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Seat Number

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Project & Business Management

(Also Old Sem-VI Equivalence)
P. Pages : 2
Time : Three Hours Max. Marks : 80
Instructions to Candidates :
1. Do not write anything on question paper except Seat No.
2. Graph or diagram should be drawn with the black ink pen being used for writing
paper or black HB pencil.
3. Students should note, no supplement will be provided.
4. All questions are compulsory. Attempt any two sub-question. From each question
out of a,b,c.
5. Use of non-programmable electronic calculator is allowed.
6. Assume suitable data if necessary.
1. a) What is project scheduling? Explain project scheduling methods. 8

b) Define project and describe the different types of project. 8

c) i) A project consist of following work elements. 4

Work Element A B C D E F G H
Element Time (sec) 50 70 40 30 30 40 60 80

Desired output capacity is 320 number per shift calculate.

1) Maximum cycle time

2) Theoretical minimum no of work station.

ii) Write a short notes on Gantt Chart. 4

2. a) The PERT time estimate of the project are given. Construct the PERT network find 8
the critical path and variance of each event.
Activity Optimistic to Most Expected tm Pessimistic tp
1-2 1 1 7
1-3 1 4 7
1-4 2 2 8
2-5 1 1 1
3-5 2 5 14
4-6 2 5 8
5-6 3 6 15

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b) i) CPM uses a deterministic time estimate and PERT uses probabilistic time 4
estimate. Explain

ii) Mention the objective of network scheduling. 4

c) Write short notes on 8

i) Network diagram ii) Critical path
iii) Fulkerson's rule of numbering the event.


3. a) Describe the function of management in brief. 8

b) Give salient features of joint stock company with its types. 8

c) What are advantages and disadvantages of co-operative organization. 8


4. a) i) What is working capital? Describe with neat sketch working capital cycle. 4

ii) Differentiate between under capitalization and over capitalization. 4

b) Describe the effect of the following on break even point with the help of neat sketch. 8
i) Increase in fixed cost
ii) Decrease in variable cost
iii) Increase in sales price.

c) Name and describe the sources of finance for raising capital 8


5. a) i) Explain the scope of material management. 4

ii) Define material management. Explain its function. 4

b) What are the different methods of purchasing. Explain in brief. 8

c) A manufacture has to supply his customer 3600 units of his product per year. 8
Shortage are not permitted. Inventory carrying cost amounts. Rs. 1.2 per unit per
annum. The set-up cost per run is Rs. 80. Find
i) Economic order quantity
ii) Optimum number of order per annum
iii) Average annual inventory cost (minimum)
iv) Optimum period of supply per optimum order.


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