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PM0010 : List the benefits of WBS? Need for risk management in an organization-comment.

Answer: –   WBS :- Work breakdown structure (WBS) is a fundamental component of project management process that helps in defining and organizing the total scope of a project using hierarchical tree structure. According to Project Management Body of Knowledge (PMBoK), ‘WBS is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables’. The hierarchy structure approach of WBS helps the project team to know the requirements of total project more accurately and specifically. WBS can also be used to assign responsibilities and allocate resources to the project. It helps the team to monitor and control the project

WBS is the critical input to various project management processes and deliverables like activity definitions, project schedule network diagrams, project and program schedules, performance reports, risk analysis and response, control tools or project organization. WBS has several levels in its hierarchy structure. These can be further used as an input to the scheduling process that supports elaboration of tasks, activities, resources and milestones which can be cost estimated, monitored, and controlled.

Benefits of WBS

Work breakdown structure represents family tree hierarchy structure of project operations required to accomplish the objectives of the project. Tasks identified in the WBS collectively describe the overall project. It serves to describe the link between the end objective and activities required to reach that objective.

Need for risk management in an organization-comment.

The PMBoK defines risk management as the “formal process by which risk factors are systematically identified, assessed and provided for.” Risk management provides an opportunity and support to an organisation to gain and access better control over various factors of a project. They are:

· Time (planning/scheduling)

· Money estimate

· Quality control

· Information

Risk management helps the organisation to control and monitor various activities in a project. The following points describe the needs of the risk management:

· Promote an uninterrupted progression in the activities carried out within the project by taking appropriate measures, as well as to remove any interruptions as quickly as possible in the event of interrupts in the project.

· Instil confidence in the project team as well as project stakeholders and third parties.

· Promote communication within the entire project team.

· Support the decision making process of a project.

The Risk Management process is a generic guide for any organisation, regardless of the type of business, activity or function. It is an integral part of business planning. It also helps project sponsors and project teams to take informed decisions regarding alternative approaches to achieve their objectives and to reduce relative risk involved, in order to increase the likelihood of success in meeting or exceeding the objectives of the project. Risk management encourages the project team to take appropriate measures to:

· Minimise adverse impact on project scope, cost, schedule and quality.

· Maximise opportunities to improve the objectives of project with lower cost, shorter schedules, enhanced scope and higher quality.

· Minimise management crisis.

The effectiveness of risk management strategies varies for one project to another based on their risk profiles. The following points describe the applicability of different strategy:

For relatively low-uncertain projects, fast decision making can reduce the uncertainties from delays caused by regulatory changes, political changes and economic changes.

For project with high level certainties, purposeful postponement of some commitments and decisions can reduce the risks through acquisition of more and better information that lead to better decisions.

PM0010 : Describe the following quality control tools:

a. Ishikawa diagram

b. Flow chart

c. Pareto chart

d. Scatter diagram


  1. Ishikawa Diagram – also known as the Fishbone Diagram or the Cause-and-Effect Diagram, is a tool used for systematically identifying and presenting all the possible causes of a particular problem in graphical format. The possible causes are presented at various levels of detail in connected branches, with the level of detail increasing as the branch goes outward, i.e., an outer  branch is a cause of the inner branch it is attached to. Thus, the outermost branches usually indicate the root causes of the problem. The Ishikawa Diagram resembles a fishbone (hence the alternative name “Fishbone Diagram”) – it has a box (the ‘fish head’) that contains the statement of the problem at one end of the diagram. From this box originates the main branch (the ‘fish spine’) of the diagram. Sticking out of this main branch are major branches that categorize the causes according to their nature. In semiconductor manufacturing, 4 major branches are often used by beginners, referred to as the ‘4 M’s’, corresponding to ‘Man’, ‘Machine’, ‘Materials’, and ‘Methods’. Sometimes 5 branches are used (‘5 M’s’), with the fifth branch standing for ‘Measurement’, or even ‘M-ironmen.’ These ‘M’s’ or problem cause categories are used to classify each cause identified for easier analysis of data. Of course, one is not constrained to use these categories in fishbone diagram. Experienced users of the diagram add more branches and/or use different categories, depending on what would be more effective in dealing with the problem.
  2. Flow chart: – A typical definition of “Flow Chart” usually reads something like …A flow chart is a graphical or symbolic representation of a process. Each step anthem process is represented by a different symbol and contains a short description of the process step. The flow chart symbols are linked together with arrows showing the process flow direction.
  3. Pareto Chart: – A Pareto Chart is “a series of bars whose heights reflect the frequency or impact of problems. The bars are arranged in descending order of height from left to right. This means the categories represented by the tall bars on the left are relatively more significant than those on the right” .The chart gets its name from the Pareto Principle, which postulates that 80 percent of the trouble comes from 20 percent of the problems.
  4. Scatter diagram: – A scatter diagram is a tool for analyzing relationships between two variables. One variable is plotted on the horizontal axis and the other is plotted on the vertical axis. The pattern of their intersecting points can graphically show relationship patterns. Most often scatter diagram is used to prove or disprove cause-and-effect relationships. While the diagram shows relationships, it does not by itself prove that one variable causes the other. In addition to showing possible because and-effect relationships, a scatter diagram can show that two variables are from common cause that is unknown or that one variable can be used as a surrogate for the other.

