1. Q1. Describe the CPM model. Briefly explain.
Answer. CPM Model(Critical Path Method):
For projects considered uncertain, the PERT model was developed and for projects which
are comparatively risk-free the CPM model was developed. Both the approaches start with
the development of the network and a focal point on the critical path. The PERT approach
is 'probabilistic' while the CPM approach is 'deterministic'. This does not, however, mean
that in CPM analysis we work with single time estimates.
ASSUMPTIONS OF CPM:
1.
The critical path does not change:
The first assumption worthy of discussion is that the distribution of the completion
time of the overall project can be determined by analyzing only the completion times of
activities on the critical path. This implies that the expected time for the completion of the
project is the sum of the expected completion times for the activities on the critical path. In
addition, the variance of the completion times of the entire project is assumed to be the
sum of the variances of completion times for the activities on the critical path.
2.
The project completion time is a normally distributed variable :
In the basic PERT implementation, it is assumed that the completion time for the
entire project is a normally distributed random variable. A common justification for this
assumption is the central limit theorem; see, for example, Moore and Weatherford. This
theorem, which has many important applications, says that the sum of a large number of
independent, identically distributed random variables will approximate a normally
distributed random variable. Because the completion time for the critical path is the sum of
random variables---the completion times of the critical path activities---it is argued that it
can be approximated with a normal distribution.
3.
The activity completion time are statistically indepandent will not be
influenced by management intervention:
A third assumption of the PERT method is that activity completion times, while
random, are independent of each other. The independence assumption means for example,
that if we learn it takes longer than expected to receive one simulator, this does not give us
any information about how long it will take to receive the second simulator.
4.
Activity times are assumed to be known or predictable ("deterministic")
Procedure OF CPM:
1. Activity specification
You can use the Work Breakdown Structure (WBS) to identify the activities involved in the
project. This is the main input for the critical path method.
In activity specification, only the higher-level activities are selected for critical path
method.
When detailed activities are used, the critical path method may become too complex to
manage and maintain.
2. Activity sequence establishment
In this step, the correct activity sequence is established. For that, you need to ask three questions for
each task of your list.
Which tasks should take place before this task happens.
Which tasks should be completed at the same time as this task.
Which tasks should happen immediately after this task.

2. 3. Network diagram
Once the activity sequence is correctly identified, the network diagram can be drawn (refer
to the sample diagram above).
Although the early diagrams were drawn on paper, there are a number of computer
softwares, such as Primavera, for this purpose nowadays.
4. Estimates for each activity
This could be a direct input from the WBS based estimation sheet. Most of the companies
use 3-point estimation method or COCOMO based (function points based) estimation
methods for tasks estimation.
You can use such estimation information for this step of the process.
5. Identification of the critical path
For this, you need to determine four parameters of each activity of the network.
Earliest start time (ES) - The earliest time an activity can start once the previous
dependent activities are over.
Earliest finish time (EF) - ES + activity duration.
Latest finish time (LF) - The latest time an activity can finish without delaying the project.
Latest start time (LS) - LF - activity duration.
The float time for an activity is the time between the earliest (ES) and the latest (LS) start
time or between the earliest (EF) and latest (LF) finish times.
During the float time, an activity can be delayed without delaying the project finish date.
The critical path is the longest path of the network diagram. The activities in the critical
path have an effect on the deadline of the project. If an activity of this path is delayed, the
project will be delayed.
In case if the project management needs to accelerate the project, the times for critical path
activities should be reduced.
6. Critical path diagram to show project progresses
Critical path diagram is a live artefact. Therefore, this diagram should be updated with
actual values once the task is completed.
This gives more realistic figure for the deadline and the project management can know
whether they are on track regarding the deliverables.
major objective in CPM is to complete the project in the shortest time possible. One way to do this is
called fast tracking, which involves performing activities in parallel (simultaneously) and adding
resources to shorten critical path durations (called crashing the critical path). This may result in
expansion, which leads to increasing project complexity, duration or both.
Objectives OF CPM:
Major objective in CPM is to complete the project in the shortest time possible. One way to do this is
called fast tracking, which involves performing activities in parallel (simultaneously) and adding
resources to shorten critical path durations (called crashing the critical path). This may result in
expansion, which leads to increasing project complexity, duration or both.
Conclusion OF CPM:
Critical path identification is required for any project-planning phase. This gives the project
management the correct completion date of the overall project and the flexibility to float activities.
A critical path diagram should be constantly updated with actual information when the project
progresses in order to refine the activity length/project duration predictions.
Q2. Define risk management. What are the different types of risks that can
affect a project?

