PM0010 – Introduction to Project Management

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ASSIGNMENT

DRIVE	FALL DRIVE 2013
PROGRAM/SEMESTER	MBADS (SEM 3/SEM 5) MBAFLEX/ MBAN2 (SEM 3) PGDPMN (SEM 1)
SUBJECT CODE & NAME	PM0010 – Introduction to Project Management
BOOK ID	B1236
CREDITS	4
MARKS	60

Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme.

1 Write Short notes on:

• Project Constraints

The primary purpose of a project is to deliver a product and/or service to a customer within a specified time, cost, and detailed scope and performance requirements, as contracted with the customer.

Project Constraints Characteristics

Constraints	Characteristics
S(Scope)	Magnitude or size of the project.
P(Performance)	Functional requirement and Technical requirements (Quality requirements are included).

2 Explain the features of the six broad sectors involved in environment scanning necessary for a SWOT analysis.(unit 6)

Answer:- Explanation of the features of the following

Competition

The study of the competition scenario in an industry is an essential component of its market survey and is a crucial factor in ensuring its success.

Economic Sector

A study of this sector concerns with demand-supply for products or projects. It also concerns with the overall rate of economic growth, foreign exchange reserves position or balance of payments position of the country, inflation rates, interest rates, and income and consumption patterns of target customers

3. Explain Activity On Arrow (AOA) and AON network logic diagrams.

Answer:-The logic development in project planning is an iterative process. Initial logic development starts after identification of the activities of the project and before scheduling process occurs. The logic development process is further refined during schedule development and optimisation. There are two common methods of logic diagramming which are referred as network

4. Write Short notes on:

• Contract Negotiation Techniques

The final stage in the vendor selection process is developing a contract negotiation strategy. The worst contract negotiation objective is to bleed every last cent out of the vendor for the lowest price. Remember, you want to "partner" with your vendor so that both of you will meet your corporate goals and objectives by signing the contract. Successful contract negotiation means that

5. MGF to develop mall for Delhi Metro TNN Aug 27, 2003, 12.03am IST NEW DELHI: The Delhi Metro Rail Corporation has chosen MGF Developments to develop what is envisaged to be Delhi's largest shopping mall at Khyber Pass. The development includes creation of the country's first auto mall, housing a majority or all of the country's automakers under one roof.

The net present value of the project, to develop 1m sqft of retail area across 5 hectares of real estate, is Rs 150-200 crore and is projected to generate an internal rate of return (IRR) of 14%. The other two bidders for this project were Spencer & Company (the developers of Spencer Plaza at Chennai) and Negolice along with the Adani group.

According to DMRC's managing director, E Sreedharan, MGF has already made an upfront payment of Rs 20 crore over and above the Rs 150-crore project value. The contract agreement envisages an annuity payment of Rs 5.5 crore, plus 5% of revenues for the entire 50-year concession period with an escalation of 20% every three years in the annuity payout by MGF to DMRC.

With escalation, the annuity payment to DMRC at the end of the concession period works out to about Rs 77 crore. The project is slated for completion in four years, though MGF is attempting to launch the mall a year earlier.

MGF is looking to create a world-class integrated shopping mall with a 6-7 screen multiplex, food courts, 10 speciality restaurants, a large hypermarket, 3-4 department stores and an auto mall. The retail developer envisages a promising average footfall of 15,000-20,000 a day, with weekend footfall of approximately 50,000-60,000. Delhi University student traffic to the mall is expected to be very high.

The primary catchment area for the mall consists of places like Shalimar Bagh in the northwest to Ashok Vihar in the west, and Mukherjee Nagar in the north to Civil Lines in the south. The average income in this area is estimated to be around Rs 3 lakh. The secondary catchment consists of Punjabi Bagh, Rohini, Pritampura, Janakpuri and PreetVihar.

According to a Jones Lang LaSalle survey, over 70% of the population travels to the south for their entertainment. In terms of frequency of entertainment activity, almost 53% go out once a week, 27% twice a week and very few venture out more than twice a week. About 39% spend between Rs 1,000-2,000 and 53% spend less than Rs 1,000 a week on entertainment.

According to sources, MGF has already engaged a leading South African architect for the project and is in the process of tying up its anchor stores. Source: http://articles.economictimes.indiatimes.com/2003-08-27/news/27522921_1_auto-mallshopping- mall-mgf-developments why do you think that the shopping mall project was pursued? Assume that this project is railway line connecting to remote part of India and has a negative NPV. Would you pursue this project? Justify

Answer:-Why do you think that the shopping mall project was pursued?

MGF, which specialises in retail development, runs the Metropolitan Mall in Gurgaon. It is working on five additional mall developments — three in Gurgaon, one in Rajouri Garden and one at Saket. The mall at Khyber Pass will be its seventh mall in the national capital region.

Assume that this project is railway line connecting to remote part of India and has a negative NPV. Would you

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