Q1.
Discuss Contract Management in Detail
Contract management refers to the process of systematically managing contract creation, execution,
and analysis to maximize operational and financial performance while minimizing risks.
Key Aspects of Contract Management:
1. Creation of Contracts: Drafting legally binding agreements with all terms and conditions.
2. Execution: Obtaining signatures and approvals to formalize the contract.
3. Monitoring: Ensuring the obligations and deliverables are met as per the agreement.
4. Amendments: Handling modifications or renegotiations when changes arise.
5. Compliance and Reporting: Regular checks for compliance and performance evaluation.
6. Closure: Proper documentation and concluding the contract when all obligations are fulfilled.
Example: A construction company signs a contract with a builder. The contract outlines timelines,
payment schedules, materials, and penalties for delays. Contract management ensures these terms
are met effectively.
Q2. Outline the Various Steps Involved in a Change Control Procedure
Change control is a systematic process to manage and control changes in a project. The steps include:
1. Identify the Change: Recognize the need for a change and document it.
2. Submit Change Request: Formally request a change using a Change Request Form (CRF).
3. Evaluate the Impact: Analyze how the change will impact the scope, cost, schedule, and
quality.
4. Review and Approval: Approve or reject the change request after review by stakeholders.
5. Implement the Change: Execute the approved change while monitoring its impact.
6. Update Project Documents: Modify plans, schedules, and reports to reflect the change.
7. Communicate: Inform the team and stakeholders about the change.
Q3. Explain the Levels of Monitoring with Examples
Monitoring ensures the project progresses as planned. Levels include:
1. Activity-Level Monitoring: Tracks specific tasks and activities.
o Example: Monitoring daily progress of brick-laying in a construction project.
2. Project-Level Monitoring: Evaluates the overall performance of the project.
o Example: Tracking budget and timelines for the whole project.
3. Strategic-Level Monitoring: Focuses on alignment with organizational goals.
o Example: Ensuring the project aligns with the company’s strategic vision for market
expansion.
Q4. Define Contract. Explain the Typical Terms of a Contract with Examples
Contract Definition: A contract is a legally binding agreement between two or more parties that
creates enforceable rights and obligations.
Typical Terms of a Contract:
1. Parties Involved: Names of individuals or organizations.
2. Scope of Work: Clear description of tasks, deliverables, and responsibilities.
3. Payment Terms: Cost, payment schedules, and conditions.
4. Timelines: Start and end dates for project completion.
5. Termination Clause: Conditions under which the contract can be terminated.
6. Penalties: Provisions for delays or breaches.
7. Confidentiality: Protection of sensitive information.
Example: A software vendor signs a contract with a client to deliver a CRM system within 6 months
at $50,000. Delays incur penalties.
Q5. Explain Basili and Weiss Data Collection Methodology in Detail
Basili and Weiss introduced the Goal-Question-Metric (GQM) approach for data collection.
1. Goal: Define the objectives for data collection, such as improving quality or productivity.
2. Question: Formulate specific questions to assess whether the goal is achieved.
3. Metric: Identify measurable data to answer the questions.
Example:
• Goal: Improve software defect detection.
• Question: How many bugs are detected per module?
• Metric: Number of defects identified during testing.
Q6. Apply Earned Value Analysis to an Example
Example Scenario: A project has a total budget of $10,000 and is scheduled for 5 days. After 3 days:
• Planned Value (PV): $6,000
• Actual Cost (AC): $5,000
• Earned Value (EV): $4,500
Formulas and Values:
• Schedule Variance (SV) = EV - PV = 4500 - 6000 = -1500 (Behind schedule)
• Cost Variance (CV) = EV - AC = 4500 - 5000 = -500 (Over budget)
• Schedule Performance Index (SPI) = EV / PV = 4500 / 6000 = 0.75
• Cost Performance Index (CPI) = EV / AC = 4500 / 5000 = 0.9
Q7. Short Notes
i) Kanban Boards:
A visual tool to manage workflows, representing tasks as cards on columns like “To Do,” “In
Progress,” and “Done.”
ii) Project Calendars:
A schedule showing working days, holidays, and deadlines for tasks, ensuring proper time
management in a project.
Q8. Explain Any Two Steps of Project Cost Management
1. Cost Estimation: Predicting the total cost of resources, labor, and materials needed for the
project.
2. Cost Control: Monitoring expenditures to ensure the project stays within budget by
identifying variances.
Q9. How to Track the Project Effectively?
1. Use project management tools (e.g., MS Project, Jira).
2. Monitor key performance indicators (KPIs) like cost, schedule, and quality.
3. Conduct regular status meetings.
4. Update Gantt charts and Kanban boards.
Q10 & Q14. Explain the Change Control Process with Neat Diagram
Change Control Process is a structured approach to managing changes in a project, ensuring they
are reviewed, approved, and implemented properly.
