Project Management DEC 2026

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Description

Project Management

Dec 2026 Examination

 

Q1 A technology company is developing a new AI-based logistics solution for a major e-commerce client. The company has previously underestimated costs on similar projects due to scope creep and ignored indirect costs such as training and software licensing. This time, the project manager decides to use bottom-up estimation in combination with historical data. The client has warned that any budget overruns will jeopardize future contracts. The project team must provide accurate early estimates, justify contingency reserves, and regularly update forecasts as scope evolves. In this context, how should the project manager apply bottom-up estimation, augmented by historical data and contingency planning, to develop robust initial and ongoing cost forecasts for the AI logistics project? Explain how these methods can help prevent cost overruns and strengthen client confidence. (10 Marks)

Ans 1.

Introduction

This technology company is building a new AI logistics solution for a major e-commerce client. Past projects saw cost overruns from scope creep and ignored indirect costs. This time, the project manager wants a more reliable approach. Bottom-up estimation, combined with historical data, offers this reliability. It builds the budget from small, detailed tasks upward. Historical data checks these estimates against real past experience. Contingency planning then protects the budget from unexpected changes. Together, these methods can prevent repeat cost overruns and rebuild the client’s confidence in this important

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Q2 (A) A global healthcare company is undertaking a system-wide ERP implementation after a merger, requiring harmonization of processes and cultures across multiple countries. The project management office (PMO) is debating whether to use rolling wave planning to accommodate evolving requirements or adhere to a rigid upfront plan for stakeholder reassurance. Key risks include changing regulations, varying local needs, and global resource constraints. Critically evaluate the trade-offs between adopting rolling wave planning versus a fixed, upfront project plan in this complex cross-border healthcare ERP initiative. Assess both perspectives in the context of risk management, adaptability, and stakeholder alignment, and justify the planning approach or hybrid you would recommend for successful project delivery. (5 Marks)

Ans 2(A).

Introduction

This global healthcare company is running a system-wide ERP implementation after a merger. Multiple countries, regulations, and cultures must align. The PMO is deciding between rolling wave planning and a fixed upfront plan. This choice will shape how well the project handles risk and change.

Concept and Application

Case for Rolling Wave Planning

Rolling wave planning details only the near-term work fully, while later phases stay at a high level until more information arrives. This suits a project with changing regulations and varying local needs across countries. It lets the

 

 

Q2 (B) A technology startup is planning a highly time-sensitive product launch. The initial Gantt chart revealed that several activities overlap and depend on critical external vendors with unpredictable delivery times. After a review, the project manager suggests applying the Critical Path Method (CPM) to better prioritize resources, but some team members argue that PERT would provide a more realistic timeline given uncertain activity durations. With rising investor pressure on both cost and delivery, the leadership must decide which scheduling technique will best address the project’s uncertainties while aligning resource allocation to strategic priorities. Critically assess the appropriateness of using CPM versus PERT for this startup’s product launch, considering the nature of dependencies, uncertainty in time estimates, and the impact on resource allocation. Justify your recommended scheduling technique with reference to the startup’s constraints and objectives. (5 Marks)

Ans 2(B).

Introduction

This startup is planning a time-sensitive product launch. Its Gantt chart shows overlapping activities and unpredictable vendor delivery times. The project manager must choose between CPM and PERT to schedule the work. Investor pressure on cost and delivery makes this choice especially important.

Concept and