Project Charter and Business Case Essentials
Project Charter and Business Case Essentials
Question 1 :
Q1. What is Project Charter in Software Project Management? What are the Elements of
a Project Charter?
A Project Charter is a formal document that authorizes a project and gives the project manager the
authority to use resources to achieve project objectives.
It is created during the initiation phase of the project and outlines the purpose, objectives, scope,
stakeholders, and responsibilities of the project.
Element Description
2. Project Purpose/Objectives The reason for the project and what it aims to achieve.
6. Major Milestones Key dates or phases when important outcomes are expected.
Assumptions and
8. Known assumptions, risks, and limitations.
Constraints
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Q2. Define Business Case. Specify the Content of Business Case Document.
It is created during the project initiation phase and is used to support approval and funding decisions.
Section Description
9. Timeline and Milestones Estimated project schedule with major phases and deadlines.
Conclusion and Final decision on whether the project should proceed, with
10.
Recommendation justification.
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Q3. What is Project Portfolio Management? Explain the Key Aspects of Project Portfolio
Management.
Project Portfolio Management (PPM) is the centralized management of multiple projects, programs,
and initiatives in an organization.
It helps organizations select, prioritize, manage, and control projects that align with strategic goals
and available resources.
PPM ensures that the right projects are executed at the right time to deliver maximum value.
Purpose of PPM:
• To align projects with business strategy
Aspect Description
2. Prioritization Ranking projects based on factors like urgency, value, cost, and impact.
4. Risk Management Identifying and managing risks across all projects in the portfolio.
Performance Tracking progress using KPIs, dashboards, and status reports to ensure
5.
Monitoring success.
Example:
• A website redesign
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Q4. Define the Following Terms:
🔹 i) Net Profit:
Net Profit is the total earnings of a business after deducting all expenses, taxes, and costs from total
revenue.
It is also called net income or bottom line.
Formula:
Example:
If a project earns ₹1,00,000 and costs ₹70,000,
Net Profit = ₹1,00,000 – ₹70,000 = ₹30,000
ROI measures the profitability or efficiency of an investment. It shows how much return you get for
every rupee invested.
Formula:
Example:
If you invest ₹10,000 and earn a profit of ₹2,000,
ROI = (2000 / 10000) × 100 = 20%
The Payback Period is the time required to recover the initial investment made in a project.
Example:
If a project costs ₹20,000 and generates ₹5,000 per year,
Payback Period = 20,000 ÷ 5,000 = 4 years
NPV is the difference between the present value of cash inflows and outflows over a project’s lifetime.
It helps determine the profitability of a project considering time value of money.
Formula:
Rule:
IRR is the rate of return at which the NPV of all cash flows from a project equals zero.
It shows the maximum interest rate a project can bear before becoming unprofitable.
Rule:
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Change Control is a formal process used in project management to ensure that any change to the
project scope, plan, or deliverables is properly evaluated, approved, and documented before
implementation.
It helps in managing changes in a structured and controlled manner without disrupting the project's
goals.
Step Description
Technical, cost, time, and risk impacts of the change are analyzed by
4. Impact Analysis
the project team.
Documentation and
8. All stakeholders are notified, and project documents are updated.
Communication
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What is Risk?
A risk is a potential problem or uncertain event that may negatively affect the project’s objectives such as time,
cost, scope, or quality.
What is Risk Evaluation and Management?
Risk Evaluation and Management is the process of identifying, analyzing, and responding to project risks to
minimize their impact on the project.
Step Description
List all possible risks that can affect the project using tools like brainstorming,
1. Risk Identification
checklists, and past experiences.
Evaluate each risk based on:
2. Risk Analysis
- Probability (likelihood of occurrence)
(Evaluation)
- Impact (effect on the project)
3. Risk Prioritization Rank risks as High, Medium, or Low based on their probability and impact.
4. Risk Response Planning Create a plan to avoid, reduce, transfer, or accept each risk.
5. Risk Monitoring and
Continuously track identified risks and update response strategies as needed.
Control
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Q7. What is a Project? What are its Characteristics?
What is a Project?
A project is a temporary and unique effort undertaken to create a specific product, service, or result.
It has a defined objective, limited time frame, and allocated resources. Projects are different from
ongoing operations because they have a clear start and end point.
Example: Developing a mobile app, building a website, or implementing a new software system.
Characteristics of a Project:
Characteristic Description
No.
Every project has a fixed start and end date. It is not a continuous
1. Temporary
activity.
2. Unique Output The result or product of every project is unique and not repetitive.
The project plan is developed in steps and gets more detailed over
4. Progressive Elaboration
time.
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Q8. State and Explain Phases of Project Management Life Cycle (PMLC)
(Also known as Project Management Life Cycle or PM Life Cycle)
Phase Description
1. Initiation Phase
| 2. Planning Phase |
• Detailed plans are created for scope, time, cost, quality, risk, and resources.
| 3. Execution Phase |
• Resources are assigned, teams are managed, and deliverables are developed.
Key Output: Product/Service deliverables. |
| 5. Closing Phase |
Project Portfolio Management (PPM) is the centralized management of multiple projects, programs,
and portfolios to achieve strategic business objectives.
