CONSTRUCTION TECHNOLOGY IIBM MBA EXAM ANSWER SHEETS PROVIDED WHATSAPP 91 9924764558
CONTACT:
DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
Construction Technology
Section A: Objective Type (30 marks)
This section consists of Multiple Choices/Fill in the Blanks & short notes type questions.
Answer all the questions.
Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. Excavation carried out for construction of individual foundation and trenches is- :
a. Sloped excavation
b. Bulk excavation
c. Confined excavation
d. Excavation in rocks
2. Which of the following is not the temporary exclusion of controlling ground water?
a. Sump pumping
b. Cofferdams
c. caissons
d. Well point system
3. Strength, water-tightness, abrasion resistance are the properties of-:
a. Plastic concrete
b. Hardened concrete
c. Both a & b
d. None of these
4. The welding which is not suited for fabrication work known as-
a. Fusion welding
b. Friction welding
c. Flame welding
d. Metal arc welding
5. The most common heat sources used in industrial welding works are-
a. Electric welding
b. Resistance heating at an interface
c. Flame welding
d. All of the above
6. Silicone-based paint may be applied to porous surface to prevent water penetrating the wall known as-:
a. Fungicides paint
Examination Paper of Construction Management
2
IIBM Institute of Business Management
b. Water-repellent paint
c. Waterproofing paint
d. Heat-resisting paint
7. Which one of the following provides color to painting films?
a. Binder
b. Pigments
c. solvent
d. Additive
8. __________masonry composed of rectangular unit , usually larger in size than bricks and properly bonded having sawed, dressed, or squared beds- laid in mortar :
a. Rubble masonry
b. Ashlars masonry
c. Block-in-course masonry
d. Grouted masonry
9. RCC stands for _______________________________.
10. WMM stands for __________________________________.
Part Two:
1. What are the causes of accident at construction sites?
2. List the document required for actual project implementation.
3. What are the activities involved in plastering?
4. List the guidelines for storage of civil engineering construction material.
Section B: Caselets (40 Marks)
This section consists of Caselets.
Answer all the questions.
Each case let carries 20 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
The president rise in commodity prices across the board, s posing major threat to those working on construction projects, in general and real estate projects, in particular. The prices of raw material are it
END OF SECTION A
Examination Paper of Construction Management
3
IIBM Institute of Business Management
cement, steel, aluminum, plastics, etc., are seeing an upward rally. This can hamper the growth of the sector adversely in case the demand for these projects, worth crores of rupees, falls. The impact of this fall would be severe on country’s infrastructure development as well as the growth of the manufacturing sector. This lurking risk is not restricted only to domestic sector but is gaining global attention. Globally too project managers are concerned as commodity prices shoot through the roof. In addition to the problem of cost overrun, KPMG’s Global Construction Survey conducted in the year 2007 unraveled three major aspects of the construction sector; Current business trends, management of building process and the future. The findings revealed that the shortage of qualified contractors to bid for and execute major projects, the rising cost of construction and the shortage of internal resources available to manage and deliver projects are the biggest challenges to new construction projects in the future. These need to be addressed as demand for construction services shall increase over the next five years.
Considering India’s embarkment towards major construction projects related to highways, ports, airways, several lessons are required to be learned from international experiences and also from its own past experiences. According to Business Line, as of the end-March 2007, the National Highways Authority of India (NHAI) had about 46 constructions works-amounting to a total length of 1,844 km- which were plagued by time and cost overruns. Of these, three projects, which were cancelled due to non-performance of contractors, were not rewarded while others faced significant time overruns. Some common problems identified were delay on account of land acquisition, utilities clearance, bad quality Detailed Project Report (DPR), leading to massive change in scope of work after the project was awarded and non-performing contractors. To overcome these problems attempts have been made by HHAI such as, the new model concession agreement includes clauses to ensure that 60% land acquisition and utilities clearance are done by NHAI and passed on to the rod developer before the financial closure of the project. Additionally, the clauses also have provision of blacklisting consulting firms as well as imposing penalty on DPR consultants to ensure better performance. The intervention by IT sector can also help the construction sector in reducing the performance. The intervention by IT sector can also help the construction sector in reducing the man-managed deficiencies that contribute to cost and time overruns, if not eliminating it in entirely.
Questions:
1. The cost-effective construction technologies would emerge as the most acceptable case of sustainable technologies in India. Comment
2. Explain what lessons are required to be learned from International experiences and its own past experiences in construction project.
