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LMP721C-LEADING AND MANAGING PROJECTS- 1ST OPP-JUNE 2025 |
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nAm I BIA unlVERSITY
OF SCIEnCE Ano TECHn OLOGY
HAROLD PUPKEWITZ GRADUATE SCHOOL OF BUSINESS
SCHOOL OF MANAGEMENT
COURSE CODE: LMP721C
COURSE NAME:
LEADING AND MANAGING PROJECTS
DATE: MAY/JUNE 2025
MODE: FM
DURATION: 3 Hours
MARKS: 100
EXAMINERS:
FIRST OPPORTUNITY EXAMINATION
DR VUSUMUZI SIBANDA
MODERATOR: MS SAARA NAMBINGA
INSTRUCTIONS
1. There are six {6} questions, answer any four (4).
2. Write clearly and neatly.
3. Begin a new Question on a fresh page
4. Number the answers clearly.
PERMISSIBLE MATERIALS
1. Test script
2. Examination script
THIS EXAMINATION CONSISTS OF 6 PAGES (INCLUDING THIS FRONT PAGE}
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Question 1
Absolute Quest (AQ) has had to close down its new entertainment attraction after only six
months due to its inability to attract its forecast number of visitors. The company is keen to
understand more about why this particular attraction failed, in order to learn from its mistakes
and improve on future projects. The chairman of AQ has cited a number of problems that
were experienced throughout the lifecycle of the new Entertainment Attraction Project. An
extract from his report is given below:
• There was a lack of a detailed plan as to the exact content required by the attraction.
• The contract was given to a contractor recommended by the Finance Director and
consequently no research was undertaken on its suitability.
• Throughout the project there had been an unsuitable management structure and a
lack of understanding of the elements of work required to complete the project.
• The targets for the visitor numbers were highly ambitious.
• There had been a major failure to establish sufficiently robust financial management.
The cost of the building and its content was 10% over the original budget. AQ believes
that this is due to a combination of poor cost estimates originally and poor financial
control throughout the project.
• Throughout the project there appeared to be an enormous amount of conflict
between the various project stakeholders which made it difficult to manage the
timeframe. The project manager spent so much time managing this conflict that
project meetings were regularly cancelled.
No one in AQ appears to be committed to undertaking post-completion reviews.
The chairman understands that there are a number of project management frameworks that
would help in identifying the different issues of project management that need to be
considered in order to effectively manage a project and deliver the desired outcomes.
(a) Describe, with reference to the stages in the project lifecycle, the steps that could have
been taken to avoid the problems being experienced in the new Entertainment
Attraction Project, as highlighted in the scenario.
(15 marks)
(b) Identify and explain specific issues that a feasibility study would have helped with in
making AQ Project a success.
(10 marks)
Question 2
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 IRR should 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:
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Year
0
1
2
3
4
5
Required:
Project X (N$)
200 000
35 000
80 000
90000
75 000
20 000
Project Y(N$)
200 000
218 000
10000
10 000
4 000
3 000
(a) Calculatethe NPV and IRRof each project.
(12 marks)
(b) Advise with justification, which project the company must undertake (if either).
(5 marks)
(c) Discussthe advantagesand disadvantagesof the payback method as a project
investment appraisal technique.
(8 marks)
Question 3
An advertising project manager has developed a programme for a new advertising
campaign. In addition, the manager has gathered the time information in weeks for
each activity as shown in the following table:
Activity
A
B
C
D
E
F
G
Predecessor(s)
-
-
B
A
A,C
B
D, E, F
Optimistic
1
2
3
6
4
6
2
Most Likely
4
6
3
13
6
8
5
Pessimistic
7
10
9
14
14
16
8
(a) Calculate the expected mean time (duration) for each activity (round to
the nearest integer).
(3.5 marks)
(b) Calculate the variance for each activity.
(3.5 marks)
(c) Develop a network diagram for the project using the AON notation and
fully label all nodes in the network.
(7 marks)
(d) Compute and develop a summary table of each activity's ES,EF, LS,LFand
Slack times.
(7 marks)
(e) Identify the critical and indicate the earliest time for finishing the project.
