Need help with Oliver Lehmann Question 113 -

Submitted by NSB on Fri, 02/26/2016 - 20:52

Your project had a cost overrun in the past and you tried to obtain funding on top of the original budget at completion (BAC). Management has told you that they cannot make additional funding available. You have to increase cost performance so that the project will be finished with costs not exceeding the original BAC. Which metric describes the future performance to meet this objective?

o TCPI calculated as BAC / CPI

o TCPI calculated as (BAC-EV) / (EAC – AC)

o TCPI calculated as (BAC-EV) / (BAC-AC)

o TCPI cannot be calculated in this situation.

 

The answer is no: 3

 

Can someone explain why?

 

Thanks

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rohit_n

Tue, 03/01/2016 - 08:29

As per my knowledge:

When you know that the project can meet BAC you use TCPI = (BAC - EV)/(BAC-AC)

When you know that you cannot meet BAC at finish you try to meet EAC and use TCPI = (BAC - EV) /(EAC-AC)

Thanks & Regards,
Rohit Nair, PMP

 

NSB

Tue, 03/01/2016 - 14:07

Thank you