QUESTION 1:Write short notes on : Commercial and economic feasibility Technical feasibilityANS: Commercial and economic feasibility The economic feasibility aspect of a project relates to the earning capacity of the project. Earnings of the project depend on the volume of sales. Future demand can be estimated after taking into consideration the potentialities of the export market, the charges in the income and prices, the multiple uses of the product, the probable expansion of industries and the growth of new industries. The commercial feasibility of a project involves a study of the proposed arrangements for the purchase of raw materials and sale of finished products, etc. This study comprises the following two aspects: Arriving at the physical requirement of production inputs such as raw materials, power, labour, etc at various levels of output and converting them into cost. In other words, deciding costing pattern. Matching costs with revenues with a view to estimating the profitability of the project and the break-even point. The possibility ultimately decides whether the project will be a feasible proposition or not. The technical analysis of a project feasibility study serves to establish whether or not the project is technically feasible and it also provides a basis for cost estimating.

Technical feasibility The examination of this aspect requires a thorough assessment of the various requirements of the actual production process and includes a detailed estimate of the goods and services needed for the project. The feasibility report should give a description of the project in terms of the technology to be used and the requirement of equipment, labour, and other inputs. Location of the project should be given special attention in relevance to technical feasibility. Technical feasibility relates to the types of technology to be adopted for the project. The exercise of technical feasibility is not done in isolation. The scheme has to be viewed also from economic considerations; otherwise, it may not be a practical proportion. The technical feasibility analysis is an attempt to study the project basically from a technicians angle. The main aspects to be considered under this study are technology of the project, size of the plant, location of the project, pollution caused by the project, production capacity of the project, strength of the project, emergency or stand-by facilities required by the project sophistication such as automation, mechanical handling, required collaboration agreements, production inputs, and implementation of the project.

Question 2: Define Project type organization and discuss in detailANS: The Project type organization defines the human infrastructure of the project. This task is designed to define the project organization chart, the roles, and the relationships of the project team. The organizational structure clearly identifies roles and responsibilities of each position, augmenting the existing role definitions where necessary to cover all of the responsibilities in a team. Teams are put together for a project. Each project is headed by a project leader. Each team will have employees to suit its demands and complete the project successfully. Only employees with requisite specialized skills are considered for project teams. These members of project team will join back their parent company once the project gets finished. In project-type organisational structure, each project is handled like a small company. All the essential resources and paraphernalia needed to execute projects are procured for full-time till the project closes out. Employees having specialised knowledge and exposure to similar project environment will be appointed on contractual terms to work in a group and deliver the project expectations. Advantages of Project type organization Clear line of authority- The project manager has complete authority over the project. High level of commitment- The project team has a separate and strong identity, and all members are committed to the project and to each other strongly. Swift decision making- Because the authority is only with the project manager, the capacity to make swift decisions is increased. Simple and flexible- Project-type organizations are structurally flexible and simple, which makes them comparatively easy to implement. Disadvantages of Project type organization Duplication of effort- Each project team is fully staffed, which can result in a duplication of effort in every area from clerical staff to technological support. Cost inefficient - The project organization structure can be cost- inefficient because of underutilization of resources or stockpiling equipment for future use. Stretching out work during slow periods - During slack times, team members may not work at high level of productivity. Low level of knowledge transfer - There is low level of knowledge transfer between projects as employees are committed to working only on one project. Job insecurity - At the completion of a project, the employees may be fired if there is no similar type of project. Examples of project-type organisation Rapid transit projects Construction projects IT projects