Steps in the Change Control Process:
1. Identify the Change:
o A team member, stakeholder, or customer identifies the need for a change.
o The change request is documented and submitted.
2. Submit Change Request:
o A Change Request Form (CRF) is filled out, detailing the change, its reason, and
potential impact.
3. Impact Analysis:
o The project manager and team analyze the impact of the change on:
▪ Scope
▪ Schedule
▪ Cost
▪ Resources
▪ Risks
4. Review and Approval:
o The Change Control Board (CCB) or stakeholders review the request and decide
whether to approve, reject, or defer it.
5. Implementation of Change:
o Once approved, the change is implemented into the project plan.
o Tasks are updated, resources are allocated, and team members are informed.
6. Update Project Documents:
o Project plans, schedules, and reports are updated to reflect the approved change.
7. Communicate the Change:
o The change is communicated to stakeholders, team members, and anyone
impacted.
8. Monitor and Review:
o The project manager ensures the change is effectively integrated and monitors its
effects on the project.
Diagram of Change Control Process:
+--------------------+
| Identify Change |
+--------------------+
+--------------------+
| Submit Request |
+--------------------+
+-------------------------+
| Impact Analysis |
+-------------------------+
+--------------------+
| Review & Approval |
+--------------------+
/ | \
Approve Reject Defer
+--------------------+
| Implement Change |
+--------------------+
+--------------------+
| Update Documents |
+--------------------+
+--------------------+
| Communicate Change |
+--------------------+
v
+--------------------+
| Monitor & Review |
+--------------------+
Explanation with Example:
Suppose a project manager is overseeing the development of an e-commerce website. A
stakeholder requests adding a new payment gateway mid-project.
1. Identify: The team documents the request and reason (to attract international customers).
2. Submit: A formal CRF is submitted.
3. Impact Analysis: The team estimates that this change will add 2 weeks and cost $5,000
extra.
4. Review: The CCB reviews the request and approves it based on benefits outweighing costs.
5. Implement: Developers integrate the new payment gateway.
6. Update Documents: The schedule, budget, and scope documents are updated.
7. Communicate: All stakeholders are informed about the additional 2-week delay.
8. Monitor: The project manager tracks the integration's progress to ensure no further delays
occur.
Q11. Short Note on Earned Value Analysis (EVA)
EVA measures project performance using three key values:
• Planned Value (PV): Scheduled cost for planned work.
• Actual Cost (AC): Actual expenses incurred.
• Earned Value (EV): Value of completed work.
Formulas:
• CV, SV, CPI, and SPI help evaluate cost and schedule efficiency.
Q12. Types of Project Status Reports
1. Weekly Reports: Summarize progress, issues, and tasks for the week.
2. Monthly Reports: High-level overview of KPIs.
3. Milestone Reports: Evaluate milestone achievements.
Q13. Explain Contract Management & Terms of a Contract
(See Q1 and Q4 for combined answers).
Q15. Write Short Notes on Cost Monitoring
Cost Monitoring is the process of tracking, evaluating, and controlling project costs to ensure they
align with the approved budget.
Steps in Cost Monitoring:
1. Estimate Baseline Costs:
o Create a cost baseline for the entire project, including labor, materials, tools, and
contingencies.
2. Track Actual Costs:
o Use tools like spreadsheets, project management software, or dashboards to record
daily/weekly expenditures.
3. Variance Analysis:
o Compare Actual Cost (AC) with the Planned Value (PV) and Earned Value (EV) to
identify variances:
▪ Cost Variance (CV): Difference between earned value and actual cost.
▪ Schedule Variance (SV): Difference between earned value and planned
value.
4. Control Costs:
o Take corrective actions to avoid overspending, such as reducing waste, re-negotiating
contracts, or reallocating resources.
5. Forecast Future Costs:
o Use metrics like Estimate at Completion (EAC) to predict the final project cost based
on current performance.
Tools for Cost Monitoring:
1. Earned Value Analysis (EVA): Tracks project performance with metrics like CV, CPI, etc.
2. Budget Reports: Regular cost reports highlight budget overruns or savings.
3. Dashboards: Visual tools for tracking real-time costs and variances.
Example:
In a construction project, the planned budget for roofing is $10,000. After completing 70%, the team
realizes they have spent $9,000.
• Planned Value (PV): $10,000 × 0.7 = $7,000
• Actual Cost (AC): $9,000
• Earned Value (EV): $7,000
• Cost Variance (CV): EV - AC = $7,000 - $9,000 = -$2,000
The negative CV indicates overspending, prompting the team to control costs for the remaining
work.
