. Surname, given names: Student Number: INSE 6230 Total Quality Project Management Winter 2018 Quiz I. Max : 70 points This is a closed book exam. Answer all the questions in the booklet. Ensure that your name and student ID number are on this page. For Part I fill in or put a distinct X in the box containing the letter of the best answer to that question, e.g. if you want answer (b) fill in the box containing (b) as indicated. 1 a b c d 1 a b c d The numbers refer to the question numbers on the exam paper. Fill in only one box per question. A line with two or more responses will be treated as blank.
PART I: Multiple Choice Questions (Total 20 points) Question Multiple choice 1 a b c d 2 a b c d 3 a b c d 4 a b c d 5 a b c d 6 a b c d 7 a b c d 8 a b c d 9 a b c d 10 a b c d 1. A person which provides the direction and funding for the project is called: a. project leader b. project sponsor c. project manager d. project director 2. A product or service, such as a report, a training session, a piece of hardware, or a segment of software code, produced or provided as result of a project and intended to be delivered to the customer is called: a. deliverable b. dummy c. significant activity with no duration d. milestone 3. In early phases of a project life cycle, resource needs are usually... and the level of uncertainty is... a. lowest; highest b. high; lowest c. lowest; lowest d. highest; highest 4. Which dependencies are those that are determined by the nature of the tasks themselves? a. Internal b. External c. Mandatory d. Discretionary
5. involves working with stakeholders to create the document that formally authorizes a project. a. Developing the preliminary project scope statement b. Developing the project charter c. Developing the project management plan d. Directing and managing project execution 6. Project management is an overarching function that affects and is affected by all of the other knowledge areas. a. cost b. scope c. integration d. time 7. Which of the following is a document that describes detailed information about each WBS item? a. WBS baseline b. WBS dictionary c. Work package d. Scope statement e. Statement of work 8. Which of the following is a reason why the project kick-off meeting is important? a. It will define the scope of the project in a good detail. b. It will provide a detailed timeline for the project and its deliverables. c. It will determine a detailed budget plan for the project d. It will introduce the team to the project goals and objectives. e. All of the above 9. Which of the following is NOT a project characteristic? a. Primary customer b. Unique product or service c. Little uncertainty d. Temporary nature 10. How do we call the tendency for the project scope to keep getting bigger and bigger? a. Scope baseline b. Scope creep c. Scope milestone d. Scope extension
PART II: Quantitative Questions (Total 50 points) Question #1 (10 Points): Two technology solutions involving new software are being considered at a company. If Solution A is implemented it will bring $50,000 of benefits in the first year and $40,000 in the second year. The initial investment is $50,000 and the cost incurred in each of the two following years is $10,000. The initial investment for the implementation of Solution B is $100,000 and the costs incurred in the first year are $30,000 and in the second year $20,000. The implementation will bring yearly benefits of $90,000 during the first and $80,000 during the second year of the project's duration. The interest rate is currently 8%. a. Calculate NPV for each of the projects. (Show your calculation) (4 points) b. Calculate ROI for each of the projects. (Show your calculation) (4 points) c. Which of the two projects would you select and why? (2 points)
Question #2 (10 Points): The information related to a small IT project is provided in the table below: Task Description Duration (Working Days) Predecessor(s) A Requirement Analysis 15 - B Systems Design 45 A C Programming 75 B D Telecoms 45 B E Hardware Installation 90 B F Integration 30 C, D G System Testing 30 E, F H Training/Support 15 G I Handover and Go-Live 15 H a. Draw AOA diagram. (4 points) b. Determine the critical path of the project. (2 points) c. Calculate the planned duration of the project. (1 point) d. What is the total float of activity C? (1 point) e. What is the free float of activity D? (1 points) f. What is the total float of activity E? (1 point
Question 3: (10 points) The duration of the activities of an IT project are very uncertain. The table and the network provide information about the duration estimates for the activities and their sequencing. Answer the questions below. 55 Duration estimates in days Activity Optimistic Pessimistic A Create schedule 5 15 B Buy hardware 3 7 C Programming 15 30 D Installation 2 8 E Conversion 20 60 F Write manual 8 12 G Test code 10 30 H Training 4 7 I Test system 7 13 J User test 8 12 a. Find critical path(s) of the project. (2 points) b. What is the completion time of the project without considering uncertainty? (1 points) c. What is the expected project duration based on 3-point estimate? (3 points) d. What is the corresponding variance? (2 points) e. After you took uncertainty into consideration, was there any change in the critical activities of the project (activities on the critical path)? (2 points)
Question 4: (10 points) A project has 8 activities specified in the table with their durations. Based on the Gantt chart answer the questions below: Activity A B C D E F G H Duration 2 days 6 days 7 days 3 days 4 days 4 days 14 days 3 days a. Critical path(s) for the project is (are):... (2 points) b. The duration of the project is..... (1 point) c. Activity C can be delayed without delaying the project completion by...day(s). (1p) d. Activity A can be delayed without delaying any following activity by...day(s). (1p) e. If activity B starts at day 5 the earliest time the project can finish is on day... (1p) f. If activity A starts at day 5 the project completion will be delayed by...day(s). (1p) g. In order for the project to finish on time the latest day activity E can start is on day... (1p) h. Total slack of activity D is..day(s). (1 point) i. Free slack of activity E is day(s). (1 point)
Question #5 (10 points): The AON network, tasks of the project and the related data is given below. The project currently takes 72 days to complete. For each day the project lasts, a cost of $1,000 is incurred. In order to save expenses the project manager decided that the project must be completed in 62 days instead. How would you crash the activities at minimum possible cost? 2 STAR 1 4 7 EN 3 5 6 Task Normal time (days) Total allowable crash time (days) Crash cost per day 1 24 10 750 2 16 10 500 3 8 2 150 4 24 4 700 5 8 6 200 6 8 6 200 7 8 2 800 a. Find the critical path(s) of the current project (2 points) b. Determine the critical path(s), the project duration and the additional project cost after each crashing step, and show the details about the activities you have crashed. In order to do that fill the summary table below providing the details on your crashing steps. (6 points) c. What is the final project cost after the crashing? (2 points) Step 1. Activity(-ies) to be crashed By how many days? For what additional cost? Project duration after this step Total additional project cost Critical path(s) after this step 2. 3. 4....