Caselet 2
The Euro Tunnel formerly known as Channel Tunnel project was conceived for over two centuries. However, it was in April 2, 1985, a formal invitation to complete the fixed link of it was floated by the British and the French. Thereafter, in January, 1986, the train/shuttle tunnel developed by the consortium channel Tunnel Group Limited-France-Manche S.A. (CTGFM) was ultimately given the contract. In the development of it, design engineering was the prime challenge. The challenge was overcome through construction of three concrete lined parallel tunnels of approximately 50 kilometers long running mostly undersea (about 38 Km) from the English and French ends. Of these, the two outside tunnels which are used as rail tunnels had a diameter (internal) of 7.6 meters for train movement. These rail tunnels were dug at an average distance of 30 meters. The other one, the central tunnel has an internal diameter of 4.8 meters for catering to servicing activities. For effectuating it, the service tunnel is linked with the rail
Examination Paper of Construction Management
4
IIBM Institute of Business Management
tunnels through cross-passages along the entire stretch, at equal intervals of 375 meters. Besides, the rail tunnels were also connected with ducts of piston relief at intervals of 250 meters for maintenance of air pressure, which got affected by movement of high-speed trains, in the two tunnels. Also, two huge undersea crossover caverns were constructed for the trains to crossover from one track to other. In order to keep the tunnels dry, five pumping stations and sumps were built. So as to reduce the heat caused by friction caused by the fast-moving trains, a cooling system was installed in which chilled water was pumped by cooling pipes. After determination of the optimum tunnel route, Tunnel Boring Machines (TBMs) that are able to operate in a sealed mode under water pressure were used. Lining of the tunnels were done with pre-cast concrete segmented rings and ductile iron as per soil conditions so as to ensure a 120 year life. The concrete used in the tunnel construction are of high strength and density so as to give optimum corrosion protection to the steel reinforcement. Besides, secondary protection against corrosion was ensured through surface coating.
Questions:
1. Explain the construction of the ‘Euro Tunnel’.
2. State the benefits of the construction of the ‘Euro Tunnel’.
Section C: Applied Theory (30 Marks)
This section consists of Applied Theory Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should from the part of your answer (Word limit 200 to 250 words).
1. Define “Glazing”, Explain different kind of glasses used for glazing purpose?
2. What is meant by mechanical handling? List the important safety guidelines for mechanical handling.
END OF SECTION B
END OF SECTION C
Examination Paper of Construction Management
5
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Project Management in Construction
Section A: Objective Type (30 marks)
This section consists of Multiple Choice questions & short note type questions.
Answer all the questions.
Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. It included manpower, material and machinery that is necessary to perform the work:
a. Scope
b. Quality
c. Resources
d. Completion time
2. In this analysis a project is formulated and appraised based on the estimates generated from past data, experience & analysis.
a. Risk analysis
b. Sensitivity analysis
c. Probability analysis
d. Economic analysis
3. It is a verbal written or on-line document that shows the up-to-date performance status of a task that has been entrusted to a responsibility/accounting centre.
a. Trends forecasting
b. Reporting performance
c. Performance variance analysis
d. Recording performance
4. In this contract, the architectural and engineering design and drawings are provided by the employer/client to the contractor at the time of tendering as a part of the contract documents:
a. Build-only contracts
b. Build-own transfer contracts
c. Engineering procurement
d. Construction contract
5. These arise where no ground exists either in the contract or in common law:
a. Contractual claims
b. Extra contractual claims
c. Ex-gratia claims
d. None of the above
Examination Paper of Construction Management
6
IIBM Institute of Business Management
6. In this case, both the parties willingly discuss the dispute and arrive at a settlement without the intervention of any third party:
a. Conciliation through negotiations
b. Conciliation through mediation
c. Conciliation by setting up ‘Dispute Review Board’ (DRB)
d. Conciliation through others
7. The claim which is registered by giving a notice is known as:
a. Registering claims
b. Establishing claims
c. Presentation claims
d. None of the above
8. This term covers the entire electronic and electro-mechanical equipment used in the computerized data processing system:
a. Hardware
b. Software
c. Operators
d. Procedure
9. This enables the electronic transfer of a complete file from one computer to another:
a. Internet
b. Intranets
c. telnet
d. File transfer protocol (FTP)
10. It is an assurance to the owner that selected the contractor will actually proceed with the contract
at the bid price:
a. performance bonds
b. Bid bonds
c. Claim bonds
d. Contract bonds
Part Two:
1. What are the main causes of a project failure?
2. What is ‘Responsibility assignment Matrix’ (RAM) chart?
3. Define professional construction management (PCM) approach.
4. Differentiate between ‘Project Management’ & ‘General Management’.
END OF SECTION B
Examination Paper of Construction Management
7
IIBM Institute of Business Management
Section B: Caselets (40 Marks)
This section consists of Caselets.