PM0010  : if the optimistic estimate of an activity is 12 days & pessimistic estimate is 18 days. What is the variance of this activity?


Estimated time of the project = (to + 4* tm + tp)

If three standard deviations are chosen for the optimistic and pessimistic times,then there will be six standard deviations between them. In this case the varianceof each activity completion time is given by

Variance= [(tp – to) / 6]2




Variance = [(18-12)/6]2

            = [6/6]2


= 2

Variance = 2

PM0010 : Describe the role of project managers in Human resource management and communication management.

Answer:- Role of project manager in HR and communications management :- A project manager is responsible for managing various tasks, activities and processes to ensure that the project is delivered in the defined time. He is responsible for defining the goals and objectives of the project and ensures that the resources that are required for the smooth working of the project are available. He also monitors and controls the project process to keep track of the status of the work. This ensures that the progress, schedule, procedures and the cost of the project are well monitored. Apart from monitoring and controlling the implementation and execution of the project, a project manager also plays a vital role in Human Resources and communications management such as:

· Assists in effective communications among the team members,

· Consistency in methodology,

· Consistency in process, documentation, procedure,

· Meet deadlines and commitments

· Facilitate formal metrics and reporting to upper management/project sponsors.

· Entrusted with the authority and accountability necessary to get the job done.

· Able to cope with conflicting scope, quality, schedule, risk, and other requirements.

· Single point of integration to meet customer’s needs.

· Held accountable for project failure.

· Maintain control over the project by measuring performance and correcting as necessary.

PM0010 : Compare Operation and project procurement. Also list and explain the project procurement process.

Answer: – Project Procurement is where the decision to procure and the funding to pay the invoice comes from a project budget.

Operational Procurement is where decision to procure and the funding comes from the general budget as the commodities or services are required for the overall operation.

The method of making the procurement decision can be identical in both cases.

project procurement process:-

  • Specification. This step involves the purchasing department in communicating with the project manager to develop and approve a list of procurement items necessary for project implementation. The department must specify the approved items to external vendors.
  • Selection. This step of the project procurement process requires the department to find potential suppliers which can procure the necessary items, according to the specifications. For this purpose the department needs to set vendor selection criteria, which may include such measures as Delivery, Service Quality, Cost, and Part Performance.
  • Contracting. The department must communicate with the suppliers on delivery dates and payment conditions in order to ensure “on-time” delivery of the ordered items within the stated project budget. All the conditions should be listed in a procurement contract. Also a detailed delivery schedule should be negotiated with the procurers and approved by the purchasing department.
  • Control. Success of the procurement management process depends on how the purchasing department controls the delivery and payment processes. Through arranging regular meetings with the vendors, tracking delivery progress, reviewing the ordered items against the approved product specifications, and making necessary changes to the procurement contract, the department can control the process and ensure successful accomplishment.
  • Measurement. The final step of the project procurement management process refers to using a system of performance indicators and measures for assessing the effectiveness and success of the entire process. The project manager needs to set up such a system and the purchasing department needs to use it in measuring the process. Special meetings and workshops can be conducted to view KPIs, intermediate results of staged delivery, performance of procurers, adherence to product specifications, communications with suppliers, and the like. In case any deviations or gaps are revealed the department should notify the project manager and make necessary changes to the procurement plan.


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