- JOSEPH’S COLLEGE OF COMMERCE (AUTONOMOUS)
END SEMESTER EXAMINATION – APRIL2013
BBM– IV SEMESTER
Project Management
Duration: 3 Hours Max. Marks: 100
SECTION – A
- Answer ALL the following questions. (10×2 = 20)
- Enumerate the characteristics of a project.
- What are crash projects?
- What are the reasons for growth of Project Management?
- What are the differences between Feasibility study and Business plan?
- What are the various means of finance available to fund a project?
- List the logical sequence of events as per project scheduling.
- Define sick industrial company. What are the leading indicators of sickness?
- What is the purpose of PMIS?
- Mention the differences between Project Management and Functional Management.
- What do you understand by cash flow estimate statement?
SECTION- B
- Answer any FOUR (4 x 5 = 20)
- Explain the Daming Cycle for Project Management.
- What do you mean by Social Cost Benefit Analysis? How does it differ from financial analysis of a project?
- Explain the role of Government as the regulator in industrial development.
- Identifying a new worthwhile project is a complex problem. It involves careful study from many different angles. Hence explain the sources from which new project ideas may emerge.
- Explain the concept of Project Risk Analysis.
- Define contract. Explain the types of contract.
SECTION – C
- Answer any THREE Each carries 15 marks. (3 x 15 = 45)
- Explain the benefits of Project Management. How can one achieve effective Project Management?
- What are the important phases of a project life cycle? Explain each phase with key issues involved in it.
- Bring out the importance of pre- feasibility, feasibility studies in ensuring success in the operation phase of the project.
- What is Matrix organisation? What are the advantages of this structure in terms of Project Management? Enumerate the disadvantages. Also, under which situation is Matrix structure suitable?
- Write in detail about the data required for the calculation of discounted cash flow techniques.
SECTION – D
- Case study – Compulsory Question. (1 x 15 = 15)
- Zoozo, a mechanical engineering graduate from IIT, Chennai was a promising entrepreneur. His father owned a small scale industrial unit for the manufacture of mild-steel pressed components used in the manufacture of electrical panel boards. His father’s engineering unit M/S Zoozo Engineers was mainly catering to the requirements of local fabricators and electrical contractors. Mr. Zoozo, after his studies, took over the management of the unit from his father. After a few years of gaining firsthand experience of the trade, he decided to go in for large scale production, as he found the prospects for the industry good.
He formed a Private limited company by name M/S Senior Zoozo Engineers (P) Ltd, with his family members and close friends as the promoters. The entire investment for the proposed project was decided to be financed by share capital contribution of the directors. Mr. Zoozo’s dream project took off smoothly. He did not face any financial constraints as all the promoters were financially sound. The company gained market recognition due to high quality of its products and within a short span of time the company became an original equipment supplier to major machinery manufacturers.
The production capacity of the plant was ten tonnes per month. The order position was also about ten tonnes per month. Hence the plant capacity was to the requirement. Due to sudden spurt in the demand, the order position improved subsequently and Mr. Zoozo found an immediate need to increase the production capacity of the plant to twenty tonnes per month.
Out of the machinery available, the power press which is a major machine could produce thirty tonnes of pressed components per month. The other engineering fabrication machines like drilling machines, welding machines, punching machines and nibbling machines have been just adequate to handle orders to the tune of about fifteen tonnes per month. The powder coating machine which is used for giving surface finish to the pressed components could handle about ten tonnes per month. Two of the major customers have given orders to the tune of around twenty tonnes per month and are also willing to enter into contract for the regular supply of twenty tonnes of products per month for the next twelve months. There are also indications from other customers that their requirement would be about ten tonnes per month and they affirm that the order position is likely to be on the increasing trend.
In order to cope with the orders of twenty tonnes per month finalised with two customers, Mr.Zoozo went for an expansion of his production facility. He doubled the production capacity of general fabrication facility by doubling the capacity of drilling, welding, punching and nibbling machines. As the investment on powder coating machine was slightly on the higher side, he added only one more powder coating machine, thus increasing its handling capacity to about twenty tonnes per month. By the time he completed the expansion works, orders have started pouring in and orders to the extent of thirty tonnes per month have been booked. Mr. Zoozo was happy that his power press could handle thirty tonnes quite easily. But, the machines downstream have inadequate capacity to handle thirty tonnes per month. The production engineer suggested to Mr. Zoozo to accept all the orders and to divert part of the fabrication and finishing works to outside engineering units if the entire work cannot be carried out in-house. However, Mr. Zoozo was very quality conscious; he was not prepared to accept orders beyond his production capacity.
His preference is to have all the required production facilities in house and he is even prepared to go for one more expansion plan to handle the increased orders.
Questions:
- Was Mr. Zoozo right in his approach that all the required production facilities should be available in house? (7 marks)
- Was the Production engineer’s view a right one and will it help the company to tie-over the situation? (8 marks)
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