Project Management

June 2023 Examination

1. A ABC company is launching the new project consist of designing and

constructing a Cricket Stadium and Amenities around it. Prepare the
RACI (Responsible, Accountable, Consult, and Inform) Matrix with the
following details.

a. Brief activity list (6-8 activities).

b. Figure out 4-6 project management related roles.

c. Prepare the RACI Matrix for the same.

Ans:

Introduction:

The RACI Matrix is a technique used in project management for describing and expressing
specific roles and responsibilities. It stands for "responsible, accountable, consult, and
inform." We may use it to make sure everyone on staff understands their roles and
responsibilities and knows who is responsible for what. The outcome of this poll will decide
whether or not we create a RACI matrix for the hypothetical project of planning, designing,
and building a cricket stadium and related facilities. Stadium manager and construction
manager, stadium manager and construction manager, project management and monitoring,
stadium marketing and promotion, stadium manager and stadium manager recruiting and
training. All managers fall within the purview of the project management laws, including
those in charge of construction, marketing, recruiting, human resources, and design. Cricket
stadium design and construction, MLDS design and construction, material and equipment
procurement, project scheduling and coordination, quality control and assurance, and risk
management are all on the list of things that need to be done. Project management

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encompasses a wide range of roles, such as construction manager, procurement manager,
project manager, quality assurance manager, and project and safety manager.

Concepts and applications:

Pastime list with Roles & duties:

1. Project planning: Part of the task planning activity is the production of a

comprehensive project plan and schedule. Under the control of the task supervisor, this
activity is going place. The architect and the task supervisor will be consulted by the project
manager.

2. Site choice and Land Acquisition:  The second step is to choose a location for the
stadium and any related services. The project manager and the real estate supervisor are both
responsible for this interest. The real estate supervisor may also keep the financial manager
and legal representative updated on the appeal's progress.

3. Design and Engineering:   The facilities and design expansion of the chosen stadium are
examples of design and engineering effort. Both the Structural Engineer and the Architect are
accountable for this activity. Additionally, the architect will be consulted by the mission
manager and the construction supervisor.

4. Construction:  Stadium construction and other services are offered as a side business by
construction. The development supervisor is responsible for this activity. Along with the
architect and the difficulty supervisor, the development manager will be consulted.

5. Procurement:  A part of the project activity is procurement, which is buying the tools and
materials required for the project. The procurement manager is directly responsible for this
position. The activity manager will keep the project manager and the finance supervisor
updated on the activity's development.

6. Mission tracking and control:  Mission tracking and control is the sixth activity in the
project management life cycle, and it involves keeping tabs on how the project is doing in
reference to the project plan and making appropriate modifications. Management of the
enterprise has a legal obligation to pay this interest. The construction manager and the
finance manager will be consulted by the project manager as well.

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Roles and responsibilities: 

 1. Project Supervisor - Oversee the overall task management, take responsibility for the
assignment's completion, consult with the group, and keep track of the assignment.

2. Site choice and Feasibility examination group -  The Site Selection and Feasibility Study
Group is responsible for choosing the best sites for the project, acting on feasibility studies,
consulting with the Project Supervisor, and maintaining project documentation.

3. Design and making plans crew -  The design and planning team is responsible for
developing and arranging the stadium and its facilities, in addition to consulting with the
project manager and keeping stakeholders informed.

4. Construction and building group -  The project and construction group is responsible for
working with stadium stakeholders to consult and develop the stadium and its amenities.

5. Procurement and cloth control team - The fifth team is the procurement and material
control team, which is responsible for sourcing and managing materials, consulting with the
task manager, and keeping the manager's knowledge up to date.

6. Quality control and assurance group -  Work with the challenge manager to guarantee
project quality, inform the challenge manager, and keep the group stakeholders updated.

7. Marketing and Promotions Team -  The Marketing and Promotions Team is responsible for
promoting the stadium and its facilities, consulting with the Task Supervisor, and keeping the
team together.

RACI Matrix:

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 Site
Selection Quality
and Design Procurement Control Marketing
Feasibility and Construction and Material and and
Project Study Planning and Building Management Assurance Promotions
Activity Manager Team Team Team Team Team Team

Site Selection
and Feasibility
Study R A C I I I C

Design and
Planning R C A C I I I

Construction
and Building R I C A C I I

Procurement
and Material
Management R I C C A I I

Project
Management
and
Coordination R I I I I I I

Quality Control
and Assurance R I C C I A I

RACI means – responsible, accountable, Consulted Informed

The term "Responsible" in the RACI matrix refers to the person or team who is in charge of
completing the given task. The person who is "responsible" for carrying out the task
successfully. "Consulted" refers to people who provide input while the process is being

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carried out. The term "informed" refers to those who are kept up-to-date on the task's
progress.

