NMIMS APRIL 2020 ASSIGNMENT PROJECT MANAGEMENT

PROJECT MANAGEMENT

1. Create a RACI chart for Our Software Project as per the WBS is shown below, for the project management roles of project sponsor, project manager, customer, business analyst and software developer.

2. You are a project manager with Striker Projects Pvt. Ltd. As the project manager, you need to evaluate two projects and make a recommendation to management for the selection of a suitable project. Both the projects entail an initial investment of 5,00,000. Projected cash inflows for the Project o are 1,50,000 in year 1 1,60,000 in year 2 1,70,000 in year 3, and 1,65,000 in year 4. Projected cash inflows for the Project &ldquoStylish&rdquo are 1,40,000 in year 1 1,40,000 in year 2 1,40,000 in year 3, 1,25,000 in year 4 and 1,22,000 in year 5. The required rate of return is 10%. The present value of 1 at 10% is 0.909 for year 1, 0.826 for year 2, 0.751 for year 3, 0.683 for year 4, and 0.621 for year 5. Calculate Net Present Value NPV, Internal Rate of Return IRR and Profitability Index PI for both the projects. Compare and contrast NPV, IRR and PI values of projects and recommend a suitable project for investment to the management.

3. A project &ldquoSuprio&rdquo comprises of 9 activities of varying durations and dependence on previous activities. These activities, along with their precedent relationships, and their 3-point estimates of optimistic, most likely and pessimistic duration are given in the table below.

Project Activity

Precedent Activity

Activity Duration Days

Optimistic

Most Likely

Pessimistic

a. Draw the network diagram of project &ldquoSuprio&rdquo and also determine the critical path for the completion of project &ldquoSuprio&rdquo.

b. Calculate the expected time of completion of project-based upon the 3-point estimates. What is the probability that project &ldquoSuprio&rdquo would be completed within 37 days.