SYED MUHAMMAD ALI

NED UNIVERSITY OF ENGINEERING & TECHNOLOGY

Centre for Multidisciplinary Postgraduate Programmes (CMPP) – NED Academy

Postgraduate Diploma in Project Management

Final Examination – Fall-II-2023
Course: Project Management Processes

Time: 3 Hours Max. Marks: 60

Instructions:
i. Attempt all questions
ii. Marks for each question are given.
iii. You are required to abide by all rules and regulations set for the examination by the NED
Academy.
iv. Total time of examination including uploading is 3 hours. No extra time will be provided
after the time is over.

Q1. Attempt following Multiple Choice Questions:

1. A Project with a total funding of $100,000 finished with a BAC value of $95,000. What term can
BEST describe the difference of $5,000?
A. Cost Variance
B. Management Overhead
C. Management Contingency Reserve
D. Schedule Variance

2. Your project is experiencing resource constraints at certain times in the project timeline, requiring
you to adjust start and finish dates on the schedule. What tool is best to use in this situation?
A. Resource leveling
B. Critical Path method
C. Feeding buffer
D. Resource smoothing

3. Your project has a budget of $240,000 and is expect to last for 1 year, with the work and budget
spread evenly across all months. The project is now in the fourth month, the work is on schedule,
but you have already spent $120,000 of the project budget. What is your COST Variance in this
case?
A. -$40,000
B. $40,000
C. $240,000
D. $56,000
 4. You are the project manager for a project with the following network diagram. Study the diagram:
Which path is the critical path?

A. ABCD
B. EBCD
C. EFH
D. EGH

5. You are the project manager of the LKG Project. The project has a budget of $290,000 and is
expected to last three years. The project is now 10 percent complete and is on schedule. What is
the BAC?
A. $29,000
B. $290,000
C. $96,666
D. $9,666

6. You are the project manager of a large software development project. Hundreds of
requirements need to be documented, annotated, and communicated to the project
stakeholders. Management would also like you to report when the requirements should be
created and when they’re actually created by the project team. What document can help you
monitor all the characteristics of each requirement?
A. Project management plan
B. Configuration management plan
C. Requirements traceability matrix
D. Project communications management plan

7. The amount of time that an activity may be delayed without extending the critical path is:
A. Lag.
B. Grace period.
C. Free factor.
D. Slack
8. Which of the following is the BEST description of the critical path?
A. The activities that represent critical functionality.
B. The activities that represent the largest portions of the work packages.
C. The activities that represent the highest schedule risk on the project.
D. The activities that represent the optimal path through the network.

9. A project manager has been managing a project for six months and is nearing completion of the
project; however, change requests are still pouring in. The project is ahead of schedule but over
budget. Which of the following statements is TRUE?
A. The project manager should influence the factors that cause change.
B. Changes should only be evaluated after the original scope baseline has been delivered
and accepted.
C. Changes introduced at this point in the project represent an unacceptable level of risk.
D. Changes should be evaluated primarily on the basis of how much value they deliver to the
customer.

10. For the network diagram node given below, what are the activity duration, activity earliest finish
time and activity Float?

15 Duration EF
A
31 Float 45

A. 10, 8 & 23.

B. 14, 29 & 16.
C. 8, 12 & 26.
D. 15, 30 & 17.

11. What is the only tool and technique used during scope verification?
A. Inspection
B. Quality control
C. Stakeholder analysis
D. Defect repair review

12. David, one of your project team members, has been making changes to his work, which, as a
result, changes the project scope. David’s changes are also known as what?
A. Gold plating
B. Scope control defect
C. Scope creep
D. Improvised scope composition
13. Which system defines how the project scope and the product scope can be changed?

A. Project scope change control system

B. Project integrated management system
C. Project management information system
D. Change control

14. A project team member has, on his own initiative, added extra vents to an attic to increase air
circulation. The project plan did not call for these extra vents, but the team member decided
they were needed based on the geographical location of the house. The project team’s experts
concur with this decision. This is an example of:

A. Cost control
B. Ineffective change control
C. Self-led teams
D. Value-added change

15. Which of the following is an output of scope control?

A. Workaround
B. Recommended corrective action
C. Transference
D. Risk assessment

16. A project team member has asked you what a scope statement is. Which of the following is a
characteristic of a project scope statement?

