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APM811S - ADVANCED PROJECT MANAGEMENT - 1ST OPP - JUNE 2024 |
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nAmI BIA unIVERS ITY
OF SCIEnCE Ano TECHnOLOGY
FACULTY OF COMMERCE, HUMAN SCIENCESAND EDUCATION
DEPARTMENT OF GOVERNANCE AND MANAGEMENT SCIENCES
QUALIFICATION: BACHELOROF BUSINESSMANAGEMENT HONOURS
QUALIFICATIONCODE: 08BBMH
LEVEL: 8
COURSECODE:APM811S
COURSENAME: ADVANCED PROJECT
MANAGEMENT
SESSION:JUNE-JULY 2024
DURATION: 3 HOURS
PAPER:THEORY
MARKS: 100
FIRSTOPPORTUNITYEXAMINATION PAPER
EXAMINER(S) Dr VUSUMUZI SIBANDA
MODERATOR: MR. DANIEL KANDJIMI
INSTRUCTIONS
1. There are six questions, answer any FOUR.
2. Read all the questions carefully before answering.
3. Number the answers clearly
PERMISSIBLEMATERIALS
1. Examination question paper
2. Examination answer sheet
3. Calculator
THIS QUESTION PAPERCONSISTSOF _3_ PAGES(Including this front page)
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Question 1
Explain the concept of project life cycle in project management and indicate how each stage
is very important in successful project management.
[25 marks]
Question 2
(a) With the aid of diagrams, compare the functional project structure and the matrix
project structure and demonstrate the strengths or appropriateness of each in
project management.
(15 marks)
(b) Outline any five (5) reasons why projects are started
(5 marks)
(c) State any five (5) reasons why projects are terminated.
(5 marks)
Question 3
A company is considering which of the two mutually exclusive projects it should undertake. The
finance director thinks that the project with the higher NPV should be chosen, whereas the
managing director thinks that the one with the higher IRRshould be undertaken, especially as
both projects have the same initial outlay and length of life. The company anticipates a cost of
capital of 10%, and the net after tax cashflows of the projects are as follows:
Year
0
1
2
3
4
5
Project X (N$)
(200 000)
35 000
80 000
90000
75 000
20 000
Project Y(N$)
(200 000)
218 000
10 000
10 000
4000
3000
Required:
(a) Calculate the NPV and IRRof each project.
{12 marks)
(b) Advise with justification, which project the company must undertake (if either).
(5 marks)
(c) Discussthe advantages and disadvantages of the payback method as a project
investment appraisal technique. Note: you are not required to perform any
calculations for payback.
(8 marks)
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Question 4
A project has activities and duration times in days as shown in the table below:
Activities
A
B
C
D
E
F
G
H
I
J
Required:
Immediate
Predecessor
-
-
-
A
B
C
C
E,F
D
H,G
Optimistic
Time
6
3
4
2
3
4
3
6
5
3
Most Likely
Time
7
5
7
3
4
8
3
6
8
3
Pessimistic
Time
8
7
10
4
11
12
9
12
11
9
(i) Calculate the expected (mean) time for each activity
(5 marks)
(ii) Calculate the variance for each activity
(5 marks)
(iii) Construct the project activity network diagram using either AON or AOA
methodology and indicate the duration (mean time) for each activity. (8 marks)
(iv) Identify the critical path through the network diagram.
(2 marks)
(v) What is the earliest time that the project may be completed?
(3 marks)
(vi) Identify burst activities and merge activities on the network diagram. (2 marks)
Question 5
(a) Define the concept of project risk in project management
(2 marks)
(b) Discussany five (5) categories of risk in project management
{15 marks)
(c) With the aid of appropriate examples, discuss any four (4) risk mitigation strategies
(8 marks)
Question 6
(a) With the aid of appropriate examples, distinguish between the bottom-up and the
top-down methods of estimates in project management
{10 marks)
(b) Outline any five reasons why estimating costs, time and materials is important in
project management.
(5 marks)
(c) Why do some organisations continue with failed projects?
{10 marks)
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