question :may 4th
Submitted by dipti1pmp on Mon, 05/04/2015 - 07:50
You have been keeping careful tabs on a 1 year project via weekly earned value
calculations. An early product release will give your organization a strong competitive
advantage. However, at the last stakeholder meeting, one of the stakeholders questioned how
well the project was really going. They are worried that the project is over budget and that if it
continues in this way, the project will face a serious budget shortfall by the end of the project,
jeopardizing its completion. At six months through the project, the SPI = 1.2, and the CPI =
.95 and variances are expected to continue at this rate. What is the best response you can offer
that would address this stakeholder’s concerns?
a. The team will implement immediate corrective action to bring the budget back in line
b. With CPI of .95, this puts us well within the range of a definitive estimate of +/ -10%
c. The team will discuss potential scope reduction that can bring the cost back in line
d. At the current SPI, we will finish the project better than 10 weeks early. With an early
finish; cost increase is small, but competitive position is greatly improved, increasing
profitability
can anyone justify how D is answer....
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admin
Tue, 05/05/2015 - 10:57
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Option D assumes that Project
Option D assumes that Project will be allocated additional money required for completion considering they are getting a competitive advantage. While practically it may happen, I am not sure if we can assume it here and pick option D.
If there is a cost overrun, we must take actions to bring it in line with cost baseline, or we should get additional budget and Rebaseline the cost.