Best way to reduce costs

Discussion in 'PMP' started by _49203, Aug 15, 2019.

  1. _49203

    _49203 Active Member

    Nov 22, 2018
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    Please help me understand why option A is incorrect. Why would eliminating risks help reduce costs? Wouldn't risk response sometimes increase costs?

    A project team with CPI of 0.78 is looking for options to reduce cost. Which should be the BEST option to choose in this scenario?

    Reduce a test cycle in the System Testing phase
    Reduce scope by cutting down non-essential features
    Add more resources to expedite the schedule
    Revisit estimates and eliminate risks
    Correct Option:D
  2. tim jerome

    tim jerome Well-Known Member

    May 15, 2015
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    A is incorrect:
    reducing a test cycle in system testing may break quality - it may convert a conformance cost to a non-conformance cost, therefore raising costs (conformance costs are generally cheaper than non-conformance costs).

    Eliminating risks reduces costs? Let's consider responding to a trigger instead of responding to a risk occurring (remember our discussion on contingency responses?). The trigger to a risk of getting a cavity is allowing that chocolate to stay in your mouth overnight. If you brush your teeth, you are responding to that trigger, and the risk will never occur. Sure it costs in time to brush your teeth that very last time each night, but it's better to pay for that in time than to pay for a cavity.

    The extra detail is what is of interest here - a CPI of .78 means we are under-budget. How does that change perception of the 'best' answer?

    I'll let you think of reasons why D may be more correct than C, especially in light of that current CPI value. Anyone else have thoughts on this?

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