CONFIDENTIAL 1 CS/DEC 2019/ITS510

UNIVERSITI TEKNOLOGI MARA

FINAL EXAMINATION

COURSE : IT PROJECT MANAGEMENT

COURSE CODE : ITS510
EXAMINATION : DECEMBER 2019
TIME : 3 HOURS

INSTRUCTIONS TO CANDIDATES

1. This question paper consists of two (2) parts: PART A (20 Questions)
PART B (4 Questions)

2. Answer ALL questions from all two (2) parts:

i) Answer PART A in the Objective Answer Sheet
ii) Answer PART B in the Answer Booklet. Start each answer on a new page.

3. Do not bring any material 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
ii) an Answer Booklet – provided by the Faculty
iii) an Objective Answer Sheet – 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 9 printed pages

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 PART A (20 marks)

1. A project manager has been asked to support an internal project request by developing
a business case. What kind of information the project manager is expected to provide
in the document?

a) The necessary information from a business standpoint to determine whether the

project is worth the investment.
b) The detailed information from a business standpoint to determine whether bidding
for the customer project will be successful.
c) The detailed information from a project management standpoint to determine
whether the project will be successful.
d) The detailed information from a technical standpoint to determine whether the
project will be successful.

2. You are the sponsor of a project which is to build an enterprise system for the
company. Which of the following BEST describes your role as a sponsor?

a) Managing changes to the project.

b) Create the work performance baselines.
c) Publish the approved project charter.
d) Publish work performance reports.

3. Based on the diagram below, if tasks are scheduled to begin at early start date, which
of the following statement is true?

a) Activity A has a float of 14 days.

b) Activity B has a float of 10 days.
c) Activity C has a float of 1 day.
d) Activity A has a total float of 29 days.

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4. Which of the following statement is the BEST indicator that the new software
project was successful?

a) The project’s product, a software system, was enthusiastically accepted by 100% of

the end users who were able to begin using it after completing only a one-day
training session.
b) The project’s product, a software system, was a week late and 2% over budget, but
six months later was found to have met the company’s goal of reducing service
callbacks by 15%.
c) The project’s product, a software system, was completed two weeks ahead of time
freeing up the entire development team to begin work on other projects.
d) The project’s product, a software system, was completed right on schedule and was
delivered RM10,000 under the RM100,000 budget allocation.

5. A project that has increased market share would impact the _________ area of
an organization.

a) customer
b) financial
c) operational
d) strategic

6. A control chart should always contain ________.

a) upper and lower warning limits

b) the moving average
c) upper and lower control limits
d) upper and lower specification limits

7. If the project’s current total earned value (EV) is RM100,000 and the actual amount
spent (AC) is RM95,000, what is the cost variance of the project?

a) The cost variance is RM1.05.

b) The cost variance is RM5,000.
c) The cost variance is RM0.95.
d) The cost variance is -RM5,000.

8. Determining the earned value (EV) involves collecting data on the percent complete for
each work package and then, converting this percentage to a money value amount by
multiplying the ________ of the work package by the percentage completed.

a) budgeted cost
b) duration
c) total cumulative fees
d) contract cumulating amount

9. During which stage of risk planning that risk will be prioritized based on probability and

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 impact?

a) Identify risks.
b) Plan risk responses.
c) Perform qualitative risk analysis.
d) Perform quantitative risk analysis.

10. Mr Ahmad is a project manager for Cyberjaya Valley project. He has prepared risk
management plan for the project. Which of the following should Mr Ahmad do next?

a) Plan risk responses.

b) Identify risks.
c) Perform qualitative risk analysis.
d) Perform quantitative risk analysis.

11. A pareto diagram can be best described as __________.

a) cause and effect diagram

b) scatter chart
c) control chart
d) histogram

12. Mr Ali realizes that some stakeholders will not be as receptive as others to his project
and actually can be negative from the beginning. So in order to manage and engage
with the stakeholders more effectively, Mr Ali has created stakeholder analysis and
identified the project stakeholder’s roles, potential conflicts and their level of influences
in the project. However, the information is considered as sensitive information,
therefore what is the BEST action Mr Ali needs to do?

a) inform his team to never disclose it to anyone outside the team without consulting
him first.
b) involve his team as he develops it but maintain the final copy himself.
c) review the validity of its underlying assumptions with other team members.
d) set up an information distribution and have each team member sign it for
concurrence.

