PM0015-Quantitaive Methods in Project Management

Spring-2016

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Master of Business Administration- MBA Semester 4

PM0015-Quantitaive Methods in Project Management

(Book ID: B2011)

Assignment (60 Marks)

Note: Answer all questions must be written within 300 to 400 words each. Each Question carries 10 marks 6 X 10=60.

Q1. Explain Business Value Models in detail.

Ø  Balanced scorecard model

Ø  The Treacy-Wiersema model

Ø  The Kano model

Answer. The following business models in detail in the following section:

Balanced scorecard model:

The balanced scorecard model defines four scoring areas for business value and was first published by Robert S. Kaplan and David P. Norton in an article, “The Balanced Scorecard – Measures that Drive Performance.”

Q2. What is parametric estimating? Explain the steps involved in the development of a parametric model.

Answer. Parametric estimating:

Parametric estimating is an estimating technique that uses a statistical relationship between historical data and other variables, such as square footage in construction and lines of code in software development for calculating an estimate for activity parameters, such as scope, cost, budget, and duration. Parametric estimating can produce higher levels of accuracy depending upon the accuracy and sophistication of the underlying data.

Q3. 1. What aspects of capital budgeting must be considered while selecting a project?

2. Suppose an investment requires an initial outlay of $5 million and has expected the cash flow of $1 million, $3.5 million, and $2 million for the first three years.

a. Calculate:

• The net present value using a 10% required rate of return

• Profitability Index using a 10% required rate of return

b. Also suggest if the project must be accepted.

Answer. 1. 4 aspects of capital budgeting that must be considered while selecting a project:

An organisation needs to consider the following aspects of capital budgeting while selecting a project:

Growth of the organisation: This implies that a project should be selected after considering the overall profit and market share of the organisation. An incorrect decision regarding project selection can affect the profitability of the organisation. The growth of the organisation can only be ensured if it invests in appropriate projects.

Q4. Explain the various expense items in a project.

(List the various expense items in a project

Describe each expense with suitable examples 9 (3 marks for each expense item)

Answer. List the various expense items in a project:

Ø  Direct and indirect costs

Ø  Variable and fixed costs

Ø  Actual and standard costs

Direct and indirect costs

Direct costs are expenses that directly affect the budget of a project. Expenses that are for the express benefit of the project, and would not be incurred if not for the project, are usually called "direct expenses." In other words, direct costs can be identified with specific project activities with high levels of accuracy. For example, if a project organization outsources some of its system development works, the

Q5. 1. Determine the average amount of bricks laid over a six-month period by 1 bricklayer. Collected information on the amount of bricks laid per month:

January 21,000

February 23,500

March 22,000

April 24,000

May 26,000

June 25,000

2. Consider the sales figures of the Bricklayer Company over the period of 6 months, as shown in the table:

Month No of Sales

January 20

February 20

March 16

April 20

May 21

June 27

Determine the average amount of bricks laid over a six-month period by 1 bricklayer.

Consider the sales figures of the Bricklayer.

Answer.

Q6. What are the steps that should be followed to construct a “house of quality”?

(Explain the 5 steps that should be followed to construct a house of quality)

Answer. 5 steps that should be followed to construct a house of quality:

1.     Voice of the customer: This step includes determining and identifying the customer’s needs. The main objective of this step is to translate the needs of every customer into engineering specifications. Customers buy products that have the desired characteristics, and manufacturers offer the desired characteristics. There should be a proper alignment between the needs of the customers and the offerings

Spring-2016

Get solved assignments at nominal price of Rs.125 each.

Mail us at: subjects4u@gmail.com or contact at

09882243490