It focuses on selecting, prioritizing, and managing a group of related or unrelated projects to ensure
they align with the organization’s goals and deliver maximum value.
Purpose of PPM:
Element Description
No.
Project Selection and Choosing projects that offer maximum value and ranking them
3.
Prioritization based on importance.
Example:
A software company managing multiple projects like:
• Website Redesign
• AI Chatbot Integration
These projects are handled under Project Portfolio Management to ensure resource efficiency
and strategic alignment.
Cost-Benefit Analysis is a technique used in project management to compare the total expected costs
of a project with its total expected benefits, in order to determine whether the project is financially
viable or not.
Step Description
List all the direct and indirect costs associated with the project.
1. Identify Costs
Examples: salaries, software, hardware, training, maintenance.
Estimate all the tangible and intangible benefits the project will deliver.
2. Identify Benefits
Examples: increased revenue, time savings, customer satisfaction.
Convert both costs and benefits into monetary terms, even for
3. Assign Monetary Values
intangible benefits (use estimation techniques if needed).
Example:
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Project scope defines the boundaries of the project — what will be included and what will be
excluded.
It specifies:
Example:
If you’re building a library management system, scope may include:
• Book cataloging
• Issuing/return system
• User registration
And exclude: mobile app version or barcode scanning.
Objectives describe the goals that the project must achieve. They must be:
• Specific
• Measurable
• Achievable
• Relevant
• Time-bound (SMART)
Example:
Q12. Define Project. Describe the Project Management Life Cycle with the help of a
diagram and state the W5HH principle.
Definition of Project:
The Project Management Life Cycle refers to the series of phases that a project passes through from
start to finish. It provides a structured approach to manage and control the entire project.
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| 1. Initiation |
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| 3. Execution |
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| 5. Closing |
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Phases Explained:
Phase Description
1. Initiation Define the purpose, create Project Charter, and identify stakeholders.
2. Planning Develop detailed plans for scope, schedule, budget, risks, and resources.
3. Execution Carry out the planned tasks and develop the project deliverables.
4. Monitoring & Track performance, manage changes, and ensure project is on time and
Controlling budget.
The W5HH Principle is a checklist used during software project planning and management. It answers
key questions to ensure project clarity and success.
Question Explanation
W – Why is the system being developed? Define business justification and purpose.
W – Where are they located? Define team structure and communication paths.
H – How much will it cost? Estimate budget, resources, and overall cost.
Q13. What is a Project Product? Explain the Product Breakdown Structure (PBS) with
the help of an example.
A project product is the final deliverable or outcome that the project is undertaken to produce.
It can be a software system, report, website, mobile app, or any solution created to fulfill project
objectives.
Example:
In a project to build a Library Management System, the project product is the complete working
software that manages books, members, and transactions.
A Product Breakdown Structure (PBS) is a hierarchical structure that breaks down the final product
into smaller, manageable components or sub-products.
├── Database
└── Reports
Benefits of PBS:
A Business Case is a formal document that provides justification for starting a project.
It evaluates the costs, benefits, risks, and alternatives to help decision-makers determine whether
the project is worth investing in.
Section Description
2. Problem Statement /
Describes the issue or opportunity the project aims to address.
Business Need
3. Project Description Outlines the scope, objectives, and key deliverables of the project.
6. Risk Analysis Identifies potential risks and how they will be mitigated.
7. Timeline and Milestones Expected duration of the project and important deadlines.
For a college planning to implement a Student Attendance Management System, the Business Case
would justify the need to automate manual attendance, save time, reduce errors, and improve
reporting.
A risk is any uncertain event or condition that may affect the success of a software project.
It can impact cost, time, quality, or scope if not identified and controlled early.
Risk Management involves a structured process to identify, evaluate, respond to, and monitor risks
throughout the project life cycle.
Step Description
List all possible risks that could affect the project. Use techniques like
1. Risk Identification brainstorming, expert interviews, and historical data.
Examples: Delay in delivery, team member leaving, technology failure.
Rank the risks based on their probability and impact to focus on the most
3. Risk Prioritization
critical risks first.
Example:
Q16. Describe the Main Steps of Stepwise Approach to Planning Software Projects with
Diagram
The Stepwise Approach is a structured method to plan software projects by dividing the planning
activity into logical, manageable steps. It ensures that all essential elements—like scope, schedule,
and risk—are properly addressed.
This approach was introduced by Mike Cotterell and Bob Hughes and is widely used in Software
Project Management.
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Step Description
1. Identify Scope and Define what the project will achieve and its goals. Clearly state the
Objectives boundaries of the project (what is included/excluded).
List all products or outcomes that the project will deliver, such as
2. Identify Deliverables
reports, software modules, documents, etc.
4. Estimate Effort and Estimate the time, effort, cost, and team needed to complete each
Resources activity. Use techniques like expert judgment or analogy.
6. Assess Risks and Plan Identify potential risks, analyze their impact, and prepare risk mitigation
Contingencies strategies.
Prepare the complete Project Plan Document with all the details for
7. Document the Plan
stakeholders’ approval and future reference.
