SPM Unit 1 - 23419381 - 2023 - 11 - 22 - 12 - 26

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SOFTWARE PROJECT
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SEM : V
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Q. 1 How do you perform Cost Benefit Analysis(CBA)? (Nov 22)

Cost-Benefit Analysis (CBA) is a technique used in software project management to evaluate the
potential benefits and costs of a project, helping decision-makers determine whether the project is
financially viable.
It involves identifying and quantifying all the relevant costs and benefits associated with the project to
assess its overall profitability and make informed decisions about whether to proceed with the project
or not.
• how to perform Cost-Benefit Analysis using an example: Example: Consider a software development
project aimed at creating a new mobile app for a retail company.
Step 1: Identify Costs and Benefits Start by listing all the potential costs and benefits associated with
the project.
Costs:
• Development Team Salaries
• Software and Hardware Costs
• Marketing and Promotion Expenses
• Maintenance and Support Costs
• Training Costs Benefits:
• Increased Sales from Mobile App Users
• Cost Savings from Streamlined Processes
• Improved Customer Engagement and Loyalty
• Potential to Attract New Customers
• Competitive Advantage in the Market
Step 2: Assign Monetary Values Assign monetary values to each cost and benefit. Some costs, like
team salaries and software costs, will have clear monetary values. Benefits, on the other hand, might
require more estimation. For example, the expected increase in sales can be based on market
research and projected app usage.
Step 3: Calculate Net Benefits Calculate the net benefits by subtracting the total costs from the total
benefits.
Net Benefits = Total Benefits - Total Costs
Step 4: Calculate Benefit-Cost Ratio (BCR) The Benefit-Cost Ratio is obtained by dividing the total
benefits by the total costs. It helps in understanding whether the project's benefits outweigh the costs.
BCR = Total Benefits / Total Costs
Step 5: Analyze and Make a Decision

Based on the calculated net benefits and BCR, analyze the results to make an informed decision
about the project's viability. If the net benefits are positive, it indicates that the benefits outweigh the
costs, and the project is financially viable. If the BCR is greater than 1, it suggests that the project's
benefits are greater than its costs, making it a good investment. Example Calculation: Let's assume
the total costs of the project amount to $200,000 and the total benefits are estimated to be $400,000.
Net Benefits = $400,000 - $200,000 = $200,000

BCR = $400,000 / $200,000 = 2
Decision: In this example, the project has a positive net benefit of $200,000 and a BCR of 2,
indicating that the benefits outweigh the costs, making it a financially viable project.
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Q. 2 Explain SMART objectives of the stakeholders

Business objectives are often created using the SMART acronym. This makes objectives clear and
easy to understand, whilst making sure they provide clear goals for a business.
The SMART acronym stands for:
S – Specific. This means that objectives must be clear, for example it must state that a business
needs to make more profit, reduce waste, reduce environmental impact, increase sales
M – Measurable. A business must be able to measure whether they have met an objective. A
business needs to specify an amount. For example, a business may want a £10,000 increase or a
25% decrease
A – Agreed. Stakeholders in a business must agree about their objectives, this will give objectives a
much better chance of succeeding
R – Realistic. Objectives must be realistic for the size and scale of the business. For example, a small
café wouldn’t have an objective to make £1 million profit
T – Time-bound. Objectives must have a time limit, for example 6 months or 1 year
Examples of SMART objectives include:
• To make an additional 15% profit within the next 12 months

• To increase sales by £7500 each month for the next 6 months
• To reduce waste by 50% in the next 6 months
• To reduce staff turnover by 10% within the next 12 months
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Q. 3 Consider the cash flows estimates for four projects as shown in the table:
Negative levels represent expenditure and positive values income. Rank the four
projects in order of financial desirability and make a note of your reasons for ranking
them in that way. Conclusion should be based on Net Profit, and ROI (Return on
Investment) (Nov 22)
Year Project 1 Project 2 Project 3 Project 4

0 -100000 -100000 -1000000 -120000
1 20000 20000 300000 30000
2 30000 30000 300000 30000
3 10000 20000 300000 30000
4 20000 20000 300000 30000
5 20000 30000 300000 50000
Net profit
ROI
❖ Net Profit for Project 1: Sum of all cash flows over the years
Net Profit = (-100000) + 20000 + 30000 + 10000 + 20000 + 20000 = 80000
ROI for Project 1:
ROI = (Net Profit / Initial Investment) * 100
ROI = (80000 / 100000) * 100 = 80%
Net Profit = (-100000) + 20000 + 30000 + 20000 + 20000 + 30000 = 20000
ROI for Project 2:
ROI = (20000 / 100000) * 100 = 20%
Net Profit = (-1000000) + 300000 + 300000 + 300000 + 300000 + 300000 = 500000
ROI for Project 3:
ROI = (500000 / 1000000) * 100 = 50%
Net Profit = (-120000) + 30000 + 30000 + 30000 + 30000 + 50000 = 58000
ROI for Project 4:
ROI = (58000 / 120000) * 100 = 48.33%
❖ Now, let's rank the projects based on financial desirability:

