PMP Practice Questions #79
As a project manager, you review your current project’s progress and discover that the Schedule Performance Index (SPI) is 1.2 and the Cost Performance Index (CPI) is 0.8. Which of the following actions should you take to best manage alignment with baseline?
A) Look for options to speed up your project by crashing some of the activities
B) Implement cost-saving measures as much as possible without slowing down the project.
C) Explore options to save money, even if that involve slowing down the project up to 20%.
D) Find the activities which can be done in parallel so you can do fast tracking
Analysis:
This question requires understanding the implications of the Schedule Performance Index (SPI) and the Cost Performance Index (CPI). With an SPI of 1.2, the project is ahead of schedule, and a CPI of 0.8 indicates it’s over budget. The focus should be on aligning with the baseline, particularly in terms of cost, without compromising the schedule advantage.
Analysis of Options:
Option A: Look for options to speed up your project by crashing some of the activities. This approach might not be the most suitable as it could potentially increase project costs. Crashing typically involves additional resources or overtime, which would exacerbate the cost issues already present (CPI of 0.8). Considering the project is ahead of schedule (SPI of 1.2), the focus should be on cost reduction rather than further accelerating the schedule.
Option B: Implement cost-saving measures as much as possible without slowing down the project. A viable option that focuses on reducing costs without affecting the schedule advantage. However, it may not fully utilize the schedule leeway available.
Option C: Explore options to save money, even if that involve slowing down the project up to 20%. This option aligns well with the project’s current status, where the SPI is 1.2, indicating the project is approximately 20% ahead of schedule. By considering a reduction in speed up to 20%, the project can still maintain alignment with its original timeline while focusing on cost reduction to address the CPI of 0.8. This approach offers a balanced solution to bring both schedule and cost performance indexes closer to the baseline without compromising overall project progress.
Option D: Find the activities which can be done in parallel so you can do fast tracking. This option is irrelevant as it focuses on speeding up the project, which is not required considering the project is already ahead of schedule.
Conclusion: Option C is the most appropriate choice. It judiciously uses the existing schedule advantage (SPI > 1) to address the project’s cost overrun (CPI < 1), suggesting a balanced approach to realigning with the project baseline. This approach takes full advantage of the current project status, addressing the primary concern (cost) while not unnecessarily accelerating an already advanced schedule.
PMP Exam Content Outline Mapping
| Domain | Task |
|---|---|
| Process | Task 5: Plan and manage budget and resources |
| Process | Task 6 Plan and manage schedule |
Topics Covered
- Predictive Scheduling
- Schedule Performance Index (SPI)
- Cost Performance Index (CPI)