13. Mr Chia is managing an engineering design project. The vendor has created 50
engineering drawings. Since the project is on tight schedule and budget, checking
every drawing for accuracy and completeness would be impossible. Thus, he directs
the team to randomly select 20 drawings for inspection. This exercise can be BEST
described as an example of ________.

a) inspection
b) attribute sampling
c) statistical sampling
d) control charting

14. Which one of the following statements BEST defines teamwork?

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 a) people working collaboratively towards a common goal.
b) developing skills that will enhance project performance.
c) gathering the right people together to work on a project.
d) establishing vision and direction towards a common purpose.

15. A project manager is having trouble getting project members to complete their tasks as
assigned. What type of communication would the project manager wants to use to
address this problem initially?

a) Informal verbal.
b) Formal verbal.
c) Informal written.
d) Formal written.

16. “Exemplary leaders do not rely on fate or luck. They venture out and dare to accept
any problems. They go beyond the status quo by seeking out new opportunities to
innovate, grow and improve”. This statement shows an example of ____________
practice.

a) model the way

b) inspire a vision
c) challenge the process
d) enable others to act

17. Frequent heated discussions with your colleague over an issue are creating a hostile
environment. To ease this situation, you agree with your colleague`s point of view. The
conflict resolution mode that you are using is __________.

a) problem solving
b) withdrawal
c) forcing
d) confrontation

18. Mr Bakri is managing a team consisting of members from four different countries. He
realizes that some cultural differences among his team members are hampering the
progress of their project. In this context, what should Mr Bakri do?

a) Conduct team building activities in which most of the team members can participate
actively.
b) Train his team members on project objectives.
c) Train his team members on the broad objectives of their organization.
d) Provide training to his team members regarding cultural diversities among different
countries along with training on project objectives and the company culture.

19. How should change management be planned for?  

a) Changes are generally not predictable, therefore planning for change

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 management cannot be reasonable.
b) Planning for change management should be done while the various change
control processes are being applied.
c) Change management can be planned in a set of management plans or a
specific change management plan.
d) Changes are a sign of bad planning. One should avoid changes during a
project, thus eliminating the need to manage them.  

20. The ______________ is based on the premise that although people avoid disruption
and loss, they can still adapt to change.

a) rational-empirical approach
b) normative-reeducation approach
c) power-coercive approach
d) environmental-adaptive approach

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PART B

QUESTION 1

a) Project risk management focuses on identifying, analyzing and developing risk strategies
for responding to project risk in a more efficient and effective ways. Briefly explain each
risk strategy below.

 Exploitation

In the exploitation risk response strategy, to ensure that the opportunity is realized.
Here, we do not try to realize the opportunity, we ensure we realize it.

For example, let us consider that our project will be completed in three months. We
learn that the government is about to float a similar project in two months and we can
bid for it if we can complete our project before two months.
We have an opportunity here if we complete the project ahead of time, we will get a
chance to bid for our next project.

Now we have to ensure that we realize this opportunity. We take every possible
measure to ensure that the project is completed ahead of time so we can bid for the
new project. We bring in new resources, compress the schedule, allow overtime, etc.
Exploitation is the opposite of the avoid risk response strategy.

 Sharing of ownership

We use the sharing risk response strategy when we cannot realize the opportunity on
our own. So, we team up with another company and work together to realize it.

For example, suppose that because of a lack of technical capabilities, we cannot bid
for a project but our company wants the project. Therefore, we team up with another
company capable of doing this task and jointly bid for the project.

Here, we are using the share risk response strategy because the profit will be shared
between both parties. A teaming agreement is an example of the share risk response
strategy.

 Enhancement

In the enhancement risk response strategy, we try to increase the chance of a risk
happening so we can realize the risk. In this case, we try to realize the opportunity.
The enhance risk response strategy is the opposite of the mitigate strategy.

For example, let’s say we will complete our project in three months and the
government is about to float a similar project in two months. We can bid for a new
project if we complete our project in two months. This is an opportunity

Therefore, we try to compress the schedule with fast-tracking to complete the project

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 early and we can place a bid for the new one.
Here, we are using the enhance risk response strategy because we are only trying to
realize the opportunity.

 Acceptance

In the acceptance risk response strategy, we take no action to realize the opportunity.
We leave the opportunity as is, and if it happens on its own, you will benefit from it.
We use this strategy when the cost of the response is high and there is a low chance of
it occurring, or the benefit does not outweigh the effort involved.

