii) Assume that you have only 3 resources for each period. Develop a resource-constrained
schedule with the help of loading chart (Hint: Develop a loading chart first). Use parallel
method and the following heuristics: [10 Marks]
• Minimum Slack
• Smallest duration
• Lowest activity identification number
iii) Draw the revised network diagram. What is the slack for activity 1? 4? & 5? [3 Marks]

Figure 1

2. The task information for a construction project is given in Table 1.

i) Determine the critical path and expected duration for the construction project. [2 Marks]
ii) How early the project will be completed if the tasks were crashed? (Hint: Use step by step
crashing method). [4 Marks]
 iii) What is the least additional cost required to achieve the completion time you determined
in part (ii). [2 Marks]
iv) Suppose, the promised completion date for the project is 8 weeks, and the construction
manager faces penalty charges of 10,000 per week if the actual completion time exceeds
8 weeks. What is the project duration that minimizes the total project costs (Hint: Consider
crash cost and penalty cost together) [2 Marks]
Table 2
Normal Time Crash Time
Activity Predecessor(s) (Weeks) Slope
(Weeks)
A - 3 2 5,000
B - 6 4 6,000
C - 2 1 2,500
D A 5 3 4,000
E C 2 2 -
F A 7 5 3,000
G B,D,E 4 2 7,000

3. The activities of a project network along with the predecessors, duration, early start (ES), late
finish (LF), and slack time (SL) are given below in the Table 3.a. Also, project baseline PVs of
all the periods of all the activities from Period 1 to 11 are given in the Table 3.b.
Table 3.a
Activity Predecessor Duration ES LF SL
A None 2 0 2 0
B A 2 2 6 2
C A 4 2 6 0
D A 3 2 6 1
E B,C,D 3 6 9 0
F E 2 9 11 0

Table 3.b
Activity Period PV
1 2 3 4 5 6 7 8 9 10 11
A 10 10 0 0 0 0 0 0 0 0 0
B 0 0 5 10 0 0 0 0 0 0 0
C 0 0 20 30 30 20 0 0 0 0 0
D 0 0 15 10 10 0 0 0 0 0 0
E 0 0 0 0 0 0 30 40 50 0 0
F 0 0 0 0 0 0 0 0 0 10 20

The percentage completion report and actual cost incurred related to activities A, B, C, D, E, and F
at the end of period 5 is given below in Table 3.c.
Table 3.c
Activities Percentage (%) complete AC (Actual Cost)
A 100 30
B 100 20
C 60 100
D 80 50
E 0 0
F 0 0
i) Determine the cumulative PVs across the periods up to 11 for all the activities [1 Mark]
ii) Determine Earned Value (EV) for A, B, C, D at the end of the period 5 [1.5 Marks]
iii) Determine Cost Variance (CV) and Schedule Variance (SV) for the activity A, B, C, D at the
end of the period 5 [1.5 Marks]
iv) Determine Cost Performance Index (CPI) and Schedule Performance Index (SPI), TCPI, PCIB
and EAC of the project at the end of the period 5 [5 Marks]
v) What is the project status at the end of the period 5 from the cost and time perspective? [1 Mark]

*****************ALL THE BEST*****************