Project 3: It has the highest Net Profit (500000) and a moderate ROI of 50%.
Project 1: It has the second-highest Net Profit (80000) and the highest ROI of 80%.
Project 4: It has the third-highest Net Profit (58000) and a ROI of 48.33%.
Project 2: It has the lowest Net Profit (20000) and the lowest ROI of 20%.
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Q. 4 Explain risk analysis using decision trees.
Risk Analysis
• The analysis of the risk factors is the most crucial step in risk management as it
determines the probability of their occurrence and the quantum of the effect they might
incur on the project.
• Risk assessment is carried out in a sequential manner where the quality analysis is first
done, and it is then followed by the quantity analysis.
Decision trees
• A decision tree is a graphical representation of the logic in a decision-making process and

the sequence of the decision points that creates the decision.
• It has many branches as logical alternate, and it simply sketches the logical structure
based on the state policy.
• It is a useful technique for representing analysis when the decision maker must make a
sequence of the decisions.
• It is referred to as the decision tree as different alternatives form branches from an initial
decision point known as the decision node and then moves onto the various options in
emanating from different points called Chance Nodes.
A system analyst has the following considerations while constructing decision tree
a. Branches of the tree should represent the various alternatives available
b. The flow should proceed from left to right
c. The values associated each alternative must be shown at the end of the branch
d. All the alternatives available to the decision maker should branch out from the root node which
is the starting point of decision tree.
• Decision Rules and Decision Tables are used together.

• Decision Rules enables decisions to be made better and more cost effectively.
• As a result, Decisions could be faster and more precise.
• Decision Rules and Tables are used for Programmable or routine operating decision.
• It is, therefore, authoritative that decision rules are to be noted for references.
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Q. 5 What is Project? What are its characteristics? (Nov 22)

OR
Define a term project and give the importance of Software Project Management
(Nov 19)
OR
Define project. Discuss some characteristics of software project which make them
more difficult to manage compared to other projects.
(April 19) (Nov 19)(April 23)
OR
Difference between software project and other types of projects.
➢ A project is an activity to meet the creation of a unique product or service and thus
activities that are undertaken to accomplish routine activities cannot be considered
projects.
➢ A project is a combination of interrelated activities to achieve a specific objective

within a schedule, budget, and quality.
➢ It involves the coordination of group activity, wherein the manager plans, organizes,
staffs directs, and controls to achieve an objective, with constraints on time, cost,
and performance of the end product.
➢ Characteristics of Project:
1. Invisibility:
➢ When a physical artefact such as a bridge or road is being constructed the progress
being made can actually be seen.
➢ With software, progress is not immediately visible to others and may be difficult to
quantify in terms of the percentage of work done.
2. Complexity:
➢ Software projects are complex in nature than other engineering projects and the
complexity can be gauged by the success rate of these projects.
3. Flexibility:
➢ The ease with software can be changed is usually seen as one of its strengths.
➢ However, this means that where the software system interfaces with a physical or
organizational system, it is expected that, where necessary, the software will
➢ change to accommodate the other components rather than vice versa.
➢ This means the software systems are likely to be subject to a high degree of change.
4. Conformity:
➢ These physical systems have complexity, but are governed by consistent physical
laws.
Software developers have to conform to the requirement of human clients.
➢ It is not just that individuals can be inconsistent.
➢ Organizations, because of lapses in collective memory, in internal communication or
in effective decision making can exhibit remarkable, ‘organizational stupidity’.
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Q. 6 Give an outline of Step Wise planning activities.

