Project Management Mock Exam Page 1 of 2

Frugal Enterprise Co. Ltd. – Case Study

Early in the year, Frugal Enterprise Co Ltd. reviewed its IT systems and concluded it needed
to be replaced. To ensure if this replacement exercise was well funded a justification report
was produced and some improvements were suggested. Like most initial steps for projects, a
project steering committee was established comprising a General Manager (as the sponsor) and
the various department managers who had different work requirements within the project.

The scope was detailed and the project was planned with milestones for procuring and
implementing the hardware and software in all the company’s locations. A final completion
date of six (6) months from the start date was estimated. A risk plan was also included into the
justification study as part of the project plan.

The project commenced in the middle of the year. In view of the recent slowdown in the
economy of the country, the funds for the project were reduced by 10%. Due to this, the
steering committee decided not to employ a project manager and assigned this responsibility to
a Senior Manager, in addition to his normal duties.

Micro Durable Software Co. Ltd. was contracted to develop, test, install and implement the
software by Frugal Enterprise Co. Ltd. As Frugal Enterprise Co. Ltd. was a big contract
for Micro Durable Software Co. Ltd, they offered a lot of additional features free of charge
which were not in the original scope hoping that Micro Durable Software Co. Ltd. (as they
were the consultants) could be viewed as having a regional test and development site for the
software. The incentive for Micro Durable Software Co. Ltd. was to increase their
marketability worldwide, while providing Frugal Enterprise Co. Ltd. with the additional
functionalities as a benefit.

But, as the project progressed, the meetings with the steering committee were more on an ad-
hoc basis and Micro Durable Software Co. Ltd. was merely testing and making software
changes. With little consultation on the progress and as most of the functions were free of
charge, it was felt not to have a major impact to the overall schedule and scope of the project.
The steering committee was also more interested in identifying problems with the software and
making the system testers available for the changes.

To make matters worse, the General Manager who was initially assigned to head the project,
together with the Senior Manager were soon transferred and replaced. The new General
Manager now had been advised that about 5% more funds were needed for the project. He was
unable to obtain any reliable reports or change documents on the original scope, time and
budget. The General Manager is now concerned that with new changes still being tested and
some past software problems still outstanding, Micro Durable Software Co. Ltd. will not be
able to fix the changes, implement the software and complete the project soon. He will also not
be able to fund the additional cost.

As a senior consultant from a competent project management consulting company, you have
been recruited to solve the problem.

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Level 3 Mock Test
Project Management Mock Exam Page 2 of 2

The following questions relate to the above case study. The marks for each question are
indicated.

Question 1.

Relating to the case study, create a kick off meeting for Frugal Enterprise Co Ltd project
with a meeting agenda for the stakeholders. Discuss on the importance of having the Project
Kick off meeting. Highlight the key stakeholders that should attend and why they should
attend.
(20 marks)

Question 2.

a) Using a bottom-up approach, explain how it would be beneficial to create the Work
Breakdown Structure (WBS) for this project.

b) The Cost Baseline is crucial to be established in ensuring that all aspects of expenditure are
considered. Determine what would be required to create the Cost Baseline while planning for
the project and its importance to establish a clear time-phased budget.

c) As part of procuring services externally, the company is considering both Request for Proposal
(RFP) and Request for Quote (RFQ), compare between both approaches and which would be
appropriate for this project.

(20 marks)

Question 3.

An important aspect while executing a project is to document any changes accordingly.

Consider a Change Request Template that can be used in the project to keep track of all the
changes especially the issue highlighted in the case study. Also, describe what the role of a
Change Control Board is, as well as its governing members which includes representation
from both Frugal, and the client.

(20 marks)

Total (60 marks)

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Level 3 Mock Test