Section A $[65$ NARKS$]$

Read the case study below and anawer the quastions that follow.

Pryton Corporation regiations, the eximated cost fust be based on the averags cost od the entre department, which was $$19\mathrm{.}00$ per hour discuss the problem with the manager of the develepment lab.

Project manager: Obviouly you know why In here. At the rath that you're spending money, well ovemun our budpat by $50$ percent."

Lab manager. 'Thets your problez, not mine. Woen I edimate the cost $10$ do a job. I submit only the hous necessary. Project managar Well why ase we using the most expensive pecph? Obviousy there mast be lower$-$salaned peophe capable of performing the werk."

Lab manager: Yes, I do hare lewer$-$salaried people, but none who can complata the pob within the two morths nequined by the comract. i have to use peaple high on the leaming curve, and theyre nct cheap. You should have told the pricing department to increase the average cost for the department." compared to other salary strustures in othet prepasals. we would be in deep toukle. The only legal woy to actoomplish this would be to set up a now department for these Higher$-$paid employees working on this project. Then the average department kalary wodd be correct. Unfortunately the admistraive costs of seting up a iemporary unit for only two months is prekibive. For iong$-$duration projects, this lechnicue is ofhe emplayed. "Why couidnt you hawe intreatsed the hours to compansata for the increased dollars required? winht think tuica bedore bidding on a short duration propd. You might try taking to the customer to get his cpirion:

Preject manager: His response would probally be the same regardless of whether I explained the shyaton to him selfore bonus:

Project Management Case studies $2$nd Edition pg $277$

$H,$ Herzner $($PhD$)$

QUESTION $1(20$ Marks$)$

$1\mathrm{.}1$ Himing read the case study, there are wo main constraints that reed to managod by the peclect manager, Ibertily the two constraints. $(2$ Marks$)$

$1\mathrm{.}2$ identify he two knowlesgh areas that would assist the two consurants and elaborate on them. $(6$ Mans$)$

$1\mathrm{.}4$ it is not dear if there was enough just fication done by Puyon Corp for this project, what are some of the objectives for initiasing a project. Identify FIVE. $(5$ Marks$)$

QUESTION $2(20$ Marks$)$

$2\mathrm{.}1$ Why is t important in develop a detaled project plan? Advice Papton Corporation. $($b Marks$)$

$2\mathrm{.}2$ The propel ranagr laks about cast estimation based en previous activies, what loos could he have used to better estimaie the project costs? $(3$ Marks$)$

$2\mathrm{.}3$ What is concemed in human rescurces plenning as they seem to aftect the costing in the case study, and what are the toy ctitputse? $(5$ Marks$)$

$24$ For a project to be a success, a supportive orgarisational culure is needed. What do we mean when we talk.

QUESTION $3(20$ Marks$)$

$3\mathrm{.}1$ Payten Corporation does nat seem to have a risk maragement plan in place, belp them to create one by idertitying the components of the risk mansgement pian. $(12$ Marks$)$

$3\mathrm{.}2$ What are the outyits for propect cost management? $(6$ Marks$)$

$13$ As Payton signed the corrract with the clent, they will have to follow the contract desure procedure to deem the propect carmplate after hand over. What is contract closire procedure? $(2$ Marks$)$

END OF PAPER.