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DRIVE
SUMMER 2016
PROGRAM
MBA
SEMESTER
IV
SUBJECT CODE & NAME
PM 0015 – QUANTITATIVE METHODS IN PROJECT MANAGEMENT
1 Explain
Business Value Models in detail.
1. Balanced
scorecard model
2. The
Treacy-Wiersema model
3. The Kano
model
Answer: Balanced scorecard model
The balanced scorecard model defines four scoring
areas for business value and was first published by Robert S. Kaplan and
David P. Norton in an article, “The Balanced Scorecard – Measures that
Drive Performance.”
2
What is parametric estimating? Explain the steps involved in the development of
a parametric model.
Define
parametric estimating
Describe the 7
steps involved in the development of a parametric model
Answer: Parametric estimating is an estimating
technique that uses a statistical relationship between historical data and
other variables, such as square footage in construction and lines of code in
software development for calculating an estimate for activity parameters, such
as scope, cost, budget, and duration. Parametric estimating can produce higher
levels of accuracy depending
3 What
is Capital Budgeting? What aspects of capital budgeting must be considered
while selecting a project?
1. Meaning of
Capital Budgeting
2. Explain the 4
aspects of capital budgeting that must be considered while selecting a project
Answer: Capital
budgeting is a planning process used to determine the worth of long term
investments in
4
Explain the various expense items in a project.
List the various
expense items in a project
Describe each
expense with suitable examples
Answer: Various expense items in a project
Direct and
indirect costs
Direct costs are
expenses that directly affect the budget of a project. Expenses that are for
the express benefit of the project, and would not be incurred if not for the project,
are usually called "dire
5 Explain
Benefit-Cost Ratio Analysis and Break-Even Analysis.
1. Benefit-Cost
Ratio Analysis
2. Break-Even
Analysis
Answer: BCR analysis refers to an approach
that compares the cost to be incurred and financial benefits to be received
from a project. It is conducted to make project decisions. BCR analysis
involves weighing total expected costs and expected benefits to select the most
profitable option. An
6
What are the steps that should be followed to construct a “house of quality”?
Explain the 5
steps that should be followed to construct a house of quality
Answer: The house of quality refers to a
collection of several quality deployment hierarchies that includes quality
hierarchy, quality characteristics hierarchy, relationship matrix, quality
planning table and design planning table. It is constructed in the form of a
table, connecting the dots between the voice of the customer and the voice of
the design and engineering team involved in the production process. The house
of quality is used by cross-functional teams for translating
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