Given:
Step-by-Step Calculation:
Year 1:
Q1 25,000 25,000
Q2 25,000 50,000
Q3 25,000 75,000
Q4 25,000 100,000
Year 2:
Quarter Inflow (£) Cumulative Inflow (£)
Q5 30,000 130,000
Q6 30,000 160,000
Payback Period:
The total investment (£190,000) is recovered at the end of Q7, i.e., after:
Final Answer:
Question 2 :
Q18. What is the Waterfall Model? Explain with Advantages and Disadvantages.
The Waterfall Model is a sequential software development model in which each phase of the Software
Development Life Cycle (SDLC) is completed one after the other in a linear order.
It was one of the earliest models used in software engineering and is easy to understand and manage.
| 1. Requirements |
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| 2. Design |
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| 3. Implementation|
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| 4. Testing |
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| 5. Deployment |
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| 6. Maintenance |
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Explanation of Phases:
Phase Description
Writing code takes only about 30% of total project effort. The
Coding is Only 30% of Total
2. rest includes requirements, design, testing, documentation,
Work
and reviews.
Defect Removal Efficiency Good teams remove about 95% of defects before release. Poor
3.
(DRE) teams remove only 85% or less, leading to post-release issues.
Maintenance Takes More Time Around 60%–70% of total software lifecycle cost is spent on
4.
than Development maintenance, not initial development.
Function Points Are Better Estimating using function points gives more accurate results
5.
Than Lines of Code (LOC) than using lines of code, especially for different languages.
Reusable Components Using pre-tested, reusable components reduces cost, time, and
8.
Improve Efficiency defects.
COCOMO II (Constructive Cost Model II) is a software estimation model developed by Barry W. Boehm
as an improved version of the original COCOMO model.
It is used to estimate the cost, effort, and schedule of software projects based on the size and
complexity of the system being developed.
Feature Description
1. Supports Modern
Designed for object-oriented, agile, and component-based development.
Projects
2. Uses Function Points Estimates based on Function Points or Thousands of Source Lines of Code
or KSLOC (KSLOC).
Where:
• PM = Person-Months
• A, B = Constants
Definition of WBS:
A Work Breakdown Structure (WBS) is a hierarchical decomposition of the total work to be done in a
project. It breaks the project into smaller, manageable components called work packages.
The WBS helps project managers plan, assign, monitor, and control the work more efficiently.
Simple Meaning: WBS is like a family tree of project tasks — breaking the big project into smaller
and smaller tasks.
Purpose of WBS:
Levels of WBS:
Level Description
Level 3 Sub-deliverables
Function Point Analysis (FPA) is a software size estimation technique developed by Allan Albrecht at
IBM.
It measures the functionality of a software system based on what the system does, rather than how it
is developed.
FPA is widely used for estimating project cost, effort, and productivity, especially in early
development stages.
Component Description
These are data or control inputs that come from outside the system to update
1. External Inputs (EI) internal data.
Example: Login form input, order form submission.
These are processed data or reports sent from the system to external
2. External Outputs
sources. They include calculated or derived results.
(EO)
Example: Invoice generation, salary slip.
These are requests that retrieve data without modifying the system’s data. It
3. External Inquiries
includes input + output with no processing.
(EQ)
Example: Checking order status, account balance inquiry.
These are user-identifiable groups of data stored within the system. They are
4. Internal Logical
maintained through internal inputs.
Files (ILF)
Example: Employee database, student records.
These are files used by the system but are maintained by other systems. The
5. External Interface
system can only read or reference them.
Files (EIF)
Example: Reading product catalog from another system.
How It Works:
Each component is counted and given a weight (Low, Average, High complexity). The total function
points are calculated using:
The Spiral Model is a risk-driven software development process model introduced by Barry Boehm.
It combines elements of both the Waterfall model and Prototyping, and is best suited for large,
complex, and high-risk projects.
The development is done in spirals or cycles, where each spiral represents a phase in the software
development lifecycle.
Key Features:
• Each cycle (spiral) includes planning, design, development, testing, and review
Phase Description
2. Risk Analysis Identify and analyze risks; develop risk mitigation strategies.
3. Development and Testing Build a prototype or software increment and test it.
Q24. Define Atern / Dynamic Systems Development Method (DSDM). State and Explain
its Eight Core Principles.
Atern, also known as the Dynamic Systems Development Method (DSDM), is an Agile project delivery
framework that focuses on rapid and iterative software development with active user involvement.
It was developed in the UK in the 1990s and is designed to deliver business solutions quickly and
efficiently, while maintaining quality and stakeholder collaboration.
These principles are the foundation for successful Agile project delivery using Atern/DSDM.
Principle Explanation
No.
Focus on the Business Deliver solutions that meet real business goals. Every decision
1.
Need should add business value.
Define quality criteria at the beginning and ensure they are always
4. Never Compromise Quality
met — quality is not negotiable.
Build Incrementally from Develop the system in small parts, validating each part before
5.
Firm Foundations moving forward to avoid big failures.