(2 marks)
(f) Given the activity variances, what is the likelihood of the project finishing
on week 24?
(2 marks)
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Question 4
Case Study: SunVille Solar Park Project
EcoPower Inc. is a fictional energy company that specializes in renewable energy projects. The
company has recently acquired a vast stretch of land in SunVille, a small town known for its
sunny weather throughout the year. EcoPower's ambitious project aims to transform this land
into one of the region's most extensive solar parks, which could potentially power the entire
SunVille town and its neighboring areas.
The SunVille Solar Park promises significant environmental benefits by reducing the region's
reliance on fossil fuels. However, the project's scale means that a large portion of the acquired
land, currently used for agriculture, will have to be repurposed. This transition will
undoubtedly impact the local community, which primarily depends on farming.
While the local government is generally supportive of renewable energy initiatives, they're
also concerned about the potential job losses in the agricultural sector and the change in the
town's rural character. At the same time, environmentalists, although supportive of green
energy, worry about the local flora and fauna being affected by such a large-scale installation.
EcoPower's investors are enthusiastic about the project's potential returns, given the
increasing global emphasis on clean energy. However, they also emphasize the importance of
smooth execution without significant delays, as such setbacks could affect projected returns.
Local businesses, especially those in the hospitality sector, see an opportunity. They believe
that the solar park, if designed innovatively, could attract eco-tourists, leading to increased
business.
Residents are divided. While some are excited about SunVille potentially becoming a
landmark for clean energy, others, especially farmers, are anxious about their future. To
navigate this complex scenario, EcoPower decides to create a Stakeholder Power/Interest
Grid.
Questions:
(a) Identify up to ten (10) relevant stakeholders in the above project.
(5 marks)
(b) Using the identified stakeholders above, plot each stakeholder on the properly
labelled Power/Interest Grid and indicate how each class/group of stakeholders must
be managed.
(10 marks)
(c) Develop an appropriate communication plan for the stakeholder categories mapped
on the Power Interest Grid
(10 marks)
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Question 5
You are the project manager for an event planning company that has been contracted to
organize an international conference for a client in the tech industry. The scope of the project
includes arranging the venue, organizing travel and accommodation for international guests,
coordinating speakers, and managing the event's promotional activities. The budget provided
by the client is N$500,000, and the event should be ready to kick off in six months.
Due to the pandemic, international travel has become uncertain. You have identified this as
a significant project risk that could impact the overall success of the event. Meanwhile, your
client insists that a virtual conference would not provide the same networking opportunities
and requests you to proceed with the plan.
Midway through the project, it becomes apparent that due to the increasing number of
COVID-19 cases, international travel restrictions are being imposed again. Now, the
uncertainty has turned into a reality, and the project faces a considerable challenge.
Answer the following questions:
(i) Given the constraints of the project, how would you adjust your management
approach in response to this alteration?
(4 marks)
(ii) What would be your next steps in discussing this issue with your client?
(3 marks)
(iii)
How would you reassessthe project risks given this change?
(3 marks)
(iv)
How might this scenario impact the other project constraints such as
scope, cost, schedule, quality, and resources?
(10 marks)
(v) What alternative solutions can you propose to the client to ensure project success in
the current situation?
(5 marks)
Question 6
(a) Demonstrate the relevance of the Five Stage Development Model in project team
development.
(15 marks)
(b) Discuss any factors that need to be considered into the project team recruitment
process.
(5 marks)
+++ END OF EXAMINATION+++
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Appendix A: Z Score Table
... STA! NDARNDORMADLISTRIBUTIOTNable VaIuesReoresenAt REAtothe LEFTof the Zscore.
