1. How you can conclude that quality plays an important role in the overall project performance?
Quality is an important factor when it comes to any product or service. With the high market competition, quality has become the market differentiator for almost all products and services thus quality plays an important role in the overall project performance because quality is required to complete all the project requirements of the owners, constructors and other parties having faith in the project. Also the poor quality can lead to unnecessary cost to the organization as it create costs due to failure, appraisal and prevention. Hence, it becomes very important to introduce the concept ‘quality’ into building process throughout all the phases coming in the project. Implementing proper quality management plan is important at the project commencement where, quality drawings, quality standards and constructability of design can enhance the project quality. Also quality ensures that the project will satisfy the needs because of which it was initiated on the first hand. This includes all the activities of the overall management function like planning, control, assurance and improvement.
2. Why an organization should take a strategic approach to improving its environmental performance? Explain with examples.
As we are developing more and more our concern towards the environment is getting less and less. And this reckless attitude leads us to very serious environmental issues such as global warming, green house emission, etc. As the environment degradation was going on everyone got worried about the environment and certain campaigns were run in order to make everyone aware about the issue. Organization should take strategic approach to improve their environmental performance because that would help them to evaluate where they are facing problem. Pus it would help them to understand that how they can minimise the pollution that is spreading due to their work and they get some very creative ideas to control that and set an example for other organization too for example ISO 14001:2015 it’s the world’s favourite International Standard for environmental management. It was an important step forward for a critical environmental standard; it covers all environmental challenges such as water, air, soil, waste, biodiversity, ecosystem services, climate challenges, etc.
3. What do you understand about “Tools and Techniques for Quality Assurance”. Explain in your words with example.
Quality assurance is performed during the project to help make sure the product meets the quality standards. Following are the tools and techniques for quality assurance-
• Affinity Diagrams
• Process Decisions Programme Charts
• Interrelationships Diagraphs
• Tree Diagrams
• Prioritization Matrices
• Activity Network Diagram
• Quality Audit- One of the most important processes performed during the quality assurance process is the quality audit. According to the PMBOK Guide, the quality audit is an independent review conducted by internal or external auditors. The quality audit can be performed on a regularly scheduled basis. The audit is a structured review of quality management activities to identify good or best practices and lessons learned for use on current or future projects.
• Process Analysis
All these tools and techniques help in quality assurance in a very simplified and productive way. These all represent quality assurance in diagrammatical manner so that the analysis can be carried very easily and efficiently.
4. What are the differences and similarities between Money Market and Capital Market?
1) The place where short-term marketable securities are exchanged is known as Money Market. Whereas the market in which long-term securities are created and traded is known as Capital Market.
2) Capital Market is well organised while Money Market lacks in it.
3) The instruments traded in money market carry low risk, hence, they are safer investments, while the capital market instruments carry high risk.
4) Redemption of Money Market instruments is done within a year, but in Capital Market instruments they’ve a life of more than years even some of them are eternal in nature.
5) Capital Market Instruments give higher returns as compared to money market instruments.
The two sorts of business sectors move billion dollars daily, making them critical in worldwide economy. Organizations and governments depend on two markets to fund-raise to pay for tasks or extend exercises. Moreover, the two markets are a great extent elusive. The greater part of the exchanging happens through automated exchanging stages, not in physical commercial centres or trades.
5. Discuss the Capital budgeting techniques under uncertainty.
1) Non-Discounted Cash Flow Criteria:-
(a) Pay Back Period (PBP)- A traditional method of capital budgeting. It’s the simplest and most widely used quantitative method. It’s the number of years required to recover the original cash outlay invested in a project.
(b) Accounting Rate Of Return (ARR)- Uses accounting information rather than cash flow. It’s the ratio of the average after tax profit divided by the average investment.
2) Discounted Cash Flow Criteria:-
(a) Net Present Value (NPV)- It’s the discounted cash flow. It recognizes that cash flow streams at different time period differs in value and can be computed only when expressed in terms of common denominator. It’s the difference between the present value of future cash inflows and present value of the initial outlay,
(b) Internal Rate of Return (IRR)- Similar to NPV. Not a reliable method to evaluate projects requiring different initial investments. It’s a relative measure and is defined as the ratio which is obtained by dividing the present value of future cash inflows by the present value of cash outlays.