Q1.Describe different activities performed by the project manager during project planning.
Soluton:
Different Phases of Project Management
Project management follows the Systems Development Life Cycle (SDLC), which consists of the following main phases:
1. Planning
This is the first and most important phase.
It includes:
Project Identification and Selection: Identifying possible projects, evaluating them, and selecting the most suitable one.
Project Initiation and Planning (PIP): Forming the project team, defining scope, preparing the project charter, and checking feasibility (economic, technical, operational, legal).
2. Analysis
In this phase, the project team studies the existing system and gathers detailed user requirements.
Activities include:
Understanding user needs
Analyzing system problems
Preparing requirement specifications
3. Design
This phase converts requirements into technical solutions.
It includes:
Designing system architecture
Database design
Interface design
Preparing technical specifications
4. Implementation
This is the execution phase where the system is developed and installed.
Activities include:
Coding and testing
System installation
User training
Data conversion
5. Maintenance
This is the final and continuous phase.
It involves:
Fixing errors
Updating the system
Improving performance
Adding new features
Q2.Describe different activities performed by the project manager during project planning.
Solution
Activities Performed by the Project Manager During Project Planning
1. Project Initiation Activities
These activities help in organizing the project and preparing the foundation for planning.
Forming the project initiation team
Establishing relationship with the customer
Preparing the project initiation plan
Setting management and communication procedures
Establishing project management environment and project workbook
Developing the project charter
2. Project Planning Activities
These activities focus on defining detailed tasks and work requirements.
Defining project scope, alternatives, and feasibility
Dividing the project into manageable tasks
Estimating required resources and preparing resource plan
Developing preliminary schedule
Preparing communication plan
Identifying and assessing risks
Preparing preliminary budget
3. Project Feasibility Assessment
In this activity, the project manager checks whether the project is practical and beneficial.
Economic Feasibility: Cost–benefit analysis
Technical Feasibility: Availability of technology and expertise
Operational and Scheduling Feasibility: System usefulness and time limits
Legal, Contractual, and Political Feasibility: Legal issues and stakeholder support
Q3.Explain the common skills of a project manager. Which skill do you think is most important?
Solution
Common Skills of a Project Manager
A project manager must possess various skills to plan, execute, and complete a project successfully. The common skills are as follows:
1. Communication Skills
A project manager must communicate effectively with users, developers, and management.
It helps in:
Understanding user requirements
Building good relationships with customers
Resolving conflicts
Ensuring common agreement on project goals
2. Analytical and Feasibility Assessment Skills
These skills help the manager evaluate whether a project is practical.
They include:
Analyzing user requirements
Conducting feasibility studies (economic, technical, operational, legal)
Evaluating and ranking projects
3. Financial and Economic Skills
A project manager should have basic financial knowledge to justify project investment.
These include:
Calculating Total Cost of Ownership (TCO)
Using Net Present Value (NPV) and Time Value of Money (TVM)
Performing break-even analysis
4. Technical Skills
The manager must have sufficient technical knowledge.
It helps in:
Understanding hardware and software systems
Assessing technical risks
Selecting suitable technologies
5. Leadership and Team Management Skills
A project manager leads and coordinates the project team.
It includes:
Forming and guiding teams
Setting work standards
Conducting structured walkthroughs
Motivating team members
6. Strategic Planning Skills
A manager must align the project with organizational goals.
It helps in:
Supporting company mission and objectives
Ensuring competitive advantage
Selecting important projects
Q4.Describe the project identification and selection process.
Solution
Project Identification and Selection Process
Project identification and selection is the first phase of the Systems Development Life Cycle (SDLC). Since organizations have limited resources, this process helps in selecting projects that provide the maximum benefit to the organization.
This process consists of three main activities:
1. Identifying Potential Development Projects
In this stage, possible projects are identified from different sources within the organization.
