This ebook contains suggested answers

to four example PMQ/APMP exam

papers published by APM, starting with
the latest 2020 paper based on the APM
Body of Knowledge version 7.
Question 1

Part (a) Explain two stages in the risk management process.

Part (b) Explain three key benefits of risk management for projects.
Answer (a)
1) Identify. The reason for this stage is to identify as many potential
project risks as possible, both upside and downside. If any possible risk
events have not been identified then no allowance will have been made for
them in the project budget and schedule. Failure to identify significant
downside risks can be catastrophic whilst failure to identify upside risks
could mean lost opportunities.
2) Assess. The purpose of Risk Assessment is to identify the potential
effect on the project of each of the identified risks. By assessing the
potential impact of each risk and factoring in the probability of it occurring
then a judgement can be made as to the response to each risk.
Answer (b)
1)More realistic plans. The work involved in carrying out risk management
leads to a greater understanding of the project by the project team. This in
turn leads to more realistic and robust plans and thus a greater probability
of project success.
2)Less surprises. Unplanned for risk events can cause severe damage to a
project far beyond their effect if they had been identified and mitigated.
Good risk management reduces the probability of surprises. It can also
mean that upside opportunities are lost
3)High Risk Projects. Sometimes the risk management process will
identify potential risks that threaten not just the project but the entire
organisation, risks that are not possible to mitigate or are too costly.
Proper risk management will prevent or discourage such projects.

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Question 2
Part (a) Describe two benefits of having an embedded project
management office.
Part (b) Explain three differences between the Functional and Matrix
types of organisational structure.
Answer (a)
1)Standardisation. The embedded PMO will set standards for documents,
policies and procedures which are mandatory for all projects, and will
ensure compliance. This improves project performance by removing the
constant need to reinvent the wheel. It also makes it easier for people to
move between projects.
2)Alignment with corporate goals. In large organisations it is often easy for
projects to arise which do not contribute to the overall corporate strategy
and aims. Some projects, even though locally beneficial, may damage
corporate goals. By having a strategic role and a responsibility for
approving all projects the PMO will prevent this.
Answer(b)
1)Project management power. In a functional structure the project manager
is usually subservient to his functional manager. All major decisions are
taken by the functional manager. The project manager can be little more
than a coordinator. In a matrix organisation the project usually spans
several functions and the project manager typically reports into a level
above functional managers and thus has far more power.
2) Staff availability. In a functional structure all or most of the project staff
will belong to the function. Some will be full time and some part time. In
this situation staff can easily be pulled of the project without notice against
the wish of the project manager. In a matrix organisation the staff will
come from all over the organisation and away from the influence of their
parent function.

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3)Functional conflicts. A matrix organisation is usually employed when a
project covers several functions. This can give rise to disagreement
between the functions which the project manager has to resolve. In a
functional structure this situation cannot occur.

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Question 3
Part (a) Explain two elements of a procurement strategy and why
these are important.
Part (b) Explain three steps in the supplier selection process for a
project.
Answer (a)
1)Make or Buy. Organisations often have “in house” capability for all or
part of a project so there needs to be a decision on make or buy. When
calculating the cost of each option care must be taken to ensure that all cost
both direct and indirect are taken into account and also the overall effect of
the decision on the organisation e.g. would a decision to make have a
knock on effect on other projects which may require the same resources.
Would a decision to buy put in house facilities at risk?
2)Contract Type. Often in Procurement there is a choice between agreeing
a fixed price for a contract or paying for time and materials consumed. A
fixed price gives certainty and hence has less risk for the buyer, but T&M
could turn out to be cheaper. However if the contract proved more difficult
than first thought there is no limit to the cost thus T&M is riskier for the
buyer.
Answer(b)
1)Define the requirements. The requirements are documented in the
“Invitation to Tender” (ITT). This will detail the requirements in enough
detail for a potential supplier to plan and cost the requirement. The format
of the response will be specified by the buyer so as to facilitate easier
comparison of rival bids
2)Issue Invitation to Tender. The ITT is made available to anyone and
there is a response deadline. It is a mandatory requirement that the
tendering process must be seen to be open and fair to all potential bidders.
This requires that all bidders must be given exactly the same information

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on which to base their bid. Information given to one must be given to all.
Even with well-prepared bid documents there will be ambiguities and
differences in interpretation. Any such problems can be addressed at a
Bidders Conference where all potential suppliers can attend and ask
questions. If this is impractical the conference could be web based.
3)Evaluate responses. Buyers must have a selection process which is
objective and not subject to personal prejudice. Such a method will also
help to demonstrate that the selection process has been fair and transparent.
A common way of doing this is by using a weighting system. The buyer
develops a list of factors such as cost, financial status and track record.
Each factor is then given a weighting based on its importance then each
bidder is scored, and a total score obtained. The top scorers will constitute
the short list.

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Question 4 part a. In an iterative life cycle, explain two components of
the project management plan that need to be taken into account when
arriving at the deployment baseline.
Because not all requirements are detailed up front, detailed project
planning as carried out in a linear life cycle is not possible. There will be a
time box created so the first component to consider is the duration of the
time box. This will be an arbitrary value. It should be long enough to
create some usable functionality.
The second consideration is the amount of resources to deploy. This will
then allow for planning what functionality will be deliver by the time box.
Once these are decided then a baseline resource schedule can be created
and a baseline budget determined
part (b) Explain three different methods of estimation in projects.
Choose three from the following: Parametric, Analogous , Analytical and
Delphi
1 Analytical
Also called bottom up, this method is based on the WBS. All the individual
lower level tasks in the WBS are estimated independently and then rolled
up to produce the project estimates. This is a laborious method and its
accuracy is dependent on having a correct WBS. However it is the most
accurate way of estimating. It is sometimes known as the definitive
estimate.
2 Analogous Estimating
This is also called Top Down or Historic estimating. It simply involves
using experience from similar projects carried out in the past. It takes the
overall costs and timescales for similar projects and adjusts them for size
and complexity. The danger is that previous projects may have been
inefficient and/or badly managed. Comparative estimating can also be used
at task level to support bottom up.

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3 Parametric Estimating
Parametric estimating uses a mathematical model or formulae to produce
project estimates based on input parameters. It is usually based on
historical data. Simple examples are square metres in construction and
lines of code in software development. Quantity Surveyors make extensive
use of parametric estimating.

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Question 5
part (a) State four sources of conflict within a project.
part (b) Explain three benefits of a communication plan to a project.
Answer(a)
1. misunderstandings arising from unspoken assumptions and
miscommunication
2. personal antagonisms due to such things as stress, fear, jealousy,
culture or different value systems
3. people trying to exert power or impose their views
4. uncertainty and insecurity within the project team

Answer(b)
1. It defines the frequency and form of communication so as to keep
team members informed of what they need to know at the
appropriate times. It will ensure that everyone will receive the
same, accurate, timely information thus helping to avoid mistakes
and delays.

2. It ensures that all relevant information flows between stakeholders

are identified and channels of communication established. This will
greatly enhance the process of managing key stakeholders

3. Good information flow is an essential requirement for efficient

project monitoring and control. Well planned communications will
enable information for decision making to be available in a timely
fashion.

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Question 6
part (a) Explain two reasons why projects are structured in phases in a
linear project life cycle.
Question part (b) Explain three differences between linear and
iterative life cycles.
Answer(a)
1. Trying to plan an entire project in detail up front is not always
possible. Breaking the project down into smaller phases that are
more manageable in terms of time, cost and specification means
that each phase can be planned and managed as if it were a separate
project
2. Breaking the project into phases allows for the provision of gate
reviews between phases which provides greater management
control and reduces risk

Answer(b)
1. In a linear life cycle all requirements are determined up front. In an
iterative life cycle requirements are determined for only the next
iteration.
2. In a linear life cycle the requirements are the starting point for
determining project schedule and resource requirements. In an
iterative life cycle a timebox is specified which limits the number
of requirement that can be satisfied.
3. In a linear life cycle there is usually no usable product until project
completion whereas for iterative projects each iteration produces
usable product

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Question 7
part (a) Describe two elements that need to be considered when
allocating resources to a project schedule following a linear life cycle.
part (b) Explain three key differences between resource smoothing
and resource levelling.
Answer(a)
1. Human resource requirements. Each project task has different
human resource requirements. Some require 1 or more people with
similar skills others require a variety of skills, some all the time and
some part of the time. The resource requirements will be dictated
by the desired project end date but may be constrained by resource
availability and budget.

2. Resource Availability. Tasks normally need more than just human

resources. These include raw materials, consumable items,
equipment and facilities. Plans must be put in place to ensure these
resources are available when required, especially those with long
lead times.

Answer(b)
1. Resource smoothing is time constrained. It tries to even out
resource usage by utilising float. Resource levelling is driven by
resource constraints at the expense of time.

2. Resource smoothing only affects non-critical activities whilst

levelling will affect the critical path

3. Resource smoothing cannot fully address the situation where

resource requirements exceed availability whilst levelling can.

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Question 8. part (a) Explain two key differences between projects and
business as usual.
1.Projects are Unique. When doing a project, we create something that
did not previously exist. Some projects are totally different whist others
may contain some elements similar to previous projects. Business-as-Usual
usually involves the ongoing provision of specified products or services on
a Repetitive basis.
2.Projects are Temporary. They are endeavours that are Finite or
Timebound. They have a start point and an end point. When the objectives
are met, the project terminates. Busines-as-Usual is an ongoing process
that continues indefinitely.
part (b) Provide one explanation for how project professionals can
assess project context against each of PESTLE, SWOT and VUCA
1.PESTLE is simply a tool for providing some structure to the analysis of
project context. Brainstorming sessions can be made more efficient by
breaking the discussion of context into sections i.e Political- Economic-
Sociological-Technological-Legal-Environmental.
2.SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
SWOT analyses are best carried out by “Brainstorming” using members of
the project team and appropriate stakeholders. SWOT analysis can be
carried out to analyse project context at any level of detail ranging from a
whole organisation to a sub-project or product.
3.VUCA stands for Volatile, Uncertain, Complex and Ambiguous.
Volatility is about the speed of change of project context. Uncertainty is
about our ability to predict the future. Complexity refers to the number
and variety of things we need to consider. Ambiguity refers to things that
we are not sure about
Quantifying all these features will allow an understanding of the overall
risks and uncertainties within. the project context

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 Question 9
Part (a) Describe two characteristics of an effective team.
part (b) Explain three reasons why it might be necessary to change
leadership styles to ensure effective management during a project.
Answer(a)
1. Morale. Team morale and motivation is high. The team works
together, and everyone participates actively team members trust,
help and support each other even to their own detriment.