3. Answer. Risk Management:
Risk Management is a field of management that deals with the possibility that various
future events may cause harm or threat to the organization. Risk Management comprises
of strategies and techniques to recognize and confront any threat faced by a business in
fulfilling its mission.
Types of risks :
1.
Macro risk levels : Macro risk describes political risks that affect all
businesses that operate in a foreign country. Examples of macro risks include the
possibilities that a nation could raise taxes, fall into civil war or devalue its
currency. Business managers must be well-informed about a country's laws and
political situation to manage macro risk. For instance, managers might avoid
investing in a certain country if they think it is likely the country will pass
unfavorable legislation. Diversifying a business by expanding operations into
several foreign countries is a way to mitigate risk.
For example, any company that is engaging in foreign direct investment in
a country that is on the verge of switching to an anti-foreigner slanted
government would be facing tremendous macro risk, because the government is
likely to expropriate any and all foreign operations, regardless of industry.
There are many organizations that provide reports and information on the degree
of political risk that a country may possess. Furthermore, companies have the
opportunity to purchase political risk insurance from a variety of organizations in
order to mitigate potential losses.
Macro Risk Management Methods:


One type, used primarily by stock traders and institutions, focuses on how shortterm changes in macro risk factors impact stock returns. These models
include the Arbitrage Pricing Theory and the Modern Portfolio Theory families of
models.
The other models that incorporate macro risk data are valuation models or the
closely related fundamental analysis models. Used primarily by those focusing on
longer term investments includingwealth managers, financial planners, and some
institutional investors, these models are examples of intrinsic value analysis. In
such analysis, forecasts of future company earnings are used to estimate the
current and expected value of the investment being studied. Macro risk
factors include any economic variables that are used to construct these
estimates
`
2.
Micro Risk Management: Micro risk describes political risks that do not
affect all businesses. For example, if a country enacts new strict environmental
regulations on factories, it would affect industrial operations in the country, but it
might not affect certain industries like services and restaurants. Businesses can
manage micro risk by shifting investments into projects or industries that are not

4. affected by unfavorable changes.
For example, diplomatic tension with Country A has caused the citizens of
Country B to vandalize all Country A based companies situated in Country B. In
this example, only operations from Country A were faced with adverse situations.
Operations from other countries were not affected.
Micro Risk Management Methods:
Risk control
 Avoidance: Risk avoidance is the only proven way to eliminate loss potential,
though the poor often do not have this option because of the limits imposed on
their mobility as a result of their socioeconomic circumstances.
 Diversification of income: Working multiple jobs (e.g. one in agriculture and
another in manufacturing) can provide a buffer against income insecurity that may
occur as a result of “external” factors, such as fluctuation in food prices or
drought. However, “internal” risk factors, such as onset of illness, can create
difficulty for an individual working even one job, much less two.
 Diversification of assets: Owning a combination of both financial and tangible
assets (livestock) is a form of risk control that is extremely valuable in mitigating
the negative fallout of risk. However, without a formal mechanism to facilitate
savings (a bank account) or adequate protections to ensure the value of tradable
assets (asset insurance) this method of risk control, maintaining a combination of
asset types, can be difficult to continue following a loss. Alternatively, for poor
populations intangible assets - such as a vibrant, functioning social network - are
perhaps most valuable and in larger supply. With a network of family and
community members to rely upon, the effects of idiosyncratic and unpredictable
events can often be mitigated. However, such systems are susceptible to breaking
down especially if a large-scale event impacts many people in a given community.
Risk financing
 Reducing consumption (post loss): After a loss, the poor may be able to manage
their additional costs or reduced means by diminishing their expenditures in one
manner or another. Unfortunately this often results in malnutrition or some other
undesirable end.
 Increasing workload (post loss): To finance the cost of a loss a poor family may
often be compelled to work longer hours, to take on additional jobs or to pull their
children out of school in order to supplement family wages.
 Relocation (post loss): After a home is damaged or destroyed a family may often
be forced to relocate to another area, with the likelihood of having even fewer
resources at their disposal to support such relocation.
 Emergency loan (post loss): If a poor family’s liquidity is compromised post loss,
emergency loans are often available via local lenders or microfinance institutions.
Such loans however, are sometimes offered with excessively high interest rates
and may compound the burden of loss recovery with the burden of additional
debts, even if reasonably priced.
 Asset sales (post loss): After an adverse loss event, poor families can choose to