Answer all the questions.
Each Caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Huge Electronics Company (HEC) is a designer and manufacturer of electronics equipment that is sold primarily to government/military customers. Located in the Western United States, HEC grew rapidly in the 1970s to become one of the nation’s largest government contractors with employees in excess of 50,000. Partly because of HEC’s rapid growth, the company organization chart was constantly in a state of flux. Despite the changes, the engineering divisions remained fairly stable in a classic project management structure. The manufacturing division was structured in a matrix organization because of the large investments in manufacturing equipment necessary. Duplicating these equipment purchases for every project would not be cost effective.
Naturally, the project managers in the engineering division’s wieded a great deal of power to set policy and make decisions. The manufacturing project managers did not possess the total authority shared by their engineering counterparts; they did, however, have a strong say in controlling the destiny of their projects, if not the operating policy of the division. Due to of the matrix structure, functional and project managers coexisted at the same level in the management hierarchy, both reporting directly to the division manager. While the power in the division was spread evenly between functional and project management, when push came to shove, the project mangers’ possessed up what through the project structure I led to the influential edge that seemed to exist.
Make Versus Buy Decisions
As a result of the fast growth experienced by HEC, production capacity could not keep pace with demand in many cases. Some of the company’s product designs had to be off loaded either completely or partially for the production phase of a contract. The question of who should/would make the decision whether to manufacture in-house or off-load a particular product was always a point of contention. At least three parties influenced the decision: (1) the manufacturing project manager (MPM) (2) the manufacturing functional managers, and (3) the engineering project manager. Initially a manufacturing project plan is published by the MPM. The engineering project manager can influence make-buy decisions by the way the products are specified on the drawings to be used for manufacturing facility is incapable of producing, the MPM has no alternative but to have the product fabricated by a firm with the necessary capability.
Project tiger and the Cable Shop
The decision faced by the Tiger MPM regarding the selection of a production location for the Tiger electronic cables is a dramatic example of the make-buy decisions faced by HEC managers. Below is a description of the cast of characters who attempt to influence the Tiger MPM’s decisions.
Final Assembly Project Engineer: Wally Carr has 25 years experience with the company, worked his way up through the ranks, and has an inherent distrust for the wire and cable shop because of bad past experiences. His advice to the MPM is: ‘We should set up our own shop over in the new Tiger final assembly building. This can have control over our own destiny. That’s what we did on the old Stingray project and it worked great. Those cable guys never meet their schedules.”
Cable Project Engineer: Charlene Rain has five years experience in the firm and was previously in sales for a small electronics distributor. It known to anyone at the time, she has purchased an interest in a local wire and cable subcontractor that specializes in doing overflow work from large prime contractors. Her advice to the MPM is: “We should off-load these cables to a local vendor. They are a simple design and we need to concentrate our manufacturing engineering efforts on the more complicated designs.”
Examination Paper of Construction Management
8
IIBM Institute of Business Management
Wire and cable department Manager: Richard Treese, who recently took over the wire department, has already shown signs of improving a department that definitely needed some improvement. He is also the direct manager of the wire project engineer who is in favour of off-loading. His advice to the MPM is: “I know the department is near capacity right now, but some months from now when the Tiger project comes down the pike, we will be ready to handle it. We will deliver quality cables to meet your schedules.
Questions:
You are the project manager: you know how important project is for, both, the company and your career.
1. Should you go with a department that has been chronically delaying when the contract has a large incentive/penalty clause for on-time delivery?
2. Can you risk sending out a design to a supplier when the design is to be proved?
Caselet 2
In mid-1998, the personal products divisions of HLL launched campaign called ‘Project Bharat’ to be carried out by the end of 1999. ‘Project Bharat’ was a direct marketing exercise undertaking to address the issues of awareness, attitudes and habits of rural consumers and increase the penetration level of HLL products. It was the first and the largest rural home-to-home operation to have ever been taken up by any company carried out its direct marketing operations in the high potential districts of the country to attract first-time users.
