Question from PMStudy Exam

Submitted by sonu_thekool on Fri, 10/21/2011 - 17:04

In your construction project, the CPI is 0.85 and SPI is 1.25. What could be the possible reason?

     1    A critical resource went on sick leave for a long period of time, which had not been anticipated earlier.

     2    The cost of raw materials required for construction increased by 10%. - You had anticipated a cost increase of 12% in your project plans.

     3    In anticipation of delays, the project was crashed to decrease the duration.

     4    There was four days waiting time in the curing of concrete, and work could not be done during that time.

My Answer was 1 but it was wrong.. My thinking was since CPI is below 1, the cost is under control but SPI is 1.25 which means that the project is behind schedule....The question asks the possible reason of the delays.

The correct choice according to the site is 3 but I dont understand how that can be.

Can someone please clarify this one ?

Regards,

Sonu.

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PMP / CAPM exam Question bank

harishgulati

Fri, 10/21/2011 - 17:18

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Answer could be 3 Crashing

Answer could be 3

Crashing the project can increase the cost and hence CPI goes less than 1.

sonu_thekool

Fri, 10/21/2011 - 17:29

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But the question says CPI is

But the question says CPI is 0.85 which means the cost is under budget - why would crashing be one of the resons why CPI would be 0.85 and SPI 1.25 ? Plus, wouldnt crashing increase costs and then the CPI would be above 1.

sonu_thekool

Fri, 10/21/2011 - 19:17

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Ok, I think I got it now

Ok, I think I got it now - my understanding of SPI and CPI was upside down.

CPI below 1 is not good - meaning, project is over budget.

SPI above 1 is good - meaning project is ahead of schedule. So, the question asks why project may be ahead of schedule and over budget.

Crashing may be the right answer since it increases costs to bring the schedule back in line....

sandycool82

Mon, 01/30/2012 - 13:14

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here is more explanation.

when CPI is less than 1 what is means is for a work that could be done in 85 (Rupees or dollars or whatever currency you want to use), you paid 100. Which is orver spending.

When SPI is 1.25 it means you increased your efficiency by 25% meaning you were expected to work at an efficiency of 100% and you were working @ 125% rate.

When efficiency is increased the time is taken for an activity automatically descreased, because they are inversely proportional.

The question does not mention anything about the duration, morever by the method of elimination three of the other options sound like same and PMP exam has only one correct answer. So by elimination method also three would have hold true.