Q25. Explain briefly Albrecht/IFPUG function point and solve the following: For a
organization, the following table summarizes the weightings to be used for computing
function points measures of a software having the following characteristics : Number
of user inputs : 10 (simple), Number of user outputs : 7 (simple), Number of user
enquires : 3 (average) , Number of files : 6 (average), Number of External interfaces : 1
(complex), Calculate unadjusted function point measures of the size of the software
system?
Q. Explain briefly Albrecht/IFPUG Function Point and Solve the Given Problem
Function Point Analysis (FPA), introduced by Allan Albrecht and maintained by IFPUG (International
Function Point Users Group), is a standardized method to measure the functional size of a software
system.
Given Values:
Final Answer:
The Unadjusted Function Point (UFP) for the software system is 140.
Q26. Discuss Agile and Scrum as a Fast Delivery Approach of a Project in Detail
Agile Methodology:
Agile is a modern, flexible, and iterative software development approach that focuses on:
• Customer collaboration
• Responding to change
It focuses on time-boxed development cycles called Sprints (usually 2–4 weeks long), and emphasizes
teamwork, accountability, and iterative progress.
Scrum Roles:
Role Description
Product Owner Represents the customer, defines features, and manages the product backlog.
Facilitates the Scrum process, removes blockers, and ensures team follows Agile
Scrum Master
principles.
Development
Cross-functional team members who design, build, and test the product.
Team
Scrum Artifacts:
Artifact Description
Event Purpose
Q27. Describe the Capers Jones Estimating Rules of Thumb with the Help of Relevant
Examples.
Capers Jones is a leading expert in software engineering and cost estimation. He proposed several
"rules of thumb" that help software professionals estimate time, cost, effort, and quality in software
development.
These rules are based on industry-wide data, making them useful for practical project planning.
Most people think coding is the main work, but it only takes
Coding is only 30% of the total 30%.
1
effort Example: For a 10-month project, coding might take only 3
months; the rest is used in planning, design, testing, etc.
Rule of Thumb Explanation & Example
No.
Q28. Explain Scrum. What do you understand by the term 'ceremonies' in a Scrum
project?
What is Scrum?
Scrum is a popular Agile framework used for managing complex software projects. It focuses on
iterative and incremental development, where work is divided into short time-boxed cycles called
Sprints (usually 2–4 weeks).
Scrum emphasizes:
• Collaboration
• Customer feedback
• Continuous improvement
Role Responsibility
Manages the product backlog and ensures the team builds what the customer
Product Owner
wants.
Scrum Master Facilitates Scrum practices, removes obstacles, and ensures team productivity.
Development
Cross-functional team members who design, build, and test the product.
Team
In Scrum, ceremonies refer to the structured meetings or events that occur regularly during the
development cycle to ensure transparency, planning, and continuous improvement.
Ceremony Purpose
Held at the start of each Sprint. The team selects items from the product
1. Sprint Planning
backlog to work on and sets a goal.
2. Daily Scrum
A 15-minute daily meeting to discuss progress, plans for the day, and obstacles.
(Stand-up)
Conducted at the end of the Sprint. The team demonstrates the working
3. Sprint Review
product increment to stakeholders for feedback.
4. Sprint Held after the Sprint Review. The team reflects on what went well, what didn’t,
Retrospective and how to improve in the next Sprint.
Accurate estimation is critical for project planning, budgeting, resource allocation, and meeting
deadlines.
However, it often faces many practical challenges that lead to inaccurate planning or cost overruns.
Problem Description
4. Ignoring Non- Estimations often focus only on coding and ignore testing,
Development Tasks documentation, meetings, and deployment tasks.
Not including buffer time for risks, rework, or unexpected issues leads
7. No Buffer for Risks
to missed deadlines.
Function Point Analysis (FPA) is a standard method to measure the functional size of a software
system.
It was introduced by Allan Albrecht at IBM in the late 1970s and later standardized by the International
Function Point Users Group (IFPUG).
It focuses on what the software does from the user's perspective, not how it is coded.
Component Description
1. External Inputs (EI) User inputs that update internal data (e.g., login form)
2. External Outputs (EO) Processed outputs sent to the user (e.g., report)
3. External Inquiries (EQ) Data retrieval without updates (e.g., search query)
5. External Interface Files (EIF) Files used by the system but maintained externally
Definition:
Monte Carlo Simulation is a mathematical technique used to understand the impact of uncertainty
and risk in project management and other decision-making processes.
It uses random sampling and probability distributions to simulate a range of possible outcomes and
evaluate the likelihood of different results.
Key Features:
• Based on repeating calculations many times (usually thousands) using random values
• Helps estimate project cost, time, effort, and risk under uncertainty
Step Description
5. Analyze the results to find the range, mean, standard deviation, and probabilities.
Q32. Explain Boehm's Top Ten Software Project Risks and Different Strategies for
Reducing It
Barry Boehm, a pioneer in software engineering, identified the top ten software project risks that
commonly affect project success. These risks cover technical, organizational, and management
challenges in software development.
Risk Description
No.
4. Developing Wrong User Interface Poor UI/UX design makes the software hard to use.
Risk Identification is the first step in the risk management process in software project management.