Under ‘Project Bharat,’ HLL vans villages and sold small packs consisting of low-unit-price pack each of its detergent, toothpaste, face cream and talcum powder for Rs. 15. During the sales, company representatives also explained to the people how to use these products with the help of a video show. The villagers were also educated about the superior benefits of using the company’s products as compared to their current habits. This was very helpful for HLL, as it created awareness of its product categories and the availability of the affordable packs.
However, the company sensed that the sampling campaign was not enough to attract first time users. Therefore, it rolled out a follow-up program called the ‘Integrated Rural Promotion Van’ (IRPV), which further enhanced the awareness about LL’s products in village with an population above 2000.
Another program targeted at villages with a population of less than 2000 was simultaneously launched. Under this program, the company provided self-employment opportunities to villagers through Self-Help Groups (SHG). SGHs operated like direct-to home distributors wherein groups of 15-20 villagers who are the poverty line (those people whose monthly income was less than Rs. 750 per month) were provided with an opportunity to take micro-credit from banks. Using this money, villagers could buy HLL’s products and sell them to consumers, thereby, generating income as well as employment for themselves. This activity also helped the company increase the reach of its products.
Questions:
1. What are the significant features of HLL’s ad campaign ‘Project Bharat’?
2. How has HLL identified itself with India’s ‘Economic Development’?
END OF SECTION B
Examination Paper of Construction Management
9
IIBM Institute of Business Management
Section C: Applied Theory (30 Marks)
This section consists of Applied Theory Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should from the part of your answer (Word limit 200 to 250 words).
1. Who is a ‘Project Manager’? Describe the role of a project manager.
2. What is ‘PMIS’ report? Explain the benefits of establishing “PMIS”.
S-2-301012
END OF SECTION C
CONTACT:
DR. PRASANTH MBA PH.D. DME MOBILE / WHATSAPP: +91 9924764558 OR +91 9447965521 EMAIL: prasanththampi1975@gmail.com WEBSITE: www.casestudyandprojectreports.com
Construction Technology
Section A: Objective Type (30 marks)
This section consists of Multiple Choices/Fill in the Blanks & short notes type questions.
Answer all the questions.
Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. Excavation carried out for construction of individual foundation and trenches is- :
a. Sloped excavation
b. Bulk excavation
c. Confined excavation
d. Excavation in rocks
2. Which of the following is not the temporary exclusion of controlling ground water?
a. Sump pumping
b. Cofferdams
c. caissons
d. Well point system
3. Strength, water-tightness, abrasion resistance are the properties of-:
a. Plastic concrete
b. Hardened concrete
c. Both a & b
d. None of these
4. The welding which is not suited for fabrication work known as-
a. Fusion welding
b. Friction welding
c. Flame welding
d. Metal arc welding
5. The most common heat sources used in industrial welding works are-
a. Electric welding
b. Resistance heating at an interface
c. Flame welding
d. All of the above
6. Silicone-based paint may be applied to porous surface to prevent water penetrating the wall known as-:
a. Fungicides paint
Examination Paper of Construction Management
2
IIBM Institute of Business Management
b. Water-repellent paint
c. Waterproofing paint
d. Heat-resisting paint
7. Which one of the following provides color to painting films?
a. Binder
b. Pigments
c. solvent
d. Additive
8. __________masonry composed of rectangular unit , usually larger in size than bricks and properly bonded having sawed, dressed, or squared beds- laid in mortar :
a. Rubble masonry
b. Ashlars masonry
c. Block-in-course masonry
d. Grouted masonry
9. RCC stands for _______________________________.
10. WMM stands for __________________________________.
Part Two:
1. What are the causes of accident at construction sites?
2. List the document required for actual project implementation.
3. What are the activities involved in plastering?
4. List the guidelines for storage of civil engineering construction material.
Section B: Caselets (40 Marks)
This section consists of Caselets.
Answer all the questions.
