Part A– Project Management Theory (30 Marks):
Q1. What is a Work Breakdown Structure (WBS) and what purposes does it serve? Explain the generic steps that provide a structured approach to collecting the information needed to develop a powerful work breakdown structure. (15 marks)
Q2. Describe the Top-Down and Bottom-Up methods of project time estimation. Which method/s do you prefer for a complex project that is in the defining stage? Explain the reasons for your choice? (15 marks)
Part B – Case Study (30 Marks):
Answer both sections.
Q3. IBM Project Management Centre Of Excellence:
On February 5, 1997, the IBM Project Management Centre of Excellence (PMCOE) was born with a charter to drive IBM’s transition to and support of professional project management worldwide, a competency deemed necessary to ensure effectiveness and success within a matrix enterprise.
Since its inception, the IBM PMCOE—working hand in hand with all business units worldwide—ensured that we became a project-based enterprise that applies and integrates project managementdisciplines into all core business processes and systems.
The initial charter drove more consistent and broader use of project management disciplines, including the formalization of the position of project manager throughout our organization.
Over time, the IBM PMCOE has driven the transformation and integration of project management into the fabric of the organization.
Our professionals are more experienced and capable in their abilities to get their work done using project management disciplines.
In addition to being one of the world’s largest IT and consulting services company, IBM is a global business and technology leader, innovating in research and development to shape the future of society at large.
Today, we see ourselves as much more than an Information Technologycompany. In April 2016, IBM’s Chairman, President and CEO, Ginni Rometty described the dawn of a new era, shaped by AI computing and cloud platforms. She described how the IT industry is fundamentally re-ordering at an unprecedented pace. In response, IBM is becoming much more than a “hardware, software, services” company. We are emerging as an AI solutions and cloud platform company.
Fundamental to the success of this transformation is the skills and abilities of our workforce. We are being challenged to be relevant to the marketplace of tomorrow. As a focus on continuous learning, we have Think40 where we are encouraged to spend 40 hours every year to up-skill.
We are encouraged to have a point of view, be socially eminent and be comfortable in a customer-facing situation. We are provided with the tools and techniques, including new ways of learning such as video, gaming and interactive eLearning techniques to enable this objective. New phrases and concepts are creeping into the everyday vocabulary of our teams, such as agile, design thinking, calculated risk-taking and better collaboration.
IBM’s PMCOE is no exception to this transformation—and 2017 marked the 20th anniversary of the Centre of Excellence, which clearly shows our ongoing commitment to project management as a key profession within the corporation.
Our PM curriculum is delivered globally and across all lines of business, helping to drive a consistent base of terminology and understanding across the company. And our project and program management profession has established an end-to end process to “quality assure” progress through the project management career path.
(a) Over time, the IBM PMCOE has driven the transformation and integration of project management into the fabric of the organization. Evident from this assertion is that this company has and continues to align projects to its strategy.
Discuss the importance of aligning projects to strategy. (15 marks)
(b) You have been appointed the project manager at IBM and wish to emphasise to the company bosses the need to establish a sound project priority system.Describe some of the techniques that you would employ in selecting projects fairly. (15 marks)
Part C–Two Calculations Questions(40 Marks):
Students MUST show calculations.
Q4.An IT softwareproject comprises the following activities, whose time estimates are given against each other as below:
|
Activity |
Estimated Duration (weeks) |
||
|
– |
Optimistic |
Most Likely |
Pessimistic |
|
1-2 |
3 |
6 |
15 |
|
1-3 |
2 |
5 |
14 |
|
1-4 |
6 |
12 |
30 |
|
2-5 |
2 |
5 |
8 |
|
2-6 |
5 |
11 |
17 |
|
3-6 |
3 |
6 |
15 |
|
4-7 |
3 |
9 |
27 |
|
5-7 |
1 |
4 |
7 |
|
6-7 |
4 |
19 |
28 |
(a)Find the critical path for the project. (10 marks)
(b)What isthe plannedproject duration? (10 marks)
Q5: Consider the following cash flow series over the twenty-year period of a project. The salvage of the project at the end of its life is negligible.
End of year 0 1 2 3 ………………. 20
Cash Flows ($): 5,000,000 1,000,000
1,000,000
1,000,000 ……….1,000,000
Assuming the interest rate at 18%, compounded annually:
(a) Calculate the net present valueof the project (present worth of 18% for 20 years of 5.3527). (10 marks)
(b) Determine whether or not to proceed with the project. Give the reason(s) for your advice. (10 marks)