OR
Draw the diagram of step wise approach to planning software projects and explain
step (Nov 22)
OR
Outline the general approach that might be taken for project planning in an
organization step by step manner. (April 19)
OR
Explain step 5 of step-wise project planning. (April 23)
Phase I: Project Conceptualization and Initialization

➢ In this phase, the project's primary goal is defined and understood, which helps in
shaping the project's scope.
➢ Project Initiation is the official starting point, where the project manager ensures
a clear understanding of the business needs throughout the project's lifecycle.
➢ The project charter is created, authorizing the project manager to undertake the
project within the organization.
Phase II: Developing Project Plan and Charter

➢ This phase involves detailed planning based on the project's size and complexity.
➢ The planning process is iterative and may require adjustments to budget, scope,
schedule, or quality as needed.
➢ The project charter outlines project details, aligning with the company's vision
and goals, and sets milestones and deadlines.
Phase III: Project Execution and Control

➢ During the execution phase, product-oriented processes are crucial.
➢ Quality assurance, risk management, and team development are core supporting
activities.
➢ The controlling process ensures project activities stay on track, adhering to
scope, budget, schedule, and quality parameters.
➢ This phase emphasizes monitoring and managing project progress.
Phase IV: Project Closure

➢ The closing process group's main objective is to bring the project to a successful
conclusion and integrate it with the organization's operations.
➢ It ensures all project deliverables are completed, and contract terms are fulfilled.
➢ This phase marks the orderly completion of the project.
Phase V: Project Evaluation

➢ Project evaluation occurs after project completion and involves several parts.
➢ The first part reviews best practices used during the project in the organization's
methodology.
➢ The second part assesses individual team members' and the project manager's
performance.
➢ A neutral party conducts the third part, focusing on overall project performance
and meeting client expectations.
➢ The final part determines whether the project delivered value to the
organization.
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Q. 7 Define Business Case. Specify the content of business case document.

(April 19)(April 23)
The business case:
• Feasibility studies can also act as a ‘business case’

• Provides a justification for starting the project
• Should show that the benefits of the project will exceed development, implementation
and operational costs
• Needs to take account of business risks
Contents of a business case

1. Introduction/ background
2. The proposed project
3. The market
4. Organizational and operational infrastructure
5. The benefits
6. Outline implementation plan
7. Costs
8. The financial case
9. Risks
10. Management plan
Introduction/background: describes a problem to be solved or an opportunity to be

exploited
The proposed project: a brief outline of the project scope
The market: the project could be to develop a new product (e.g. a new computer
game). The likely demand for the product would need to be assessed.
Organizational and operational infrastructure: How the organization would need to

change. This would be important where a new information system application was
being introduced.
Benefits These should be express in financial terms where possible. In the end it is up
to the client to assess these – as they are going to pay for the project.
Outline implementation plan: how the project is going to be implemented. This

should consider the disruption to an organization that a project might cause.
Costs: the implementation plan will supply information to establish these
Financial analysis: combines costs and benefit data to establish value of project
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Q. 8 Write a short note on Portfolio Management. (April 19)

OR
What do you mean by Project Portfolio Management? What are its elements?
(Nov 22)
OR
Write a note on Project portfolio management.
OR
What is project portfolio management? Explain the key aspects of project portfolio
management (Nov 18)
➢ Project Portfolio Management provides an overview of all the projects that an
organization is undertaking or is considering.
➢ It is the assemblage of all the different projects.
➢ Programs and all the other functionaries of the company which lead to the overall
growth of the company.
➢ Portfolio management gives a sketch of the different projects the company is
considering and based on precedence the fund allocation is done by the company.
➢ It also helps to provide effective governance to meet the strategic business objectives.
Companies do portfolio managements with the aim of including projects which maximize
the portfolio value and exclude the projects which are a potential threat to the
company’s portfolio valuation.
➢ Some major applications of portfolio management are risk examination, reduce or
completely stop wastage of resources, keep track of ongoing projects, do proper fund
allocation.
Key aspects of project portfolio management are:

1) Project Portfolio Definition
An organization should record a single repository details of all current projects. A decision will be
needed about whether projects of all types are to be included.
One problem for many organization is that projects can be divided into new product development
(NPD). NPD projects are often more frequent in organizations which have a continuous development
of new goods and services.
2) Project Portfolio Management
Once the portfolio has been established more detailed costing of projects can be recorded. The
value that managers hope will be generated by each project can also be recorded, Actual
performance of projects on these performance indicators contain be tracked. This info can be basis
for more rigorous screening of new project.
3) Project Portfolio Optimization
The performance of portfolio can be tracked by high-level managers on a regular basis. A better
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balance of projects may be achieved some projects could potentially be very profitable but some
also be risky. The portfolio ought to have a carefully thought out balance between the two type of
project.
Elements are:-
1. Official Project Title
2. Project Sponsor
3. Project Manager
4. Description Of The Project
5. Project Scope
6. Measurable Organizational Value(MOV)
7. Road Map For Work
8. Project Schedules
9. Project Budget
10.Project Resources
11.Assumptions And Constraints
12.Risks
13.Project Administration
14.Acceptance
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Q. 9 Define Net Profit, Payback Period and Returns on Investment. Calculate these
values for the following cash flow forecast of a project.
(Nov 18) (April 19)
Year Cash-flow
0 - 1,00,000
1 20,000
2 30,000
3 20,000
4 30,000
5 60,000
i) Net Profit
Net profit is the difference between the total costs and the total income over the entire life of the
project.
This is the simple method of calculating the total benefits of the project. However, this method does
not show profit relative to the size of the investment.
ii) Return on Investment (ROI)