Each case let carries 20 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
The president rise in commodity prices across the board, s posing major threat to those working on construction projects, in general and real estate projects, in particular. The prices of raw material are it
END OF SECTION A
Examination Paper of Construction Management
3
IIBM Institute of Business Management
cement, steel, aluminum, plastics, etc., are seeing an upward rally. This can hamper the growth of the sector adversely in case the demand for these projects, worth crores of rupees, falls. The impact of this fall would be severe on country’s infrastructure development as well as the growth of the manufacturing sector. This lurking risk is not restricted only to domestic sector but is gaining global attention. Globally too project managers are concerned as commodity prices shoot through the roof. In addition to the problem of cost overrun, KPMG’s Global Construction Survey conducted in the year 2007 unraveled three major aspects of the construction sector; Current business trends, management of building process and the future. The findings revealed that the shortage of qualified contractors to bid for and execute major projects, the rising cost of construction and the shortage of internal resources available to manage and deliver projects are the biggest challenges to new construction projects in the future. These need to be addressed as demand for construction services shall increase over the next five years.
Considering India’s embarkment towards major construction projects related to highways, ports, airways, several lessons are required to be learned from international experiences and also from its own past experiences. According to Business Line, as of the end-March 2007, the National Highways Authority of India (NHAI) had about 46 constructions works-amounting to a total length of 1,844 km- which were plagued by time and cost overruns. Of these, three projects, which were cancelled due to non-performance of contractors, were not rewarded while others faced significant time overruns. Some common problems identified were delay on account of land acquisition, utilities clearance, bad quality Detailed Project Report (DPR), leading to massive change in scope of work after the project was awarded and non-performing contractors. To overcome these problems attempts have been made by HHAI such as, the new model concession agreement includes clauses to ensure that 60% land acquisition and utilities clearance are done by NHAI and passed on to the rod developer before the financial closure of the project. Additionally, the clauses also have provision of blacklisting consulting firms as well as imposing penalty on DPR consultants to ensure better performance. The intervention by IT sector can also help the construction sector in reducing the performance. The intervention by IT sector can also help the construction sector in reducing the man-managed deficiencies that contribute to cost and time overruns, if not eliminating it in entirely.
Questions:
1. The cost-effective construction technologies would emerge as the most acceptable case of sustainable technologies in India. Comment
2. Explain what lessons are required to be learned from International experiences and its own past experiences in construction project.
Caselet 2
The Euro Tunnel formerly known as Channel Tunnel project was conceived for over two centuries. However, it was in April 2, 1985, a formal invitation to complete the fixed link of it was floated by the British and the French. Thereafter, in January, 1986, the train/shuttle tunnel developed by the consortium channel Tunnel Group Limited-France-Manche S.A. (CTGFM) was ultimately given the contract. In the development of it, design engineering was the prime challenge. The challenge was overcome through construction of three concrete lined parallel tunnels of approximately 50 kilometers long running mostly undersea (about 38 Km) from the English and French ends. Of these, the two outside tunnels which are used as rail tunnels had a diameter (internal) of 7.6 meters for train movement. These rail tunnels were dug at an average distance of 30 meters. The other one, the central tunnel has an internal diameter of 4.8 meters for catering to servicing activities. For effectuating it, the service tunnel is linked with the rail
Examination Paper of Construction Management
4
IIBM Institute of Business Management
tunnels through cross-passages along the entire stretch, at equal intervals of 375 meters. Besides, the rail tunnels were also connected with ducts of piston relief at intervals of 250 meters for maintenance of air pressure, which got affected by movement of high-speed trains, in the two tunnels. Also, two huge undersea crossover caverns were constructed for the trains to crossover from one track to other. In order to keep the tunnels dry, five pumping stations and sumps were built. So as to reduce the heat caused by friction caused by the fast-moving trains, a cooling system was installed in which chilled water was pumped by cooling pipes. After determination of the optimum tunnel route, Tunnel Boring Machines (TBMs) that are able to operate in a sealed mode under water pressure were used. Lining of the tunnels were done with pre-cast concrete segmented rings and ductile iron as per soil conditions so as to ensure a 120 year life. The concrete used in the tunnel construction are of high strength and density so as to give optimum corrosion protection to the steel reinforcement. Besides, secondary protection against corrosion was ensured through surface coating.
Questions:
1. Explain the construction of the ‘Euro Tunnel’.
2. State the benefits of the construction of the ‘Euro Tunnel’.
Section C: Applied Theory (30 Marks)
This section consists of Applied Theory Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should from the part of your answer (Word limit 200 to 250 words).