A. Defines the scope baseline for the project

B. Defines the requirements for each project within the organization
C. Defines the roles and responsibilities of each project team member
D. Defines the project deliverables and the work needed to create those deliverables

17. One of the stakeholders of the project you are managing asks why you consider the project
scope statement so important in your project management methodology. You answer her
question with which of the following?

A. It is mandatory to consult the plan before authorizing any change.

B. Project managers must document any changes before approving or declining them.
C. The project scope helps the project manager determine if a change is within or without
of scope.
D. The project plan and earned value management (EVM) work together to assess the risk
involved with proposed changes.
 18. Which of the following is true?

A. You are a project manager for Laredo Pioneer’s Traveling Rodeo Show. You’re heading up a
project to promote a new line of souvenirs to be sold at the shows. You’re ready to
document the processes you’ll use to perform the project as well as define how the project
will be executed, controlled, and closed. You are working on the project scope management
plan.
B. You are a project manager for Laredo Pioneer’s Traveling Rodeo Show. You’re heading up a
project to promote a new line of souvenirs to be sold at the shows. You’re ready to
document the processes you’ll use to perform the project as well as define how the project
will be executed, controlled, and closed. You are working on the product scope statement.
C. You are a project manager for Laredo Pioneer’s Traveling Rodeo Show. You’re heading up
a project to promote a new line of souvenirs to be sold at the shows. You’re ready to
document the processes you’ll use to perform the project as well as define how the proj-
ect will be executed and controlled and how changes will be monitored and controlled.
You are working on the project management plan.
D. You are a project manager for Laredo Pioneer’s Traveling Rodeo Show. You’re heading up a
project to promote a new line of souvenirs to be sold at the shows. You’re ready to
document the processes you’ll use to perform the project as well as define how the project
will be executed, controlled, and closed. You are working on the project scope statement.
19. Which of the following makes up the project scope baseline

A. The approved project scope statement

B. The approved scope management plan and WBS
C. The WBS, approved project scope statement, and WBS dictionary
D. The approved scope management plan, the WBS, and the WBS dictionary
20. You are a project manager for Giraffe Enterprises. You’ve recently taken over for a project
manager who lied about his PMI certification and was subsequently fired. Unfortunately, he did
a poor job of defining the scope. Which of the following could happen if you don’t correct this?

A. The stakeholders will require overtime from the project team to keep the project on
schedule.
B. The poor scope definition will adversely affect the creation of the work breakdown
structure, and costs will increase.
C. The project management plan’s process for verification and acceptance of the
deliverables needs to be updated as a result of the poor scope definition.
D. The project costs could increase, there might be rework, and schedule delays might
result.

Q2. You’re a subcontractor responsible for refurbishment of an automobile showroom. The

estimated refurbishment cost is $500 per square feet. The total showroom area that needs to be
refurbished is 1,000 square feet. Based on your past experience, you know your team can
refurbish 100 square feet per week. After 4 weeks, you have 45% of the job complete and you
have spent $250,000. Compute different Earned Value (EV) terms to assess projects health?
Sr. No. Earned Value Parameter Earned Value

1
Estimated refurbishment cost 500.00 per square feet
2
Total showroom area 1,000.00 square feet
3
Refurbishment pace 100.00 square feet per week
4
Budget At Completion ($500 x 1,000) USD 500,000.00
5
Total duration (1,000 / 100) 10.00 weeks
6
Duration Elapsed 4.00 weeks
7
Planned Value (4 / 10 x BAC) USD 200,000.00
8
Percentage completion 45%
9
Earned Value (45% x BAC) USD 225,000.00
10
Actual Cost USD 250000
11
Cost Variance (EV - AC) USD -25,000.00
12
Schedule Variance (EV - PV) USD 25,000.00
13
Cost Performance Index (EV / AC) 0.9
14
Schedule Performance Index (EV / PV) 1.13
15
Estimate At Completion (BAC / CPI) USD 555,555.56
16
Estimate To Complete (EAC - AC) USD 305,555.56
17
Variance At Completion (BAC - EAC) USD (55,555.56)
 Q3. An automobile manufacturer is developing a new model of car, and the following table shows
some of the information relating to the major activities involved in this project: [10]

Critical Path
Q4. For the information given find:
a) Critical Path
b) Cost of completing the project 3 weeks earlier. [10]

Time (Weeks) Cost ($)