It involves systematically identifying all possible risks that may affect the cost, schedule, scope, or
quality of a project.
Step Description
2. Conduct Brainstorming Gather input from team members, stakeholders, and experts to list
Sessions possible risks.
4. Analyze Past Projects Study similar completed projects to discover recurring risks.
6. Use Cause and Effect Tools like fishbone (Ishikawa) diagrams help in identifying root causes
Diagrams of risk.
o Possible causes
o Potential impact
o Risk category
Q34. Explain Boehm’s Top Ten Software Project Risks and Their Countermeasures
Introduction:
Barry Boehm, a well-known software engineer, identified the Top 10 software project risks based on
his research and experience.
Each risk has a significant impact on project success and must be managed using specific
countermeasures.
Risk Countermeasure
No.
Unrealistic schedules and Use accurate estimation techniques like Function Point or
2.
budgets COCOMO; include schedule buffers.
Developing wrong functions Involve users during requirement analysis; use prototyping and
3.
or properties frequent feedback.
Developing wrong user Conduct usability testing, create mockups, and gather user
4.
interface feedback.
Gold plating (adding Focus only on documented requirements; apply strict scope
5.
unneeded features) control.
Frequent requirements Use change control process, time-boxed iterations, and get
6.
changes early sign-off on requirements.
In software projects, resources refer to all the elements required to complete a project, including:
Each resource must be available in the right quantity, at the right time, and with the right skill or
configuration to ensure project success.
2. Resource Scheduling:
Resource Scheduling is the process of assigning resources to project tasks in a way that ensures:
Step Description
1. Identify Resources Determine what resources are needed for each task.
Assign the right resource to the right task based on availability and
2. Allocate Resources
skill.
3. Create a Resource
Set start and end dates for each task, ensuring no conflict.
Calendar
4. Monitor and Adjust Continuously track usage and availability, and reassign if needed.
Tools Used:
• Gantt Charts
• Resource Histograms
1. Forward Pass:
The Forward Pass is a technique used in project scheduling (especially in CPM – Critical Path Method)
to calculate the earliest start (ES) and earliest finish (EF) times for each activity.
Formula:
• ES of First Activity = 0
• EF = ES + Duration
This helps identify the earliest possible time the project can finish.
2. Backward Pass:
The Backward Pass calculates the latest start (LS) and latest finish (LF) times of each activity, without
delaying the project.
Formula:
• LS = LF - Duration
It determines the latest time each task can start/finish without delaying the project.
3. Critical Path:
The Critical Path is the longest duration path through the project network.
It determines the shortest time in which the project can be completed.
Activities on this path have zero float/slack, meaning any delay in these tasks will delay the entire
project.
Properties:
PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) are both project
management techniques used for planning, scheduling, and controlling complex projects.
However, they differ in purpose, approach, and application.
1. Full Form Program Evaluation and Review Technique Critical Path Method
Time-based; used when time estimation is Cost-based; used when time and
2. Focus
uncertain cost are predictable
4. Activity Time Uses probabilistic time estimates Uses deterministic time estimates
Estimate (optimistic, pessimistic, most likely) (fixed duration)
8. Critical Path Can change as project progresses Usually well-defined and stable
Q38. Suppose four risks namely R1, R2, R3 and R4 have been identified and assigned
the probabilities of occurrence of 0.1, 0.2, 0.3 and 0.4 respectively. The likely damages
due to the four risks are Rs. 60,000; Rs. 1,00,000; Rs. 70,000; Rs. 80,000 respectively.
Calculate the risk exposure of all the risks.
Given Data:
Risk Probability (P) Likely Damage (Rs.) Risk Exposure (RE = P × Damage)
Final Answer:
R1 6,000
R2 20,000
R3 21,000
R4 32,000
Burman’s Priority List is a decision-making tool used in project management to determine the order of
importance of various factors that affect project planning and execution.
It helps managers decide what to focus on first when there are conflicting demands on resources like
time, cost, and quality.
Factor Description
Priority
Precedence and Urgency of How urgently the project deliverable is required. Projects with
1
the Product higher urgency are given higher priority.
Expected Value to the The business value or benefit the customer expects from the
2
Customer project. High-value projects are prioritized.
Costs Involved in Projects that are more cost-effective or within budget get
4
Development preference.
Purpose:
Example:
→ Burman’s list helps the manager decide which project to start based on urgency, value, and risk.
Q40. Define Risk Management. Explain the Different Categories of Risk.
Risk Management in software project management is the process of identifying, analyzing, evaluating,
and controlling risks that may affect the success of a project.
It helps project managers take proactive actions to minimize losses, delays, or failures caused by
unexpected events.
Q41. Describe the Monitoring and Controlling Process for Software Projects
Definition:
Monitoring and Controlling in software project management is the process of tracking, reviewing, and
regulating the progress and performance of a project to ensure it stays on track with the planned
objectives, schedule, and budget.
It helps identify deviations and apply corrective actions to keep the project aligned with goals.
Step Description
2. Performance Use tools like Gantt charts, earned value analysis (EVA) to monitor work
Measurement done.
