creating a quality product. Every time the project must rework an eBook to correct a quality defect, the cost of quality

increases.

Samantha and her project managers met with a key group of supervisors who are managing a critical number of the

eBook projects. They reviewed the lessons learned data and brainstormed from their experiences with producing eBooks

to identify some of the quality problems that they were seeing in the eBook projects.

The group agrees that they would like to make some changes to bring their total quality costs below the costs of quality

that they are currently incurring. This means that they want to reduce the costs of failing to meet customer requirements

or expectations and reinvest those savings into preventing problems as they go that do not meet the customer$$s

requirements, and checking to make sure that the eBook and all of its components conform to the customer$$s

requirements. Catching some of the quality problems sooner before the entire eBook is produced will also reduce the

internal failure costs that they are experiencing. These internal failure costs are rework and re$-$checking following the

quality checks by Quality and the customer service representative.

Source: Project Management Institute

QUESTION $1(20$ Marks$)$

Customers are complaining about quality problems in the eBooks they have received from Global Green

Books. Project quality management aims to ensure that the project achieves what is anticipated. Discuss

the project quality management plan and how this plan can assist Global Green Books in mitigating these

complaints.

QUESTION $2(20$ Marks$)$

Global Green Books project has many stakeholders, each one playing a very important role in the project,

contributing towards its success. Analyse the role and impact a project sponsor would have in ensuring that

Global Green Books achieves and sustains its intended level of quality.

SECTION B $[60$ MARKS$]$

Answer ALL the questions in this section.

QUESTION $3(20$ Marks$)$

Project integration requires processes that include, in turn, a roadmap for each project process community.

Integration management can be seen to play out at multiple levels. Explain the levels of integration.

QUESTION $4(40$ Marks$)$

BAT Centre has invested R$65000$ in a system upgrade project. They have supplied the following

information.

Initial investment R$65000$

Life span of the project $5$ years

Cash flows

Year $1$ R$12000$

Year $2$ R$10000$

Year $3$ R$28000$

Year $4$ R$20000$

Year $5$ R$35000$

$4\mathrm{.}1$ Calculate the payback period for the project to determine how long it will take to recover this investment.

$($Calculate in years and months$)$

$(20$ Marks$)$

$4\mathrm{.}2$ Calculate the NPV for the BAT Centre project at a minimum required rate of return at $12\%.$

Use the results of this calculation to advise them on whether they should proceed with the project or not.

$(20$ Marks$)$

END OF PAPER