Sources of Projects:
a) Top-Down Sources
Top management
Senior executives
Steering committees
Focus on strategic and organization-wide systems
b) Bottom-Up Sources
User departments
Functional managers
IS development group
Focus on operational and departmental problems
2. Classifying and Ranking IS Development Projects
After identification, projects are evaluated and compared based on their importance and usefulness.
Evaluation is done using:
Value Chain Analysis: Identifies activities that add value and reduce cost
Strategic Alignment: Checks whether the project supports organizational goals
3. Selecting IS Development Projects
In this stage, management selects suitable projects for development.
Selection depends on:
Current business conditions
Existing systems
Organizational needs
Management decisions
Q5.List and describe the steps in the project initiation and planning process.
Solution
Steps in the Project Initiation and Planning (PIP) Process
The Project Initiation and Planning (PIP) process is a detailed assessment phase in which projects are accepted, rejected, or redirected. It converts a vague system request into a clear and practical project plan.
The PIP process consists of the following main steps:
1. Project Initiation
This step focuses on organizing the project team and preparing the foundation for planning.
Main activities include:
Establishing the project initiation team
Establishing relationship with the customer
Preparing the project initiation plan
Establishing management procedures
Establishing project management environment and project workbook
Developing the project charter
2. Project Planning
This step defines detailed activities and work requirements for the project.
Main activities include:
Describing project scope, alternatives, and feasibility
Dividing the project into manageable tasks
Estimating resources and preparing resource plan
Developing preliminary schedule
Developing communication plan
Determining project standards and procedures
Identifying and assessing risks
Preparing preliminary budget
Developing Project Scope Statement (PSS)
Preparing Baseline Project Plan (BPP)
3. Assessing Project Feasibility
In this step, the manager evaluates whether the project is practical and worthwhile.
Types of feasibility include:
Economic Feasibility: Cost–benefit analysis
Technical Feasibility: Availability of technology
Operational Feasibility: System usefulness
Scheduling Feasibility: Time constraints
Legal and Contractual Feasibility: Legal obligations
Political Feasibility: Stakeholder support
4. Final Review (Structured Walkthrough)
At the end of the PIP process, a structured walkthrough is conducted.
It involves:
Reviewing planning documents
Verifying assumptions and information
Checking project readiness for the next phase
Q6.What is project initiation? Explain different activities you will perform during project initiation phase.
Solution
Project Initiation
Project initiation is a part of the first phase of the Systems Development Life Cycle (SDLC). It focuses on organizing the project team and preparing the foundation for detailed project planning.
Its main objective is to convert a vague system request into a clear and practical project description through effective communication among analysts, users, and management.
Activities Performed During Project Initiation
During the project initiation phase, the project manager or lead analyst performs the following activities:
1. Establishing the Project Initiation Team
Forming the initial group of analysts and stakeholders
Assigning roles and responsibilities
2. Establishing Relationship with the Customer
Building cooperation with users and clients
Understanding their expectations and requirements
3. Establishing the Project Initiation Plan
Defining steps and tasks for completing the initiation phase
Preparing a roadmap for planning activities
4. Establishing Management Procedures
Setting work standards
Defining communication and reporting procedures
5. Establishing Project Management Environment and Project Workbook
Setting up tools and documentation systems
Maintaining records of project information
6. Developing the Project Charter
Preparing a formal document describing project objectives and scope
Providing overall direction to the project
Q7.What is the process of identifying and selecting information system development project in brief.
Solution
The process of identifying and selecting information system development projects is the first phase of the Systems Development Life Cycle (SDLC). It is a pre-project activity in which an organization identifies a group of suitable projects based on its needs and available resources.
This process consists of three main steps
This process consists of three main activities:
1. Identifying Potential Development Projects
In this stage, possible projects are identified from different sources within the organization.
Sources of Projects:
a) Top-Down Sources
Top management
Senior executives
Steering committees
Focus on strategic and organization-wide systems
b) Bottom-Up Sources
User departments
Functional managers
IS development group
Focus on operational and departmental problems
2. Classifying and Ranking IS Development Projects
After identification, projects are evaluated and compared based on their importance and usefulness.
