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Exam PMP topic 1 question 551 discussion

Actual exam question from PMI's PMP
Question #: 551
Topic #: 1
[All PMP Questions]

Early in the execution phase, a project manager discovers that recent changes in enterprise environmental factors (EEFs) will severely reduce the implementation cost and shorten the project schedule.
How should the project manager address this situation?

  • A. Meet with the project team to decide how the remaining budget will be spent
  • B. Keep the extra budget as management reserve until project closeout
  • C. Give the team extra time to finish tasks within the original timeline
  • D. Follow the project escalation policy and communications management plan
Show Suggested Answer Hide Answer
Suggested Answer: D 🗳️

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nicknamesdx
2 weeks, 4 days ago
Selected Answer: B
But why not B?
upvoted 1 times
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victory108
8 months, 2 weeks ago
Selected Answer: D
D. Follow the project escalation policy and communications management plan
upvoted 1 times
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SteAle
9 months, 4 weeks ago
Selected Answer: D
PMBOK: Five alternative strategies may be considered for dealing with opportunities, as follows: uu Escalate. This risk response strategy is appropriate when the project team or the project sponsor agrees that an opportunity is outside the scope of the project or that the proposed response would exceed the project manager’s authority. Escalated opportunities are managed at the program level, portfolio level, or other relevant part of the organization, and not on the project level. The project manager determines who should be notified about the opportunity and communicates the details to that person or part of the organization. It is important that ownership of escalated opportunities is accepted by the relevant party in the organization. Opportunities are usually escalated to the level that matches the objectives that would be affected if the opportunity occurred. Escalated opportunities are not monitored further by the project team after escalation, although they may be recorded in the risk register for information.
upvoted 1 times
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SuHo2610
1 year, 8 months ago
Why? Can someone please explain? Thanks
upvoted 1 times
[Removed]
1 year, 7 months ago
Even with a positive benefit, its a risk, and risks usually follow some form of tracking/escalation policy if they become an issue. Change control procedures will apply to this. I'd assume the next best answer is to let the team take more time to complete everything, however this is something you should avoid. Parkinson's law basically says that any amount of time given for work completion will usually be used up. For example if you give someone an 8 hour workday, but they finish most of the work in 2 hours, they will stretch that last bit of work out to the last hour, this is why you never want to take shortcuts and just throw buffer numbers out there, because each "buffer" you give someone is basically adding cost to it that probably wouldn't be necessary in the first place.
upvoted 12 times
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A (35%)
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