5. sell productive assets, such as livestock, to pay for the costs of recovery, though
this leaves them without the financial or physical benefit of the productive asset
going forward.
 Savings (pre-loss): If a family has had the foresight and the ability to set aside
some funds for a rainy day, these can be spent post loss to help rebuild their lives
accordingly.
Q3. Briefly discuss the steps to close the project.
Answer. Steps for Closing the Project:
To make sure that the project is completed and finished in a proper manner, a sequential
process should be followed. Therefore, the steps involved in the sequential process in the
project closure include the following subsections:-
Finishing the remaining work
As the project nears completion, the project manager tends to relax and keeps out of
meeting, out of sight, and out of
Get client acceptance of the deliverables
The client decides when the project is done. It is your job as the project manager to
demonstrate that the deliverables (whether products or services) meet client specifications.
For small projects, this acceptance can be very informal and ceremonial, or it can be very
formal, involving extensive acceptance testing against the client's performance
specifications.
Contractual aspects and final accounting
Construction contracts and construction law can be a minefield. However final accounts
(including for the purposes of this article final certificates) draw a line of sorts under the
contractual obligations owed by the parties to a contract to each other. As always the
answer depends on what the sub contract actually says. However, frequently under
standard forms, and particularly JCT forms, final accounts also finalise (subject to formal
proceedings) disputes under the contract – normally those arising from valuations, quality
of work and decisions on extensions of time and loss and/or expense. That is why clauses
dealing with final accounts often impose on the parties’ conclusivity unless objection is
made within a prescribed period. If you do not dispute the areas you disagree with it may
well be too late to argue these points. Disputing elements of the final account means in
effect either adjudication or arbitration.
Update and archive all documents
Project archives can be used when estimating projects and in developing metrics on
probable productivity of the development teams. Use of past performance metrics
provides the best source for future estimates. When sufficient project data is collected over
time, the state may be able to develop an experience database that will help to make strong
estimates and develop realistic project plans.
Conduct post-implementation audit of the project
A project is considered complete when it has been successfully implemented and

6. transitioned to the performing organization and approved by the Project Sponsor.
At this point in the project management lifecycle, the responsibilities of the Project
Manager are to assess how closely the project met Customer needs, highlight
what worked well, learn from mistakes made during the project, identify patterns
and trends, derive ways to improve upon processes executed throughout the
project, and, most importantly, communicate results. The purpose of Conduct
Post-Implementation Review is to gather the information required to meet those
responsibilities, and to present the information in a Post-Implementation Report.
Prepare final project report
The final report must include the following, minimum content. It must also
include specific discussion of the extent to which each project objective has
been achieved.
Cover Page
Include a cover page consistent in design with the FRDC Corporate Design
Standard.
Title page
Include the title, author details, date, publisher, copyright statement,
disclaimer (if required), ISBN or ISSN.
Table of Contents
Include a table of contents for the report including page numbers. Include lists
of Tables and Figures as necessary.
Acknowledgments
Acknowledgment must be made of any financial support or other work that
enhanced the findings of the project. This must include any partnership
arrangements with other institutions.
Executive Summary
Provide a succinct two-three page summary of the project, written in simple
language. This summary will be used to convey the results of the research and
development to beneficiaries and the general media. The Final Report Design
Standard provides a list of the key headings. See Final Report Design
Standard for additional details.
Discussion
Discussion of results compared with the objectives.
Conclusion
This section should bring together all the results and objectives to give an
overview of the key findings and outcomes.
Implications

7. Assessment of the impact of the outcomes on end users such as management,
industry, consumers, etc. in Australia (where possible provide a statement of
costs and benefits).
Recommendations
For this PROJECT, provide recommendations on the activities or other steps
that may be taken to further develop, disseminate or to exploit commercially
the results.
Further development
Where this project DOES NOT fully solve or address all issues and more
research and/or actions such as management changes are required, provide
recommendations for next steps.
Project coverage
If applicable report on any media, industry or government article on the
project.
Appendices
Appendices should include (where applicable):
List of researchers and project staff (boat skippers, technicians, consultants).
Release all resources – materials, equipment, and people
A successful Project Manager must effectively manage the resources assigned
to the project. This includes the labor hours of the designers, the builders, the
testers and the inspectors on the project team. It also include managing any
labor subcontracts.
People
Project employees, vendor staff, subcontract labor
Equipment
Cranes, trucks, backhoes, other heavy equipment or Development, test, and
staging servers, CD burners or Recording studio, tape decks, mixers,
microphones and speakers
Material
Concrete, pipe, rebar, insulation or CD blanks, computers, jewel cases,
instruction manuals
Organising closure meeting
A meeting is a group of people (or committee) who come together regularly to
discuss a subject or to decide what to do.
Notice
• To give notice of a meeting is to inform people that the
meeting will be held.
• Notice must be given to each person who should attend the

8. meeting.
Agenda
• The agenda is a list of matters to be discussed at the meeting.
• The agenda is often sent to members together with the notice
of the meeting so that the members know what the meeting will
be about.
• The secretary talks to the chairperson and then writes the
agenda.
Q.4 Discuss the various steps of PMIS planning.
Answer. Planning of PMIS:
The success of a PMIS depends on its effective planning. The PMIS is used
for many purposes by a project manager like budget estimation of costs,
creating a schedule, define the scope, etc. Hence, these should be
considered while planning for PMIS. The planning of PMIS includes the
following steps:
1. Identify the information needed
2. Capture data
3. Process data into information and store it
4. Communicate
Identify the information needed: