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1. a. Most projects neither finish on time nor on budgets. What are the primary causes of
budget and time overruns? Classify these factors as internal and external. Which of these
(internal or external) factors do you consider to be more influential in causing these
overruns? Express your views.

b. Discuss the implications of such overruns on the profitability of organizations in general.
2. a. With an example, explain how a project manager can use the concept of critical chain and
the five steps in the Theory of Constraints to focus on simultaneously controlling project
cost and protecting project throughput.

b. Projects tend to run over schedule and budget because the focus becomes fixed on
specific areas, instead of the project as a whole. Discuss with real life examples how
‘student syndrome’, ‘multi-tasking’ and ‘dependencies between the steps’ result in
wastage of safety time.

3. Critical Chain uses various types of buffers/strategic points necessary for a project in order to
manage the impact of variation and uncertainty around projects. In this context, discuss how
buffer management would enable in managing the activities effectively, with appropriate

4. a. How do you estimate time for your own projects? Illustrate with the help of an example.
b. “…….there is no reward for finishing (a project) early, but there is, in fact a big penalty.”
c. Suggest some techniques that may help organizations to encourage employees to ethically
wind up projects and to report the same on time.

5. a. The identification of the critical chain uses a network of tasks with ‘aggressive but
achievable’ estimates, which is first ‘resource leveled’ against a finite set of resources.
Explain resource leveling.
b. Describe an organizational situation with limited resources and explain how the situation
can be handled.

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