4. Change Control Manage change requests using a formal Change Control Process.
Continuously check for new risks or changes in existing risks and update
5. Risk Monitoring
mitigation plans.
Take actions to fix deviations from the plan (e.g., reallocate resources,
7. Corrective Actions
adjust timelines).
Tools Used:
• Gantt Charts
• Dashboards
• Status Reports
Q42. What is a Fixed Price Contract? List the Advantages and Disadvantages of Fixed
Price Contract
Definition:
A Fixed Price Contract is a type of contract where the total cost of the project is predefined and agreed
upon before the work begins.
The vendor is paid a fixed amount, regardless of the actual effort or cost incurred during the project.
Characteristics:
The client knows the total cost in advance, making financial planning
1. Predictable Budget
easier.
3. Clear Scope and Timeline Well-defined deliverables reduce confusion and scope creep.
4. Easier Vendor Comparison Clients can easily compare multiple fixed-price bids.
Disadvantage Explanation
2. Quality May Suffer Vendors may cut corners to stay within budget.
4. Risk for Vendor Unexpected costs are borne by the vendor, increasing their risk.
Introduction:
Frederick Winslow Taylor, known as the father of Scientific Management, proposed a motivation
theory focused on efficiency and productivity in the workplace.
Taylor believed that money is the main motivator for workers.
Principle Explanation
1. Scientific Job Break down tasks into small, standardized steps and determine the most
Analysis efficient way to perform them.
2. Selection and Select workers scientifically and train them for one "best" way of doing the
Training job.
Principle Explanation
3. Performance-Based Workers are motivated by financial rewards. More output = more pay (piece-
Pay rate system).
Advantages:
Disadvantages:
Q44. What is Meant by Software Configuration Management? Explain the Two Principal
Activities of Configuration Management
Definition:
Objectives of SCM:
• It involves managing multiple versions of software artifacts (like source code, documents, etc.)
• Helps avoid conflicts when multiple developers work on the same files
Example:
If two developers make changes to the same file, version control helps merge changes or revert to a
previous version if errors occur.
2. Configuration Auditing:
• Ensures that the software products and processes comply with defined standards and
approved configurations
• Verifies that only authorized and reviewed changes have been made
Example:
Before release, an audit ensures that all approved features are included and no unauthorized code
has been added.
Q45. Explain in Detail Oldham-Hackman Job Satisfaction Model
(Note: It’s called the Hackman–Oldham Model, not “Old-Hackman.”)
Introduction:
The Hackman and Oldham Job Characteristics Model (JCM) is a theory of job satisfaction and
motivation.
It was developed by J. Richard Hackman and Greg R. Oldham in the 1970s.
The model suggests that the design of a job itself can influence an employee’s motivation,
satisfaction, and performance.
Core Idea:
• Work motivation
• Performance
• Job satisfaction
2 Task Identity Completing a job from start to finish with visible outcomes.
1. Experienced Meaningfulness (from skill variety, task identity, and task significance)
Example:
A software developer working on an entire module (task identity), using multiple skills (skill variety),
with control over how they do the work (autonomy), and receiving code review feedback will be more
motivated and satisfied.
Definition of Stress:
Types of Stress:
Cause Description
5. Lack of Control Employees have little control over how or when their work is done
Q47. Define Contract. Explain Fixed Price Contract with Its Advantages and
Disadvantages
Definition of Contract:
A contract is a legally binding agreement between two or more parties that outlines the terms and
conditions under which certain work or services will be performed.
In software project management, contracts are often used between clients and vendors to define the
scope, cost, and timeline of a project.
A Fixed Price Contract is a type of contract where the total project cost is agreed upon in advance,
regardless of the actual time or resources spent during development.
It is most suitable when the project scope is clear, stable, and well-defined.
The client knows the exact cost upfront, which helps in financial
1. Predictable Budget
planning.
Since the scope and cost are fixed, there is less need for ongoing
3. Simplifies Management
negotiations.
4. Encourages Efficiency Vendors are motivated to work efficiently to maximize their profit.
Disadvantage Description
2. High Vendor Risk Vendors bear the risk of scope creep or unforeseen costs.
3. May Reduce Quality Vendors might cut corners to stay within budget.
4. Requires Detailed Planning Needs a lot of time and effort upfront to define clear requirements.
Definition:
Vroom’s Expectancy Theory of motivation, proposed by Victor Vroom, explains how individuals make
decisions to achieve desired outcomes, especially in a work environment.
Belief that effort will result in good "If I work hard, I’ll complete the project
1. Expectancy
performance successfully."
2. Belief that performance will lead to a "If I complete the project, I’ll get a bonus or
Instrumentality reward promotion."
Value placed on the reward by the "I value the bonus highly, so I want to earn
3. Valence
individual it."
Definition:
Stress management techniques are methods used to reduce, control, or cope with stress in personal
and professional life.
In an organizational context, they help individuals handle pressure, remain productive, and maintain
mental well-being.
These methods focus on changing the way a person thinks about stressors.
Examples:
Benefit: Helps individuals gain a better mental perspective and reduce anxiety caused by
unrealistic thoughts.