The accounting rate of return (ARR) or the Return on Investment (ROI) method of evaluating projects
is so named because it parallels traditional accounting concepts of income and investment.
A project is evaluated by computing a rate of return on the investment, using accounting measures
of net income.
The formula for the accounting rate of return is:
ARR = (Annual revenue from project-Annual exp. of project / Project Investment) * 100
iii) Payback Period

Also called the payout method.
It is the computational simple project evaluation approach that has been used for many years.
The procedure is to determine how long it takes a project to return the cost of the original
investment.
Payback Period = Years previous to B.E.P + (Cum.Cash Flow-Total Cash Outflow / Cash flow during
breakeven year) * 12 months
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(Note: B.E.P = Breakeven year i.e. it is the year in which Cash inflows = Cash flows)
iv) Net Present Value

Under, this method all the cash inflows and Cash outflows are discounted at a minimum acceptable
rate of return, usually the firm's cost of capital.
If the present value of the cash inflows is greater than the present value of the cash outflows, the
project is acceptable i.e. NPV > 0, accept and NPV < 0, reject.
In other words, a positive NPV means the project earns a rate of return higher than the firm's cost of
capital.
Net Present value = Net Investment - Total Discounted cash inflows
If Net present value > 0 Project is feasible and vice versa.
v) Internal Rate of Return

Inter rate of return is the interest rate that discounts an investment's future cash flows to the
present so that the present value of cash inflows exactly equals the present value of the cash
outflows i.e. at that interest rate the net present value equals to zero.
Any investment that yields a rate of return greater than the cost of capital should be accepted
because the project will increase the value of the firm.
Unlike, the NPV method, calculating the value of IRR is more difficult.
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Q. 10 Briefly explain the different phases of project management life cycle.

(Nov 18)
OR
State and Explain phases of Project Management Life Cycle? (Nov 22)
OR
Explain the stages involved in project management life cycle in detail.
(Nov 19)
OR
Name different. Give very brief description of all the phases of Project Management
Life Cycle (2 to 3 lines) and explain W5HH principle.
(April 19)
• Project Initiation
o Starts with project concept development
o Characteristics throughly understood-Scope, project constraints, cost,benefit
o Determine whether technically and financially feasible
o Business case is developed
o Project manager is appointed, Project team is formed
o Project charter is written
o Project bidding- to select a suitable vendor
• Project Planning
o Project plan-Identifies project tasks, schedule, assign resources and time frames to the task
o Resource plan-Lists resources, manpower and equipment
o Financial plan-Manpower, equipment and other costs
o Quality plan-Quality targets and control plans
o Risk plan-Lists the identification of risks, priority and plan for actions
• Project Execution
o Ensure that tasks ae executed as per plan
o Corrective actions are initiated whenever deviations from the plan
• Project closure
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o Release all the required deliverables and resources

o Supply agreements with the vendor are terminated
o Pending payments are completed
o Post implementation review, List the lessons learned
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Q. 11 What is project charter in software project management? What are the elements
of project charter? (Nov 18)
Project Charter:
A project charter gives a clear definition of the project, its attributes, the end results and the project
authorities. A project charter is the final official authorization for the commencement of the project
to the project manager. It is a green signal to the project manager to commence work on the
project. The project charter and the project plan provide a tactical plan for the execution of the
project.
Elements of the project charter:
(1) Official Project Title
Naming a project is especially necessary in organizations which have multiple projects underway at
the same time. Also, the project name gives a sense of identity to the project team and stakeholders.
(2) Project Sponsor
The project sponsor is the person authorized by the management to take all decisions in relation to
the project, he has the authority to sign the project charter and grant resources. Every change in the
project has to authorize by the project sponsor.
(3) Project Manager
The project manager is another major stakeholder in the project. However, it is not always that the
project manager is part of the same organization he may also be a free-lance project consultant who
has been hired by the company especially for the project.
(4) Description of the Project
The project description covers the problem or opportunity that has become a catalyst or purpose for
undertaking the project. The description should also state how the project aligns with the
organization's goal and strategy.
(5) Measurable Organization Value (MOV)
Although the MOV has been discussed at length in the Business Case it should again be clarified and
agreed upon by all the stakeholders in the project charter.
(6) Project Scope
The project scope statement is the most important document in the business charter. It is based
upon the project requirement, feasibility, study, business goals and objectives and the business case.
The project scope statement defines the project boundaries, project deliverables and the work
needed to be done by the project team.
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(7) Road Map for Work