2. Goals. Both team and individual goals are fully understood and
accepted by all team members. The goals are realistic and attainable
and team members are focused achieving them. All team members
understand how their contribution impacts the project goals

Answer(b)
1. In a crisis it may be necessary to adopt a very Direct or Telling
approach where people are just what to do without argument or
discussion and no dissent is allowed.

2. In a situation where the leader is not quite sure what is the best
thing to do then a more Democratic approach may be appropriate
where the leader encourages discussion and a team consensus is
arrived at.

3. If the team is highly skilled and motivated then a more Delegating

approach may be appropriate where the leader sets the tasks then
steps a back and allows them to get on with it with minimal
interference.

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Question 10
Part(a) Select two phases of the project life cycle and explain how the
roles of project manager and project sponsor differ during those two
phases.
1) Concept Phase. In this phase the Sponsor takes the leading. The
sponsor owns the project and is responsible for producing the Business
Case with which to justify the project and obtain the required approvals
and funding. There may not even be a project manager appointed until the
project is approved but if one is present the role to assist in producing the
Business Case and use his expertise to influence the content
2)Execution Phase. During this phase, the Sponsor has delegated full
authority to the project manager. The project manager leads the project
team and decides which problems and decisions are escalated to the
Sponsor who will continue to monitor the project and support the project
manager when necessary. The Sponsor will continue to chair the project
steering committee and gate reviews

Part(b) Select three of the project roles below and describe their
responsibilities throughout the project: Users, Project team members,
Project steering group and Product owner
1)Users. The users will be heavily involved up front in specifying the
requirements and at the same time agreeing acceptance tests. They will be
involved throughout Design and Implementation as requirements evolve
and change. Prior to Handover they will conduct acceptance tests and
eventually accept the system.
2)Project Team Members. Project team members will initially work with
users to define requirements and develop acceptance tests and also to assist
the project manager in developing the project plan. Once the plan has been
agreed their prime responsibility is to execute the work packages assigned
to them by their project manager or team leader.

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3)Project Steering Group. The Steering Group oversees the project from
initiation to benefits realisation under the chairmanship of the Project
Sponsor. The PM will formally report to the Steering Group at regular
intervals and at “Gate” reviews. It supports the Project Manager
throughout the project especially with regard to Issues that have been
escalated to them by the project manager.

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Question 11
Part (a) Explain two steps in a configuration management process that
help to manage the scope of a project.
1)Configuration Identification
This involves breaking down the project into individual configuration
items and creating a unique numbering system. The Product Breakdown
Structure forms the basis of the configuration, but the configuration also
includes all documents relating to the products such as requirements,
specifications, designs and plans. Identification of all the individual
configuration items effectively defines the project scope.
2)Configuration Control
During the project, the configuration will grow as the product is being
developed and modified through formal change control. Thus project
scope will continue to be controlled. Configuration control maintains
version control of all configuration items giving a full audit trail from
initial requirements to finished product
part (b) Explain three steps in a requirements management process
that help to establish the scope of a project
1)Capture
Requirements are captured mainly by interviewing relevant stakeholders
especially end users. It is necessary to gain a wide spectrum of opinions to
make sure that all possible requirements are captured. The totality of
requirements is the basis for establishing project scope
2) Analysis
The gathered requirements must be tested for feasibility, validity,
compatibility, acceptability, applicability and consistency. It is often found
that some of the requirements of different stakeholders are mutually
exclusive or are very difficult to provide. All such issues must be cleared

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before finalising the requirements. If necessary the Sponsor must act as
referee. This process will establish the total desired scope.
3) Prioritise
It is often not possible to include all the requirements into time and budget
constraints. It is therefore usual to prioritise the requirements and exclude
some of them from the initial project scope. Here again the Sponsor may
have to referee. This process further refines the scope and determines the
scope of requirements that form the initial project baseline.

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Question 12 part (a) Explain how understanding BATNA and ZOPA
can help plan and conduct negotiations.
BATNA is an acronym that stands for Best Alternative To a
Negotiated Agreement. It represents the best course of action that a
negotiating party can take if negotiations fail to reach an agreement. It is
the fallback plan if negotiations are unsuccessful. It is vital that a fall back
plan is in place because if there is no acceptable plan then you may have to
accept an unsatisfactory agreement
ZOPA stands for the Zone of Potential Agreement. Each of the negotiating
parties should have established a firm “Walk Away Point” i.e. No Deal.
The ZOPA will be the overlap between the two walk away points. If there
is no overlap then no agreement can be reached and each party must adopt
their BATNA.
part (b) Explain three ways in which conflicts can be addressed
1 Forcing (or Competing)In this situation one party to the conflict has
authority over the other and has imposed their preferred solution. From the
point of view of the winner the problem has been solved, but at the
expense of the relationship. This is a win-lose situation. Often used When
quick decisive action is vital; (e.g. in emergencies) or on important issues
where unpopular actions need implementing, (e.g. in cost cutting,
enforcing unpopular rules, discipline).
2 Collaboration In this scenario both parties together explore the best
solution to the problem i.e. they confront the issue, not each other. During
this process one or both parties may change their view but they both agree
that the resulting solution is the best and because of this and the fact that
the relationship has been maintained, or even enhanced, this is win-win.
Best used when the problem is too important to just compromise.
3 Avoiding This is the do nothing option. Just ignore the problem. This
shows low concern for both the problem and the ongoing relationship and
is a lose-lose situation because the conflict still exists. However it still may

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be the best option in some situations such as when the issue is trivial or the
potential effort or disruption outweighs any benefit.

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Question 13 part (a) Outline four ways in which outputs of knowledge
management informs decision making.

Using the example of deciding whether or not to proceed with a proposed

project, knowledge management could provide the following knowledge to
assist with the decision.
Knowledge about:-
1. Knowledge of similar projects carried out in the past would enable
more accurate planning and risk assessment
2. An organisational skills database would help to identify the
availability of skills and resources required for the project
3. Knowledge of the standing and capabilities of other organisations
would allow potential partners to be identified
4. Intelligence about possible competitors and their capabilities would
mean a more informed decision about whether or not to go ahead
with the project

part (b) Explain three reasons why a project may close early.

The outcome of any project review may be a recommendation to terminate

the project before completion. The prime reason for this is failure of the
business case usually because the projects costs are forecast to exceed the
benefits. Reasons why such a situation can occur include the following.
1. Technical reasons which mean that key aspects of the project are
impossible to deliver or prohibitively expensive
2. Project goes out of control due to poor project management leading to
severe cost and time overruns
3. Requirements were poorly defined and/or unrealistic or have
fundamentally changed

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Question 14 part (a) Explain two purposes of quality planning for a
project.
1) Quality Planning identifies all the policies, procedures, processes and
actions needed to ensure that the project will be conducted in
accordance with corporate quality policies
2) Quality Planning enables the specification of Quality Control testing
and monitoring processes which enable identification and correction of
product defects.

Part (b) Explain three key differences between quality control and
quality assurance when managing a project.
1)Quality Assurance is process oriented and is concerned with ensuring
that that the methods and processes designed for the project are being
followed.

Quality control is a product oriented and is involved with the process of

monitoring specific project /product parameters to determine if they
comply with relevant quality standards defined in the project plan and
quality plan.

2)Quality Assurance is proactive in that it is designed to prevent quality

problems by verifying the manufacturing processes and procedures

Quality Control is reactive in that aims to identify and correct any defects
that do occur during the production process.

3)Quality Assurance requires the compliance and adherence of all team

members.

Quality Control is primarily the responsibility of a specific team that tests

the product for defects

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Question 15 part (a) Outline four reasons why a programme would be
used to deliver strategic change as opposed to using a project.
1 Strategic. The change is strategic and requires visibility and
accountability to the highest levels within the organisation.
2 Size and complexity. The change requires multiple interdependent
projects which must be managed as a whole.
3 Effect on Business-as-Usual. The project has severe implications for
ongoing operations so there is a requirement for ongoing coordination with
BAU which must be managed.
4 Risk. Where the project involves high risk to the parent organisation and
thus requires supervision at senior level
part (b) Explain three ways in which failure to comply with laws and
regulations can impact on project delivery.

1 Failure to carry out a proper risk assessment.

If any person under the control of the project manager, whether it be a
team member or not, incurs an accident that could have been avoided had a
proper risk assessment been carried out, then the project manager can be
held accountable. This could have severe effects upon the project. The
accident could affect the project by delaying the work, or by loss through
injury of a key worker or even the removal of the project manager.

2 Failure of duty of care

There are many ways a project manager could fail in his/her duty of care.
For instance, there could be a failure to provide adequate welfare facilities
on site or failure to provide safety equipment. The consequences of this
could vary from low morale to an all-out strike. The effect on project
delivery could vary from mild to catastrophic with consequences affecting
schedule, cost and quality.

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3 Failure to follow regulations
Examples of this could include proceeding without planning approval and
flouting building regulations. The consequences of lack of planning
approval could vary from a delay whilst retrospective approval is obtained
or even an order to demolish. In the case of building regulations, the work
would have to be made good.

