2016

Ans.1(a)
Project management is the application of processes, methods, skills, knowledge and
experience to achieve specific project objectives according to the project acceptance
criteria within agreed parameters. Project management has final deliverables that are
constrained to a finite timescale and budget.
A key factor that distinguishes project management from just 'management' is that it has this
final deliverable and a finite timespan, unlike management which is an ongoing process.
Because of this a project professional needs a wide range of skills; often technical skills, and
certainly people management skills and good business awareness.

Ans.1(b)

What is a prefeasibility study?

A prefeasibility study (PFS) is an early stage analysis of a potential mining project.

These studies are conducted by a small team and are designed to give company
stakeholders the basic information they need to greenlight a project or choose
between potential investments. They typically give an overview of a mining
project’s logistics, capital requirements, key challenges and other information
deemed important to the decision-making process, such as whether the
operation will be open pit or underground.

What comes before a prefeasibility study?

Prefeasibility studies are usually preceded by sufficient mineral exploration

work, including drilling, to inform a mineral resource report, a potential model of
the orebody and a scoping study.

Ans.1(c)

Key Differences between Systematic Risk and Unsystematic Risk

1. Systematic risk affects the entire market or economy, while unsystematic risk is
specific to a particular industry, sector, or company.
2. Systematic risk arises from external factors beyond an investor's control,
whereas unsystematic risk arises from internal factors specific to a company or
sector.
3. Systematic risk cannot be eliminated through diversification, while
unsystematic risk can be reduced or eliminated through diversification.
4. Examples of systematic risk include inflation, recession, or interest rate risk,
while unsystematic risk examples include management issues or product
recalls.
5. Prudent investment decisions cannot eliminate systematic risk, but
unsystematic risk can be mitigated through careful analysis and research.
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6. Systematic risk is often referred to as market risk, while unsystematic risk is
also known as idiosyncratic risk.
7. Diversification does not lower the impact of systematic risk, whereas
diversification helps reduce the impact of unsystematic risk.
8. Systematic risk is typically measured by the beta coefficient, while
unsystematic risk is measured by the alpha coefficient.
9. Systematic risk impacts the entire portfolio, while unsystematic risk only
impacts specific investments within a portfolio.
10. Systematic risk can lead to losses in both bull and bear markets, whereas
unsystematic risk mostly affects investments during unfavorable conditions.

Ans.1(d)

What Is Work Breakdown Structure in Project Management?

Work breakdown structure (WBS) in project management is a method for completing a

complex, multi-step project. It's a way to divide and conquer large projects to get

things done faster and more efficiently.

In this FAQ article, we’ll go over what a WBS is in project management, how to create

a WBS and what characteristics are important, as well as thorough examples of WBS

on which you can base your own WBS.

In Wrike, you can build a WBS quickly and easily by creating folders and subfolders

and can go further to divide individual tasks into subtasks. Or, simply use our pre-

built WBS template that will help you jumpstart the WBS process.

How to create a work breakdown structure

Before you create a work breakdown structure, it's essential to first assess the project

scope by talking to all stakeholders and key team members involved.

As the project manager, you want to ensure that all critical input and deliverables are

gathered and transparently prioritized. You may use Gantt charts, flow charts,
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spreadsheets, or lists to show the hierarchical outline of importance and connectivity

between the tasks needed to complete the project.

After outlining the deliverables and tasks in order of completion, you can then assign

each task to a project team member. Ensure no team member carries the majority of

the project's weight by spreading duties and responsibilities across the team.

Ans.1(e)
A Gantt chart is a project management tool assisting in the planning and scheduling of
projects of all sizes; they are particularly useful for visualising projects. A Gantt chart is
defined as a graphical representation of activity against time; it helps project professionals
monitor progress.
Gantt charts are essentially task scheduling tools: project management timelines and tasks are
converted into horizontal bars (also called Gantt bars) to form a bar chart. These Gantt bars
show start and end dates, as well as dependencies, scheduling and deadlines, including how
much of the task is completed per stage and who is the task owner. Gantt charts show planned
activity against time; they are frequently used throughout projects, programmes and
portfolios after tasks have been identified using a work breakdown structure.
A timeline, like the Gantt chart is useful to keep tasks on track when there is a large team and
multiple stakeholders. They are a useful time management and progress tracking tool – you
can also use Gantt charts to find the longest path from project start to project completion
which is known as the critical path.

As it's a bar chart format, it’s possible to check progress with a quick glance. You can easily
see:
 a visual display of the whole project
 timelines and deadlines of all tasks
 relationships and dependencies between the various activities
 project phases

Project management solutions that integrate Gantt charts give project managers insights into
team workloads, as well as current and future availability, which allows for more accurate
scheduling. Gantt charts have been around for nearly a century, having been invented by
Henry Gantt, an American mechanical engineer, around 1910.

Ans.2(a)

Characteristics of project management:

Objectives oriented: Project management is focused on achieving specific project

objectives with customer satisfaction. It is results-oriented.
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Change oriented: Project management is a vehicle for planning and managing
change in an organized manner. It adopts flexibility in doing things in a risky
environment.

Single Responsibility Center: The project manager is the single responsibility

center accountable for project outcomes. The role of project manager is crucial
from inception to completion of the project. He is a project leader and champion.
He motivates team members to excel.

Team-based: Project management consists of a multi-disciplinary project team

with a wide range of skill and experiences. The team has project dedication. Each
member has responsibility and accountability for a unit of work. Self-management
is emphasized. So is member participation. The team membership is flexible and
changes with project needs.

Functional Coordination: Project management requires coordination along

functional lines. The work flow is both vertical and horizontal in a matrix
organization structure.

Planning and Control: Project management required integrated planning and

control systems for continuous improvement.

Constraints: Project management achieves results within the constraints of time,

cost and quality. It is a time and resources limited activity. It is focused on
customer needs.

Ans.2(b)

Here are some significant reasons that will convince you about the importance of project
planning.

Effective project planning enables you to:

 Establish achievable goals

 Define a crystal-clear project workflow
 Set clear roles and responsibilities
 Define task priorities and dependencies
 Monitor project progress accurately
 Manage project risks
 Allow team members to communicate seamlessly
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Ans.3 DONE

Ans.4(a)

There are three broad categories of projects to consider: Strategic Projects, Operational
Projects, and Compliance Projects (Figure 1.1).

 Strategic Projects involve creating something new and innovative. A new product, a
new service, a new retail location, a new branch or division, or even a new factory
might be a strategic project because it will allow an organization to gain a strategic
advantage over its competitors.
 Operational Projects improve current operations. These projects may not produce
radical improvements, but they will reduce costs, get work done more efficiently, or
produce a higher-quality product.
 Compliance Projects must be done in order to comply with an industry or
governmental regulation or standard. Often there is no choice about whether to
implement a project to meet a regulation, but there may be several project options to
consider, any of which would result in meeting compliance requirements.