PART-A

1. B

2. B

3. B

4. D

5. B

6. B

7. longest

8. variability

9. unforeseen

10. project

PART-B

11.
An event in project management is a specific point in time that marks the start or completion of one or
more activities. It does not consume time or resources but is crucial for tracking project progress. For
example, the completion of the design phase is an event that signals readiness to begin development.

12.
An activity is a task or set of tasks that consume time and resources and contribute to project
completion. Unlike events, activities represent action and effort. For instance, "developing software
code" is an activity, while "code completion" is an event.

13.
Time is a key constraint in project management as it directly affects deadlines and resource allocation.
Managing time effectively ensures timely project delivery, avoids cost overruns, and enhances client
satisfaction.

14.
Identification of project opportunities involves recognizing areas where new projects can be developed
to fulfill strategic goals. For example, a company noticing rising demand for eco-friendly packaging may
identify an opportunity to develop biodegradable materials.

15.
Screening project ideas is the process of evaluating proposed projects to determine their feasibility and
alignment with organizational goals. It ensures only viable and strategic ideas move forward, saving time
and resources.
16.
Two common project selection criteria are:

1. Strategic alignment – ensures the project supports the organization’s long-term goals.

2. Cost-benefit analysis – compares expected costs with potential benefits to determine

17.
Capital budgeting is the process of evaluating and selecting long-term investment projects. It’s crucial
for financial planning as it helps organizations allocate resources efficiently and avoid unprofitable
investments.

18.
Two techniques for evaluating project costs are:

1. Bottom-up estimating – aggregates individual activity costs for a total project estimate.

2. Earned Value Management (EVM) – tracks project performance and cost efficiency against
planned values.

19.
Common project risks include cost overruns, time delays, and resource shortages. These risks can lead
to project failure, loss of stakeholder trust, and financial losses if not properly managed.

20.
Risk mitigation involves developing strategies to reduce the likelihood or impact of project risks. For
example, using backup suppliers for critical materials is a mitigation strategy against supply chain
disruptions.

PART-C

21.A

The Critical Path Method (CPM) is a project management technique used to determine the longest
sequence of dependent activities and identify the minimum time required to complete a project. It
helps in scheduling, coordinating, and controlling complex projects by analyzing all necessary tasks and
their respective durations and dependencies.

Definition:

The Critical Path is the sequence of tasks that determines the shortest possible duration to complete the
project. If any task on this path is delayed, the entire project gets delayed.
Application in Project Scheduling:

1. Activity Listing:

o Identify all tasks/activities involved in the project.

2. Sequencing Activities:

o Determine the logical order in which activities must be performed, considering

3. Estimating Duration:

o Assign time estimates to each activity based on resource availability and complexity.

4. Network Diagram:

o Construct a project network diagram (typically a PERT or CPM chart) to visually

5. Critical Path Identification:

o Calculate the earliest start (ES), earliest finish (EF), latest start (LS), and latest finish (LF)
times for each activity.

o The path with zero float (slack) is the critical path.

6. Project Duration Estimation:

o The total time of the critical path is the minimum duration for project completion.

How CPM Helps Project Managers:

1. Determines Project Duration:

o By identifying the critical path, managers can determine the exact time needed to
complete the project without delays.

2. Highlights Critical Tasks:

o CPM clearly identifies tasks that must not be delayed, helping managers focus their
attention on critical activities.

3. Improves Resource Allocation:

o Non-critical activities have slack, allowing flexible resource assignment and optimization.

4. Enables Proactive Risk Management:

o Knowing which tasks are critical allows for early identification of potential risks and
implementation of corrective measures.

5. Supports Better Decision-Making:

o Project managers can make informed decisions regarding task prioritization, resource
reallocation, and timeline adjustments.

6. Enhances Project Control:

22.A

Definition:

Budgeting in the context of project management refers to the process of estimating, allocating, and
controlling the financial resources required to complete a project within a defined scope and timeline. It
involves determining the cost of project activities, assigning funds to various phases, and ensuring
expenditures remain within approved limits.

Importance of Budgeting in Project Management:

1. Planning Tool:

• Budgeting helps in forecasting the total cost of the project.

• It provides a financial roadmap, detailing how much money is needed, when, and for what
purpose.

• Enables resource planning, helping project managers allocate funds appropriately to different
activities, departments, or vendors.

2. Cost Control and Monitoring:

• Budgeting enables tracking of actual expenses against the planned budget.

• Helps detect cost overruns or variances early so corrective actions can be taken.

• Ensures that the project remains financially viable and does not exceed the allocated funding.

3. Decision-Making Support:

• Provides data for informed decision-making regarding project scope, timelines, or resource
allocation.

• Managers can assess if the project is progressing within budget and make adjustments where
necessary.

• Supports prioritization of activities and reallocation of funds to high-impact areas.

4. Risk Management:

• Helps identify financial risks, such as underfunding or unexpected costs.

• Budgeting allows for contingency planning, where reserves are allocated to handle
uncertainties.
5. Performance Evaluation:

• Budget vs. actual analysis is used to evaluate team performance and project efficiency.

• Acts as a benchmark to assess the financial discipline of a project team or department.

6. Stakeholder Communication:

• A well-structured budget enhances transparency and builds trust with stakeholders.

• It provides a basis for financial reporting and progress updates to sponsors, clients, and
executives.

7. Alignment with Organizational Goals:

• Budgeting ensures that the project aligns with the organization’s strategic objectives and
financial constraints.

• Helps maintain fiscal discipline and prioritizes projects that deliver maximum value.