Question 3: What is project performance evaluation? Explain the various types of project performance evaluation techniquesANS: Performance evaluation is an important tool for the assessment of a system or service according to the measurements specified. We can define it as the systematic process of assessment of effectiveness against predetermined norms, standards, or expressed goals. The project performance evaluation is important because Evaluations of project performance are an independent study which is systematically conducted from time to time to identify the progress of a project and often these studies are conducted by including both experts from within and outside the project. Evaluation inspects the output of a project, program or policy against its objectives. It also adds the additional value by providing lessons from experience to help future management or development of a specific project, program or policy. It establishes accurately what is to be evaluated and how past outturns can be measured. It chooses the alternative condition of the world and/or alternative management decisions as counterfactuals. It evaluates the actual outcome with the target outcome, and with the effects of the chosen alternative condition of the world and/or management decisions. It provides the results and recommendations. Disseminates the results and recommendations. Types of project performance evaluation and the explanation are 1. Process (or implementation) evaluation It is also called formative evaluations which are designed to improve the implementation of a program, policy or strategy as it unfolds. In this type of evaluation we measure the level to which a program is effective as it was planned. It usually considers the program activities conformance to statutory and regulatory requirements, program design, and professional standards or customer expectations.2. Outcome evaluation It is also called summative evaluations which are designed to judge a program, policy or strategys relevance, success and/or cost-effectiveness which includes its relative contribution to the intended outcomes. This type of evaluation measures the level to which a program attains its outcome-oriented objectives. It mainly focuses on outputs and outcomes including unintended effects to evaluate program effectiveness but may also consider program process to understand how outcomes are produced.3. Impact evaluation This is a type of outcome evaluation that measures the net effect of a program by evaluating program outcomes with an estimate of what would have happened in the absence of the program. This type of evaluation is used when external factors are known to influence the programs outcomes, in order to isolate the programs contribution to achievement of its objectives.4. Cost-benefit and cost-effectiveness analyses It compares a programs outputs or outcomes with the costs (resources expended) in order to produce them. When applied to existing programs, they are also regarded as a variety of program evaluation. It measures the cost of meeting a single goal or objective, and can be used to identify the least cost alternative to meet that goal. This analysis aims to recognize all relevant costs and benefits, generally expressed in dollar terms.Question 4: Discuss the major contents of the projects final reportANS: The purpose of the final project report are The final project report should present project evolution, its success, its management, any outstanding and team recommendation. The final project report is not another evaluation, rather it is the history of the project. It is the chronicle of the life and times of the project, a compendium of what went right and what did not, who served the project in what capacity, what was done to create the substance, and how it was managed.

The suggested contents of a final project report are given below with what it should contain: Evolution of project Narrate the various activities undertaken from project selection, planning, execution, control, and termination phase; problem faced, what went well, what did not, and why.

Overall success of the projectSome typical criteria to measure the overall success of the project are given below: Business objectives: Restate the business objectives as given in the business case including any changes incorporated later. Comment on how far these objectives have been or likely to be met. Project efficiency: State the actual cost, resource, and schedule against the plan.

Closure statement:States the circumstances under which the project is being closed as one of the following: The project has been successfully completed. The project has been terminated prior to the completion. In this case, describe the reason for termination.

Outstanding issues and deliverablesList any issues or key deliverables not yet accepted. For each, give: The nature of the issue and reason of non-acceptance Proposed resolution (include date, person responsible)

Managing of projectsHow the projects different phases were managed? Specifically, comment on the following aspects: Quality of decision making (fact based, timeliness, etc) Use of tools/techniques in selection, planning, and control phase Use of best practices

Lessons learnt and recommendationsA number of insight and innovative methods have been adopted in tackling the various problems. Specifically, the following aspects are to be covered: What worked well and why? Recommend methods, processes, procedures, best practices, and tools which can be gainfully used in the future. Identify the areas where time, money, or resources could have been better utilised.

AcknowledgementAcknowledge all the individuals who have made special contributions to the project.

Question 5: Explain the various types of risk that can affect a business project.ANS:There are various types of risk that can affect business project. While some of these risks can be controlled through a number of options, some of them simply have to be accepted and planned for any project environment. Macro RisksA chance of a loss or injury is called risk. It has two components the systematic risk and unsystematic risk. Systematic risk: A systematic risk cannot be controlled or foreseen in any manner, therefore it is almost impossible to predict or protect the organization or a project against this type of risk. Such a risk affects the entire market. The changes in the economic, political and the sociological conditions affect the security market. These are the factors that cannot be controlled by the organization and investor. The smartest way to tackle this risk is to simply recognize that this type of risk will occur and plan for your project to be affected by it.Example: The stock market is in bear hug or in bull grip. This shows that the whole market is moving in particular direction either downward or upward. Unsystematic risk: Unsystematic risk is sometimes referred to as "specific risk". It is unique and peculiar to a firm or an industry and can usually be eliminated through a process called diversification. Unsystematic risk stems from managerial inefficiency, technological change in the production process, availability of raw material, changes in the consumer preference, and labour problems.Example: The changes in the consumer preference affect the consumer products like TV, washing machines, refrigerators, etc more than that of consumer product industry

Micro RisksAs compared to Macro risks there are micro risk (small scale ) types of risks that are vital when talking about a business. Project risk: Project risk relates to the uncertain events or situations that have the potential to adversely affect a planned project, usually in terms of cost, schedule, and/or product quality. Project risk is a function of two components: likelihood and consequence.