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Question 16 part (a) Explain how the following two investment
appraisal techniques can be used to assess the validity of a project:
1.Internal Rate of Return (IRR) 2..Net Present Value (NPV)
NPV. Net Present Value (NPV) is defined as “The value today of a future
cash flow stream discounted using a specified interest/discount rate”. It
uses Discounted Cash Flow (DCF) to convert any cash flow into to a
single figure which ascribes a value to the project creating that cash flow.
We can use this to compare the profitability of different projects.
IRR. The limitation of NPV is that it is very sensitive to the interest rate
chosen. Instead of selecting a rate we can work out what the rate would
have to be make the costs and benefits of the project equal to each other.
The discount rate which equates the present value of costs to the present
value of benefits gives an NPV of zero. This value is the Internal Rate of
Return and represents the compound interest rate arising from the money
invested in the project.
part (b) Explain the following three steps in an information
management process: Collection, Storage and Dissemination.
1.Collection This step describes what project information is to be
acquired, its source and the method for collecting it. For instance
information on project performance would be obtained from the Earned
Value Management System based on input from team members carrying
out the work

2.Storage Determining how and where the information is to be stored.

This involves the storage medium, the means of accessing the information
how we control and limit access to authorised people. We also need to
ensure the safety of the data by putting backup procedures in place.

3.Dissemination Information is only useful if it is disseminated to the

people who need it. The Stakeholder Plan and the Communications Plan
will have specified the information that stakeholders requires and the
means, content and frequency of dissemination.

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 2018 Example Paper
Question 1 part (a) List and describe four external factors that can
affect the timeline of a project.
1) Late delivery A crucial component from an external supplier fails to
arrive on time and hence causes following activities dependant on this
component to slip.
2) Incorrect Quality/Specification
A project deliverable was thought to be completed on time but on
further inspection was found to be the wrong specification or failed to
meet quality parameters
3) Scope Change
After project commencement, the Client/Sponsor changes the project
scope and work content and hence changes the timeline
4) Force Majeure
A major unforeseen event happens which could be natural calamities
such as hurricanes, floods, earthquakes and tornados or manmade
events such as explosions, fires or major traffic accidents.

Part (b) Explain the purpose of using SWOT analysis to assess the
context of a project.

SWOT stands for Strengths, Weaknesses, Opportunities and Threats.

Evaluating strengths and weaknesses will principally identify

contextual elements which are internal to the project and its parent
organisation such as level of experience in the project area and
availability of key resource.

Evaluating Opportunities and Threats is more externally focused such

a what the competition may be doing or what other avenues winning
this project could lead to.

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Question 2 List and describe five phases in an extended project
life cycle.

1.Concept In the Concept phase the need/problem/opportunity

emerges and the proposed solution is tested for technical and
financial feasibility. At this stage plans may be at a very low level of
detail and estimates of costs and timescales are at a low level of
accuracy. This phase typically closes with the Business Case
2.Definition If the Business Case is accepted, then the plans outlined
there are further defined to produce detailed plans of work and more
accurate estimates of the schedule, budget and resource requirements.
The principal output of this phase is the Project Management Plan
(PMP).
3.Implementation In the phase of the project the work is carried out
to produce the planned deliverables defined in the PMP. under the
control of the Project Manager. This phase is complete when all
deliverables are complete and ready to hand over to the client.
4.Handover & Closeout Handover consists of all those activities
involved with the formal transfer of ownership from the project team
to the client/sponsor and end users.
Closeout is concerned with closing the project down in a consistent
and organised manner. It should include activities such as.
• Tidying up and archiving of project files
• Finalising and reconciling the project accounts
• Demobilisation of staff and appropriate feedback given
5. Benefits Realisation
The benefits of a project are rarely realised immediately following
handover and it can take weeks or months before the full benefits are
realised. During this phase the impact of the project is measured to
determine if the expected business benefits are being realised. This
phase ends when the benefits are realised or when it is obvious that
the benefits will not be realised.
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Question 3
Part (a) Within the context of Earned Value Management,
explain the term Earned Value.

Earned Value represents the amount of planned work that has been
completed based on its budgeted cost. For each individual activity
Earned Value equals original budget x % complete. An activity when
complete has Earned Value equal to its budget irrespective of its
actual cost.

part (b) Explain four benefits of using Earned Value Management.

1. If we rely just upon the schedule to control our project, then non-
critical items receive less attention. EV measures the whole
project rather than concentrating on the Critical Path so warns us
when non-critical items are slipping and could become critical.

2. EV allows us to forecast the project outcome using different

assumptions. We can assume that all future work will be
performed to plan or we can assume that future work will be of
the same efficiency as completed work. This will give 2 different
forecasts of project outcome.

3. EV allows us to easily track money spent and work completed

and hence we can plot and monitor trends which gives early
warning as to deviations from the plan and what may happen if no
action is taken

4. To make EV work we need to be able to measure % complete

and money spent for each activity as it progresses. This requirement
imposes discipline on project monitoring and control at activity level
and thus enhances overall project control

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Question 4

Within a typical procurement strategy, explain each of the

following five factors:
1. Make or buy decision
2. Use of single, integrated or multiple providers/suppliers
3. Provider/supplier selection
4. Conditions and forms of contract
5. Types of pricing and reimbursement methods

1. Make or buy decision

Organisations often have “in house” capability for all or part of a

project so there needs to be a decision on make or buy. It may be
cheaper, more efficient or easier to purchase rather than make in
house

2. Use of single, integrated or multiple providers/suppliers.

Using a single supplier is easier and cheaper to manage but can be a

source of risk because everything is reliant upon that supplier. The
extra effort of contracting with multiple suppliers for key components
or even integrating supplies from individual vendors can considerably
reduce project risk

3. Provider/supplier selection

A poor supplier or sub-contractor can do immense harm to your

project. To become an approved supplier should involve a
qualification process which would cover such things as financial
stability, capability and reputation. There should be a transparent
process for evaluating and comparing potential suppliers.

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4. Conditions and forms of contract
A supplier must be willing to accept a form of contract acceptable to
the client. Possible forms of contract are :-

Cost reimbursable, Cost plus fixed fee, Cost plus incentive fee and
Firm fixed price

5. Types of pricing and methods of reimbursement

The difference between price and cost determines the profit margin.
Three common ways of establishing price are:-

1. Cost based pricing. Here the supplier decides on the profit margin
that is required and adds that to the cost.
2. Demand based pricing. If demand for the product is high then the
supplier can increase the profit margin.
3. Competition based pricing. In this case where there is competition
for supply then it may be necessary to reduce the profit margin to
win the business.

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Question 5

Part (a) Explain the term scope management.

Scope Management is concerned with all the tools and processes that
ensure that enough work, but no more, is carried out to produce the
project deliverables. It is concerned with controlling the boundaries
of the project and ensuring that all work done is related to project
objectives and that any new work is subject to a formal change
control process. It is also important to clearly establish what is
excluded from the project scope.

Part (b) List and describe two breakdown structures used to

communicate the scope of a project.

1.Work Breakdown Structure

The WBS is an activity based decomposition of the work to be carried
out. The project is broken down level by level. The lowest levels are
called work packages or tasks and each has a defined product with an
associated acceptance test to determine when it is complete. As the
WBS contains all the work of the project required to produce the
project deliverables it totally defines the project scope.

2.Product Breakdown Structure

The PBS breaks the project down into its constituent products and sub
products. The topmost product is the “final” product or project
outcome. The lowest level items, are supplied by external sources.
Each higher level product is completely defined by the levels below.
The PBS will generally include “intermediate” or “enabling” products
or “sub-assemblies”

29
Part (c) Explain two reasons why the scope of the project
should be baselined.

Two reasons for a Scope Baseline.

1) To create the initial project plan: The initial scope baseline is

the foundation on which the project is built. All the project
sub plans such as the budget, schedule and quality plan are
derived from the Scope Baseline.

2) To track changes: All projects are subject to change. Upon

project completion, there must be an audit trail from the
finished deliverable back to the original scope baseline.

30
 Question 6

Part (a) Explain what is meant by team development in a project

context.

When people are assembled at the start of a project they need to be

transformed from a group of people into a team. The process by
which the team leader carries out the activities that transforms this
group of individuals into a team capable of collaborating to achieve
the desired outcome is referred to as team development.

Part (b) Explain, using an appropriate model, four key stages of

team development.

1) Forming When the team is first assembled individuals may be unsure

of what the project is about and what is expected of them. They may
exhibit signs of hesitancy, confusion and anxiety. At this stage there
is no team identity.
2) Storming As project details emerge and people start to understand
their possible role then friction may occur as they compete for roles
and relative positions. Opinions may polarise and cliques form.
Storming is natural but must be controlled by the leader so it does not
get out of hand

3) Norming Once people have well defined roles which they are happy
with and understand the project outcome and how their contribution
fits in with overall project goals then the team starts to gel. People
feel confident and motivated and confidence is high

4) Performing The team is now fully performing and operating at peak

efficiency. There is full collaboration amongst team members. People
trust each other, support each other and take pride in being a member
of the team. Team members put the good of the team above
themselves.

31
Question 7

Part (a) Explain the prerequisites required for each of the following
three estimating methods:

1.Comparative
2.Bottom up/Analytical
3.Parametric

1) Comparative:
• Your project must have elements that are comparable with
elements of previous projects.
• Actual data from previous project needs to have been
collected and stored for access.
• The circumstances around the previous estimate should have
been recorded to ensure that comparisons are valid.

2) Bottom Up
• There needs to be in place a complete work breakdown
structure that identifies all the work of the project.
• There needs to be an accurate estimate for each lowest level
task or work package.

3) Parametric
• The work to be done must be suitable for parametric
estimating e.g. consisting of elements of scalable work such
as laying bricks or plastering walls.
• There must exist standardised data based on previous actuals
e.g. what is the expected time for a trained bricklayer to lay 100
bricks?

32
 Question 7 part (b) State four practical problems of initial estimates
for a project with a long timescale.

1) There may be no suitable historic data for comparative

estimating.
2) There may be no detailed work breakdown structure for work
far out in the future hence bottom up cannot be fully carried
out
3) There may be no standardised data available or future work is
not planned in enough detail to apply parametric estimating.
4) With a protracted timescale many things can occur in the
future to make estimates invalid such as unexpected events, evolution
of requirements or new technology.

33
Question 8 List and describe five activities which the project
sponsor performs during the project life cycle .

1) Make the business case

The Sponsor is responsible for producing the Business Case. This
must justify the project and convince his higher management that the
projected benefits are worth the expense and thus gain approval to
carry on.

