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Project Management Question Paper

Project Management

Course:Bachelor Of Commerce

Institution: University Of Nairobi question papers

Exam Year:2011

University of Nairobi
School of Business
Department of Management Science

DOM 402: PROJECT MANAGEMENT
October 24th 2011
Continuous Assessment Test Time: 11:00 – 12:30 PM
Attempt all questions. Give only concise relevant answers with illustrations and examples where appropriate.
1)
a) Explain the following project management concepts
i) Scope
ii) Time value of money
iii) PMBOK
iv) Project parameters
v) Non-numeric selection model
vi) Project appraisal
vii) Work package
viii) Angel capital
ix) Maximum negative cash-flow
x) Project failure
(20 marks)

2)
a) Describe briefly why and how you would undertake a pre-feasibility study. (6 marks)
b) Why may feasibility studies be done poorly in some cases? (4 marks)
c) A project has been estimated to have the following cash-flows:

Year Outflow (000’s Kshs) Inflow (000’s Kshs)
0 879 0
1 205 570
2 195 630
3 195 630
4 230 550

60 percent financing is obtained from the owner’s savings in fixed deposit account earning 6% interest, and 40 percent from a loan at 16% interest.
i) Is this project financially viable? Justify your answer. (8 marks)
ii) Why may the projections have been made for only 4 years? (2 marks)

3)
a) Compare and contrast the Gantt chart, critical path method, and PERT and where each is best suited. (6 marks)
b) A proposed project has the following duration and resource estimates:

Activity Duration (Months) Predecessor Required
Resources
1 2 - Proj Asst.
2 1 1 Tech1
3 1 2 Tech 2
4 3 3 Manager, Tech 1
5 1 3 Manager, Tech 2
6 2 5 Proj Asst.

i) Sketch the Gantt chart to scale and indicate resources on the activities. Show the total resource requirements for each month on the horizontal axis. (5 marks)
ii) Draw the network diagram and find the critical path and project duration. (5 marks)
iii) Assuming only one person for each resource type is available advise the Project Manager on what to do. Will the project still meet the duration in (ii) above? (4 marks)

Project Management Question Paper

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