PROJECT PLANNING AND SCHEDULING

Answer Key

1. What is project charter?

Project Charter refers to a statement of objectives in a project. This statement also sets out
detailed project goals, roles and responsibilities, identifies the main stakeholders, and the
level of authority of a project manager.
2. List the few reasons for creating a WBS in a project
 The WBS helps ensure that all required scope will be reflected in the detailed
schedule.
 The WBS is a risk-mitigation tool.
3. What is variance analysis
Variance analysis is the quantitative investigation of the difference between actual
and planned behaviour. This technique is used for determining the cause and degree of
difference between the baseline and actual performance and to maintain control over a
project.
4. What is project management communication plan
A project communication plan is a simple tool that enables you to communicate
effectively on a project with your client, team, and other stakeholders.
5. List the number of ways for improving the process of cost estimates.
 First, perform a WBS with your team.
 Ask for estimates from the people doing the work.
 Next, create a contingency reserve.
 Create a management reserve.
 Perform change control.
 Finally, compare your actual expenses against your planned expenses regularly.
6. What is meant by response to risk?
Risk response is the process of controlling identified risks. It is a basic step in any risk
management process. Risk response is a planning and decision making process whereby
stakeholders decide how to deal with each risk.
7. What is scatter diagram?
A graph in which the values of two variables are plotted along two axes, the pattern
of the resulting points revealing any correlation present.
8. Brief quality management plan
The Quality Management Plan defines the acceptable level of quality, which is
typically defined by the customer, and describes how the project will ensure this level of
quality in its deliverables and work processes.
9. Differentiate AON and AOA project network
Activity on Arrow (A-O-A) or (A-O-L):-
 It is composed of arrows and nodes. The arrows represent the activities and
nodes represent the events.
 Each activity carries a brief description usually printed on the logical
diagram, the activity name or symbol and the time duration.
Activity on node (A-O-N) or Precedence diagrams:-
 In A-O-N networks, the nodes represent the activities and the arrows, their
interdependencies or precedence relationships.
 Nodes are usually represented by squares or rectangles, but circles and
other convenient geometrical shapes may also be used.
10. What is CPM?

MB17PM02 PROJECT PLANNING AND SCHEDULING Page 1

 The critical path method (CPM), or critical path analysis (CPA), is an algorithm for scheduling
a set of project activities. A critical path is determined by identifying the longest stretch of
dependent activities and measuring the time required to complete them from start to finish

11. Discuss the role of responsibility assignment matrix for design construction projects?
Responsibility assignment matrix (RAM), also known as RACI matrix or linear
responsibility chart (LRC), describes the participation by various roles in completing tasks or
deliverables for a project or business process. It is especially useful in clarifying roles and
responsibilities in cross-functional/departmental projects and processes.

OR
What is code WBS information system? List out any ten WBS codes and define it.

WBS is a hierarchical and incremental decomposition of the project into phases, deliverables
and work packages. It is a tree structure, which shows a subdivision of effort required to
achieve an objective; for example a program, project, and contract.[4] In a project or
contract, the WBS is developed by starting with the end objective and successively
subdividing it into manageable components in terms of size, duration, and responsibility
(e.g., systems, subsystems, components, tasks, subtasks, and work packages) which include
all steps necessary to achieve the objective.

12. What is stakeholder communication? Explain in detail the four major types of stakeholders
in project management?
Stakeholders are the people and organizations whose attitudes and actions have an
impact on the success of your project or your company. ... Effective communication ensures
that they receive information that is relevant to their needs and builds positive attitudes to
your company or project

MB17PM02 PROJECT PLANNING AND SCHEDULING Page 2

 There are five major types of stakeholders:
 Project manager.
 Project team.
 Functional management.
 Sponsors.
 Customers.
OR
Discuss the steps in stake holder management. Draw and explain the stakeholder
management framework.
 Step 1 – Create the Organisational Breakdown Structure (OBS)
 Step 2 – Categorise your stakeholders.
 Step 3 – Understand Power and Impact of Stakeholders.
 Step 4 – Complete Power Interest Grid.
 Step 5 – Complete Stakeholder management and communication plan.
13. Discuss budget uncertainty and risk management
Project managers always try their best to conform to all the elements and avoid uncertainty
in project management with the hope to ensure success in their undertaking. However,
nobody can predict the future and project managers are not spared by the fact that anytime,
there will be challenges that may get in the way and cause some fear and uncertainties
during the project development.
Reducing Uncertainty in Project Management
Project managers provide estimates of the project that is more than its actual estimate of
completion because they include some allowances for uncertainties to happen.While it is
almost impossible to eliminate uncertainty in project management, there are ways to reduce
the elements. When there are only fewer elements to be considered in the estimation, the
estimate becomes more reliable, and uncertainty becomes lower.