2) Monitor the project’s external environment/context

There may be factors outside the boundaries of the project which the
project manager may be unaware of. Such factors could help or
hinder the project objectives. The Sponsor is responsible for
monitoring the external environment.

3) Chairs the Gate Reviews

At the end of each phase the project manager must present the project
status, and predictions for the future, to the review board chaired by
the Sponsor. The Sponsor, assisted by the board, will decide if the
project can pass to the next phase.

4) Supports the Project Manager

During the life of the project there will be problems/issues that the
project manager is unable to solve without assistance, often because
of lack of authority. The Sponsor’s job is to provide the necessary
support to the PM to resolve those difficulties.

5) Make sure business benefits are realised

Once the project deliverables have been handed over to the end users
and been officially accepted then the job of the PM is normally over.
However, it can take weeks or months before the benefits of the
project claimed in the business case appear. The Sponsor is
responsible for arranging a benefits review at the appropriate time to
demonstrate that the benefits are forthcoming.
34
Question 9 Part (a) Explain the purpose of the Project
Management Plan (PMP)

The Project Management Plan documents the planning outcomes of

the project and provides a guide to project execution and control. It
comprises the fundamental baseline plan for managing the project. It
provides a contract between the Sponsor and the Project Manager and
is the reference point for reviews, audits and control. It is the primary
document that communicates the project manager’s intentions to the
Stakeholders.

Part (b) List and describe four essential sections of a typical Project
Management Plan.

1) Project Schedule
The project schedule is typically represented by a Gantt Chart. It
reflects the structure of the WBS and shows the planned start and end
date of each task/activity and the planned project duration and its
resource requirements. It will show the critical path and which
activities have float. It will also show milestone events where key
activities end or key deliverables are completed.

2) Roles & Responsibilities

This section describes the project team. It will provide a list of all the
individual skill types required to complete the project and describe
the required skill set and level of experience for each role. It will then
show how the team is organised by way of a hierarchical structure.

3) Project Budget and Cash Flow plan

This section will specify the project budget and how that budget is
allocated to individual work packages. The costs will be aggregated
to produce the “S” curve which shows the cumulative planned spend
at any point in time on the project. Fixed costs and overheads not
included in individual work packages must also be accounted for.

35
 4) Communication Plan
The Communication Plan describes the project information
requirements. It includes the following:-

• How information is acquired

• How information will be stored
• How it will be secured and access to it controlled
• How it will be distributed
• A schedule showing when each type of communication will
be produced and to whom it is sent (i.e. Communications
Matrix)
• How information will be updated
• How and when data will be archived
Note; The above 4 items have been picked almost at random from the many elements
within a project plan. Pick any 4 you feel comfortable with.

36
Question 10 List five barriers to communication and describe how
each one may be proactively managed.

1. Organisational
Problems can occur because of a lack of understanding of how
an organisation works. For example, some organisations have
an environment of openness and trust whilst others may
operate on strict hierarchical and “need to know” lines.
Managed by making sure that each individual is made aware
of, and is sensitive to, the way in which the organisation
works.

2. Physical
An example of this is the type of environment that
communication takes place in such as open plan offices where
private conversations are difficult meaning people may feel
inhibited in what they can say.
Managed by making sure that people have access to
convenient locations where private conversations can take
place

3. Cultural and Linguistic

Barriers commonly occur between people of different
nationalities. For instance, in some cultures people have
difficulty in admitting they have not understood whatever it is
you have asked them to do or have difficulty admitting that
they cannot do it.
Managed by asking for feedback to make sure the message
has been received and understood and any commitments
entered into are documented and acknowledged.

4. Jargon
People commonly use acronyms and abbreviations and
assume that everyone else understands them. Coupled with

37
 this is an unwillingness by some people to admit lack of
understanding because of fear of appearing stupid.
Managing by minimising the use of jargon, being aware that
other people may need explanations and fostering a climate
where people are not afraid to ask questions

5. Interpersonal
An example of this is where someone’s style of
communication may appear aggressive to others, especially to
people beneath them. This may make them unapproachable.
Managed by being aware of how your communication style
may appear to others and by being prepared to modify your
behaviour when appropriate.

38
Question 11 List and describe five benefits to an organisation of
adopting a formal risk management process.

1. Increased understanding The very act of going through a

formal process to identify and assess future risk will ensure a
more thorough understanding of the project and its
environment and the ability to mitigate future risks leading to
more robust plans

2. More realistic plans By quantifying the possible impacts of

risk events in the project schedule and budget and adjusting
the plans to take account of them, plans will be more realistic
and there is an increased probability that the project will be
delivered within the plan constraints

3. Mitigation and avoidance A fuller understanding of

possible, future project risks means that many of them can be
mitigated to reduce their probability and/or impact. In some
cases it may be possible to take actions which totally avoid
some future risk

4. Avoiding unsound projects Many projects fail for reasons

which would have apparent if a proper risk assessment had
been carried out. Proper risk management will ensure that
projects which turn out to be financially and/or technically
will be killed off early in the project life cycle.

5. Increased Stakeholder Confidence It is essential that key

Stakeholders are happy with the project plan and the ability of
the project manager to deliver it. A robust risk analysis will
ensure a better understanding of the project by Stakeholders
leading to increased confidence in the Project Management.

39
Question 12

Part (a) State two resource loading observations from the given
histogram.

The following resource histogram shows the labour resources

required for a project. The capacity line indicates that there are a
maximum number of 8 labour resources available to the project each
week.

Answer (a) State two resource loading observations

1) Maximum loading (9) is greater than the resources available

(8)
2) The resource loading is very uneven and would be improved
by smoothing and levelling

40
Part (b) List and describe four actions that the project manager
might take in response to the resource loading profile in the given
histogram. Include the potential benefit to the project of taking
each action.

1.Carry out resource smoothing

Resource smoothing attempts to resolve resource overloads by

utilising Float without delaying the project. It is possible that some
activities in the affected periods could be delayed to a time when
resource is available. An additional benefit is that resource
requirements could possibly even be reduced to below 8.

2.Adjust resources on overloaded tasks

A similar affect to smoothing could be obtained by reducing

resources on suitable activities within the affected period. This would
have the effect of increasing the duration of some resources within
the limits of float. The benefit is reducing peak resource
requirements.

3.Change activity dependencies

The sequencing of activities within the network could be examined to

see if any of the dependencies are not strictly mandatory. It may be
possible to move activities with high resource requirement to later in
the project. Again, the benefit is reducing peak resource
requirements.

4.Carry out resource levelling

Resource levelling attempts to overcome resource constraints by

removing the time constraint on the project. This would allow for 1
or more activities in the affected area not to start until resources are
free. This would have the effect of lengthening the critical path and
hence project duration. Once again, the benefit is reduced peak
resource loading but at the cost of project delay.
41
Question 13 Explain five distinct benefits to be gained from
managing a group of projects as a programme, rather than as
individual, unconnected projects.

1.All projects must in some way contribute to overall organisational

objectives. Managing projects as a coordinated programme under the
control of a programme manager will help ensure that project goals are
aligned with those objectives. The Organisation as a whole will be the
beneficiary.

2. Having an overall programme manager with responsibility for related

projects will ensure the best allocation of shared resources. Resource
conflicts can be managed and prioritised to the benefit of the overall
programme rather than individual projects. Expensive resources can be
shared in the most cost effective manner. Some projects will benefit and so
will the programme.

3. Within a programme, projects will typically have dependencies and

interdependencies on other projects. Managing them as a programme
allows the interfaces to be managed and all project activities coordinated to
the needs of the programme. Managing project interfaces is a key
programme manager responsibility. This will benefit affected projects as
well as the programme.

4. Projects usually involve risk. Total risk can best be managed and
mitigated by controlling it at programme level rather than at project level.
For instance, a risk to the schedule for an individual project may have no
impact at programme level. This will benefit the Programme

5. Projects can often produce solutions which whilst benefiting a specific

area may actually harm organisational goals. Programme management
involves the whole value chain and ensures that project objectives are
aligned with the goals of the programme and thus avoid sub optimal
solutions which benefits the owning organisation.
42
Question 14 Part (a) Explain what is meant by the term project
quality management.

Project Quality Management is carried out to ensure that project

processes and outputs meet the requirements of the Quality Plan and
thus ensure that the resultant deliverables meet the specification, are
fit for purpose and meet customer requirements.

Part (b) Explain each of the following four essential components of

project quality management

1. Quality planning

2. Quality assurance

3. Quality control

4. Continual improvement
1 Quality Planning

Quality planning is defined as identifying which quality standards are

relevant to the project and determining how to apply and satisfy them.
In other words, setting standards and how to achieve them. The
primary output of the quality planning process is the Project Quality
Management Plan. It describes how the project team intends to
implement its Quality Policy.

2 Quality Assurance

Quality Assurance is defined as the process of evaluating overall

project performance on a regular basis to provide confidence that the
project will satisfy the relevant quality standards. It is concerned with
validating the consistent use of procedures and standards. It is
supported by independent quality reviews and audits.

43
 3 Quality Control

Quality Control involves measuring project products to test if they

conform to the relevant standards, as defined in the Quality Plan, and
also identifying ways to correct unsatisfactory performance and
deviation from specification.

4 Continuous improvement

The process of improving quality by a series of continuous small

incremental improvements rather than major changes. The philosophy
is that quality comes from continuous minor improvements. It is the
responsibility of both workers and management to always be on the
lookout for ways to improve the quality of the finished product and
the processes that produce it.

44
Question 15

Part (a) Explain the term leadership.

Leadership is about motivating to a team so that they work together

toward a shared goal. The leader must understand the capabilities and
temperaments of each individual in order to motivate each person to
do their best towards achieving the team goal. A well led team can
become more than the sum of its parts.

Question 15 Part (b) List four typical leadership qualities and describe
how each assists in directing or supporting a project team.

1.Lead by example
Effective leaders lead by example and are good role models. People
should look up to them and aspire to be like them and copy their
behaviour. They are seen to be fair and even handed. They have no
favourites and treat everyone equally. They care about their people
and are prepared to take risks on their behalf.