1. Define “Glazing”, Explain different kind of glasses used for glazing purpose?
2. What is meant by mechanical handling? List the important safety guidelines for mechanical handling.
END OF SECTION B
END OF SECTION C
Examination Paper of Construction Management
5
IIBM Institute of Business Management
IIBM Institute of Business Management
Examination Paper MM.100
Project Management in Construction
Section A: Objective Type (30 marks)
This section consists of Multiple Choice questions & short note type questions.
Answer all the questions.
Part one questions carry 1 mark each & Part Two questions carry 5 marks each.
Part One:
Multiple Choices:
1. It included manpower, material and machinery that is necessary to perform the work:
a. Scope
b. Quality
c. Resources
d. Completion time
2. In this analysis a project is formulated and appraised based on the estimates generated from past data, experience & analysis.
a. Risk analysis
b. Sensitivity analysis
c. Probability analysis
d. Economic analysis
3. It is a verbal written or on-line document that shows the up-to-date performance status of a task that has been entrusted to a responsibility/accounting centre.
a. Trends forecasting
b. Reporting performance
c. Performance variance analysis
d. Recording performance
4. In this contract, the architectural and engineering design and drawings are provided by the employer/client to the contractor at the time of tendering as a part of the contract documents:
a. Build-only contracts
b. Build-own transfer contracts
c. Engineering procurement
d. Construction contract
5. These arise where no ground exists either in the contract or in common law:
a. Contractual claims
b. Extra contractual claims
c. Ex-gratia claims
d. None of the above
Examination Paper of Construction Management
6
IIBM Institute of Business Management
6. In this case, both the parties willingly discuss the dispute and arrive at a settlement without the intervention of any third party:
a. Conciliation through negotiations
b. Conciliation through mediation
c. Conciliation by setting up ‘Dispute Review Board’ (DRB)
d. Conciliation through others
7. The claim which is registered by giving a notice is known as:
a. Registering claims
b. Establishing claims
c. Presentation claims
d. None of the above
8. This term covers the entire electronic and electro-mechanical equipment used in the computerized data processing system:
a. Hardware
b. Software
c. Operators
d. Procedure
9. This enables the electronic transfer of a complete file from one computer to another:
a. Internet
b. Intranets
c. telnet
d. File transfer protocol (FTP)
10. It is an assurance to the owner that selected the contractor will actually proceed with the contract
at the bid price:
a. performance bonds
b. Bid bonds
c. Claim bonds
d. Contract bonds
Part Two:
1. What are the main causes of a project failure?
2. What is ‘Responsibility assignment Matrix’ (RAM) chart?
3. Define professional construction management (PCM) approach.
4. Differentiate between ‘Project Management’ & ‘General Management’.
END OF SECTION B
Examination Paper of Construction Management
7
IIBM Institute of Business Management
Section B: Caselets (40 Marks)
This section consists of Caselets.
Answer all the questions.
Each Caselet carries 20 marks.
Detailed information should form the part of your answer (Word limit 150 to 200 words).
Caselet 1
Huge Electronics Company (HEC) is a designer and manufacturer of electronics equipment that is sold primarily to government/military customers. Located in the Western United States, HEC grew rapidly in the 1970s to become one of the nation’s largest government contractors with employees in excess of 50,000. Partly because of HEC’s rapid growth, the company organization chart was constantly in a state of flux. Despite the changes, the engineering divisions remained fairly stable in a classic project management structure. The manufacturing division was structured in a matrix organization because of the large investments in manufacturing equipment necessary. Duplicating these equipment purchases for every project would not be cost effective.
Naturally, the project managers in the engineering division’s wieded a great deal of power to set policy and make decisions. The manufacturing project managers did not possess the total authority shared by their engineering counterparts; they did, however, have a strong say in controlling the destiny of their projects, if not the operating policy of the division. Due to of the matrix structure, functional and project managers coexisted at the same level in the management hierarchy, both reporting directly to the division manager. While the power in the division was spread evenly between functional and project management, when push came to shove, the project mangers’ possessed up what through the project structure I led to the influential edge that seemed to exist.
