Confused on correct answer
Q. You have signed time and material contract for your project. Your client is asking you to do EVM for you project. You are concerned since for reporting actual costs you will need salary information of team members. They report to functional manager since its weak matrix so you do not have access to these details. How will you ensure correct reporting?
1.Change the contract to fixed price, to save this overhead
2.Request access to confidential salary data and do the reporting
3.Contract functional manager to get average costs of employee and use that as actual costs
4.Actual costs in EVM and Salaries are no where connected. So do not bother about this limitation
According to me the correct answer is 4 because to do a EVM on T&M contract you will need to know resource rate per hr (or any unit) and not the actual salary.
However, the correct answer is given as 3 with the explaination that.
"This will still be correct reporting and you will not violate confidentiality. You must know the salaries to calculate actual costs. "
Could somebody please clarify?
Hamoud
Mon, 04/02/2012 - 18:28
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from my point of view the
from my point of view the project was signed in "time and material" and i believe that EVM can be caculated against what you are using (Time, which i believe it means manhours). actually i do this in real life in my company , so the answer 4 is good for such a situation.
however, in the pmbok the EVM is caculated in $$$, and in this example you need to recost the project using a costs of employee and the best way to save confidintiality is to take the avarage.
the question here, where did you get this question?
Samir
Tue, 04/03/2012 - 04:12
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Admin please respond
I got this question and answer in 25 tough questions in PMzilla. Hence I request admin to chime in and throw some light.
Thanks. I just want to make sure my understanding is correct.
pmp_man
Tue, 04/03/2012 - 13:07
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It should be 4
I would also go with choice 4
admin
Wed, 04/04/2012 - 04:31
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Generally we use rate per
Generally we use rate per hour. Why even bother to get the salary details and then average it out. Actually averaging out and reporting as actual costs may not always work, since there are Direct and Indirect cost of project execution. So best answer would be 4
Samir
Wed, 04/04/2012 - 05:39
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Thanks.
Thank you very much