2.Excellent communicators
They are excellent communicators. They can communicate with
people at all levels and by different means. They can communicate
both verbally and in writing, formal and informal. They are good
listeners. Effective communication leads to a more efficient project
and a more motivated team

3.Technically competent
They are good at the technical aspects of project management. As
well as skilful in leading and motivating people they must be
excellent at all the basic PM skills such as planning and organising
but also expert in techniques such as scheduling and earned value
management. Technical efficiency leads to a more efficient project

45
4.Approachable
They will be available and approachable and know what is going on.
Project managers cannot be remote from their team. Team members
must feel they can approach them if they have problems. A good
project manager will get out amongst the team and will always know
what is going on. This leads to early awareness of problems hence a
more efficient project.

46
Question 16 Part (a) Complete the following network and state:-

1)The critical path

2)The duration of the project
3)The task with the most free float
4)The task with the least free float (ignore tasks with zero float)

Part (b) Explain three of the following terms, including why each is
important to the project manager:

▪Critical path

▪Finish-to-Start relationship ▪Start-to-Finish relationship

▪Lag

▪Total float

47
Answer (a)

1)The critical path A C E H End

2)The duration of the project 19
3)The task with the most free float I (8)
4)The task with the least free float G (4)

Note: In the exam you can write the numbers on the question paper. Do not draw the
network. Only the 4 answers will be marked.

Part b
1. Critical path
o The longest path through the network
o The shortest possible planned project duration
o The path with least float

It is important because it defines the overall project duration and tells

the PM which activities must be completed on time to avoid project
slippage.

2. Lag
When an activity completes, if there is then a delay or wait period
before the next activity starts, this is called lag and the delay is known
48
as the Lag Time. Lag Time is the delay between two consecutive
activities. It is important because not all activities can start
immediately after the previous one is completed. e.g drying or setting
time

3. Total float

Total Float is defined as the amount of time a task can be delayed

without delaying the end date of the project. It is important because it
tells the PM which activities can be delayed without affecting the end
date. This can be useful when activities have resource problems.

49
 2015 Example Exam Paper
Question 1

Part a. Explain the following approaches to resource scheduling:

1) resource smoothing 2) resource levelling

Resource smoothing attempts to resolve resource overloads by

utilising project float. Float is the amount of time that an activity can
be delayed without extending project duration. Thus resource
smoothing is Time constrained. Within the limits of float it attempts
to move work to a time when resource is available.

Resource levelling is required when smoothing fails to completely

solve resource constraints. It requires removal of the time constraints
on activities and allows the schedule to extend to meet the available
resources. Resource levelling is said to be resource constrained rather
than time constrained.

Part b. Explain three approaches/tactics which a project manager

might consider when optimising the resource allocation for a
project. Identify in your answer any assumptions made and
implications.

1. Use of overtime

- Asking staff to work longer hours or forego days off is far cheaper
than bringing in extra resource. However, this should not be
considered as a long term tactic as overtime it can impair efficiency.
It is assumed that staff would be willing to do this.

2.Temporary staff

Bringing in temporary workers to solve a short term problem will

cost more than overtime working but is more sustainable. It is

50
assumed that the work can easily be picked up by temporary staff
without excessive learning time.

3.Task splitting and uneven loading

Sometimes use of resources can be optimised by interrupting tasks

and /or varying the number of people employed. It is assumed that
tasks are suitable for such treatment. Some tasks cannot be stopped
once they have started e.g. pouring concrete, and some tasks need a
specific number of people. Also some tasks may not respond in a
linear fashion to a change in resource so utilisation will be less
efficient.

51
Question 2

List and describe a source of conflict arising within each of the

following parts of the project life cycle :

Concept-Definition-Implementation-Handover-Closeout

• Concept Phase - Project Priorities

A source of conflict during this phase could be about
project scope and content. There could be a power
struggle between individual stakeholders who may
have differing views on project priorities and what can
be achieved within the allocated budget.

• Definition Phase – Technical Solution

A likely source of conflict at this stage is to do with
the technical solution. Different team members will
have alternative views as to the best means of
achieving the project objectives. Some people may
prefer proven technology whilst others may favour
leading edge solutions
• Development Phase – Scheduling Issues
A possible source of conflict here is scheduling issues
and trade-offs. In any project falling behind schedule
there are likely to be arguments amongst stakeholders
over how the schedule can be recovered, between
those who want to reduce scope and those who would
rather increase spending.

• Handover – Completion Pressure

This is the stage most likely to exhibit personality
conflicts. As the project nears completion pressure
increases and tempers can fray giving rise to personal
conflicts which had been kept under control up to this

52
 point. People also have added concerns concerning
what happens to them on project completion.

• Closeout – Post Project Review

The PM will wish for all relevant project personnel to
attend the post project review. Some will be unwilling
to attend, particularly if there have been performance
issues. They may be unwilling to risk implied criticism
during the review. There may also be conflict during
the review itself as people may have differing views
and memories

53
Question 3

This question has two parts.

Part (a) Explain the overall aim of project governance.

The overall aim of project governance is to enable the effectiveness of

projects. Project governance is about ensuring that projects are
properly selected and then done well. This encompasses having
policies and procedures in place to ensure projects are aligned to
corporate goals and that projects are executed with trained and
qualified people following a formal project methodology.

Part(b) Explain what each of the following four components of

project governance seek to ensure:
• Portfolio direction
• Project sponsorship
• Project management effectiveness and efficiency
• Disclosure and reporting

1. Portfolio Direction
All projects within the Portfolio should be aligned with Corporate
goals and objectives. An acid test for the relevance of a project is to
ask in what way is it contributing to the goals of the organisation.
Projects which do not pass this test should not be carried out.

2. Project Sponsorship
All projects should have an appropriate Sponsor to whom the PM
reports and who owns the budget and the business case. Without such
a sponsor the link to Corporate goals is lost and projects can be
allowed to go out of control. Proper sponsorship ensures that projects
are visible to higher management from concept to benefits realisation

54
 3. Project Management Effectiveness
Projects should be managed by a person with knowledge, skills and
experience commensurate with the size and complexity of the project.
Project teams should have the skills and competence to achieve
project objectives and be given appropriate tools and resources. There
should be effective delegation.

4. Disclosure and Reporting

All appropriate stakeholders should be kept aware of project progress.
Formal project reports will provide timely and accurate information
that supports the organisations decision making process. There should
be a culture of open and honest disclosure and lack of fear of being
the bearer of bad news.

55
 Question 4
(a) Explain the difference between continuous improvement and
project quality planning.

Quality planning is a planned process defined as “identifying

which quality standards are relevant to the project and determining
how to apply and satisfy them”. Continuous improvement is not a
planned process. It consists of everyone in the organisation to be
always on the lookout for ways to improve the quality of the
finished product and the processes that produce it. In this way
significant improvement arises out of many small incremental
steps.

(b) List and describe four aspects of project quality assurance.

1. Project Personnel Awareness. Make sure that all project

personnel are aware of the need for quality and the required quality
standards. Ensure that they have received the necessary training and
are capable of carrying out the work to the appropriate standard.

2. Approved Quality Plan Make sure that there is an approved

quality plan detailing all the required quality assurance and control
procedures and standards. Demonstrate that all the project team and
relevant stakeholders are familiar with the requirements of the plan and
are working to it.

3. Monitoring & Control Carry out monitoring and controlling

actions to make sure that the product quality is being adhered to as
per the quality plan, and that the outcomes of quality audits are noted
and acted upon.

4. Formal Change Control Ensure there is an effective change

control process in place. Ensure there is regular communication with
client and stakeholders to ensure that the project deliverables continue
to be aligned with client requirements and that there is full
traceability of approved changes to the project deliverables
56
Question 5

This question has three parts.

Part a Explain the principal purpose of a project business case.

The purpose in developing a Business Case is to provide a
justification for carrying out the project. It must show the expected
costs and benefits of the project, both tangible and intangible, and
how it fits in with the company strategy and contributes to the
corporate goals of the organisation.

Part b. State which roles have responsibility for Authorship and

Ownership.

The Sponsor owns the Business Case. Authorship can be any

competent person or persons but the ultimate responsibility lies
with the sponsor who has total ownership of the business case.

Part c. List and describe three investment appraisal techniques.

1.Payback

This method calculates how long it takes for cash flow to break even;
i.e. when costs equal benefits. This method ignores cash flows after
break-even point. It can be used to compare projects to see which one
returns the initial investment soonest, thus freeing cash for further
investment. Payback ignores the fact that the value of money
diminishes over time

2.Net Present Value (NPV)

NPV works by discounting each annual cash amount to its value in

today’s money. Effectively it is the reverse of compound interest.
Summing the individual discounted values gives a single figure which

57
represents the project value in today’s terms. The discount rate that is
used is a function of interest rates, inflation rates, risk and opportunity
cost.

3.Internal Rate of Return (IRR)

NPV requires us to select a rate to discount at. Instead of selecting a

rate and then seeing if the project is profitable at that rate we can
work out what the rate would have to be make the discounted costs
and benefits of the project equal each other. In other words, which
rate would produce a NPV of zero? The value obtained represents the
IRR. It is effectively the interest rate generated by the investment.
This can be used to compare projects and also to determine if the rate
is acceptable for the risk involved.

58
Question 6 List five characteristics of projects and describe how
each is different from business-as-usual activities.

1. Unique
A project is a unique undertaking. Every project, to a
greater or lesser extent, will have elements that have
never been done before. Business-as-Usual (BAU) is
typically repetitive, with the same goods/services
produced on a continuous basis
2. Finite
Projects are finite in that they have planned start and
end dates. BAU is normally ongoing and can carry on
indefinitely.
3. Risky
Because of their uniqueness Projects involve activities
of which there may be little or no previous experience.
Hence they involve risk and uncertainty. On the other
hand, performance of BAU is based on cumulative
experience that has the effect of minimising or
eliminating risk.

4. Specially Assembled Team

Projects are normally carried out by a specially
assembled team that only exists for the life of the
project. For stability and efficiency BAU requires a
permanent workforce with minimal turnover.

