PROJECT MANAGEMENT :

LONG ANSWER :
UNIT : 1

1Q : De ne project management. State its Objectives and

Importance?

A : De nition of Project Management :

Project management is the process of planning,
organising, executing, and controlling tasks and
resources to achieve speci c goals within a set time
and budget.

Objectives of Project Management :

1. Achieve Project Goals – Ensure the project meets its
intended purpose.
2. Complete on Time – Finish the project within the given
deadline.
3. Stay Within Budget – Manage costs effectively to avoid
overspending.
4. Ensure Quality – Deliver high-quality results as per
standards.
5. Manage Risks – Identify and reduce potential risks.
6. Optimise Resources – Use manpower, materials, and money
efficiently.
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Importance of Project Management
• Improves efficiency and productivity.
• Reduces risks and unexpected problems.
• Enhances team collaboration and communication.
• Helps in better decision-making.
• Ensures customer satisfaction and business success.

2Q : What is project life cycle? What are its characteristics?

A : What is Project Life Cycle?

The project life cycle is the step-by-step process that a project

follows from start to finish. It includes all the stages a project
goes through to achieve its goals.

Characteristics of Project Life Cycle :

1. Has a Start and End – Every project begins with planning
and ends with completion.
2. Divided into Phases – Includes phases like initiation,
planning, execution, and closure.
3. Uses Resources – Requires people, money, and materials to
complete.
4. Follows a Plan – A structured approach is needed for
success.
5. Risk and Uncertainty Reduce Over Time – As the project
progresses, risks decrease.
6. Delivers a Unique Outcome – Every project creates
something new, like a product or service.

UNIT : 2

1Q : Discuss in detail about scheduling?

A : What is Scheduling?

Scheduling is the process of planning when and how tasks in a

project will be completed. It helps ensure work is done on time
and resources are used efficiently.

Importance of Scheduling :
• Ensures tasks are completed on time.
• Helps in better resource management.
• Reduces delays and improves efficiency.
• Helps track project progress.

Steps in Scheduling :
1. Identify Tasks – List all activities needed for the project.
2. Set Task Order – Arrange tasks in a logical sequence.
3. Estimate Time – Decide how long each task will take.
4. Assign Resources – Allocate people, money, and materials.
5. Create a Timeline – Use tools like Gantt charts to plan task
deadlines.
6. Monitor and Adjust – Track progress and make changes if
needed.

Types of Scheduling :
1. Gantt Chart – A visual timeline of tasks.
2. Critical Path Method (CPM) – Identifies the longest path to
complete a project.
3. PERT (Program Evaluation Review Technique) – Estimates
time considering uncertainties.

Scheduling helps complete projects successfully by keeping

everything organised and on track.

2Q : Discuss in detail various techniques of risk analysis?

A : What is Risk Analysis?

Risk analysis is the process of identifying, assessing, and

managing potential risks that could affect a project or business.
It helps in making better decisions and reducing uncertainty.

Techniques of Risk Analysis :

1. Qualitative Risk Analysis (Simple & Based on Judgment)

• Risk Probability and Impact Matrix – Ranks risks based on
how likely they are and their impact.
• SWOT Analysis – Identifies project strengths, weaknesses,
opportunities, and threats.
• Expert Judgment – Uses opinions from experienced
professionals to assess risks.

2. Quantitative Risk Analysis (Uses Data & Numbers)

• Monte Carlo Simulation – Uses computer models to predict
possible project outcomes.
• Decision Tree Analysis – Helps in choosing the best option
by showing risks and rewards of each choice.
• Sensitivity Analysis – Identifies which risks have the biggest
impact on the project.

3. Scenario Analysis
• Studies different “what-if” situations to prepare for possible
future risks.

4. Failure Mode and Effect Analysis (FMEA)

• Identifies possible failures in a process and their effects, then
finds ways to reduce them.

5. Root Cause Analysis (RCA)

• Finds the main reason behind a problem to prevent it from
happening again.
UNIT : 3

1Q : What is Pro tability Index? State its merits and demerits?

A : What is Pro tability Index (PI)?

The Profitability Index (PI) is a financial tool used to evaluate

the profitability of an Investment.

Merits of Profitability Index :

1. Helps in Decision-Making – Shows if an investment is
worth it.
2. Considers Time Value of Money – Accounts for future cash
flows.
3. Useful for Ranking Projects – Helps compare multiple
investment options.
4. Works for Limited Capital – Helps in choosing the best
project when funds are limited.

Demerits of Profitability Index :

1. Ignores Project Size – A small but high-PI project may be
chosen over a bigger, more profitable one.
2. Difficult to Estimate Cash Flows – Future income
predictions may not always be accurate.
3. Not Suitable for Mutually Exclusive Projects – Can’t
compare projects with different investment amounts effective
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2Q : Discuss about the following,
• Risk adjusted discount rate approach.
• Certainty equivalent approach.

A : 1. Risk-Adjusted Discount Rate (RADR)

Approach :

The Risk-Adjusted Discount Rate (RADR) method adjusts the

discount rate based on the risk level of a project.
• Higher Risk → Higher Discount Rate (reduces present value
of future cash flows)
• Lower Risk → Lower Discount Rate (increases present value
of future cash flows)

Example: If a risky project has a normal discount rate of 10%,

it might be increased to 15% to account for the extra risk.