The road map will contain of the approach that the project manager has adapted.
(8) Project Schedules
Timeline for the completion of the major milestone stages in the project.
(9) Project Budget
The total cost of the project should be summarized in the project charter.
(10) Project Resources
Specifies the budget for the various stages of the project and other key resources and players of the
project.
(11) Assumptions and Constraints
Assumptions are those factors which for the basis of the project and are expected to go as per the
plan for the project to be successful. On the other hand, constraints are those factors which limit the
scope of the project.
(12) Risks
Every project has certain risk factor associated with it, hence it is always beneficial for the project
manager to identify the risk factors associated with the project and be ready with solutions to tackle
them.
(13) Project Administration
Project administration focuses on those controls that support the project. Including, the project
communication plan, project human resource plan, project change management plan, project
quality management plan, and the project scope management plan.
(14) Acceptance
Signing of the business charter indicates the acceptance of the terms of the charter.
Elements of the project charter
In a nutshell, the elements of the project charter which serves the following are: -
i. Reasons for the project
ii. Objectives and constraints of the project
iii. The main stakeholders
iv. Risks identified
v. Benefits of the project
vi. General overview of the budget
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Q. 12 What is a project product? Explain Product Breakdown Structure with the help of
example. (Nov 18)
Project Product
• The next step after the development and approval of the project scope statement is project
planning.
• The primary requirement for project planning is the Work Breakdown Structure (WBS) for
which the approved project scope statement is required.
• The WBS is a deliverable or a product-oriented classification that regulates the decomposition
of the job to be executed by the project team, to accomplish the project objectives and create
the required deliverables or project products.
• Decomposition indicates the breaking down of the project scope statement into smaller, more
manageable components i.e., the project deliverables.
• The project scope statement defines all the project deliverables. These defined deliverables
are then clubbed together to form the Delivery Definition Table (DDT).
• The Delivery Definition Table contains the sequence of the delivery of the deliverables.
• The Delivery Definition Table is then used to create the Delivery Structure Table (DSC) which
contains the work packages which is then further used to create the Work Breakdown
Structure.
• So, WBS is similar to Bill of Materials (BOM), wherein a product is broken into its smallest
component for which estimation of time and cost is possible.
• The idea behind WBS is to split each component into smaller components till it
reaches its smallest component which is called the work package.
• The work package is the smallest component in the WBS that facilitates estimation of cost,
schedule, resources, and monitoring and control.
• Each downward levelling in the WBS characterizes an increasingly thorough definition of the
project work.
• Thus, WBS delivers the essential framework for comprehensive cost estimating, guidance for
schedule development and control.
• At the top the WBS offers high-level deliverables each of which are then broken down into
more detailed and well-defined deliverables known as the work packages.
• Further on these work packages are decomposed into activities in the project schedule.
• The sum of all the work package comprising of activities should be equal to the project scope.
The completion of the project scope will also result in the completion of the product scope.
Completion of both scopes would mean the completion of the project.
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Q. 13 What do you mean by scope and objective of a project? List the activities
involved in identifying project scope and objective. (Nov 18)(April 23)
OR
What is the importance of identifying the scope and objectives of a project?
(Nov 19)
Project scope management includes the processes required to ensure that the project includes all the
work required, and only the work required, to carry out the project successfully. Project scope
management is primarily concerned with defining and controlling what is and is not included in the
project.
As per the Project Management Body of Knowledge (PMBOK), the knowledge area of Project Scope
Management comprises of five processes, namely, scope initiation process, scope planning, scope
definition, scope verification and scope change control.
(1) Project Scope Initiation Process
• In this process the project sponsor gives the project manager the authority and resources to
define the project scope
• The authority to commit time and resources to defining the project scope is given when the
project plan and charter are being developed.
(2) Project Scope Planning Process
• The project scope planning process identifies what work is and is not part of the project work.
• It primarily settles the boundaries of the project work.
• It is essential to also identify what is not a part of the project work to avoid future problems.
• As Olde Curmudgeon has stated, "Failure to define what is part of the project, as well as what
is not, may result in work being performed that was unnecessary to create the product of the
project and thus lead to both schedule and budget overruns".
(3) Project Scope Definition Process
• The project scope definition process identifies the project deliverables and the product
deliverables.
• Project deliverables is the work that needs to be accomplished to deliver a product with
specific features and functions.
• Product deliverables are the features and functions that characterised a product.
• The boundaries and deliverables defined by the scope planning and definition facilitate the
development of the project charter and plan.
• The requirements of the project defines its boundaries.
(4) Project Scope Verification Process
• The scope verification process checks the scope for accuracy and completeness.
• The project scope needs to be verified. Scope verification is the process of obtaining the
stakeholders formal acceptance of the completed project scope and associated deliverables.
• Scope verification ensures that the project deliverables are completed as per the standards
laid in the delivery definition table (DDT).
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• Scope verification includes the review of each deliverable and comparison with the standards
specific in the DDT.
(5) Project Scope Change Control
• Although, the project scope has been set with great deliberation and thought, changes to it are
bound to arise as the project progresses and new information or need emerges.
• This warrants the need for project scope change control to manage these changes.
• The change control process has to approve the change to initiate amendments in project
schedule and budget.
• The project scope change control process also protects the scope boundaries from expanding
unnecessary due demands of additional features and functions to the project scope.
• There is a direct relationship between project scope, budget and schedule. An increase in the
scope i.e. expansion of scope boundaries leads to a direct increase in project's budget and
schedule and vice versa.
• Hence, such change demands need to be properly scrutinized before being approved.
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Q. 14 How the resource allocation is managed in an activity of programme

