Cost Management Q

Submitted by Rmandal on Thu, 05/16/2013 - 18:39

While reviewing project performance, the project Manager determines that the schedule variance is -500. What is the BEST thing to do?

A. Let the Sponsor know

B. Determine the Cost Variance

C. Move resources from the project to one that is not failing.

D. Look for activities that can be done in parallel.

 

What do you guys think?

 

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BK

Thu, 05/16/2013 - 18:50

D

cnppmp's picture

cnppmp

Thu, 05/16/2013 - 18:56

D I thnk since it is affecting the schedule and one of the schedule compression methos is Fast Tracking, which is running the activities in parallel especially for those on critical path or near to critical path.


Regards


CN Patil

Rmandal

Thu, 05/16/2013 - 19:38

D.  This seems to be the logical choice.

However, this is what is the answer...

The problem must be evaluated first. The project manager knows the schedule variance, but not the cost variance. Therefore, determining the cost variance is first, possibly followed by looking for activities that can be done in parallel.  

 

y0zh

Thu, 05/16/2013 - 19:41

Shouldnt we have to check cost variance as well and figure out if wereally need to compress the schedule?

Rmandal

Thu, 05/16/2013 - 20:05

 The Correct Answer is B.

sanskrit

Fri, 05/17/2013 - 01:03

Answer should be B, as number 500 does not tell you much, You might be working on 5 Million budget project , In that case 500 is nothing (may be within acceptable margin).