Advantages:

✔ Simple to apply.

✔ Helps in comparing risky and safe projects.

Disadvantages:

✖ Hard to decide the correct risk-adjusted rate.

✖ Does not separate different types of risks.

2. Certainty Equivalent Approach :

The Certainty Equivalent Approach adjusts uncertain future

cash flows to their “certain” value today.
• Investors reduce risky cash flows by applying a certainty
factor.
• The more uncertain the cash flow, the lower its certainty
equivalent.

Advantages:

✔ Directly adjusts cash flows for risk.

✔ More precise than RADR for handling different risks.

Disadvantages:

✖ Choosing the certainty factor can be difficult.

✖ More complex calculations than RADR.

UNIT : 4

1Q : Explain agile project

management ?
A : What is Agile Project Management?

Agile Project Management is a flexible and fast way to

manage projects. It focuses on small tasks, continuous
improvements, and team collaboration to complete projects
efficiently.

Key Features of Agile :

1. Iterative Process – Work is done in small steps (sprints).
2. Customer Feedback – Changes are made based on feedback.
3. Team Collaboration – Teams work closely and communicate
regularly.
4. Flexibility – Adapts to changes quickly.
5. Faster Delivery – Delivers small parts of the project quickly.

Benefits of Agile :

✔ Improves project quality.

✔ Reduces risk of failure.

✔ Increases customer satisfaction.

✔ Speeds up project completion.
2Q : What is Lean project management?

A : What is Lean Project Management?

Lean Project Management is a method that focuses on

reducing waste, improving efficiency, and delivering value
to customers. It comes from Lean Manufacturing and is
widely used in industries like construction, software, and
production.

Key Principles of Lean :

1. Eliminate Waste – Remove unnecessary tasks and delays.
2. Focus on Customer Value – Only do what benefits the
customer.
3. Continuous Improvement – Keep making small
improvements.
4. Optimise Workflow – Ensure smooth and efficient
processes.
5. Respect the Team – Encourage teamwork and problem-
solving.

Benefits of Lean:

✔ Saves time and resources.

✔ Increases productivity and quality.

✔ Reduces costs and inefficiencies.
✔ Delivers better value to customer.

UNIT : 5

1Q : Discuss about the stakeholder engagement in project.

What are the di erent types of stakeholders?

A : Stakeholder engagement in a project means

involving all the people or groups who have an
interest in the project. It includes communicating with
them, understanding their needs, and ensuring their
concerns are addressed. Good stakeholder
engagement helps in gaining support, reducing risks,
and improving project success.

Types of Stakeholders :
1. Internal Stakeholders – People within the organisation.
• Project Team – Works on the project.
• Managers – Oversee the project.
• Executives – Make high-level decisions.
2. External Stakeholders – People outside the organisation.
• Customers – Use the final product/service.
• Suppliers – Provide materials/resources.
• Government & Regulators – Ensure legal compliance.
• Community & Public – Affected by the project.
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 SHORT ANSWERS :
1Q : What do you understand by project formulation?

A : Project formulation is the process of developing a

project idea into a detailed plan. It involves de ning
objectives, identifying resources, assessing feasibility,
and outlining steps for implementation.

2Q : Write a short note on Economic Viability Analysis ?

A : Economic Viability Analysis assesses whether a

project is nancially and economically feasible. It
examines costs, bene ts, pro tability, and long-term
sustainability. Key factors include investment costs,
expected returns, market demand, and risk analysis.

3Q : What do you mean by social Cost Bene ts Analysis?

A : Social Cost-Bene t Analysis (SCBA) is a method

to evaluate a project’s overall impact on society. It
considers both nancial and non- nancial factors,
including economic, social, and environmental
e ects.

4Q : What is Economic Feasibility?

A : Economic feasibility evaluates whether a project is

nancially viable by analysing costs, bene ts, and
potential pro tability.

5Q : What is Earning yield Method?

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 A : The Earning Yield Method is a valuation approach
that calculates the value of a company by dividing its
earnings per share (EPS) by the capitalisation rate to
estimate its fair price.

6Q : What is pro tability Index Method?

A : The Pro tability Index (PI) Method is a capital

budgeting technique that measures the ratio of the
present value of future cash ows to the initial
investment, indicating a project’s pro tability.

7Q : What is network Analysis?

A : Network Analysis is a project management and

operations research technique used to plan,
schedule, and control complex projects by analysing
the relationships between tasks. It helps in optimising
resource allocation.

8Q : What are Floats?

A : Floats (or Slack) in project management refer to

the amount of time a task can be delayed without
a ecting the project’s overall completion time.
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 9Q : De ne Con ict?

A : Con ict is a disagreement or clash between

individuals or groups due to di erences in opinions,
interests, values, or goals, which can arise in
personal, professional, or social settings.

10Q : What is stress management?

A : Stress management refers to techniques and

strategies used to control and reduce stress levels to
improve mental and physical well-being. It includes
practices like time management, relaxation
techniques, exercise, and mindfulness to cope with
stress e ectively.
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