For example, suppose we may get skilled workers from another project at a lower rate
if we convince them to join us. However, we do not pursue this matter and instead, let
them decide whether or not they are interested in our project.

We can use this strategy for both types of risks, positive or negative.

(10 marks)

b) Mr Zubir is the project manager of Setia Maju Sdn Bhd who is interested to implement
Systems Applications and Products (SAP) in the company. He and his team believe
that SAP will help Setia Maju Sdn Bhd to be more agile in providing quick respond to
market’s and customer’s needs. Considering the complexities of SAP implementation,
they decided to hire international consulting firm located in India to assist the
implemention of SAP in the company. However, outsourcing needs to be carefully
planned since it might involve few risks.

Identify ONE (1) technology and ONE (1) nontechnology risks that Setia Maju Sdn Bhd
may face when outsourcing IT project to a company in foreign country.
(6 marks)

c) Explain how management reviews can help to verify whether the project manager follows
the right procedures and processes in doing the project.
(4 marks)

QUESTION 2

a) A project communication plan must support communication among various project

stakeholders related to project status and progress. Provide and explain FIVE (5) main
areas that are needed in developing the effective and efficient project communication
plan.

1) Plan the scope and the approach

It is important that the plan is broadly described, including the reasons for its existence and the
general description of how it will be implemented within the project.
This part could be thought of as a summary section.

2) Communication goals

The Project Manager will also have to explain what he expects to achieve by following the
communication plan. In fact, in every project, there are different goals.
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 In general, the goals should focus on the education and updating of anyone interested in the
project.
3) Communication roles

It is highly unlikely that communication will come from one single person throughout the entire
project. Therefore, all roles and related communication responsibilities must be clearly defined.

Here are some roles to consider:

 Sponsor of the project
 Project Management
 Leadership / Management Team
 Member of the project team

4) Communication tools and methods

The preferred tools and methods should be those in which the receiving group will have the best
chance of understanding. Often, we make the mistake of taking into consideration only the
peculiarities of those who must transmit the message. It is essential, however, to always keep the
receiver in mind when developing the content of the communication and the method by which the
message will be delivered. Methods that provide opportunities for people to ask questions or
provide feedback can give a real and added value to the project.

Here are some examples:

Meetings: Although project meetings are viewed with little enthusiasm, they are a great way to
bring the team together and solve problems.
Project reports: Reports could include project progress, real-time control panels, risks and
resources, etc.
E-mail: probably the most common form of project communication. Although e-mail is a useful
way to keep track of conversations and decisions, it is important to encourage the team to talk, in
fact it is often a more efficient method.
Discussion forums: discussion forums and online forums help teams collaborate and share
knowledge and are especially useful for remote teams.
Document repositories: create a central position for project documents to ensure that everyone is
working from the same sources.
Surveys: the surveys are a quick way to check with the team during the execution of the project
and the lessons learned once the project is finished.

5) Measurement of the success of the communication plan

Given the importance of communication for a project, it is important to monitor and analyze the
plan at regular intervals.

During the project life cycle it is important to see what works, what does not and if and which
changes are needed.

Moreover, it is useful to ask stakeholders and the team for their contribution, and to document the
findings to improve future plans.

Audience

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 The project team must identify all audiences that will receive communications. In a large
company, information technology project communications delivered to technical and development
teams would vary widely from information provided to senior management, middle management
or administrative staff. Other examples of various audiences within a large organization would be
staff appointed to conduct end user testing or to write end user documentation.

Information Needs

Whether communications are distributed only to technical or functional teams, or address a wider
audience, each message delivered should be prepared for a specific target audience. If a number of
different audiences with different needs exist, the content of each message should also be varied
for the intended recipients. An example in information technology would be communications of
technical specifications that would be delivered to developers. This same information would not
be delivered to all end user systems testers, only those responsible for documentation.

Media

Though electronic communications such as email may be the most efficient means of
communication, it is not always the most effective in communications of project information or to
deliver training. The project team should also consider newsletters, video feeds or webinars.
Group presentations and town hall meetings to provide for question-and-answer sessions can also
be provided to communicate project goals, user training or project results.

Timing

Communications for any project should start in the planning stages. Though the initial phases of
communication will not be as robust as those near the end of a project, the initial step of
broadcasting planned changes to any infrastructure or process is critical to receive buy-in from all
parties. Information flow should be handled by the project team in coordination with senior
management of an organization. This coordination is to define what information is to be delivered
at various points during project progression.