management? (Nov 19)
• A Programme is a group of related projects which means that the resources, namely people, of
the organization have to be shared between concurrent projects.
• Every organization has a pool of people of varying expertise, such as developers, network
experts, database designers, etc.
• These people will have to share amongst the number of projects within the programme.
• The programme manager will have to ensure the optimal use of the specialist staff and plan the
allotment of this staff to the individual project within the programme.
• This means that some activities in some projects will have to be delayed until the required staff
has completed the previous task allotted to him.
• The programme manager will have to ensure that the highly paid technical staff are utilised to
optimum and their utilization is not intermittent.
• Thus, allocation of resources is critical from the point of view of success of the programme.
• The resource allocation management includes
➢ Defining proper organization project by creating a project team and allocating responsibilities to
each team member.
➢ Determining resources required at a particular stage and their availability
➢ Manage resources by generating resource request when they are required and de-allocating
them when they are no more needed.
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Q. 15 Write a note on risk evaluation and management. (Nov 19)

Risk - A risk is any condition or event whose occurrence in not certain, but if were to occur it would
have a negative impact on the outcome of the project.
Risk evaluation –
➢ There is a risk that software might exceed the original specification and that a project will be
completed early and under budget. That is not a risk that need concern us.
➢ Every project involves risk of some form. When assessing and planning a project, we are
concerned with the risk of the project's not meeting its objectives.
➢ Risk are probabilistic events which everyone is hopeful that they would not occur. However, the
risk events were to materialize they would surely harm the project.
➢ Risk are a natural accompaniment of IT projects; on the other hand IT projects are themselves
a risk, as technology change may make the project redundant before it were even to be
completed
Risk management - Risk can be managed by following certain process:
1) Risk Identification
Risk identifies in the planning phase will evolve over time. Some risks may be eliminated while some
new ones may be added to the list. Resolved risks should be struck of the list and new ones should be
added.
2) Risk Assessment
The risk management process is created, base lined and kept ready in the project planning phase for
the execution phase.
3) Evolution of Risks
Though the likely risks have been identified in the project planning phase they become more definitive
during the execution phase. The project manager is in a better position to define and specify the risk
items.
4) Risk Management an Iterative Process
Risk management is an iterative process which is initiated in the project planning phase and then
continues right through the entire lifecycle of the project.
5) Risk Meeting
Risk meeting contribute to the process of risk identification and development of action plans to tackle
the risk.ollective minds enable better and faster identification and resolution of risks.
6) Risk Resolution
Not all risk have the same impact on the project while some may cause grave damage others may
cause mild bruises. Hence, risks are graded accordingly to their ability to impact the project and
resolution strategies are developed
Page 23 of 29
Q. 16 What is programme management? Explain the different forms of programmes.

