Cost management

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suresi00
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Cost management

Postby suresi00 Sun Dec 03, 2017 12:15 pm

You are in a project performance review meeting with your project sponsor. His concern over the reported spending efficiency of 90% seems mitigated by the explanation of increased labor costs which were not anticipated when budgeting the project. He has accepted your forecasted budget overrun, but admonishes that the project had better not exceed the forecasted cost. You leave the meeting knowing:
A. This project may cause your termination from the company
B. The TCPI will have to be better than the CPI
C. The TCPI is .9
D. The spending efficiency will have to improve to meet the forecast


Manish sir,

I selected D as the answer thinking that I have to improve TCPI to meet the forecast. Any thoughts
manishpn
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Re: Cost management

Postby manishpn Sun Dec 03, 2017 6:07 pm

suresi00 wrote:You are in a project performance review meeting with your project sponsor. His concern over the reported spending efficiency of 90% seems mitigated by the explanation of increased labor costs which were not anticipated when budgeting the project. He has accepted your forecasted budget overrun, but admonishes that the project had better not exceed the forecasted cost. You leave the meeting knowing:
A. This project may cause your termination from the company
B. The TCPI will have to be better than the CPI
C. The TCPI is .9
D. The spending efficiency will have to improve to meet the forecast

This is a good question I had to read it few times to catch words which i have highlighted, I would also go with option D, there is no need to think about TCPI right now but since the sponsor has clearly indicated that additional cost in future will be difficult to get approved its better to ensure spending efficiency going forward

Manish sir,

I selected D as the answer thinking that I have to improve TCPI to meet the forecast. Any thoughts
Br,
Manish P
PMP, PMI - ACP, SAFe Agilist
http://www.izenbridge.com/blog/7-effect ... ification/

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