Examples:
• Time management
Benefit: Helps release physical tension and improves the body's natural response to stress.
3. Organizational/Environmental Techniques:
These involve changes made at the workplace or environment level to reduce sources of stress.
Examples:
Benefit: Reduces external sources of stress by improving work conditions and culture.
Q50. How to Control the Change? Explain the Change Control Process
Change Control is a formal process used in software project management to ensure that any change
to the project’s scope, deliverables, or objectives is properly evaluated, approved, documented, and
implemented in a controlled way.
Purpose of Change Control:
Step Description
The project team analyzes how the change will affect cost, time,
4. Impact Analysis
quality, and risks.
7. Change Implementation The approved change is applied in a controlled and monitored way.
8. Documentation and
All changes are documented and communicated to all stakeholders.
Communication
Introduction:
As a member of an organization, every individual is expected to follow certain ethical standards and
demonstrate professional behavior. These responsibilities ensure trust, integrity, and smooth
functioning of the workplace.
Ethical Concerns:
Treat all colleagues, clients, and stakeholders with respect and without
3. Fair Treatment
discrimination.
4. Avoiding Conflict of Do not engage in activities that can benefit you personally at the cost of
Interest the organization.
5. Compliance with Laws Follow all applicable laws, rules, and internal policies of the organization.
Professional Concerns:
2. Punctuality and
Be on time, meet deadlines, and maintain professional behavior.
Discipline
You can choose any three out of the five. Below are the definitions of all five so you can pick whichever
you prefer:
Definition:
Scheduling Variance is the difference between the Earned Value (EV) and the Planned Value (PV) of a
project.
SV = EV − PV
Definition:
Cost Variance is the difference between the Earned Value (EV) and the Actual Cost (AC) of the project.
CV = EV − AC
Definition:
Earned Value is the value of work actually completed up to a specific point in time, expressed in terms
of the approved budget.
Definition:
SPI is a ratio that measures schedule efficiency — how quickly the project is progressing compared to
the plan.
SPI = EV / PV
CPI = EV / AC
Question 5 :
Introduction:
McCall’s Quality Model was proposed by Jim McCall to evaluate and improve the quality of software
systems.
It focuses on how well software meets user needs, how it can be maintained, and how it performs
during operation.
Correctness Degree to which the software meets its specifications and user needs
Reliability Ability to perform a required function under stated conditions for a specific period
Definition:
Leadership style refers to the way a manager or leader guides, motivates, and manages their team.
Different situations require different leadership styles to effectively achieve goals and maintain team
harmony.
• Team members are given freedom to make decisions and manage tasks.
4. Transformational Leadership
• Leader inspires and motivates the team to achieve high performance and innovation.
5. Transactional Leadership
Boehm identified 7 major quality factors that affect software usability and performance:
A Post-Implementation Project Review (PIR) is conducted after a project is completed to assess its
success, performance, and lessons learned.
It helps organizations improve future projects by evaluating what worked well and what didn’t.
Step Description
3. Analyze Project Compare planned vs. actual results in terms of time, cost, quality, and
Performance scope.
5. Identify Successes and Note what went well (best practices) and what went wrong (issues, delays,
Failures risks).
6. Document Lessons
Record the key takeaways that can be used to improve future projects.
Learned
7. Prepare the Review Compile a detailed PIR report covering findings, analysis, lessons, and
Report recommendations.
8. Conduct a Review Present the report to stakeholders, discuss findings, and gather final
Meeting feedback.
9. Archive Project
Store all project and review documents for future reference and audits.
Documents
Definition:
A Matrix Organization is a type of organizational structure where employees report to more than one
manager — usually both a functional manager and a project manager.
It combines features of both functional and project-based structures, allowing for better
collaboration and resource sharing.
Key Characteristics:
• Dual Reporting System: Employees work under two chains of command – functional (e.g., HR,
IT) and project-based.
• Shared Resources: Staff and equipment are shared across multiple projects.
• Flexible Team Structure: Teams are formed based on skills required for specific projects.
Type Description
Advantages:
Disadvantages:
• Slower decision-making
Definition:
A Project Closeout Report is a formal document prepared at the end of a project. It provides a
summary of the project’s results, assesses performance, and captures lessons learned for future
reference.
It is a key step in the project closure phase and is shared with stakeholders and management.
Section Description
2. Performance Analysis Comparison of planned vs. actual performance (time, cost, quality).
5. Issues and Risks Summary of major challenges and how they were handled.
8. Sign-off and Closure Formal approval from client/stakeholders to declare the project as closed.
Purpose:
Q59. Explain Five Basic Stages of Team Development. Also State the Different Types of
People Needed to Form a Balanced Team
Five Basic Stages of Team Development (Tuckman’s Model):
Stage Description
Team members meet and start to understand the project goals and each other. Roles
1. Forming
are unclear and communication is polite.
Conflicts may arise as individuals assert their opinions. Power struggles and resistance
2. Storming
can occur. Leadership is tested.
Team begins to establish rules, roles, and processes. Cooperation improves and
3. Norming
conflicts reduce. Trust starts to build.