OR
Explain in detail the factors influencing the quality of estimates in project management
Factors affecting estimates
Factors related to the uniqueness of the project will have a strong influence on the
accuracy of estimates. Project, people, and external factors all need to be considered to
improve quality of estimates for project times and costs.
Planning Horizon
The quality of the estimate depends on the planning horizon; estimates of current
events are close to 100 percent accurate but are reduced for more distant events. The
accuracy of time and cost estimates should improve as you move from the conceptual phase
to the point where individual work packages are defined.
Project Duration
Time to implement new technology has a habit of expanding in an increasing,
nonlinear fashion. Sometimes poorly written scope specifications for new technology result
in errors in estimating times and costs. Long-duration projects increase the uncertainty in
estimates.
People
The people factor can also introduce errors in estimating times and cost. For
example, accuracy of estimates depends on the skills of the people making the estimates. A
close match of people skills to the task will influence productivity and learning time.
Similarly, whether members of the project team have worked together before on similar
projects will influence the time it takes to coalesce into an effective team.Sometimes factors
such as staff turnover can influence estimates. It should be noted that adding new people to
a project increases time spent communicating. Typically, people have only five to six

MB17PM02 PROJECT PLANNING AND SCHEDULING Page 3

 productive hours available for each working day; the other hours are taken up with indirect
work, such as meetings, paperwork, answering e-mail.
14. “Cost of quality is a methodology that allows an organization to determine the extent to
which its resources are used for activities that prevent poor quality” justify this statement by
explaining the concepts of cost of quality.
Cost of quality (COQ) is defined as a methodology that allows an organization to determine
the extent to which its resources are used for activities that prevent poor quality, that
appraise the quality of the organization’s products or services, and that result from internal
and external failures. Having such information allows an organization to determine the
potential savings to be gained by implementing process improvements.
Cost of poor quality (COPQ) is defined as the costs associated with providing poor quality
products or services. There are four categories:

 Internal failure costs are costs associated with defects found before the customer
receives the product or service.
 External failure costs are costs associated with defects found after the customer
receives the product or service.
 Appraisal costs are costs incurred to determine the degree of conformance to
quality requirements.
 Prevention costs are costs incurred to keep failure and appraisal costs to a
minimum.
 Quality-related activities that incur costs may be divided into prevention costs,
appraisal costs, and internal and external failure costs.

OR
Construct a ‘C’ chart or ‘number of defects’ chart for the following data.

Sub group 1 2 3 4 5 6 7 8 9 10
No of defects 15 28 41 26 26 35 40 24 10 38

15. Explain in detail the phases of project management

Dividing your project management efforts into these five phases can help give your efforts
structure and simplify them into a series of logical and manageable steps.
 Project Initiation
 Project Planning
 Project Execution
 Project Monitoring and Control.
 Project Closure.

MB17PM02 PROJECT PLANNING AND SCHEDULING Page 4

 OR

Critical path is 1-2-4-6-7-8-9 = 38 days

𝑷𝑨𝑹𝑻 𝑪 𝟐 × 𝟏𝟓 = 𝟑𝟎 𝑴𝑨𝑹𝑲𝑺
16. Improvements in Project and Portfolio Management Yield Immediate Returns
 Explain how Implementing methodology changes and restructuring in-flight projects
produced immediate, realized savings in project execution productivity.
The company engaged PM Solutions to perform an evaluation of the current state of affairs
and provide guidance in organizational enhancement.
At the conclusion of the assessment, PM Solutions presented a list of project and portfolio
management improvements that would address the specific “pain points” of the company in
order to help prevent further deterioration in execution. Included with the list was a
roadmap for implementation of these enhancements (10 marks)

MB17PM02 PROJECT PLANNING AND SCHEDULING Page 5

  What will be the project and portfolio management improvements in order to help prevent
further deterioration in execution? Any relevant solutions(5 marks)

17. Draw the network diagram for the project and identify the critical path

MB17PM02 PROJECT PLANNING AND SCHEDULING Page 6