Country risk: Country risk, also referred to as political risk, is an important risk for investors today. With more investors investing internationally, both directly and indirectly, the political and economic stability and viability of a country's economy needs to be considered. Factors affecting country risk are 1) Political climate2) Economic environment3) Financial conditions4) Social institution

Market risk: The price fluctuations or volatility increases and decreases in the day-to- day market. It is defined as that portion of total variability of return caused by the alternating forces of bull and bear market. It is also called as bull market, in bull market, the index moves from a low level to the peak. Bear market is just a reverse to the bull market.

Interest rate risk: Interest rate risk is simply the risk to which an institution is exposed because future interest rates are uncertain. The assets and liabilities of a financial institution have different maturity and liquidity. Financial institutions create assets and at the same time create liabilities. These loans are invested by the financial institutions at a certain rate of interest and similarly interest cost has to be paid to the lenders of deposit. The mismatches of interest rates of the assets and liabilities expose to interest rate risk.

Purchasing power risk: Variations in the returns are caused also by the loss of purchasing power of currency. Inflation is the reason behind the loss of purchasing power. The level of inflation proceeds faster than the increase in capital value. Purchasing power risk is the probable loss in purchasing power of the returns to be received.

Liquidity risks: Liquidity risk is that part of an assets total inconsistency of returns which consequences from price discounts given or sales commissions paid in order to sell the asset without delay. It is a condition wherein it may not be possible to sell the asset. Assets are inclined at great inconvenience and cost in terms of money and time.

Question 6: What are the common features of project management software. ANS: The common features of project management software are as follows Data entry features Project data and calendar Human resources- Labour cost Human resources available Cost of construction materials Activity identifier Activity description Precedence relationship Data entry error Graphics One of the important features of PM software is its ability to generate a variety of charts including network diagram, activity-linked Gantt chart, and Gantt chart quickly. Further, changes in base line plan are quite easy. Time analysis If there is unlimited and flexible resource or if resource can be outsourced, the network may be prepared at the earliest start time of activities. In the real world, many projects are managed on this basis. PM packages carry out time analysis which includes calculation of early start, early finish, late start, and late finish; free slack and total slack with ease. Manually carrying out time analysis is tedious. Resources scheduling Resources scheduling problems are of two types: Resource leveling where unlimited and flexible resources are available Resource allocation problem where resources are limited In resource leveling, activities are scheduled to minimize the variation in level of resource deployment. Resource allocation problem is concerned with scheduling activities in such a way so as to find the shortest project schedule. Output reports Most PM software packages have extensive report generation capabilities. They can generate a range of reports in various forms (graphical, tabular, or textual). The reports are standard or customized. Project schedule Network (based on AON systems), linked Gantt chart, Gantt chart: Work-to list Cost related report Budgeted vs. actual cost (daily and cumulative) Resources utilization report Progress report Overall project, milestone chart, critical path Chart showing responsibility of department/function to carry out particular activities Progress summary report Updating A change to the project parameter, an unexpected increase or decrease in the resource available, changed cost rate, or new target dates. A change in network logic due to change in project scope, design change, etc. To have a new schedule that take into account the progress made to date.

Importing/exporting The process of bringing information into the PM software from other application such as word processing, spread sheet, etc is called importing. Similarly, sending information from PM software to other application is called exporting. The exporting and importing obviates typing/data entry effort and eliminates the possibility of associated error. Project monitoring and tracking Tracking the progress about schedule and cost is an important aspect of project management. Most PM software packages permit the users to define a baseline plan and compare the actual progress with respect to those in the baseline plan. What if analysis This is a useful feature of PM software. This permits to know the effect of changes in project variable (people, cost, and change in scope) on project objective. This analysis helps the project manager in taking an appropriate decision.8 | Page