4. Team works efficiently towards project goals. Roles are clear, collaboration is strong,
Performing and productivity is high.
5. The project is completed. Team disbands after achieving goals. Members may feel a
Adjourning sense of accomplishment or loss.
A balanced team has diverse roles and personalities to ensure effective functioning. Key types
include:
Role Contribution
Leader/Coordinator Provides direction, makes decisions, and ensures team stays on track.
Q60. “Student fails in the project, if the projects are not closed properly”. Justify this
Statement.
Justification:
Proper project closure is a critical phase in project management. Even if the student performs well
during the execution, failure to close the project correctly can lead to poor evaluation, incomplete
documentation, and loss of marks.
Reason Explanation
1. Completion Project closure confirms that all objectives are met, deliverables are
Confirmation submitted, and client expectations are satisfied.
2. Final Submission of report, user manual, code, and testing results is essential for
Documentation evaluation. Missing these can result in failure.
3. Evaluation and Project guide or examiner cannot officially evaluate or approve the project
Sign-Off unless it’s properly closed.
Students must reflect on what went right or wrong. It shows maturity, critical
4. Lessons Learned
thinking, and learning.
Q61. What is Testing? Give a Brief Explanation of the Main Activities Involved in
Software Testing
Definition of Testing:
Software Testing is the process of verifying and validating that a software system or application:
Creating test cases and test data based on software requirements and
2. Test Case Design
design specifications.
Running the test cases manually or using automation tools and recording
4. Test Execution
the actual results.
5. Defect Reporting and Identifying bugs and reporting them to developers. Keeping track of defect
Tracking status (open, fixed, closed).
6. Retesting and Rechecking failed cases (retesting) and ensuring new changes haven't
Regression Testing broken existing functionality (regression).
Q62. What is the Importance of Software Quality? Discuss Six Major External Software
Quality Characteristics Identified by ISO 9126.
Software quality refers to how well software meets functional requirements, user expectations, and
industry standards.
The ISO 9126 standard defines six key external quality characteristics which affect how users perceive
software quality.
No. Characteristic
Description
Definition:
Project Closure is the final phase of the project life cycle, where all activities are finalized,
deliverables are handed over, and documentation is completed.
A project is formally closed when its objectives are achieved or when continuing it is no longer
beneficial.
The project has achieved all objectives and deliverables have been
1. Successful Completion
accepted by the client.
6. Scope Completion but No The original scope is fulfilled, but there is no further requirement to
Future Need expand or maintain it.
Q64. Explain CMM (Capability Maturity Model) with Its Various Levels
Definition of CMM:
The Capability Maturity Model (CMM) is a framework developed by the Software Engineering Institute
(SEI) to assess and improve the software development process of an organization.
It helps organizations improve software quality, project control, and productivity by guiding them
through 5 levels of process maturity.
Basic project management processes are in place. Projects can be repeated with
Level 2 Repeatable
similar success. Key focus: Planning & tracking.
Level 5 – Optimizing ↑
Level 4 – Managed ↑
Level 3 – Defined ↑
Level 2 – Repeatable ↑
Definition:
Team structure refers to the way in which the members of a project or organization are organized to
communicate, collaborate, and complete tasks.
The choice of team structure depends on the size of the project, type of work, and management style.
1. Functional Team Team members are grouped based on their functions or departments (e.g.,
Structure developers, testers, designers). Work is managed by functional heads.
2. Project-Based A dedicated team is formed only for a specific project. Team members report
Team Structure to a project manager. Disbanded after project ends.
3. Matrix Team Combines functional and project-based structures. Team members report to
Structure both a functional manager and a project manager.
Team members work remotely from different locations using digital tools.
5. Virtual Team
Increasingly common in global or freelance projects.
Traditional top-down structure, with clear authority levels. Suitable for large,
6. Hierarchical Team
formal organizations.
Introduction:
The Five Stages of Team Development were proposed by Bruce Tuckman in 1965.
They describe how a team evolves over time — from initial formation to high performance and finally
disbandment.
Stage Description
Team members meet for the first time. They are polite, reserved, and unsure about roles.
1. Forming
The focus is on understanding the goals.
Conflicts arise due to differences in opinions, roles, and responsibilities. Members may
2. Storming
challenge authority or each other. This stage tests team strength.
Stage Description
The team starts building trust and cooperation. Roles are clarified, and team members
3. Norming
begin to work together effectively. Communication improves.
5. Project is completed. The team disbands, and members may feel a sense of
Adjourning achievement or sadness. A formal closure may happen.
Q67. What Do You Mean by Premature Termination? What Are the Reasons for Project's
Premature Termination?
It may occur even if part of the project is working, but the overall continuation is no longer feasible,
valuable, or needed.
Reason Explanation
1. Budget Constraints The project runs out of funds or becomes too expensive to continue.
2. Change in Business The organization shifts focus, making the project irrelevant or low-
Priorities priority.
5. Poor Planning or Weak planning, unclear goals, or mismanagement can make the
Management project unachievable.
6. Legal or Compliance Issues Regulatory restrictions or legal risks may force the project to end.