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Assignment
DRIVE FALL 2015
PROGRAM MBADS (SEM 3/SEM 5) MBAFLEX/ MBA (SEM3) PGDPMN(SEM 1)
SEMESTER FOURTH
SUBJECT CODE & NAME PM 0010 – INTRODUCTIONTO PROJECT MANAGEMENT
BK ID B1936
CREDIT & MARKS 4 CREDITS & 60 MARKS
1. Whatare phasesof project lifecycle?
Answer: The project life cycle consists of four phases, initiation, planning, execution (including
monitoringandcontrolling)andevaluation.The projectmanagerwillthencreate the followingplans:
Resource Plan: to identifythe staffing,equipmentandmaterialsneeded
Financial Plan: to quantifythe financial expenditurerequired
Quality Plan: toset qualitytargetsandspecifyQualityControl methods
Risk Plan: to identifyrisksandplanactionsneededtominimisethem
Acceptance Plan: to specify
2 Write short noteson:
(a)Projectdevelopment
Answer: Project Management is the process and activity of planning, organizing, motivating, and
controlling resources, procedures and protocols to achieve specific goals in scientific or daily problems.
A project is a temporary endeavor designed to produce a unique product, service or result with a
defined beginning and end (usually time-constrained, and often constrained by funding or deliverables),
undertaken to meet unique goals and objectives, typically to bring about beneficial change or added
value. The temporary nature of projects stands in contrast with business as usual (or operations), which
are repetitive,permanent,or

2. (b) Project organisation: It is the way we deliver projects! Effective organisation is crucial to the
successful deliveryontime,tobudgetandto specification.However:
 How muchtime and attentiondowe reallypaytothistopic wheninitiatingnew projects?
 How much time and effort do we spend on improving the organisation, initiation and
mobilisationof strategicprojects?
(c) Factors affecting collection of market-related information: When the company makes profits, you
often receive a part of it. This is the idea behind dividends. Every year, companies distribute a small
amount of profits to investors as dividends. This is the primary source of income for long-term
shareholders – those who don’t sell the stock for years together. Different companies issue varied
amountsof shareswhenthey
(d) Term loans as a means of financing projects: The financing of long-term infrastructure, industrial
projects and public services based upon a non-recourse or limited recourse financial structure where
project debt and equity used to finance the project are paid back from the cashflow generated by the
project.
3 Explain the concept of Social Cost Benefit Analysis (SBCA)? List the application of SBCA and describe
the challengesinSBCA.
Answer: Social cost-benefit analysis is a systematic and cohesive economic tool(method) to survey all
the impacts caused by an urban development project. It comprises not just the financial effects
(investment costs, direct benefits like tax and fees, et cetera), but all the social effects, like: pollution,
safety, indirect (labour) market, legal aspects, et cetera. The main aim of a social cost-benefit analysis is
to attach a price to as many effects as possible in order to uniformly weigh the above-mentioned
heterogeneous effects. As a result, these prices reflect the value a society attaches to the caused effects,
enablingthe decisionmakerto
4 Discuss the financingof a powerproject.
Answer: Project finance is the long-term financing of infrastructure and industrial projects based upon
the projected cash flows of the project rather than the balance sheets of its sponsors. Usually, a project
financing structure involves a number of equity investors, known as 'sponsors', as well as a 'syndicate' of
banks or other lending institutions that provide loans to the operation. They are most commonly non-
recourse loans, which are secured by the project assets and paid entirely from project cash flow, rather
than from the general assets or creditworthiness of the project sponsors, a decision in part supported by
financial modeling. The financing is typically secured by all of the project assets, including the revenue-
producing contracts. Project lenders are given a lien on all of these assets and are able to assume
control of a projectif the projectcompanyhas difficultiescomplyingwiththe loanterms.

3. Generally, a special purpose entity is created for each project, thereby shielding other assets owned by a
project sponsor from the detrimental effects of a project failure. As a special purpose entity, the project
company has no assets other than the project. Capital contribution commitments by the owners of the
project company are sometimes necessary to ensure that the project is financially sound or to assure
the lenders of the sponsors' commitment. Project finance is often more complicated than alternative
financing methods. Traditionally, project financing has been most commonly used in the extractive
(mining),transportation,telecommunicationsindustriesaswell assportsand entertainmentvenues.
Risk identification and allocation is a key component of project finance. A project may be subject to a
number of technical, environmental, economic and political risks, particularly in developing countries
and emerging markets. Financial institutions and project sponsors may conclude that the risks inherent
in project development and operation are unacceptable (unfinanceable). "Several long-term contracts
such as construction,supply,off-take and
5 Explainthe typesof procurementcontracts.
Answer:Procurementcontractscanbe broadlydividedintothree categories:
 Fixed Price Contract
 Cost Reimbursable Contract,and
 Time and Materials
FixedPrice Contract
A Fixed Price Contract is also known as a lump-sum contract. This type of contract is used when there is
no uncertainty in the scope of work. Once the contract is signed, the seller is legally bound to complete
the task withinthe agreedamountof m
6 What is the purpose of project evaluation? Which the four dimensions of the project explain the
purpose of project evaluation?
Answer:Projectevaluationobjectives:
 Analyse the processof implementation,focusingonparticipationof the community
 Analyse the impact or changes that have occurred within beneficiary households and the
community
 Identifyproblemsandconstraintsthat
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