Programme management
One definition:
‘a group of projects that are managed in a co-ordinated way to gain benefits that would
not be possible were the projects to be managed independently’ Ferns
Programmes may be
➢ Strategic
➢ Business cycle programmes
➢ Infrastructure programmes
➢ Research and development programmes
➢ Innovative partnerships
Strategic
Several projects together implement a single strategy. For example, merging two
organizations will involve many different activities e.g. physical re-organization of
offices, redesigning the corporate image, merging ICT systems etc. Each of these
activities could be project within an overarching programme.
Business cycle programmes
A portfolio of project that are to take place within a certain time frame e.g. the next
financial year
Infrastructure programmes
In an organization there may be many different ICT-based applications which share
the same hardware/software infrastructure
Research and development programmes
In a very innovative environment where new products are being developed, a range
of products could be developed some of which are very speculative and high-risk but
potentially very profitable and some will have a lower risk but will return a lower
profit. Getting the right balance would be key to the organization’s long term success
Innovative partnerships
e.g. pre-competitive co-operation to develop new technologies that could be
exploited by a whole range of companies
Page 24 of 29
Q. 17 Write short notes on: Risk analysis

• The analysis of the risk factors is the most crucial step in risk management as it
determines the probability of their occurrence and the quantum of the effect they might
incur on the project.
• Risk assessment is carried out in a sequential manner where the quality analysis is first
done, and it is then followed by the quantity analysis.
A] Quality Risk Analysis –

➢ it is a subjective approach and so does not involve detail analysis of the risk.
➢ It does not determine the probability of their occurrence and the quantum of risk that
would be faced by the project. the main reason for conducting this is to decide whether
the risk qualifies for further analysis.
➢ It is generally carried out using a risk matrix which is also called as a probability-
impact matrix.
➢ In this Risk is “rated” for its probability and the Impact on a scale to understand the
Risk Matrix.
B] Quantitative Risk Analysis –

➢ after successfully completing Quality Risk Analysis, more serious research on the risks
which pose as true potential threats are carried out to plug their chances of occurrence
and the quantum of the effect, they might possess on the project.
➢ The main drawback of this process is that it takes a lot of time to do the detail analysis
and as a result budget associated with it also increases.
➢ The probability of the risk of occurrence and the quantum of the effect can be mapped
in a controlled environment
Page 25 of 29
Q. 18 Write short notes on content of project plan.

➢ After the feasibility study is found viable for the organization in the 1st stage, planning is done. As
the project is new to the organization and has been undertaken for the first time, hence careful
planning is needed.
➢ It involves identifications of number of activities, milestones, and project deliverables.
➢ It should be done by keeping in mind the requirements of the business along with its size and
complexities.
➢ In this stage, Detail Project Report (DPR) is prepared by incorporating the methodologies to be
applied in different phases of the project along with the timelines and the finances involved in it.
➢ Planning is an iterative and never-ending process as it might require changes in budget, timeframe,
requirements of the stakeholders, etc due to various reasons like natural calamities, change in
government rules, etc.
➢ It is at this point that the project manager has to use his experience and technical knowledge in
developing a sound and realistic project plan.
➢ He needs to focus on the goals of the project and narrow down on the project descriptions to
achieve the desired results.
➢ It is here that the Project Charter which is an official document is prepared in accordance with the
mission and vision of the company.
➢ This document will give the minute details of the project along with the deadlines and milestones to
be achieved in the project.
➢ The Project Charter acts a guidebook for the project manager and clearly describes the goals to be
achieved in each stage of the project as well as the whole project.
➢ It clearly states the definition of the project, its characteristics, the end results, and the project
authorities.
➢ It is the final official document handed over to the project manager for the commencement of the
project.
Page 26 of 29
Q.19 Explain various bidding techniques along with their implications and applicability.
(April 23)
Bidding techniques are essential strategies used in various domains such as online advertising, auctions,
and project procurement to determine the price or terms at which a transaction or contract is agreed upon.
Different bidding techniques have distinct implications and applicabilities depending on the specific context
and goals. Here are several bidding techniques along with their implications and applicability:
1. Open Bidding:
- Implications: In open bidding, all participants openly submit their bids, which are typically visible to other
participants. The highest bidder wins the auction.
- Applicability: Open bidding is common in online advertising auctions (e.g., Google Ads) and public
auctions (e.g., eBay). It encourages competition and transparency.
2. Sealed-Bid Auction:
- Implications: Bidders submit private, sealed bids without knowing the bids of others. The highest bidder
wins, but the amount bid by others remains confidential.
- Applicability: Used in government contract procurement, art auctions, and real estate sales. It promotes
confidentiality and fairness.
3. Vickrey Auction (Second-Price Auction):

- Implications: Bidders submit sealed bids, and the highest bidder wins but pays the second-highest bid
amount. This incentivizes bidders to bid their true valuation.
- Applicability: Common in online advertising and can encourage truthful bidding, as bidders have no
incentive to manipulate their bids.
4. English Auction:
- Implications: In an English auction, an auctioneer starts with a low bid and gradually increases it.
Participants can openly bid until no one is willing to bid higher. The highest bidder wins.
- Applicability: Often used in traditional live auctions for art, antiques, and collectibles. It encourages
excitement and competition.
5. Dutch Auction:
- Implications: In a Dutch auction, the price starts high and decreases over time until a bidder accepts the
current price. The first bidder to accept wins the item.
- Applicability: Common in IPOs (Initial Public Offerings) and some online marketplaces. It can help
determine the market-clearing price.
Page 27 of 29
6. Proxy Bidding:
- Implications: Bidders submit their maximum bid, and the system automatically increases their bids
incrementally to maintain their lead. Bids are not immediately visible to other participants.
- Applicability: Used in online auctions like eBay. It simplifies bidding for participants and reduces the
need for constant manual bidding.
7. Reverse Auction:
- Implications: Buyers seek sellers, and sellers submit increasingly competitive bids to win the buyer's
order. The lowest bidder typically wins.
- Applicability: Often used in procurement for goods and services, especially when cost reduction is a
primary goal.
8. First-Price Auction:
- Implications: Bidders submit sealed bids, and the highest bidder wins and pays their bid amount.
Bidders have an incentive to bid strategically, potentially below their true valuation.
- Applicability: Less common but used in some contexts like private negotiations.
9. Combinatorial Auction:
- Implications: Bidders can bid on bundles of items rather than individual items. This allows for more
complex and efficient allocations.
- Applicability: Useful in spectrum allocation, supply chain optimization, and scenarios with
interdependent items.
When choosing a bidding technique, it's crucial to consider the specific goals of the auction or negotiation,
the nature of the items or services being exchanged, and the desired level of transparency and competition.
Different techniques may be more suitable for achieving different objectives, whether they are maximizing
revenue, ensuring fairness, or promoting efficient allocation.
Page 28 of 29
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607A, 6th floor, Ecstasy business park, city of joy, JSD

Abhay More abhay_more

Q. 1 How do you perform Cost Benefit Analysis(CBA)? (Nov 22)

BCR = Total Benefits / Total Costs

Step 5: Analyze and Make a Decision

Net Benefits = $400,000 - $200,000 = $200,000

Q. 2 Explain SMART objectives of the stakeholders

The SMART acronym stands for:

• To make an additional 15% profit within the next 12 months

Year Project 1 Project 2 Project 3 Project 4

❖ Now, let's rank the projects based on financial desirability:

Q. 4 Explain risk analysis using decision trees.

• A decision tree is a graphical representation of the logic in a decision-making process and

• Decision Rules and Decision Tables are used together.

Q. 5 What is Project? What are its characteristics? (Nov 22)

➢ A project is a combination of interrelated activities to achieve a specific objective

Q. 6 Give an outline of Step Wise planning activities.

Phase I: Project Conceptualization and Initialization

Phase II: Developing Project Plan and Charter

Phase III: Project Execution and Control

Phase IV: Project Closure

Phase V: Project Evaluation

Q. 7 Define Business Case. Specify the content of business case document.

• Feasibility studies can also act as a ‘business case’

Contents of a business case

Introduction/background: describes a problem to be solved or an opportunity to be

The proposed project: a brief outline of the project scope

Organizational and operational infrastructure: How the organization would need to

Outline implementation plan: how the project is going to be implemented. This

Costs: the implementation plan will supply information to establish these

Q. 8 Write a short note on Portfolio Management. (April 19)

Key aspects of project portfolio management are:

ii) Return on Investment (ROI)

iii) Payback Period

iv) Net Present Value

v) Internal Rate of Return

Q. 10 Briefly explain the different phases of project management life cycle.

o Release all the required deliverables and resources

(7) Road Map for Work

Q. 14 How the resource allocation is managed in an activity of programme

Q. 15 Write a note on risk evaluation and management. (Nov 19)

Q. 16 What is programme management? Explain the different forms of programmes.

Q. 17 Write short notes on: Risk analysis

A] Quality Risk Analysis –

B] Quantitative Risk Analysis –

Q. 18 Write short notes on content of project plan.

➢ It involves identifications of number of activities, milestones, and project deliverables.

government rules, etc.

developing a sound and realistic project plan.

achieve the desired results.

mission and vision of the company.

be achieved in the project.

achieved in each stage of the project as well as the whole project.

3. Vickrey Auction (Second-Price Auction):

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