z .00
.01
.02
.03
.04
.05
.06
.07
.08
,09
0.0 .50000 .50399 .50798 .Sl197 .51595 .51994 .52392 .52790 .53188 .53586
0.1 .53983 .54380 .54776 .55172 .55567 .55962 .56356 .56749 .57142 .57535
0.2 .57926 .58317 .58706 .59095 .59483 .59871 .60257 .60642 .61026 .61409
0.3 .61791 .62172 .62552 .62930 .63307 .63683 .64058 .64431 .64803 .65173
0.4 .65542 .65910 .66276 .66640 .67003 .67364 .67724 .68082 .68439 .68793
0,5 .69146 .69497 .69847 .70194 .70540 .70884 .71226 .71566 .71904 .72240
0,6 .72575 .72907 .73237 .73565 .73891 .74215 .74537 .74857 .75175 .75490
0,7 .75804 .76115 .76424 .76730 .77035 .77337 .77637 .77935 .78230 .78524
0,8 .78814 .79103 .79389 .79673 .79955 .80234 .80511 .80785 .81057 .81327
0,9 .81594 .81859 .82121 .82381 .82639 .82894 .83147 .83398 .83646 .83891
1,0 .84134 .84375 .84614 .84849 .85083 .85314 .85543 .85769 .85993 .86214
I.I .86433 .86650 .86864 .87076 .87286 .87493 .87698 .87900 .88100 .88298
1.2 .88493 .88686 .88877 .89065 .89251 .89435 .89617 .89796 .89973 .90147
1.3 .90320 .90490 .90658 .90824 .90988 .91149 .91309 .91466 .91621 .91774
1.4 .91924 .92073 .92220 .92364 .92507 .92647 .92785 .92922 .93056 .93189
1.5 .93319 .93448 .93574 .93699 .93822 .93943 .94062 .94179 .94295 .94408
1.6 .94520 .94630 .94738 .94845 .94950 .95053 .95154 .95254 ,95352 .95449
1.7 .95543 .95637 .95728 .95818 .95907 .95994 .96080 .96164 .96246 .96327
1.8 .96407 .96485 .96562 .96638 .96712 .96784 .96856 .96926 .96995 .97062
1.9 .97128 .97193 .97257 .97320 .97381 .97441 .97500 .97558 .97615 .97670
2.0 .97725 .97778 .97831 .97882 .97932 .97982 .98030 .98077 .98124 .98169
2.1 ,98214 .98257 .98300 .98341 ,98382 .98422 .98461 .98500 .98537 .98574
2,2 .98610 .98645 .98679 .98713 .98745 .98778 .98809 .98840 .98870 .98899
2.3 .98928 .98956 .98983 .99010 .99036 .99061 .99086 .99111 .99134 .99158
2.4 .99180 .99202 .99224 .99245 .99266 .99286 .99305 .99324 .99343 .99361
2.5 .99379 .99396 .99413 .99430 .99446 .99461 .99477 .99492 .99506 .99520
2.6 .99534 .99547 .99560 .99573 .99585 .99598 .99609 .99621 .99632 .99643
2.7 .99653 .99664 .99674 .99683 .99693 .99702 .99711 .99720 .99728 .99736
2.8 .99744 .99752 .99760 .99767 ,99774 .99781 .99788 .99795 .99801 .99807
2.9 .99813 .99819 .99825 .99831 .99836 .99841 .99846 .99851 .99856 .99861
3.0 .99865 .99869 .99874 .99878 .99882 .99886 .99889 .99893 .99896 .99900
3.1 .99903 .99906 .99910 .99913 .99916 .99918 .99921 .99924 .99926 .99929
3.2 .99931 .99934 .99936 .99938 .99940 .99942 .99944 .99946 .99948 .99950
3.3 .99952 .99953 .99955 .99957 .99958 .99960 .99961 .99962 .99964 .99965
3.4 .99966 .99968 .99969 .99970 .99971 .99972 .99973 .99974 .99975 .99976
3.5 .99977 .99978 .99978 .99979 .99980 .99981 ,99981 .99982 .99983 .99983
3.6 .99984 .99985 .99985 .99986 .99986 .99987 .99987 .99988 .99988 .99989
3.7 .99989 .99990 .99990 .99990 .99991 .99991 .99992 .99992 .99992 .99992
3.8 .99993 .99993 .99993 .99994 .99994 .99994 .99994 .99995 .99995 .99995
3.9 .99995 .99995 .99996 .99996 .99996 .99996 .99996 .99996 .99997 .99997