Responsibilities

The project team may be responsible for all project communications, or a corporate
communications unit could be called upon to provide assistance. However communications are
handled, specific communications tasks should be assigned starting in the planning phase of a
project. Though roles may change during the life of a project, a plan for delegating
communications duties must be crafted in advance.

(10 marks)

b) Identify and explain ONE (1) Information Technology (IT) tool that is able to support
project stakeholder group meeting communication based on each of the following
condition:

 Meeting at different times but occurs at the same place.

 Meeting at the same time but occurs at different places.
(4 marks)

c) Provide TWO (2) reasons why lesson learned and best practices play an important role
in continuous quality improvement in an organization.
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 A Best Practice is a good work practice or innovation captured and shared to promote
repetition, or the business model for such a practice or innovation. An Lesson Learned is
a poor work practice or experience captured and shared to preclude repetition. They are
mirror images of one another.

BP & LL helps the stakeholders to see that their glass is both half-empty and half-full,
and that it makes sense to develop a gestalten perspective on doing business.

BP&LL improve the methods that currently exist within the corporation for performing
work and solving problems. It can be useful to open new lines of communication
between stakeholders. However, BP&LL is designed to advance cooperation within the
organization without creating an additional function or imposing new requirements.
BPLL enables stakeholders to improve a set of work practices by candidly surfacing,
exploring, and resolving workplace issues together. The stakeholders are all individuals
who participate in, depend on, or expect to benefit from the performance of a set of work
practices, e.g., executive, senior, and line managers, and particularly project managers;
performing personnel, which may include volunteers; sponsors; customers; and end
users.

(6 marks)

QUESTION 3

a) Perform a financial analysis for a project using the table provided below. Estimated costs
are RM140,000 in Year 0 and RM40,000 each year in Years 1, 2 and 3. Estimated
benefits are RM0 in Year 0 and RM200,000 each year in Years 1, 2, and 3.

Discount Rate 8%
Assume the project is completed in Year
Year 0
0 1 2 3 Total
Costs 140,000 40,000 40,000 40,000
Discount factor 1 0.93 0.86 0.79
Discounted costs

Benefits 0 200,000 200,000 200,000

Discount factor 1 0.93 0.86 0.79
Discounted benefits

Discounted benefits – costs

Cumulative benefits – costs

Mathematical formula:
Net Present Value (NPV) = -I0 +  (Net Cash Flow / (1 + r)t), where
I0 = Initial cost at Year 0
 = sum
r = discounted rate
t = time

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 Return of Investment (ROI) = Total Expected Benefits – Total Expected Costs
Total Expected Costs
Payback Period = Initial Investment
Net Cash Flow
Based on the above,

i. Determine the discounted costs for each year;

ii. Determine the discounted benefits for each year;

iii. Calculate the Net Present Value (NPV);

37,058.90

iv. Calculate the Return of Investment (ROI);

v. Determine the Payback Period; and

vi. Explain whether you would recommend investing in the project.

(15 marks)

b) What are the differences between a performance-based goal and an activity-based

goal? Give an example of each.
(5 marks)

QUESTION 4

a) There are four types of dependencies or relationships between several project activities.
Identify, draw, explain and give example of each type of dependency that can occur
among project activities.

 Mandatory dependencies – those that are legally or contractually required or inherent

in the nature of work. It’s also referred to as hard logic or hard dependencies.

Example: Requirements Approval and Sign-off cannot be started without

completing Requirements Documentation.

 Discretionary dependencies – those that are defined based on knowledge of best

practices and is determined by the project team. It’s also called preferential logic or
soft logic. When there’s more than one way to sequence activities, the team can
choose one sequence over the other.

Example: Developing Feature B can be done at the same time as Developing Feature

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 A. Feature B is not necessarily dependent on Feature A’s completion.

 External dependencies – relationships between project activities and non-project

activities. These are often outside the project team’s control.

Example: Client Approval before Project Kick-Off.

 Internal dependencies – relationships between two or more project activities and are
within the project team’s control.

Example: Develop Feature before Test Feature.

(16 marks)

b) Explain how rational-empirical approach can be used as a strategy for change

management.

In short, the rational–empirical approach emphasizes that if the target has a justifiable

reason to change (i.e., if it is in his or her self-interest), change comes from simply
telling the target about the change. Chin and Benne call their second strategy power–
coercive.
(4 marks)

END OF QUESTION PAPER

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