Change management question
Submitted by happymanocha@gm... on Thu, 04/10/2014 - 01:07
Question:
The global crude oil price rise is of a concern for you now. In your project after two months there is lots of traveling work as heavy amount of manufacturing items would be transported to remote site. With the rise in petroleum price you feel that there would be impact on the procurable prices that was originally planned a year ago. You are now planning to procure these items ahead of schedule. What should you do?
Options:
A: Go by your original plan, there are some variances in project budget
B: Use contingency reserves to balance this overhead cost
C: Change the contract and ask sponsor for high transportation price
D: Raise Change Request for Preventive Action
You Answered: B
Correct Answer: D
Explanation:
Schedule variance analysis, along with review of progress reports, results of performance measures, and modifications to the project schedule can result in change requests to the schedule baseline and/or to other components of the project management plan. Change requests are processed for review and disposition through the Perform Integrated Change Control process. Preventive actions may include recommended changes to reduce the probability of negative schedule variances.
My question is : Explanation provided above is for Schedule and question is for cost. In this case, Why B is not correct?
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admin
Thu, 04/10/2014 - 03:58
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What ever the source is , its
What ever the source is , its neither worded the question properly nor given a proper explaination.
First , if its a fixed price project then there is no scope for Change request due to rise in price of raw material. you have given fixed bid and must adhere to the same. In that case using contingency is an option.
If you are raising CR for procuring items ahead of schedule, still its not a CR till the overall project schedule gets impacted. Unless you have a milestone in your PM plan associated with procuring the crude oil. But that is not mentioned int he question.
Just move on , such ill- framed questions will not be in PMP. Use the source with caution as they are trying to create questions for the sake of it and it will waste your time.