5. Subject to Constant Change

Projects take place in an environment that is dynamic
and subject to constant change as problems occur and
different requirements emerge. The key requirement of
BAU is efficiency. This relies on a stable and
predictive environment with any changes ideally
related to ongoing improvements to productivity or
cost reduction.

59
Question 7

This question has two parts

Part a Explain three key activities of portfolio management.

1.Project selection.
Projects for potential inclusion within the portfolio should be
carefully selected and a business case prepared. Projects should align
with corporate strategy and contribute to overall corporate goals.
Projects within the portfolio should exhibit an appropriate balance
between risk and return.

2.Resource allocation.
This is concerned with the management of resources across
competing projects and programmes within the portfolio. Resource
issues will occur between projects particular in regard to scarce or
limited resources and capacity bottlenecks. The portfolio manager
must decide on the optimum allocation of resources.

3.Monitoring & Reporting.

Portfolio managers must monitor the status of all projects in the
portfolio. They ensure that senior management are provided with all
the information they require in order to make appropriate decisions
regarding the portfolio and will assist and influence them in making
those decisions

Part b Explain 2 ways that Project Managers contribute to

portfolio management activities.

1. By assisting with project selection. Correct project

selection depends upon a properly researched and

60
 presented business case. Best practice is for the eventual
project manager to be heavily involved in assisting in its
production. Involving an experienced project manager
should increase the accuracy of the cost and schedule
estimates.

2. Monitoring & reporting. The project manager is

responsible for formally reporting status of his project.
This should be done in a timely and accurate manner. In
addition, the project manager should ensure that the
portfolio manager is immediately made aware of any
significant issues or events

61
Question 8 This question has two parts:

Part (a) Where stakeholder management is carried out using the

grid below, state the meaning of each of the axes, Power and
Interest

Power means the ability of a person to significantly affect the

outcome or conduct of the project.

Interest refers to whether or not a person has an intention to follow

the progress of the project or to influence the project outcome or
conduct.

Part (b) With each of the four quadrants of the matrix labelled A,
B, C and D, explain:
• the potential implications of the stakeholder actions on the
project
• the Project Manager’s approach to managing the
stakeholder.

Quadrant A These people are powerful and have the ability to influence
the project for better or worse so cannot be ignored even though they have
low interest. Put enough work in with these people to keep them satisfied,
but be careful not to antagonise potential Blockers, whilst encouraging
potential Champions to take a more active interest.

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Quadrant B These are also powerful people but have an interest in the
project and may intend try and influence it. Therefore, you must fully
engage and manage them closely because people with power who are on
your side (Champions) can help you whilst people who are against you
(Blockers) may be in a position to harm you.

Quadrant C These people have little or no interest in the project and do

not have the capacity to significantly influence it. Therefore, expend only
the minimum possible energy in monitoring them and do not waste effort
on excessive communication.

Quadrant D These people have a high interest in the project but do not
have the power to significantly affect it. You need to keep these people
adequately informed and monitor them quite closely to ensure that
Detractors are not becoming organised as they can harm you if they
acquire more power. Conversely you should encourage your Supporters to
organise themselves and increase their power.

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Question 9 Part (a) Explain what is meant by the term project
“closeout”.

Closeout follows handover and is concerned with closing the project down
in a consistent and organised manner. Its main purpose is to ensure that the
project is totally complete and all relevant information archived, there are
no outstanding issues and measures for warranty and future support are in
place.

Part (b) Explain, making four points, why it is important to conduct

effective project closeout.

1. There is a legal requirement to preserve key project documents,

especially financial records for several years. Project
documentation must be sorted, filed and indexed to facilitate later
retrieval to cover issues such as Technical, Financial, Legal,
Copyright, IPR etc

2. Effective project closeout includes conducting the post project

review. This is essential to extract and document lessons learned
that can be used to improve the management of future projects.

3. It is important that the project financials are finalised and recorded.

All costs and revenues need to be reconciled to the original baseline
budget and all subsequent changes. All surplus stocks and
equipment should be properly disposed of and incorporated into the
final accounts. This will provide a complete audit trail from the
original plan to the final outcome.

4. Closeout includes having a final closeout meeting with the client.

This is important to ensure that there are no unresolved problems and there
is a smooth transition into warranty and ongoing maintenance and support.

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Question 10

Part (a) Within the project context, state the meaning of each of the
following: Committed costs and Accrued costs

A committed cost is an investment that a business entity has already

made and cannot recover by any means, as well as obligations already
made that the business cannot get out of.
Accrued costs are costs of things that have been purchased but not yet
paid for.

Part (b) List and describe four reasons why it is important that the
Project Manager understands committed costs on a project.

1. Legal obligation
If costs have been committed to then it is important for the PM to realise
that that money is subject to legal and moral obligations and reneging may
have repercussions.

2. Cash already allocated (accrued)

Although the cash remains in the project account it is important for the PM
to realise that the money is spoken for and should not be used for other
purposes.

3. Not available for cost savings

In the event that the PM may have to find cost savings on the project it is
important for the PM to realise that the project items relating to the
committed costs cannot be subject to cost savings.

4. Danger of Overspending
It is important for the PM to know the amount of committed costs.
Unawareness of the commitment may lead the PM to spend money that is
not available.

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Question 11

The project management plan (PMP) consists of both strategic

(policies and frameworks) and tactical (processes and plans) elements.

Part (a) List and describe four processes/plans which are included
within the PMP.

1. Quality Plan
The Purpose of the Project Quality Plan is to define these activities and
procedures that will be carried out by the project team in order to deliver
products that will satisfy customer's quality parameters. In other words,
setting standards and how to achieve them. It covers Quality Planning,
Quality Assurance and Quality Control.

2. Risk Management Plan

The Risk Management Plan describes the Risk Management Process -
Initiate – Identify – Assess – Response Planning – Response
Implementation. In other words, how risks will be identified and how they
will be mitigated. It details how these processes will be carried out and by
whom. It does not consider individual project risks

3. Communication Plan
The Communication Plan details and describes all the project information
requirements. It includes how information is acquired, how it is stored and
how it is maintained. It will detail formal reporting requirements and
structures and frequency of reporting and to whom reports are sent.

4. Stakeholder Management Plan

The Stakeholder Management Plan details the project’s activities related to
engaging stakeholders and making the most effective use of their
participation. The Plan describes the Stakeholder Management Process:
Identify – Assess – Response Planning – Response Management. The plan
does not consider individual stakeholders.

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Part (b) Explain what is meant by a ‘baselined project management
plan’ and how it is used.

The original project plan as agreed between the Sponsor and the Project
Manager serves as a baseline for the project against which all future
outcomes are compared. Outcomes, in terms of schedule, budget and
quality are monitored to capture deviations from the baseline plan so
appropriate actions can be taken. Formal changes to project scope will
generate incremental changes to the project baseline but the original
baseline and all subsequent changes must be recorded to ensure an audit
trail.

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Question 12

Explain five advantages to an organisation of adopting a structured

method for project management.

1. Faster implementation time.

Having a common approach means that there is no need to set up a new
project environment and train people in its use. People will get up to speed
quicker and be more efficient as they do not have to learn new methods on
every new project.

2. Project Reporting
Project status needs to be reported upwards. This can only be done
efficiently if all projects use a common format allowing project data to be
rolled up to provide a corporate viewpoint

3. Helps new project managers.

Checklists and standard approach reduces support needs for less
experienced project managers. A structured approach will provide
guidance as to what must take place through the project life cycle.

4. Project Governance.
Project Governance requirements rely on the presence of a methodology to
satisfy the need for consistent processes and procedures and defined roles
and responsibilities. Good governance is impossible without a structured
approach.

5. Staff turnover
Most projects will have turnover of staff as well a new people joining the
project throughout the project life cycle. Having a common structure that
everyone is trained in makes handover of responsibilities much easier with
less chance of misunderstandings.

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Question 13 List and describe five elements that would be performed
as part of an effective configuration management process.

1.Configuration Management Planning

The Configuration Management Plan establishes and documents project
specific procedures for carrying out configuration management activities.
It also defines the tools and techniques to be used and details the roles and
responsibilities of individual team members.

2.Configuration Identification
This involves breaking down the project into individual configuration
items and creating a unique numbering system. Items include all project
documents such as specifications, designs and plans as well as the physical
components of the project deliverables deliverable components.

3.Configuration Control
During the project the configuration will grow as the product is being
developed. After project completion the product will still continue to
evolve. As configuration items are created they are added to the
configuration and their dependencies on other items identified. As the
configuration evolves Configuration Control maintains version control of
all configuration items and the interrelationship between them.

4.Configuration Status Accounting

Everything that has happened to each configuration item must be tracked.
Status accounting involves the recording of all events that have happened
to each configuration item. This allows comparison with the development
plan and provides full traceability in the event of such actions as product
recalls.
5.Configuration Audit & Verification
This is carried out to demonstrate that the products produced by the project
conform to the current specification i.e. the original specification plus any
modifications implemented by formal change control procedures. It also
verifies that all procedures have been followed in line with the
Configuration Management Plan
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Question 14 Explain five distinct benefits to be gained from managing
groups of projects as a programme, rather than as individual,
unconnected projects. Ensure that for each benefit you identify at least
one beneficiary/recipient.

1.All projects must in some way contribute to overall organisational

objectives. Managing projects as a coordinated programme under the
control of a programme manager will help ensure that project goals are
aligned with those objectives. The Organisation as a whole will be the
beneficiary.

2.Having an overall programme manager with responsibility for

related projects will ensure the best allocation of shared resources.
Resource conflicts can be managed and prioritised to the benefit of the
overall programme rather than individual projects. Expensive resources
can be shared in the most cost effective manner. Some projects will benefit
and so will the programme.

3.Within a programme, projects will typically have dependencies

and interdependencies on other projects. Managing them as a programme
allows the interfaces to be managed and all project activities coordinated to
the needs of the programme. Managing project interfaces is a key
programme manager responsibility. This will benefit affected projects as
well as the programme.