Activity Precedence Normal Crash Normal Crash
A - 4 2 10000 11000
B A 3 2 6000 9000
C A 2 1 4000 6000
D B 5 3 14000 18000
E B,C 1 1 9000 9000
F C 3 2 7000 8000
G E,F 4 2 13000 25000
H D,E 4 1 11000 18000
I H,G 6 5 20000 29000
Activity Precedence Time (Weeks) Cost ($) Cost/Week Weeks to
Compress
Normal Crash Normal Crash

A - 4 2 10000 11000 500 2

B A 3 2 6000 9000 3000 1

C A 2 1 4000 6000 2000 1

D B 5 3 14000 18000 2000 2

E B,C 1 1 9000 9000 0 0

F C 3 2 7000 8000 1000 1

G E,F 4 2 13000 25000 6000 2

H D,E 4 1 11000 18000 2333 3

I H,G 6 5 20000 29000 9000 1

A-B-D-H-I = 22
A-B-E-H-I = 18
A-B-E-G-I = 18
A-C-E-H-I = 17
A-C-E-G-I = 17
A-C-F-G-I = 19
Activity Precedence Time (Weeks) Cost Cost ($) Weeks to
($) /Week Compress
Normal Crash Normal Crash

A - 4 2 10000 11000 500 2

B A 3 2 6000 9000 3000 1

C A 2 1 4000 6000 2000 1

D B 5 3 14000 18000 2000 2

E B,C 1 1 9000 9000 0 0

F C 3 2 7000 8000 1000 1

G E,F 4 2 13000 25000 6000 2

H D,E 4 1 11000 18000 2333 3

I H,G 6 5 20000 29000 9000 1

A-B-D-H-I = 22
A-B-E-H-I = 18
A-B-E-G-I = 18

A-C-E-H-I = 17

A-C-E-G-I = 17

A-C-F-G-I = 19
Week-1
 Reduce activity A to 3 weeks and additional cost will be $500.
 Now path A-B-D-H-I will be 21 weeks and is still the critical path.
Week-2
 Activity A still have 1 week cushion for time reduction. So reduce
activity A to one more week. So current duration of activity A is 2
weeks with additional cost of $500.
 New duration of path A-B-D-H-I is 20 weeks and it is still the
critical path. Activity A is now exhausted and further reduction in
this activity is not possible.
Week-3
 Among activities B-D-H-I, activity D has the lowest reduction
cost/week. So reduce activity D by one week with additional cost
of $ 2000. New duration of activity D is 4 weeks. The total
duration of A-B-D-H-I is 19 weeks.
 Here and now the project duration is compacted from 22 weeks
to 19 weeks and the project has two critical paths A-B-D-H-I & A-
C-F-G-I.

Q5. i) What are Project Management Processes? Identify the Project Management Process
Groups for the following actions;

The project management is a step-by-step agenda of best practices used to guide a

project from its beginning to its end. It provides project managers a structured way to
create, execute, and finish a project. This project management process generally includes
five phases: initiating, planning, executing, monitor & control and closing.

Important and if they warrant recommending a Monitor & Control

change or corrective action.
Evaluate how effectively the team members Closing phase.
function asa team.
Evaluate customer satisfaction regarding the Planning and execution phase
projectand the deliverables
ii) What are the different types of STAKEHOLDERS, identify the a
major projects going on in Pakistan and for this, identify at least 5 key
stakeholders.
Normally stakeholders are investors, employees, customers, suppliers, communities,
governments, or trade associations.
Rawalpindi Ring Roadalso known as Rawalpindi–Islamabad Ring Road, is a 38.3 kilometer
orbital highway in Pakistan between the cities of Rawalpindi and Islamabad. Work on the
highway started in March 2022, it is currently under construction, upon completion the
highway will have six lanes. The main stake holders are the Rawalpindi Development
Authority, residents, business people, and investors.

iii) List down key activities in Project Quality Management knowledge area.
1. PLAN QUALITY:
 Identify quality requirements and standards
 Document how to demonstrate compliance
2. Perform Quality Assurance ( QA ):
 Auditing the quality requirements
 Ensure appropriate quality standards and operational definitions are used
3. Perform Quality Control
 Monitor and record results
 Assess performance
 Recommend necessary change
iv) List down key activities in Project Risk Management knowledge area.
1. Plan Risk Management
2. Identify Risks
3. Perform Qualitative Risk Analysis
4. Perform Quantitative Risk Analysis
5. Plan Risk Responses
6. Monitor and Control Risk Responses