Evaluation is done using:
Value Chain Analysis: Identifies activities that add value and reduce cost
Strategic Alignment: Checks whether the project supports organizational goals
3. Selecting IS Development Projects
In this stage, management selects suitable projects for development.
Selection depends on:
Current business conditions
Existing systems
Organizational needs
Management decisions
Q8.What are the steps involved in corporate strategic planning?
Solution
Corporate Strategic Planning
Corporate strategic planning is a continuous process through which an organization defines its mission, objectives, and long-term strategies. It helps management understand the present position of the organization and decide its future direction. A clear strategic plan is essential for effective selection of information system projects.
Steps in Corporate Strategic Planning
The corporate strategic planning process consists of three main steps:
1. Understand the Current Enterprise
Analyzes the present condition of the organization
Studies existing resources, performance, and problems
Helps management know “where the organization is now”
2. Determine the Future Enterprise
Defines the desired future position of the organization
Decided by top management
Identifies “where the organization wants to be”
3. Develop a Strategic Plan
Prepares a transition strategy from present to future state
Provides guidelines for achieving organizational goals
Acts as a roadmap for development
Q9.Describe the steps involved in corporate strategic planning.
Solution
Corporate Strategic Planning
Corporate strategic planning is a continuous process through which an organization defines its mission, objectives, and long-term strategies. It helps management understand the present position of the organization and decide its future direction. A clear strategic plan is essential for effective selection of information system projects.
Steps in Corporate Strategic Planning
The corporate strategic planning process consists of three main steps:
1. Understand the Current Enterprise
Analyzes the present condition of the organization
Studies existing resources, performance, and problems
Helps management know “where the organization is now”
2. Determine the Future Enterprise
Defines the desired future position of the organization
Decided by top management
Identifies “where the organization wants to be”
3. Develop a Strategic Plan
Prepares a transition strategy from present to future state
Provides guidelines for achieving organizational goals
Acts as a roadmap for development
Q10.Define feasibility. Explain different categories of feasibility. How do you measure economic feasibility?
Solution
Feasibility
Feasibility is the study of whether a proposed project can be successfully completed within available time, budget, and resources.
Its main purpose is to determine the practicality and scope of building a system, not how the system will operate.
Categories of Feasibility
Feasibility is generally classified into the following six categories:
1. Economic Feasibility
Also called cost–benefit analysis
Evaluates whether the financial benefits justify the project cost
2. Technical Feasibility
Assesses the organization’s technical capability
Checks the availability of hardware, software, and skilled personnel
3. Operational Feasibility
Determines whether the system will solve business problems
Examines user acceptance and system usefulness
4. Scheduling Feasibility
Evaluates whether the project can be completed within the given time
Checks deadline and timetable constraints
5. Legal and Contractual Feasibility
Considers legal and contractual issues
Includes copyright, licensing, and data protection laws
6. Political Feasibility
Evaluates support or resistance from stakeholders
Examines management and employee attitudes
Measurement of Economic Feasibility
Economic feasibility is measured by identifying and analyzing all financial impacts of the project. It is done through the following steps:
1. Identifying Benefits and Costs
(a) Tangible and Intangible Items
Tangible: Can be measured in money (e.g., reduced staff cost)
Intangible: Difficult to measure (e.g., customer goodwill, morale)
(b) One-Time and Recurring Costs
One-Time Costs: Hardware purchase, installation, training
Recurring Costs: Maintenance, supplies, support services
2. Calculating Total Cost of Ownership (TCO)
Includes purchase cost and hidden costs
Covers operation, maintenance, and support expenses
3. Applying Financial Measurement Techniques
Because money has time value, the following methods are used:
(a) Net Present Value (NPV)
Calculates present value of future cash flows
Uses discount rate
(b) Return on Investment (ROI)
Ratio of profit to investment
Measures project profitability
(c) Break-Even Analysis (BEA)
Determines time needed to recover investment
Finds when total benefits equal total costs
Q11.Define feasibility study. Explain economic and schedule feasibility in brief.
