PM 0015 – QUANTITATIVE METHODS IN PROJECT MANAGEMENT
DRIVE: SPRING 2016
PROGRAM: MBADS (SEM 4/SEM 6) MBAFLEX/ MBA (SEM 4) PGDPMN (SEM 2)
SUBJECT CODE & NAME: PM 0015 – QUANTITATIVE METHODS IN PROJECT MANAGEMENT
BK ID: B2011
CREDIT AND MARKS: 4 CREDITS AND 60 MARKS
Q1. Explain Business Value Models in detail
- Balanced scorecard model
- The Treacy-Wiersema model
- 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.”
The model was developed as a replacement for earlier systems; those only included the financial perspective to measure
Q.2: What is parametric estimating? Explain the steps involved in the development of a parametric model.
(Define parametric estimating (1.25 MARKS)
Describe the 7 steps involved in the development of a parametric model 8.75 (1.25 marks for each step)
Answer:
Define 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
Q.3: 1. what aspects of capital budgeting must be considered while selecting a project?
- 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.
- Calculate:
- The net present value using a 10% required rate of return
- Profitability Index using a 10% required rate of return
- Also suggest if the project must be accepted.
- Explain the 4 aspects of capital budgeting that must be considered while selecting a project. 4 (1 mark each)
- a. calculation of net present value (2 MARKS)
Calculation of profitability index (2 MARKS)
- Mention if the project must be selected and give reasons why it should be project be selected/not selected (2 MARKS)
Answer:
- Explain the 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
Q.4: Explain the various expense items in a project.
(List the various expense items in a project (1 MARKS)
Describe each expense with suitable examples 9 (3 marks for each expense item)
Answer:
List the various expense items in a project:
- Direct and indirect costs
- Variable and fixed costs
- Actual and standard costs
Describe each expense with suitable examples:
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
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
- 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:
- Mean = 21,000 + 23,500 + 22,000 + 24,000 + 26,000 + 25,000 = 141500
The total number of mean values = 6
Mean =141500/6 =
Q.6: 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) 10
Answer:
Explain the 5 steps that should be followed to construct a house of quality:
The following steps need to be followed to construct a house of quality:
Step-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