Conclusion: 

In conclusion, project managers may utilise the RACI Matrix to ensure that each team
member is informed of their roles and responsibilities. This solution provides a RACI chart
for the made-up task of building a cricket stadium and its supporting facilities. The matrix
outlines the venture manager's responsibilities as well as the roles of the other project teams.
In order to ensure that the project is completed on time, within budget, and to the satisfaction
of all parties involved, the project manager may utilise the RACI Matrix. In the RACI Matrix,
"Team" refers to the team or project that is ultimately responsible for the project's success,
"Accountable" refers to the team or project that is tasked with computing the task or activity,
and "Consultant" refers to the team or project that must offer suggestions or direction for the
project. Accountable refers to a position or person who is responsible for the task's
completion. In this context, the term " responsible" refers to the person in control. The term
"consulted" refers to the person or persons who must be informed of the development of the
activity.

2. A ABC company is launching the new project consist of designing and

constructing a Cricket Stadium and Amenities around it. Consider
following details for the project.

a. Feasibility study

b. Estimating the cost – Material and Construction

c. Designing of Stadium and Amenities.

d. Procuring the material

e. Construction and installation

f. Finishing work

You as a project controller are asked to submit your plan for project
control.

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Cover different project control tools and explain how they will be applied
in this case. Also, mention as a head of project control which control you
will monitor personally and why.

Ans:

Introduction:

Planning, monitoring, and regulating assignment control is time-consuming and labor-

intensive. To guarantee that a project fulfills its budget, scope, sensitivity, and timeline goals,
project management include managing and tracking a project from its beginning to its
conclusion. The project control approach for a new effort that will include the planning,
building, and construction of a Cricket Stadium and associated facilities will be covered in
this article. The role of the project manager in monitoring the project, as well as the project
management tool, which is an effective tool for monitoring and managing the project, will be
addressed. Following are the steps that would make up my project control plan if I were in
charge of the construction of the cricket stadium facilities: Work that is both genuine and
well-defined Planning, process monitoring, risk management, equality control, community
contacts, and change management are all part of a project manager's remit. If we stick to
these procedures, I have no doubt that we can complete the cricket stadium and emanate
project. To ensure that all changes are recorded, authorized, and communicated to all
stakeholders involved, I would design a procedure for managing project modifications.

Concepts and applications:

1.Feasibility study: As a first step, you should do a feasibility study to determine the
project's potential for success. The project's potential success may be seen through a variety
of perspectives, including market demand, economic viability, technical feasibility,
environmental challenges, and regulatory requirements. As part of the feasibility study, a
team of professionals will evaluate the proposed website and provide suggestions for next
steps. In order to identify risks and develop preventive actions, the team requires this study.

2.Estimating the cost: The second crucial step is cost assessment, which involves calculating
the whole cost of the project, including all expenditures linked to materials and labour, before
work starts. The project team might use this as a means of establishing an appropriate budget
and generating ideas for cutting costs. The fee estimating technique should be based on

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correct data in order to ensure that the project's budget is acceptable and in line with its
objectives. The estimate should be created by professionals with appropriate expertise and an
honest desire to provide accurate cost estimates.

3.Designing of Stadium and facilities: The design of the stadium and its associated facilities
is a vital activity that requires the cooperation of experienced architects and engineers. Based
on the budget, challenge goals, and feasibility study results, the design system must be
established. The layout must ensure that the challenge serves the demands of the stakeholders
while also complying with all applicable rules and regulations. The form should be reviewed
and approved by the stakeholders to ensure that it meets their requirements.

4.Procuring the material:  Getting the cloth required for building is a time-consuming
hobby that requires careful planning and execution. The whole purchasing method has to be
based on the project's budget, and all materials need to come from reputable sources. The
procurement process should ensure that the materials meet the project's requirements, are of
high quality, and are delivered on schedule. This task necessitates cooperation with the
providers in order to ensure that the desired results are provided when required.

5.Construction and setup:   During the construction and setup phase, the task is completed
in line with the layout and requirements. This area has to be closely watched to ensure that
the project is progressing in a way that is in line with the budget and schedule. This hobby
requires the coordination of several contractors, suppliers, and other stakeholders to ensure
the project is completed within the allowed time range. Any problems or delays must be
addressed right away to ensure that the project stays on schedule.

6.Finishing work:  The stadium will be painted before it is given to the stakeholders and
made accessible to the public, which is the last step in the project. After the building has been
cleaned, the next steps include cleaning and equipment commissioning. Close communication
between the assignment team and the stakeholders is required to ensure that the facility
fulfills the requirements of this hobby.