4.Projects usually involve risk. Total risk can best be managed and
mitigated by controlling it at programme level rather than at project level.
For instance, a risk to the schedule for an individual project may have no
impact at programme level. This will benefit the Programme

5.Projects can often produce solutions which whilst benefiting a

specific area may actualy harm organisational goals. Programme
management involves the whole value chain and ensures that project
objectives are aligned with the goals of the programme and thus avoid sub
optimal solutions which benefits the owning organisation.
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71
Question 15

Explain five distinct aspects which the Project Manager should

consider when preparing a project communications plan.

1.Detail and describe all the project information requirements.

Both stakeholders and team members will require project information.
Individual requirements need to be determined in preparation for the next
step including format, content and level of detail.

2.Detail means of acquiring and generating information.

Having determined what information is required then the next step is to
determine how that information will be obtained or created and who is
responsible for maintaining the information

3.Plan storage and access.

All information needs to be securely stored. The communications plan will
specify how and where data is stored as well as specifying controls to
restrict access to authorised personnel.

4.Specify Reporting Schedule

Individual stakeholders will have different requirements regarding access
to various regular project reports. A Communication Matrix will show
when each type of communication will be produced and to whom it is sent.

5.Plan Archiving
Data and information that is no longer current can be archives for future
reference. The Communications Plan will specify when information can be
archived, the method of doing this and how long it must be stored for.

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Question 16

This question has three parts.

The table below lists the cumulative values of Project 2079X, a 12-
month project, with values to the end of month 8.

Notes:
PC Planned Cost: What you had planned to spend at a point in the project.
AC Actual Costs: What you had actually spent at a point in the project.
%Comp Percentage Complete: What percentage of the total project is complete at a point
in the project (based on BAC).
BAC Budget at Completion: What the total planned cost of the project.
EV The Earned Value is calculated based upon the amount of the BAC that has been
achieved at the end of each month.

Part (a) What is the Budget at Completion (BAC) and Earned Value at
the end of Month 8.

BAC is 1000. (Note: It is unchanged throughout the project)

EV = Budget x %complete = 1000 x 80% = 800

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Part (b) What is the Cost Performance Index (CPI) and
Schedule Performance Index (SPI) at the end of Month 8.

CPI = EV/AC = 800/780 = 1.026

SPI = EV/PC = 800/800 = 1.0

Part (c) Looking at the project as a whole, describe the progress of the
project thus far in terms of predicted schedule and cost implications.
For each of these predicted implications (schedule and cost) provide a
statement describing what might have caused it.

Part (c) As SPI = 1 The Estimated Duration is on plan at 12

months.

Estimated Cost at Completion = BAC/CPI = 1000/1.026 = 975

The project is exactly on schedule, possibly due to accurate planning and

estimating and good task management.

Cost are running slightly under budget possibly due to raw materials being
cheaper than planned or less used than planned.

Note: Correct answers will achieve full marks regardless of whether workings are shown.
Incorrect answers, where correct workings are shown, will achieve up to 50% of available marks.

74
2014 Example Exam
Some of the questions have been omitted as they are
repeated in the 2015 sample paper.
Q1 Part a Explain the importance of project reviews.

Project reviews are important because they are the only way that the
Stakeholders can obtain a view as to the actual status of the project. They
are an opportunity to demonstrate that the project is under control. They
give management an opportunity to intervene with problem projects and
generate increased confidence and commitment to projects performing
well. Without reviews projects can go very wrong without management
being aware.

Part b List and describe four different types of review that may be
carried out during a project, and their main purposes.

1. Phase review

This review is carried out at the end of each project Phase. At each
phase end the project manager must report to the project board or
sponsor and ask for authority to proceed to the next phase. The board
will review progress to date against the original baseline plan and any
approved changes. They should also revisit the business case to
ensure it is still viable. Possible outcomes are carry on, carry on with
modifications or terminate the project.

2. Status review

Status reviews are carried out to determine the project status at a

particular point in time. They can be internal project team reviews
carried out by the project manager with his team leaders or more
formally with the project manager presenting to the project board.

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The reviews can be carried out either routinely at set intervals or as a
result of a trigger such as a major milestone or project crisis

3. Peer review

A Peer review is the evaluation of work by people of similar seniority

and competence of the people carrying out the work. The main
purpose is to have an independent check on the validity of their
approach so as to pick up any problems and provide confidence in the
work done.

4. Post project review

The post-project review evaluates the project against its success

criteria. Its primary aim is to ensure that lessons learnt can be applied
to improve the strategy, planning and management of future projects.
The post project review occurs after handover of the project
deliverables. The PM is responsible for ensuring it takes place but
should not lead it. This should be done by an independent facilitator.
To be fully effective the lessons learned must be distributed

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Question 3 Part a. In the context of Earned Value Management
(EVM), explain the term Earned Value (EV).

Earned Value measures in monetary terms the value of work carried

out. The Earned Value of any piece of work is defined as its allocated
budget. Thus when a piece of work is completed its Earned Value is
equivalent to its budget irrespective of how much the piece of work
actually cost. For part completed work the Earned Value equals
budget x %complete.

Part b. Explain four benefits of using Earned Value Management.

1. Holistic view.
The Earned Value for a project is the accumulation of Earned Value
for each individual activity. It thus takes a holistic view of the project
rather than just focusing on the critical path. Just looking at the
schedule will indicate that all is well as long as the critical path is on
plan. However, Earned Value will indicate when non critical
activities are slipping and could eventually become critical.

2. Performance tracking. Earned Value allows us to track

performance against cost and schedule to indicate the trends. This
information can be used to forecast project outcomes using different
assumptions, one being that the current cost/schedule performance
will remain unchanged the other being that future performance will
be as per the original plan. Scheduling software typically only uses
the latter assumption.

3. Identifies useful work done. Earned Value concentrates not just

on recording expenditure and time consumed, but on identifying
useful work done against the original plan. By tracking the cost and
time expended against individual activities and also identifying how
much of the planned work has been completed, it quickly indicates

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where work is not proceeding to plan so that appropriate corrective
action can be taken.

4. Tighter control. In order for Earned Value to work it is necessary

to always know the % complete for each activity. This requirement
enforces the need to be able to identify progress against time and
money expended and thus obliges team members to always know
what proportion of the original plan has been completed. This forces
the need to have a clear plan which shows what should be achieved
within designated time periods. Earned Value thus demands tight
control.

78
Question 4 List and describe five typical stages in the process for
selection of a supplier via competitive tender.

1. Prepare tender document

This document specifies the project requirements that are being put
out to tender. It has to be written in enough detail to enable each
potential supplier to plan and cost their response. It will also specify
the exact format and content of the response so as to enable easy
comparison of bids.

2. Prepare selection criteria

In order to ensure fair treatment of all bidders it is mandatory to have
a robust and transparent selection process. It will list the criteria by
which suppliers will be selected. Such a process will make selection
more objective and guard against charges of bias.

3. Issue tender document

The tender document will be sent to selected suppliers who will be
invited to bid. In addition, the tender could be thrown open for
anyone to bid by advertising in trade journals etc.

4. Receive and evaluate bids against selection criteria

A due date will have been specified by which time all bids should
have been received in the prescribed format. Bids not fulfilling these
conditions will be discarded. A single supplier, or more often a short
list, will be determined based on the selection criteria.

5. Negotiate and award contract

Further negotiations will take place with the selected supplier(s) on
price and contract terms and conditions. A short list will enable the
Client to get better terms as suppliers compete with each other. A
contract will be agreed and signed with the winning bidder.

79
Question 6 Part a. List and describe three advantages, to a
project manager, of a matrix organisation structure when used
in a project environment

1. Bigger resource pool

In a project taking place within a single function available resources
are generally restricted to those within the function. In a matrix
organisation the skills and expertise of the entire organisation are
available to the project manager. In addition, it is easier to share
resources between different projects leading to more efficient use of
resources.

2. Discourages sub-optimisation
When a project takes place within a single function the needs of that
function can take precedence over the needs of the organisation. The
solution can thus be sub optimal in that it can be detrimental to the
needs of the organisation. Within a matrix environment it is harder
for a single function to dominate the project so sub optimisation is
much less likely

3. Avoids line management overhead

Because team members generally still have functional managers the
PM does not have line management responsibilities to worry about.
Also, he/she does not have to worry about their deployment after
project completion. They simply return to their functional
department.

Part b. List and describe two disadvantages, to a project manager,

of a matrix organisation structure when used in a project
environment.

1. Functional conflicts and loyalties

Because team members are drawn from different functions to
which they will eventually return, some team members may

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 exhibit greater loyalty to their function than to the project.
They may be unduly influenced by their functional manager
and there may be conflict between the different functions,
especially if things go wrong.

2. Communications
Communications in a matrix organisation are always more
complex than in functional or projectised organisations. As
well as communicating vertically within the project and up
to the sponsor the project manager must also communicate
laterally with the functional managers.

81
Question 7 Part a. Explain what is meant by situational
leadership in a project environment

The basic premise of the situational leadership theory is that there is

no one best leadership style. Effective leaders will adopt and vary
their style depending on (1), the nature and importance of the task
and (2) the skills and maturity of the person assigned the task. Skills
and maturity are also task specific for each person.
There are 4 basic leadership styles for getting tasks done:-

• Supporting
• Coaching
• Delegating
• Directing

(b) List and describe four benefits of adapting leadership styles during
a project.

Each of these styles provides benefits when used in the appropriate

situation.

1) Supporting. This style is of prime benefit to a person who

needs to gain confidence in carrying out a task without
detailed supervision but still requires guidance and direction.
The task itself is of less importance than the development of
the individual

2) Coaching. Similar to Supporting but in this case the task is

an important one. The beneficiary in this case would be an
inexperienced person who would be coached by the leader in
how to carry out the task and thus gain valuable experience

3) Delegating. In this style the leader gives a person complete

freedom in carrying out a specified task. The beneficiary in

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 this case would be someone anxious to take responsibility but
not experienced enough to be trusted with a vital task.

4) Directing. The beneficiary in this situation would be someone

entrusted with an important task but is not competent or
experienced to work unsupervised and must therefore be
closely supervised. They are described in the diagram below.

