BSc.(Hons) Public Administration and Management Cohort: BPAM/03/PT - Year 3 Examinations for 2005-2006 / Semester 2 MODULE: PROJECT MANAGEMENT MODULE CODE: BPAM2255 Duration: 2 Hours Reading Time: 10 Minutes Instructions to Candidates: 1. This paper consists of Sections A and B. 2. Section A is compulsory. 3. Answer any two questions from Section B. 4. Always start a new question on a fresh page. 5. Total marks 100. This question paper contains 4 questions and 6 pages. Page 1 of 6
QUESTION 1: (50 MARKS) SECTION A: COMPULSORY Case Study: The Grand Vision of Manika Motor Corporation Building cars that are economical (in terms of fuel consumption) and affordable (in terms of price) to customers has been the dream of many auto maker s. Now, it appears that Manika Motor Corporation (MMC), a car manufacturing company, based in Bangalore (India) is coming close to materializing that dream. In March 2000, MMC signed an agreement to purchase $900 million in software, hardware, and services from India s CompuTech, to link together all of MMC s plants based in 20 countries as well as its suppliers. The link will enable MMC to model every aspect of car production, including the automobile s look, the parts that make it run, the sequence in which components are assembled, and the design of the factory itself. CompuTech, is a growing Information Technology company, which provides consultancy services to firms and is specialized in prototyping. CompuTech will supply MMC with a Product Lifecycle Management software, which includes design collaboration, product-life-cycle management and production-support applications. CompuTech is also seriously working on a new prototype model of a car known as Manika, which will consume water, instead the presently expensive petrol or gas. After it has been manufactured and tested, this prototype model will be called Rev Manika (Revolutionary Manika) due to the economic perspectives it will bring to potential buyers. CompuTech is also designing a Manufacturing-Plan computer program, called MP, which will automate the last tasks of the manufacturing process. With this computerized automation process, a new specialized robot, driven by the MP program, will perform inspection and testing of new Rev Manika cars. However, communication to shipping companies will be performed by automated and real-time electronic means and not by conventional methods such as fax, post or email. The figure below shows the Assembly (in units per hour) of MMC Cars versus the hours on task, when cars were assembled manually by human beings, with the support of traditional equipment and other means. Page 2 of 6
Assembly of units (of cars) per hour P Q R S Number of hours on task In the implementation phase of project management, the above figure is normally known as a learning curve. In July 2000, Mr. Tré Malin was appointed Chief Executive Officer of MMC, replacing Mr. Bien Bête. Mr. Malin stated that he considers the development of Rev Manika as challenging project, with a high level of complexity and with many underlying constraints. Mr. Malin also said that he believed that by intensively weaving Information technology into all of its business processes, MMC could become a smarter, leaner, faster company, more in tune with customers. MMC s ultimate vision is to be able to manufacture in bulk new Rev Manika cars as well as other new models, using all of these new technologies (prototyping, information technology etc). Answer the following questions. (a) (i) What is a prototype model? What are the advantages of having CompuTech develop a new prototype model of the Rev Manika car, than manufacturing the new model straight away? Illustrate by means of a flow chart prototype development and evaluation. Support your answer with brief explanations. (2+6+4 marks) (b) According to the Case Study, CompuTech s is also designing a Manufacturing-Plan computer program, called MP, which will automate the last tasks of the manufacturing process, which consist of inspection, testing and shipping. Explain how inspection, testing and shipping is accomplished in practice. (8 marks) Cnt d Page 3 of 6
Question 1 cnt d (c) (i) Interpret fully the learning curve provided in the case study (phases PQ, QR, RS) and explain the form of the graph. The learning curve shows that the assembly of units (of cars) per hour practically stabilizes after the dotted line S. Propose ways to increase the number of units in the assembly process. Time estimations can also be calculated by studying the effects of the learning curve. This can be quantified according to the formula: Y x =K. x n What do the components x, Y x, K and n mean in the above formula? Calculate n, given that: X=2, Y x =3 and K=4. (4+2+6 marks) (d) (i) Mr. Malin stated that he considers the development of Rev Manika as challenging project, with a high level of complexity and with many underlying constraints. Outline five (5) main constraints, which can prove limiting on the Rev Manika project. The level of complexity of any activity in a project is a function of three key features. Provide a brief discussion of each of these features. Provide a mathematical formula to relate Overall Complexity with other aspects of complexity. (5+6+2 marks) (e) According reliable estimations carried out, the Rev Manika project will require an expenditure of $100 000 and will yield $ 200 000 in 6 years. (i) Write down the formula for the calculation of Present Value (PV), explaining what each notation/component used in the formula stand for. Assuming a 10 per cent discount rate, calculate Present Value (PV) and the Net Present Value (NPV). Suppose that you are the Project Manager for the Rev Manika project, advise whether the project should be allowed to proceed. (2+3 marks) Page 4 of 6
SECTION B: ANSWER ANY TWO QUESTIONS QUESTION 2: (25 MARKS) (a) (i) What do you understand by the term delivery of a product? When does delivery formally occur? What are the three (3) conditions associated with delivery? (1+2+3 marks) (b) (c) In the activity Review Design Phase Results in the design phase, the design phase results are carefully reviewed and compared with the study phase results. Propose a sequence you would use to accomplish this task. (7 marks) A Project Manager should be able to differentiate General Management from Project Management. Explain, by means of a table (or otherwise), key factors you would consider to distinguish General Management from Project Management. (12 marks) QUESTION 3: (25 MARKS) (a) The process by which contracts are being awarded depends on the nature of the task being contracted, the relationship between the purchaser and the supplier and the relative size of each. Describe, in detail, the five (5) types of contract that exist. (12 marks) (b) Explain by means of a flow chart, the process used by organizations for the establishment of contracts. (13 marks) QUESTION 4: (25 MARKS) (a) One of the documents completed at the end of the conception phase is the project description document with an artist s concept. What are typical contents of this document? (12 marks) (b) The following terminologies are often encountered in project management. Define each of them. (i) function system subsystem (iv) device (v) component (also known as part) (7 marks) cnt d Page 5 of 6
Question 4 cnt d (c) (i) Most project managers agree that Gantt charts are best suited to relatively simple projects. What are the characteristics of simple projects that justify the above statement? Though, Gantt charts have some good points, such as simplicity to draw and read, they still have some limitations. Provide three limitations of Gantt charts. (3+3 marks) ***END OF QUESTION PAPER*** Page 6 of 6