Oral Exam Question

Question 1

What is the iron triangle?

Answer 1

-its a model of the constraints of PJ Management

→ quality is constraint by PJ’s budget, time and scope

Question 2

What are the limitations of the iron triangle?

Answer 2

• short term focus
• only between contractor and customer → does not look at external stakeholders
• is focussed on PJ Management succes and not PJ succes

Question 3

My construction company build a school in city X. Now, I won the contract to build the same school in city Y. Is this still a project?

Answer 3

Yes, aber warum?

Question 4

What is a programme?

Answer 4

-Related projects, subsidiary programs, and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually

-many PJ’s have the same goal
→ WC planning. Creating the stadiums is a programm

Question 5

Bonus: what is a portfolio?

Answer 5

→ is a group of different programs and/or projects within the same organization, which may be related or unrelated to one another

→ focuss on the strategic view of a company

Question 6

L2: Who are project stakeholders? (in major – complex projects)

Answer 6

1. Public stakeholders
2. Industrial stakeholders
3. Financial stakeholders
4. Other stakeholders

Question 7

L2: Explain Mitchell framework

Answer 7

→ model looks at how vocal, visible and important a stakeholder is, allowing you to create a typology of stakeholders to whom you should pay attention

3 attributes used:

1. Power
2. Legitimacy
3. Urgency

Question 8

L3: What is a “Functional Organisation”? Which are strengths and Weaknesses?

Answer 8

→ Companies are structured by grouping people performing similar activities into departments

example: Politecnico di Milano

strenghs:

1. due to developed structure it requires no disruption or change to firm’s design
2. development of in-depth knowledge and intelectual capital
3. allows standard career paths

weakness:

1. difficult to achieve cross-functional cooperation
2. lack of customer focus
3. longer time to complete projects
4. varying interest or commitment

Question 9

L3: What’s the difference between bulk material and equipment?

Answer 9

-bulk material: pipes
→ standart for projects

equipment: turbine
→ is produced for the PJ

Question 10

L3: What is it and Why is it useful to have a “close-out report”?

Answer 10

The purpose of project closeout is to assess the project and derive any lessons learned and best practices to be applied to future projects

• capture data
• risk
• 10 suppliers
• 2 were good (i can hire them again)
• 3 were bad (never again)

-real cost/time

Question 11

L4: What is an “Organisation Breakdown structure?”

Answer 11

• structural structure of people involved on the PJ
• Organization Breakdown Structure (OBS) is a hierarchical relationship of the organization, including subcontractors, responsible for managing a designated scope of work within the work breakdown structure (WBS)

Question 12

L4: What is the “Scope Creep”?

Answer 12

-added work from the customer
→ one thing is ok, but if there are many it kills PJ success

-do it, because of good relationship + thinking they can handle one more thing

Question 13

L4: What is “Gold Plating”?

Answer 13

→ making changig/AC to a PJ that are outside of the original agreed-upon scope

→ more things dont mean the customer likes them
→ if he does not, further delays/extra costs come with it

Question 14

L5: What’s the difference between economic and financial analysis?

Answer 14

→ financial: focussed on cash flow equivalent

→ econmical; focussed on goods and services + implication

Question 15

L5: What the WACC?

Answer 15

→ Weighted average cost of capital

Question 16

L5: How many IRR in a PJ? Why?

Answer 16

• we can have 0,1,2,3 to number of i
  → depending on the number of solutions possible of the equation
• more “i” could be possible, but just one IRR makes sense
  → plot your cash flow!!!

Question 17

Why does the economy of scale exist?

Answer 17

→ progress of learning

→ larger scale of production leads to lower average costs
(e.g. two pipes: double diameter → double cost, but four times as much flow → half unitary costs)

Question 18

When should you use the factorial estimate?

Answer 18

→ you want to combine different ways to desgining a PJ. Therefore you can use different factors to see the outcome?

Question 19

L6: When should you use the analytical estimate?

Answer 19

→ when you have the time, and the clearenace about the PJ:
-all relevant data
→ cost estimation is a cost for the company

Question 20

L7/8

How is it possible to “Crashing projects”

and when do you stop it?

Answer 20

→ accelarating the PJ

5. methods;

-add more resources
→ but increases cost

• work overtime
• improve existing resources’ productivity

-change work methods/resoucres

-compromise quality/reduce PJ scope

-institute fast-tracking (risk)
→ can cause overlapping

Stop when:

1. target completition time is reached
2. crashing cost exceeds penalty cost

Question 21

L7/8 Whats difference in using “AC on nodes” instead of “AC on Arrow”

Answer 21

→ AC are either written on the nodes or on the arroiws

-Problem: AC on arrow are dummy activities that dont give information how long something really takes.

→ only one link: Finish to start

Question 22

What are the 4 types of links in real life?

Answer 22

1. start to start
   → allow you to start (but not forced) (e.g. when crane is there, u can start construction)
2. start to finish
3. finish to finish
4. finish to start
   (enables the next AC to start

Question 23

L7/8 In resources levelling, what’s the difference (and consequence) between “Fixed duration (time) vs Fixed units (resources)”?

Answer 23

• Fixed duration (WC cant postpone deadline)
• Fixed units (e.g. Software team with 10 workers)

Question 24

L9 Why using a structured system like CSCS/EV?

Answer 24

→ shows how the PJ is actually going in terms of timing and budget

Question 25

L10: Difference between Risk and Uncertainty

Answer 25

Risk: has certain impact and likelihood

Question 26

L10: How can u minimize risk in PJ?

Answer 26

• use more standart tech (process and producs)
• use experienced suppliers/teams
• reduce phase overlap
• start construction with a complete desgin
• less complex process
• conduct more tests
• buy material in advande

Question 27

Whicht are the implications in using Task Contingency vs Managerial Contingency?

Question 28

What was the dark side in the past and now?

Answer 28

-it was different back then

→ socially contructed: Some things are build by society (vegetarians are good, seen by society)