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Question 8 List and describe five important environmental
legislative requirements which the project manager must take into
account when planning a project.

1. Discharges to rivers and sewers

If your project involves generation of liquid waste, you must
get authorisation from your local environmental agency before you
discharge anything other than uncontaminated water to surface waters
e.g. rivers and lakes. Failure to comply may lead to prosecution. Also
you must get permission from your water and sewerage authority
before you discharge anything at all to their drainage systems.
2. Land contamination
If you have hazardous substances at your site, such as oil and
chemicals, you must ensure that you do not cause land contamination
via leaks or spillage. Always control the amount that you use and
only store the amount that you actually need at any time. You should
store hazardous substances in appropriate containers that have
pollution prevention features, such as secondary containment
systems. Containers must be clearly labelled.
3. Control, storage and disposal of waste materials
You need to have in place a Site Waste Management Plan which sets
out how waste controlled at all stages during a construction project.
All waste must be kept insecure containers and liquid waste must be
kept inside a secondary containment system. You must store all your
waste securely and comply with your duty of care to both staff and
the public.
4. Noise
As an employer, you must assess and identify measures to eliminate
or reduce risks from exposure to noise so that you can protect the
hearing of your employees. In situations where noise may be
excessive you should have in place noise-control action plan. This
should ensure that hearing protection is provided and used and that
there is in place appropriate education, training and health
surveillance.

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 5. Pollution and Nuisance
Your construction site must not present a health risk, or a nuisance to
adjoining areas. If something is unreasonable to an average person, a
court might decide that it is a nuisance. Typical examples of statutory
nuisance might include dust, smells, smoke, noise or vibrations.
Anyone affected can ask their local authority to take action.

85
Question 9 Part a. Explain the prerequisites required for each of the
following three estimating methods:
1) Comparative; 2)Bottom up/Analytical; 3) Parametric

1) Comparative:
• Your project must have elements that are comparable with
elements of previous projects.
• Actual data from previous project needs to have been
collected and stored for access.
• The circumstances around the previous estimate should have
been recorded to ensure that comparisons are valid.
2) Bottom Up
• There needs to be in place a complete work breakdown
structure that identifies all the work of the project.
• There needs to be an accurate estimate for each lower level
task or work package.
3) Parametric
• The work to be done must be suitable for parametric
estimating e.g. consisting of elements of scalable work such
as laying bricks or plastering walls.
• There must exist standardised data based on previous actuals
e.g. what is the expected time for a trained bricklayer to lay
100 bricks?

Part b. State four practical problems of initial estimates for a

project with a protracted timescale.

1) There may be no suitable historic data for comparative estimating.

2) There may be no detailed work breakdown structure for work far

out in the future hence bottom up cannot be carried out

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3) There may be no standardised data available or future work is not
planned in enough detail to apply parametric estimating.

4) With a protracted timescale many things can occur in the future to

make estimates invalid such as unexpected events, evolution of
requirements or new technology.

87
Question10 List and describe five typical contents (e.g. processes,
components, techniques) of a structured project management method.

1. Document templates
The layout and content of all project documents will be
mandated. This will ensure consistency and ease of
communication across all projects. There will be a template
for each project document which defines chapters and
paragraph headings with a description of the expected content
for each.

2. Roles and responsibilities

The methodology will describe the key generic project roles
and their responsibilities and how they relate to each other.
Such roles will include the Project Sponsor, Project Manager,
Quality Manager and Team Leaders. It is particularly
important that for each role the limits of their decision making
responsibilities are clearly defined.

3. Reviews and audits

The methodology will describe the content, frequency and
objectives of all reviews and audits.
Examples are Gate reviews, Status reviews, Quality
Assurance audits, Post Project reviews and Benefits reviews.
For each type of review the methodology will document when
it should take place, what it should cover, the people involved
and the outcomes expected.

4. Change control
The methodology will define the mandatory formal change
control process. It will specify how change requests are
generated, how they are assessed, the means by which they
are approved or rejected and how they are assimilated into the
project. It will specify the approval body for each class of

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 change i.e. full change control board, the sponsor, the PM or
individual team members.

5. Risk management
The methodology will detail the process for controlling
project risk (both threats and opportunities). It will define
processes for identifying, assessing, mitigating and managing
possible risk events. It will describe techniques for both
qualitative and quantitative risk measurement and authority
levels for accepting different levels of risk.

89
Question 11 List and describe five activities which the
project sponsor performs during the project life
cycle.

1. Prepare the business case

The Sponsor is responsible for justifying the project in order to obtain
funding. To do this he prepares a business justification for the
project. This explains why the project is needed and what are the
expected costs and benefits. Both costs and benefits can be tangible
or intangible.

2. Initiate the project and appoint project manager

Once the business case is accepted that concludes the Initiation
Phase. If he has not already done so the sponsor must appoint a
project manager who in turn will start to recruit a team and
commence work on the Definition/Planning phase. If at all possible
the PM should be recruited early enough to contribute to the
development of the business case.

3. Carry out Gate reviews

Correct project governance requires projects to be assessed, as a
minimum, at the end of each phase. Such reviews are called gate
reviews and involve the project manager presenting the status of the
project to the sponsor. The sponsor decides if the project is allowed
to carry on to the next stage or it could be terminated or changes
made.

4. Monitor the project’s external environment/context

Projects do not take place in a vacuum and the project environment or
context needs to be monitored. Responsibility for monitoring the
environment within and close to the project is the job of the project
manager but the sponsor is responsible for monitoring external
factors which lie outside the project boundaries.

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 5. Carry out Benefits review
The project manager hands over responsibility for the project
deliverables during Handover &
Closeout. Responsibility for achieving the benefits described in the
business case remains with the Sponsor. After a suitable period of
time, typically 6-9 months, the sponsor must demonstrate that the
deliverables have achieved the success criteria laid down in the
business case.

91
 Q14 Part a. Explain two reasons why the scope of a project may need
to be changed.

1) Through inadequate Requirements Analysis.

If insufficient time has been spent on requirements analysis or the
right people have not been asked, then requirements will be
incomplete or wrong. To correct this situation will require changes
and/or additions to the project scope.

2) Mandatory requirements
As a project progresses there may be changes to legal requirements
such as health & safety, environmental and regulatory controls
which did not exist when the project was planned. This is particularly
true of project with a long time cycle.
(b) Explain three ways that change control can reduce and
manage scope creep on a project.
(c)
1) By having in place a formal change control process it ensures that
all proposed changes are fully assessed for impact. This should
ensure that all changes are beneficial and that inappropriate or
frivolous changes are blocked.

2) Anyone can submit a change request and there will always be

those who want more than was initially planned. This could lead to a
proliferation of change requests. However, the overhead involved in
having to formally document a proposed change in order to justify it,
will discourage those that are not so important.

3) When requesting a change, the person making the request often has
little or no idea of the impact that the change will have on the
project. The change control process involves a full evaluation of the
change including its knock on effects not just on time and budget but
on other aspects of the project. The results of this evaluation mean
that many requests will be subsequently withdrawn or refused.

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Q15 List and describe five benefits to an organisation of
adopting a formal risk management process.

1) More realistic plans

Carrying out risk analysis leads to a more detailed understanding of

the project and insight into what could happen to affect the plans.
Events which could severely affect the project can be identified and
planned for. Thus as well as overall risk being reduced the plans are
more robust and more likely to be achieved.

2) Informed project selection

Many projects are taken on without a full understanding of the risks

involved. This can lead to projects being cancelled after much effort
has been expended or carrying on to completion with huge losses.
Carrying out risk management will mean more objective decision and
thus help ensure that financially and/or technically unsound projects
are avoided.

3) Stakeholder confidence

Carrying out a thorough risk analysis demonstrates to the

stakeholders that the project manager has a detailed understanding of
the project. This results in increased confidence in the project
management by the stakeholders and a greater chance of the project
going ahead.

4) Contract type and pricing

When carrying out a project for a client the project price and contract
type is highly dependent upon the risks involved. For instance it
would be unwise to take on a fixed price contract without a detailed
understanding of what risk events could take place. Risk evaluation
will enable an appropriate risk premium to be negotiated.

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5) Contingency allowances

When costing a project it is normal to add contingencies allowances,

both time and money, to allow for risk. If this is done without proper
analysis the allowance is almost certain to be wrong. Risk analysis
allows for a more meaningful assessment of contingencies and hence
more accurate project costing.

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Q16 Part a. Explain the concept of teamwork.

• A team consists of 2 or more people collaborating in order to

achieve a defined goal.

• Teamwork requires that each member has a defined role

within the team and understands how their contribution
contributes to the shared goal.

• Team members trust each other and are supportive of each

other and put team goals ahead of their personal aspirations.

• Teamwork requires a good blend of different personalities e.g.

Belbin types

Part b. From the following team or social roles listed explain how
they contribute to an effective team.

1 Opponent/Challenger/Antagonist
2 Creator/Innovator/Plant
3 Team Builder/Worker _ Completer/Finisher _Collaborator
4 Controller/Inspector/Implementer

1. Creator/Innovator/Plant

Every team needs someone who is creative i.e. can come up

with imaginative ideas and solutions to problems. In the
Belbin model the “Plant” is the creative person. No matter how
many hard working and expert people there are in the team it
will not be fully functional unless there is an “ideas person”
who can come up with innovative solutions.

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2. Team Builder/Worker

A “team Worker” is one of the Belbin team types. They are

usually very cooperative and diplomatic. They are good
listeners and have good social skills. They do not like conflict
and provide a vital team function of interceding in disputes to
try and restore harmony.

3. Completer/Finisher

This is another Belbin team type. The completer finisher is

painstaking and conscientious and likes to deliver exactly
what is required on time. They will seek out errors and
omissions. They are a vital part of the team as they
counteract other team members who may have a more relaxed
attitude to deadlines.

4. Collaborator

Although much of the work of teams consists of individual

contribution to be fully effective each team member must be
an effective collaborator. Collaboration consists of two or
more people working together to resolve a dispute or solve a
problem. Without collaboration teams cease to function
effectively.

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