Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

First Semester 2015-2016
Mid-Semester Test (EC-2 Regular)
Course No.
Course Title
Nature of Exam
Weightage
Duration
Date of Exam
Note:
1.
2.
3.

: MM ZG523
: PROJECT MANAGEMENT
: Closed Book
: 35%
: 2 Hours
: 20/09/2015 (AN)

No. of Pages
=2
No. of Questions = 6

Please follow all the Instructions to Candidates given on the cover page of the answer book.
All parts of a question should be answered consecutively. Each answer should start from a fresh page.
Assumptions made if any, should be stated clearly at the beginning of your answer.

Q.1. Read the following case and answer the questions that follow:
Perry Technologies is a microcomputer design and manufacturing company that was
started in a garage by Bob Perry in 1973. In early years, Bob ran the company and was
largely responsible for making it a huge success. He often worked 20-22 hrs a day to
accomplish that success. The company grew to a $800 million company in 1980, when
Bob sold the company. Substantial stock holdings of the company are still presently held
by early company employees, who are all of digital electrical engineering background and
who now head the company. Sales of the company peaked at $3 million in 1984. The
company presently employs 4500 people.
The market has evolved such that almost all competing companies build to a de facto
standard (a standard to which Perry products do not adhere) and have gained the majority
of the market share. Perry is losing substantial business in both its general purpose
machines and its engineering CAD work station markets. In attempting to resolve its
present problems, two camps have arisen. The marketing branch of the business is taking
the stance that modifying the Perry product to be compatible with the presently popular
standards will solve the present problems., while in the design branch it is widely held that
the present market for its products can be expanded through constant redoubling of efforts
to make the Perry products technologically innovative and lead the market. To make
matters worse, engineers from manufacturing environment are now arguing that by cutting
manufacturing costs, the present products could be dumped on the market at extremely
low costs.
After attending a project management seminar, the company heads have decided a project
management approach could help in the unification of efforts in future product
development, and they have set a course of action to internally train personnel in the
marketing, design and manufacturing group concepts of informal project management.
(a)
(b)
(c)

What are the current company problems?

What would you expect the present project management plan to do?
What strategy would you suggest in the companys present circumstances?
[2 + 3 + 3 = 8]

Q.2 (a) Implementation of projects without a strong priority system linked to strategy creates
problems. Highlight on the problems that may occur and the ways the problems can
be resolved?

MM ZG523 (EC-2 Regular)

3

First Semester 2015-2016

Page 1 of

Q.2 (b) In which type of organizations, you would prefer Projectized Organization structure
over Matrix organization and Why?
[3 + 3 = 6]
MM ZG523 (EC-2 Regular)

First Semester 2015-2016

Page 2

Q.3 (a) How is process breakdown structure different from work breakdown structure?
Q.3 (b) How does a communication plan benefit management of projects?
[2 + 2 = 4]
Q.4 (a) Why accurate estimates are critical to effective project management?
Q.4 (b) What is the need of technical collaborations and how are they useful in different
phases of project life cycle?
[2 + 3 = 5]
Q.5. Assume that you are the project manager for construction of a four-storeyed building in
your locality. Prepare a project scope checklist for the above project.
[4]
Q.6. The balance sheet of ABC Steels Limited at the end of year n (the year which is just over)
is as follows: (All figures are in Millions)
Liabilities
Assets
Share Capital
: 32
Fixed Assets
:
30
Reserves & Surplus
: 4
Investments
:
5
Secured Loans
: 6
Current Assets :
15
Unsecured Loans
: 2
Cash
: 5
Current Liabilities
: 3
Receivables: 5
Provisions
: 3
Inventories: 5
_____
____
50
50
The projected income statement and the distribution of earnings is given below:
Sales
: 35.0
Cost of Goods sold
: 20.0
Depreciation
: 3.0
Profit before interest and tax
: 12.0
Interest
: 2.0
Profit before tax
: 10.0
Tax
: 2.0
Profit after tax
: 8.0
Dividend
: 3.0
Retained Earnings
: 5.0
During the year n+1, the firm plans to raise a secured loan Rs. 4 million, repay a
previous term loan to the extent of 2.0 million. Current Liabilities and provisions
would increase by 5%. Further the firm plans to acquire fixed assets worth Rs. 2
million and raise its inventories by 1 million. The investments are planned to increase
by 1 million. Receivables are expected to increase by 6%. The firm plans to pay 3.0
million by way of equity dividend. The level of cash would be the balancing amount
in the projected balance sheet. Given the above information, prepare the following:
i.
ii.

Projected Cash Flow statement

Projected Balance Sheet

MM ZG523 (EC-2 Regular)

3

First Semester 2015-2016

Page 2 of

[4 + 4 = 8]
**************

MM ZG523 (EC-2 Regular)

3

First Semester 2015-2016

Page 3 of