FINAL EXAMINATION PROGRAMME Postgraduate Diploma in Project Management MODULE Project Scope and Scheduling INTAKE January 2019 DATE 28 May 2019 TIME 09h00 – 12h00 DURATION 3 hours TOTAL MARKS 100 INSTRUCTIONS TO THE CANDIDATE 1. Questions must be attempted in the answer book provided. 2. All queries should be directed to the invigilator; do not communicate or attempt to communicate with any other candidate. 3. You have THREE HOURS to complete this paper. You are not allowed to leave the examination room within the first hour and in the last 15 minutes of this examination. 4. This is a CLOSED BOOK examination. 5. Read ALL instructions carefully. ID SECTION A Read the case study below and answer ALL the questions that follow. [40 MARKS] CASE STUDY: Dotcom.com Dotcom.com, a software engineering and systems development-consulting firm, sells a wide assortment of Internet and computer-based solutions for resource planning, administrative and accounting networks to organisations in health care delivery, financial services and hotel management. Typically, a service provider approaches Dotcom.com with a list of problems it has some targets for organizational improvement. Because most of Dotcom’s clients are not themselves computer savvy, they tend to rely heavily on dotcom to correctly diagnose their difficulties, propose solutions to correct these problems, and implement the new technologies. The industry Dotcom operates in is extremely competitive, forcing successful organisations to make low bids to win consulting contracts. In this environment, project management is vital for Dotcom’s success because poorly managed projects quickly “eat up” the profit margin for any job. Unfortunately, dotcom’s senior management team has noticed a recent upsurge in project operating costs and related drop-off in profitability. In particular, dotcom’s executives are concerned because the last seven consulting contracts have resulted in almost no profit margin because the software systems were delivered late and required several rounds of network to fix bugs or correct significant shortcomings in the software. The firm decided to hold a weekend off-site retreat with the project managers responsible for these most recently completed projects in order to learn why project management was being done so poorly. To a person, the project managers fixed the blame for their problems on the clients. Susan Kiley, a project manager with over five years of experience stated, “We are put in a very tough position here, made a typical response. Most of the customers don’t know what they really want so we have to spend hours working with them to get a reasonable Statement of Work that we can develop the project scope around. This takes time. In fact, the more time I spend with the customer up front, the less I have to get my team to actually develop the system for them. It’s a Catch-22 – If I want to get things right, I have to pry information out of them. The better I do getting a sense of their problems, the less time I have to develop and run the project!” Jim Crenshaw, another project manager, spoke up, “It doesn’t stop there, unfortunately. My biggest problems are always on the back end of the project. We work like dogs to get a system up that corresponds to the client’s demands, only to have them look it over, push a few buttons, and start telling us that this was not anything like what they had in mind! How am I supposed to develop a system to solve their problems when they don’t know what their problems are? Better yet, what do we do when they ‘think’ they know what they want and then when we create it, they turn around and reject our solutions out of hand?” After two hours of hearing similar messages from the other project managers, it became clear to the senior management team that the project management problems were not isolated but were becoming embedded in the firm’s operations. Clearly, something had to be done about their processes. Source: Kerzner (2013) ID 1 QUESTION 1 (20 Marks) “My biggest problems are always on the back end of the project. We work like dogs to get a system up that corresponds to the client’s demands, only to have them look it over, push a few buttons, and start telling us that this was not anything like what they had in mind!”. 1.1 Discuss what the Dotcom project managers had to deal with from clients constantly changing the scope and explain how this problem directly affected the late delivery of projects? (10 marks) 1.2 When is scope creep useful and when is it dangerous? Under what circumstances should an organization refuse to freeze project design specifications for valid reasons? (10 marks) QUESTION 2 (20 Marks) “Project scope management involves work with stakeholders to define, gain written agreement on, and manage all work required for project success”. With reference to the case study discuss: 2.1 2.2 Objectives of project scope management. The benefits of project scope management. (10 marks) (10 marks) SECTION B Answer ANY THREE (3) questions in this section. [60 MARKS] QUESTION 3 (20 Marks) A Gantt chart is a type of bar chart, devised by Henry Gantt in the 1910s, that illustrates a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements and summary elements of a project. Terminal elements and summary elements comprise the work breakdown structure of the project. Modern Gantt charts also show the dependency (i.e., precedence network) relationships between activities. 3.1 3.2 ID Discuss the variations of the Gantt chart that are available to projects of differing complexities. (12 marks) As a project manager, how would you motivate your team to use a Gantt chart and also describe to the team the major shortcomings of this tool? (8 marks) 2 QUESTION 4 (20 Marks) A manufacturing company will have to change the layout configuration of the production plant to accommodate a major new contract. The data for the activities, dependencies and durations (all in days) for the reconfiguration are listed in the following table: 4.1 4.2 4.3 Activity Immediate Predecessor Optimistic Most Likely Pessimistic A B C D E F G H I J ------------------------B A E D C, D F, G H 4 2 1 6 2 6 1 3 5 6 6 4 2 7 4 10 3 6 11 8 8 6 3 8 6 14 5 9 17 10 Determine expected time for each activity. Draw a AON diagram for this project. Calculate the slack time for each activity to determine the critical path for the project. QUESTION 5 Expected Time (5 marks) (5 marks) (10 marks) (20 Marks) With the aid of an example, critically discuss how performing activities in parallel may accelerate project duration. ID 3 QUESTION 6 (20 Marks) Your project is running behind schedule and crashing is the only option available. The following table contains the project data. Normal 6.1 6.2 Crashed Activity Immediate Predecessor Duration (Days) Cost (Dollars) Duration (Days) Cost (Dollars) A B C D E F G H I J B A E D C,D F,G H 6 4 2 7 4 10 3 6 11 8 1500 3500 6800 2500 4200 2000 2400 9000 8000 7500 5 3 1 5 3 8 2 5 8 5 2000 5000 7500 6000 5400 2700 3000 15000 11000 9000 Calculate the cost per day to crash each of the activities. Determine the total time and the cost involved by which the project duration can be reduced. (10 marks) (10 marks) END OF PAPER ID 4 Appendix A – Data Sheet ID 5 ID 6