Exam PMP topic 1 question 45 discussion

he correct answer is D. As the cost performance index (CPI) and schedule performance index (SPI) are less than 1.0, reevaluate and prioritize the remaining actions. The reason is that the project is over budget and behind schedule, as indicated by the CPI and SPI being less than 1.0. CPI = EV / AC = (2 x 20,000) / 80,000 = 0.5 SPI = EV / PV = (2 x 20,000) / (3 x 20,000) = 0.67 The project manager should reevaluate and prioritize the remaining actions to see if they can be done within the remaining budget and time, or if some of them can be eliminated or deferred. Completing all actions and then informing the client (A) is not a good practice, as it does not follow the change management process and may cause customer dissatisfaction. Stopping the work and raising a project change request (B) may be necessary if the remaining actions are critical and cannot be done within the constraints, but it should not be the first option. The CPI and SPI are not greater than 1.0 C, so this option is incorrect.

CPI is EV/AC. EV is $60,000. AC is $80,000. So CPI is 0.75. SPI is EV/PV. EV is $60,000. PV is $100,000.SO SPI is 0.60.

Most of the budget has already been spent, and there are not enough funds left to complete the remaining tasks. The schedule is also delayed, making it difficult to successfully complete the project under the current progress. Therefore, the project manager needs to request additional funds and an extension of the project schedule to resolve the issue. For these reasons, the answer is option B.

A, B: Getting additional funds is not a good method. C, D: Just need to know the definition of EVM

SPI = Earned Value (EV) / Planned Value (PV) CPI = Earned Value (EV) / Actual Cost (AC) Earned Value (EV) is the value of the work completed so far. Planned Value (PV) is the value of the work planned to be completed so far. Actual Cost (AC) is the actual cost incurred for the work completed so far. EV = Value of work completed = 2 actions completed * $20,000/action = $40,000 PV = Planned value = 3 actions planned * $20,000/action = $60,000 AC = Actual cost incurred = $80,000 SPI = EV / PV = $40,000 / $60,000 = 0.67 CPI = EV / AC = $40,000 / $80,000 = 0.5 Answer D.

As the cost performance index (CPI) and schedule performance index (SPI) are less than 1.0, reevaluate and prioritize the remaining actions

D since its over budget CPI is <1

A can't be correct. If the project continues as in the first three days, it will take 7,5 days to complete all actions on the project, which has a critical 5-day window. B doesn't sound good, because stopping the work is not good practice in this case C is wrong, because CPI (CPI=40.000/80.000=0.5) and SPI (SPI=40.000/60.000=0.66) are way below 1.0 D is correct because CPI and SPI are below 1.0 and maybe with reevaluation and prioritization the project could be brought back on schedule and finish on time Budget is not such a big problem here, because our cost baseline is 20.000 x 5=100.000 plus contingency reserve of 100.000.

D cpi , spi less than 1

D. As the cost performance index (CPI) and schedule performance index (SPI) are less than 1.0, reevaluate and prioritize the remaining actions

D. As the cost performance index (CPI) and schedule performance index (SPI) are less than 1.0, reevaluate and prioritize the remaining actions

For a critical budget, i think it should not be stopped. The over budget seems can be covered by the contingent reserve. The only issue left is the schedule over run. So either A or D is the answer. If all 5 task are critical, the answer is A. If not, the answer is D.

d vote

I chose B but I'm not so sure. I am puzzled by the use of EVM in this context because EVM applies to ordinary project activities, those that deliver value. Instead, here we are talking about issue management and the contingency plan, so is it appropriate to talk about "earned value"?

CPI = Earned Value (EV) / Actual Value (AC) EV = The progress X Budgeted Cost = 2 (actions completed) X 20,000 (cost of each action) =40,000 AC = Actual amount spent after two actions = 80,000 Therefore, CPI = 40000 / 80000 =0.5 Now, When the CPI < 1.0, then your project is over-costed or over-budgeted. You have to re-evaluate and prioritize the remaining actions so that you are within the planned budget

Answer is C CPI = Earned Value (EV) / Actual Value (AC) EV = The progress X Budgeted Cost = 2 (actions completed) X 20,000 (cost of each action) =40,000 AC = Actual amount spent after two actions = 80,000 Therefore, CPI = 40000 / 80000 =0.5 Now, When the CPI < 1.0, then your project is over-costed or over-budgeted. You have to re-evaluate and prioritize the remaining actions so that you are within the planned budget

The project manager has already spent 80% of the contingency reserve after completing only 2 out of the 5 required actions, and there are only 2 days left in the critical window. This indicates that there is a high probability of cost and schedule overruns. Therefore, the project manager should immediately stop work and raise a change request to the change control board (CCB) for additional funds and a project schedule extension. This will allow the project manager to complete the remaining actions and meet the project objectives within the critical window. Option A is not the best choice because informing the client of the additional cost and schedule overrun without first raising a change request to the CCB would be premature and unprofessional. Option C is not the best choice because even though the CPI and SPI are greater than 1.0, there is still a high risk of not completing the remaining actions within the critical window due to the limited time and remaining contingency reserve. Option D is not the best choice because it only highlights the problem of CPI and SPI being less than 1.0, without providing a solution to the problem.