The following are the undertaking control gear that will be used on this task: 

1.Project plan: The challenge plan specifies the steps that must be done in order to complete
each line, as well as an expected completion date. It also includes a budget for the project and
a list of the materials required for each step.

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2.Work breakdown structure (WBS): A WBS is a hierarchical framework for subdividing a
large project into more manageable subtasks. We can identify every deliverable required to
complete the challenge thanks to the detailed information on the project scope it provides.

3.Gantt chart: a bar chart (often referred to as a "Gantt chart") used to display the time line of
a project. It specifies the beginning and end timings, lengths, and relationships between
activities.

4.Cost control:  The fourth step is called "cost control," and it comprises keeping an eye on
and controlling the task's budget. As part of this procedure, we track and modify project costs
based on actual evidence.

5.Risk management: Identifying risks that might threaten the work's success and creating
ways to mitigate those risks are essential components of any change management approach.

6. Quality control:   quality control is essential to good management since it aids in keeping
employees content and productive. To make sure they fulfill the guidelines, the artworks
must be reviewed.

Conclusion:

In order to ensure the success of the construction of a cricket stadium and its associated
facilities, efficient project management is essential. This project's venture control plan will
use a number of tools and techniques in order to reveal and manage project progress. The
mission control plan details the WBS, schedule, risk management strategy, change
management strategy, fee management strategy, performance evaluation baseline, and other
important aspects of the project. The task schedule is the foundation of the challenge and the
apex of project management, therefore I will make it a priority to keep an eye on it. The
baseline schedule may be used in tandem with the challenge schedule to make necessary
modifications and reveal lags. Effective mission management will ensure that the challenge is
completed on schedule, within budget, and to the highest possible standards. To fulfill my
role as challenge management team leader, I must ensure that the associated costs and risks
are kept to a minimum. Management of fees is essential in order to complete the challenge
within budget. In order to ensure that the project does not go over budget, I may reveal the
total cost. To ensure that the project remains on schedule, I may make the required course
modifications. The ability to identify capacity risks that might have an impact on the project's
success makes risk management essential. I have trust that the task group has taken into

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account all possible risks, assessed their impact on the project, and developed plans to
mitigate them.

3. Answer the following questions:

a. A ABC company is launching the new project consist of designing and

constructing a Cricket Stadium and Amenities around it. For this work we
have three options. The details for these options are given below.

I: Initial investment

C1 to C6: Cash flow at the end of Year-1 to Year-6 respectively

I  C1  C2  C3  C4  C5  C6

Option-I  Cash flow  -20  5  5  5  5  5  5

Option-II  Cash flow  -25  10  5  5  5  5  5

Option-III  Cash flow  -30  10  10  5  5  5  5

Consider Discounting Rate as 8% per year.

Ans:

Introduction:

ABC Company's most recent plan involves building a cricket stadium and related
infrastructure. The company has three options for organizing the initial investment and cash
flows for this objective over the following six years. Which exceptional investment choice to
pursue must be determined by the discounted value of future cash flows using an annual
discount rate of 8%. This answer examines the viability of ABC's investment choice by using
present value and discounted cash flow.

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Concepts and applications:

Present cost: Taking into account the influence of the discount rate or interest rate, present
value (PV) is the price of future cash flows. The value of future currency flows is calculated
using this method after subtracting the value of prior flows. The present value (PV) is
calculated and used to compare the current value of the currency to the future investment
price in order to assess if an investment will be successful. The investment is profitable if and
only if the price of future cash flows is greater than the cost of the investment.

Discounted cash flow (DCF):  The discounted cash flow (DCF) method determines the cost
of an investment by calculating future cash flows and discounting them using an interest rate
or discount charge. By calculating their present value, DCF enables investors to compare the
potential return on an investment to that of competing strategies. A method for calculating
future cash flows by taking into account the characteristics and projected returns of the
investment; these cash flows are then discounted by the interest rate to calculate their present
value.

Utility: In the situation presented, ABC Company has three options for the initial capital, all
of which provide cash flows over a six-year period. Comparing the present value of future
cash flows to the original investment cost allows for the identification of the best financing
method.

In order to calculate the future price of those cash flows, we wish to discount current cash
flows by 8% yearly. Calculating the present value of future cash flows is done using the
following formula:

A common economic tool for comparing different funding choices is the Internet Present
Value (NPV). It evaluates the expected future cash flow fee of a financing project by
discounting them at a certain return price. The difference between the present values of cash
inflows and cash withdrawals is what is known as an investment's NPV, or price produced
rate. Numerous investing possibilities exist when the NPV is high.

