Cost question

Discussion in 'PMP' started by _49203, Aug 2, 2019.

  1. _49203

    _49203 Active Member

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    Hi @ tim jerome,

    Please help me understand why option D is the correct answer. The explanation below walks thru the calculations but does not explain "why," or perhaps I am not understanding. Thank you in advance.

    Which activities deserve your immediate attention the most?


    AC=3000 EV=2900
    PV=3000 EV=2900
    AC=3000 EV=3200
    EV=3000 AC=2400
    Correct Option:D

    Explanation
    Option a : AC=3000, EV=2900 : Looking at only these two values and assuming all others are as planned, work done is less and money spent is more, but is nominally more. Option b : PV=3000, EV=2900 : Looking at only these two values and assuming all others are as planned, work planned is nominally higher than work completed. Option c : AC=3000, EV=3200 : Looking at only these two values and assuming all others are as planned, work done is more and money spent is less. Option d : AC=2400, EV=3000 : Looking at only these two values and assuming all others are as planned, again work done is more and money spent is less. Compare CPI of options 'c' and 'd', which are CPI=1.06 and CPI=1.25 respectively. Since the CPI for option 'd' is higher, it is the correct answer.
     
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  2. tim jerome

    tim jerome Well-Known Member
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    It's not just the largest 'good' number, but also the largest number period. It stands out, doesn't it?

    What if this part of the project was covered with an invoice, and you didn't receive the invoice? What if the work was improperly documented? Very large numbers that are seemingly out of context often are a call to action as a focus of analysis.

    Think about control charts, and if you plotted this data on a control chart, and then see which one would warrant your attention. Often, pulling data out of context and generalizing it in such tools allows you to be more objective about next steps.
     
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  3. _49203

    _49203 Active Member

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    @timjerome

    I suppose I am confused why it's not A or B - why would a project with a CPI or SPI > 1 deserve more attention than a project that is either over budget or behind schedule?

    Thank you.
     
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  4. Arvind Shekhar

    Arvind Shekhar Well-Known Member

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