Solution
Feasibility Study
A feasibility study is a detailed evaluation conducted during the Project Initiation and Planning (PIP) phase to determine whether a proposed project is practical and achievable within available time, budget, and resources.
Its main purpose is to decide whether the project should be:
Accepted
Rejected
Redirected
It focuses on understanding the project scope and success possibilities rather than how the system will operate.
Economic Feasibility
Economic feasibility is also known as cost–benefit analysis.
It evaluates whether the financial benefits of a project justify its costs.
It includes:
1. Benefits
Tangible Benefits: Can be measured in money (e.g., reduced staff cost)
Intangible Benefits: Difficult to measure (e.g., employee morale, goodwill)
2. Costs
One-Time Costs: Start-up and installation expenses
Recurring Costs: Maintenance and operating expenses
Economic feasibility helps in preparing a business case for the project.
Schedule Feasibility
Schedule feasibility evaluates whether a project can be completed within the given time limits.
It involves:
Checking project deadlines
Analyzing time constraints
Ensuring timely completion
It ensures that the project is realistic with respect to available time.
Conclusion
Thus, a feasibility study helps in deciding the practicality of a project, while economic and schedule feasibility ensure that the project is financially viable and time-bound.
Q12.An initial investment of Rs. 1,00,000 is required to start a company. The cash flow-in is Rs. 40,000 per year. Assuming interest rate as 10%, calculate the discounted payback period.
Solution
Given:
Initial Investment (I) = Rs. 1,00,000
Annual Cash Inflow (CF) = Rs. 40,000
Discount Rate (i) = 10% = 0.10
Q13.A system costs Rs. 2,00,000 to install and Rs. 10,000 per month as recurring expenses. The benefit per year is 1,50,000. Assuming an interest rate is 15%, what is the payback period of the investment?
Solution
Q14.Assume monetary benefits of an information system of $70,000 the first year and increasing benefits of $10,000 a year for the next four years, one-time development costs of $90,000, and recurring costs of $40,000 per year. Using a five-year time horizon, calculate the net present value and breakeven point.
Solution
Q16.Write short notes on:
a) PERT (Project Evaluation and Review Technique)
PERT is a project management technique used for planning, scheduling, and controlling complex projects.
It helps in:
Identifying project activities
Estimating time required for each activity
Finding the critical path
Completing projects on time
PERT mainly focuses on time management and is useful when activity durations are uncertain.
b) Deliverables
Deliverables are the tangible outputs or products produced at the end of each phase of the Systems Development Life Cycle (SDLC).
Examples of Deliverables:
In Planning Phase:
→ Schedule of IS development projects
In Project Initiation and Planning (PIP) Phase:
→ Baseline Project Plan (BPP)
→ Project Scope Statement (PSS)
The Project Scope Statement (PSS) explains to the customer what the project will deliver, such as:
Programs
Documentation
Training procedures
Deliverables ensure a common understanding between the development team and customers.
c) Network Diagram
A network diagram is a graphical representation of project activities and their relationships.
It shows:
Sequence of activities
Dependencies between tasks
Start and finish points
Critical path
It helps in:
Project scheduling
Time management
Identifying delays
Monitoring progress
Network diagrams are commonly used with PERT and CPM techniques.
d) Baseline Project Plan (BPP)
The Baseline Project Plan (BPP) is a major document prepared during the Project Initiation and Planning phase.
It contains:
Project scope
Expected benefits
Project costs
Possible risks
Resource requirements
Importance of BPP:
Acts as a foundation for development activities
Helps management decide whether to continue, modify, or cancel the project
Guides the project team
Main Sections of BPP:
Introduction
System Description
Feasibility Assessment
Management Issues
Due to incremental commi