Make Versus Buy Decisions
As a result of the fast growth experienced by HEC, production capacity could not keep pace with demand in many cases. Some of the company’s product designs had to be off loaded either completely or partially for the production phase of a contract. The question of who should/would make the decision whether to manufacture in-house or off-load a particular product was always a point of contention. At least three parties influenced the decision: (1) the manufacturing project manager (MPM) (2) the manufacturing functional managers, and (3) the engineering project manager. Initially a manufacturing project plan is published by the MPM. The engineering project manager can influence make-buy decisions by the way the products are specified on the drawings to be used for manufacturing facility is incapable of producing, the MPM has no alternative but to have the product fabricated by a firm with the necessary capability.
Project tiger and the Cable Shop
The decision faced by the Tiger MPM regarding the selection of a production location for the Tiger electronic cables is a dramatic example of the make-buy decisions faced by HEC managers. Below is a description of the cast of characters who attempt to influence the Tiger MPM’s decisions.
Final Assembly Project Engineer: Wally Carr has 25 years experience with the company, worked his way up through the ranks, and has an inherent distrust for the wire and cable shop because of bad past experiences. His advice to the MPM is: ‘We should set up our own shop over in the new Tiger final assembly building. This can have control over our own destiny. That’s what we did on the old Stingray project and it worked great. Those cable guys never meet their schedules.”
Cable Project Engineer: Charlene Rain has five years experience in the firm and was previously in sales for a small electronics distributor. It known to anyone at the time, she has purchased an interest in a local wire and cable subcontractor that specializes in doing overflow work from large prime contractors. Her advice to the MPM is: “We should off-load these cables to a local vendor. They are a simple design and we need to concentrate our manufacturing engineering efforts on the more complicated designs.”
Examination Paper of Construction Management
8
IIBM Institute of Business Management
Wire and cable department Manager: Richard Treese, who recently took over the wire department, has already shown signs of improving a department that definitely needed some improvement. He is also the direct manager of the wire project engineer who is in favour of off-loading. His advice to the MPM is: “I know the department is near capacity right now, but some months from now when the Tiger project comes down the pike, we will be ready to handle it. We will deliver quality cables to meet your schedules.
Questions:
You are the project manager: you know how important project is for, both, the company and your career.
1. Should you go with a department that has been chronically delaying when the contract has a large incentive/penalty clause for on-time delivery?
2. Can you risk sending out a design to a supplier when the design is to be proved?
Caselet 2
In mid-1998, the personal products divisions of HLL launched campaign called ‘Project Bharat’ to be carried out by the end of 1999. ‘Project Bharat’ was a direct marketing exercise undertaking to address the issues of awareness, attitudes and habits of rural consumers and increase the penetration level of HLL products. It was the first and the largest rural home-to-home operation to have ever been taken up by any company carried out its direct marketing operations in the high potential districts of the country to attract first-time users.
Under ‘Project Bharat,’ HLL vans villages and sold small packs consisting of low-unit-price pack each of its detergent, toothpaste, face cream and talcum powder for Rs. 15. During the sales, company representatives also explained to the people how to use these products with the help of a video show. The villagers were also educated about the superior benefits of using the company’s products as compared to their current habits. This was very helpful for HLL, as it created awareness of its product categories and the availability of the affordable packs.
However, the company sensed that the sampling campaign was not enough to attract first time users. Therefore, it rolled out a follow-up program called the ‘Integrated Rural Promotion Van’ (IRPV), which further enhanced the awareness about LL’s products in village with an population above 2000.
Another program targeted at villages with a population of less than 2000 was simultaneously launched. Under this program, the company provided self-employment opportunities to villagers through Self-Help Groups (SHG). SGHs operated like direct-to home distributors wherein groups of 15-20 villagers who are the poverty line (those people whose monthly income was less than Rs. 750 per month) were provided with an opportunity to take micro-credit from banks. Using this money, villagers could buy HLL’s products and sell them to consumers, thereby, generating income as well as employment for themselves. This activity also helped the company increase the reach of its products.
Questions:
1. What are the significant features of HLL’s ad campaign ‘Project Bharat’?
2. How has HLL identified itself with India’s ‘Economic Development’?
END OF SECTION B
Examination Paper of Construction Management
9
IIBM Institute of Business Management
Section C: Applied Theory (30 Marks)
This section consists of Applied Theory Questions.
Answer all the questions.
Each question carries 15 marks.
Detailed information should from the part of your answer (Word limit 200 to 250 words).
1. Who is a ‘Project Manager’? Describe the role of a project manager.
2. What is ‘PMIS’ report? Explain the benefits of establishing “PMIS”.
S-2-301012
END OF SECTION C
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