The formula for calculating NPV is:

NPV = (C1 / (1 + r) ^1) + (C2 / (1 + r)^2) + ... + (Cn / (1 + r)^n) - I

Where:

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C1 to Cn: cash inflows in periods 1 to n r: discount rate I: initial investment

Let's calculate the NPV for each option using the given cash flow and discount rate:

Option-I:

NPV = (5 / (1 + 0.08)^1) + (5 / (1 + 0.08)^2) + (5 / (1 + 0.08)^3) + (5 / (1 + 0.08)^4) + (5 / (1

+ 0.08)^5) + (5 / (1 + 0.08)^6) - 20 NPV = 4.38

Option-II:

NPV = (10 / (1 + 0.08) ^2) + (5 / (1 + 0.08) ^3) + (5 / (1 + 0.08)^4) + (5 / (1 + 0.08)^5) + (5 /

(1 + 0.08)^6) - 25 NPV = 3.98

Option-III:

NPV = (10 / (1 + 0.08) ^2) + (10 / (1 + 0.08) ^3) + (5 / (1 + 0.08)^4) + (5 / (1 + 0.08)^5) +

(5 / (1 + 0.08)^6) - 30 NPV = 3.72

Based on the NPV calculations, alternative-I generates the highest NPV of 4.38. Therefore,
it's the top financially viable choice for ABC Company.

Conclusion:

The design and building of a cricket stadium and associated facilities will ultimately be the
subject of a new competition launched by ABC Corporation. The company would benefit
economically the most from Option I, one of its three options. Option I has the greatest Net
Present Value (NPV) at 4.38, followed by Options II (3.98) and III (3.72) in descending
order. This essay underlines the significance of using financial tools like NPV in order to
perform investment research and make sound judgments.

b. Consider a hypothetical project of conducting a grand event in stadium.

Explain the triple constraints of a project in this context with the examples
for each constraint. Give your summary comment about this. –

Ans:

Introduction:

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The success of a project depends heavily on its management, which is why the triple
constraint is such an important tool for project managers. The term "triple condition" is used
to describe a situation in which three parts are interdependent on one another for a task to be
successful. Time, money, and the scope are the three parts. In this article, we look at the triple
constraint that comes with conducting a large-scale event in a location. We'll go through the
settings for the triple constraint and demonstrate how it's used in practice. We'll mention a
few more things about how important it is to maintain a healthy balance between the triple
control and project management towards the conclusion of the article. Scope, time, and
budget are the Triple Constraints because they have the greatest impact on the project's
success. A made-up project of conducting a significant event at a stadium may be used to
explain the triple constant as follows.

Concept & application:

 Triple Constraints of an undertaking: The term "triple constraint" refers to the

interdependence of a project's scope, cost, and time. Any variation in these factors
affects the alternative in some way. Project managers must establish a balance
between these three constraints to ensure the task is completed on time, within budget,
and to the appropriate quality.
 Time: A project's timeline is one of its most critical constraints. In this context, the
term "time constraint" refers to the duration of the task as well as the entry deadlines.
In the context of arranging and executing a significant event at a stadium, the term
"time constraint" may refer to both the event's date and the amount of time required.
For instance, the project manager may need to work backwards from the date of the
event to determine the project timeline. Tasks including reserving the stadium,
coordinating with vendors, publicizing the event, and selling tickets will need to be
included in the plan. If the project timeline is not adhered to, some tasks may not be
completed in time, which might result in the event being postponed or even cancelled.
 Cost: The term "project fee constraint" refers to the budget that has been allocated for
the project. In the context of holding a huge event at a stadium, the value limitation
would talk with the stadium budget. Event managers must ensure that tasks are
completed within budget and overspending is prevented.
The project manager would, for instance, have a $1,000,000 budget to plan and
execute the event. Everything from the stadium rent and vendor payments to

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 employee wages and advertising will be covered by the funds. Any overspending
should result in a cash shortfall elsewhere, which might reduce the quality of the
event as a whole.
 Scope:  The term "scope" refers to the objectives and constraints of the project. The
scope limitation would refer to the size and scale of the event in the context of holding
a large event in a stadium. The project manager must ensure that all of the event's
objectives and aims are realized.
The scope will include business plans, marketing strategies, and the capacity of a
stadium for the amount of people. Due to the financial and time constraints, it is
essential that the scope of the project not be expanded beyond what is already
planned. The mission supervisor, for instance, must ensure that the event is organized
and carried out in a manner that attracts that amount of people.

Conclusion:

The Triple Project Constraint is a useful tool for project managers. A careful balance between
time, value, and scope must be struck for each task. When arranging a large event at a
stadium, the time limitation refers to the event date, the budget constraint refers to the event
budget, and the scope constraint refers to the event's objectives and aims. A balance between
these constraints is crucial for the experience to be completed on time, within budget, and of
sufficient quality. The triple constraint is a key concept in effective project management.

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