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Master of Business Administration- MBA Semester 4
PM0015-Quantitaive Methods in Project Management
(Book ID: B2011)
Assignment (60 Marks)
Note: Answer all questions must be written within 300 to 400 words each.
Each Question carries 10 marks 6 X 10=60.
Q1. Explain Business Value Models in detail.
Balanced scorecard model
The Treacy-Wiersema model
The Kano model
Answer. The following business models in detail in the following section:
Balanced scorecard model:
The balanced scorecard model defines four scoring areas for business value and was
first published by Robert S. Kaplan and David P. Norton in an article, The Balanced
Scorecard Measures that Drive Performance.

Q2. What is parametric estimating? Explain the steps involved in the

development of a parametric model.
Answer. Parametric estimating:
Parametric estimating is an estimating technique that uses a statistical relationship
between historical data and other variables, such as square footage in construction
and lines of code in software development for calculating an estimate for activity
parameters, such as scope, cost, budget, and duration. Parametric estimating can
produce higher levels of accuracy depending upon the accuracy and sophistication of
the underlying data.

Q3. 1. What aspects of capital budgeting must be considered while selecting

a project?
2. Suppose an investment requires an initial outlay of $5 million and has
expected the cash flow of $1 million, $3.5 million, and $2 million for the first
three years.
a. Calculate:
The net present value using a 10% required rate of return
Profitability Index using a 10% required rate of return
b. Also suggest if the project must be accepted.
Answer. 1. 4 aspects of capital budgeting that must be considered while
selecting a project:
An organisation needs to consider the following aspects of capital budgeting while
selecting a project:
Growth of the organisation: This implies that a project should be selected after
considering the overall profit and market share of the organisation. An incorrect
decision regarding project selection can affect the profitability of the organisation. The
growth of the organisation can only be ensured if it invests in appropriate projects.

Q4. Explain the various expense items in a project.

(List the various expense items in a project
Describe each expense with suitable examples 9 (3 marks for each expense item)
Answer. List the various expense items in a project:
Direct and indirect costs
Variable and fixed costs
Actual and standard costs
Direct and indirect costs
Direct costs are expenses that directly affect the budget of a project. Expenses that
are for the express benefit of the project, and would not be incurred if not for the
project, are usually called "direct expenses." In other words, direct costs can be
identified with specific project activities with high levels of accuracy. For example, if a
project organization outsources some of its system development works, the

Q5. 1. Determine the average amount of bricks laid over a six-month period
by 1 bricklayer. Collected information on the amount of bricks laid per
month:

January 21,000
February 23,500
March 22,000
April 24,000
May 26,000
June 25,000
2. Consider the sales figures of the Bricklayer Company over the period of 6
months, as shown in the table:
Month No of Sales
January 20
February 20
March 16
April 20
May 21
June 27
Determine the average amount of bricks laid over a six-month period by 1 bricklayer.
Consider the sales figures of the Bricklayer.
Answer.

Q6. What are the steps that should be followed to construct a house of
quality?
(Explain the 5 steps that should be followed to construct a house of quality)
Answer. 5 steps that should be followed to construct a house of quality:
1. Voice of the customer: This step includes determining and identifying the
customers needs. The main objective of this step is to translate the needs of
every customer into engineering specifications. Customers buy products that
have the desired characteristics, and manufacturers offer the desired
characteristics. There should be a proper alignment between the needs of the
customers and the offerings

Spring-2016

Get solved assignments at nominal price of Rs.125

each.
Mail us at: subjects4u@gmail.com or contact at
09882243490