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What to do when various variance reports showing alarming state?

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seema.sonkiya
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What to do when various variance reports showing alarming state?

Postby seema.sonkiya Mon Aug 28, 2017 5:34 am

Request for participation in the following question:

ABC construction company specializes in complex road construction projects. The Government has awarded the company for road construction in difficult terrain. Mark is leading the current project. The contract has stringent conditions around quality and timely completion. Thus, Mark has put a strong governance and introduced a weekly reporting around project health. Few months into project Mark had to move due to family reasons, and Sandra took over as new project manager.
On Friday Sandra received various variance reports from her project team, and she found CPI and SPI reports quite alarming. CPI was at 0.7 and SPI was 0.8. She is afraid that the current situation can derail the whole project and she wants to bring this to stakeholders attention, at the same time she also feels concerned about the scope variance, what should she do next? Select the Best.


A. Since Project contract has stringent conditions, she should call for emergency meeting and raise this issue to sponsor by sending all reports
B. Since Project contract has stringent conditions, she should call for emergency meeting and share all these reports with stakeholders and ask their view on situation
C. Since Project contract has stringent conditions, she should prepare Project Work Performance Report and share it with all stakeholders and recommend for Steering Group Meeting.
D. Since Project contract has stringent conditions, she should give a call to the previous Project Manager and ask for advice on contractual implications, to understand if project deadline will be missed.

Which option is correct?
nirajsys@gmail.com
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Re: What to do when various variance reports showing alarming state?

Postby nirajsys@gmail.com Mon Aug 28, 2017 11:26 am

Option c seems apt.
seema.sonkiya
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Re: What to do when various variance reports showing alarming state?

Postby seema.sonkiya Thu Aug 31, 2017 5:31 am

Yes

The key take away from the question are:
1. CPI is at alarming state
2. SPI is at alarming state
3. There is a concern for the Scope Variance
4. Sandra need to adhere to stringent contractual terms

Here in the question, Sandra is getting separate cost, schedule, and scope reports; and she needs to take an integrated approach to see the actual project situation. For the purpose, she may require using tools:
• To see how cost, schedule, and scope variables are related
• For what are the root-causes which are creating variations?
• What could be the alternative approaches?
• How are we moving towards benefits compared to cost?

While doing this analysis She also need to consider stakeholders expectations, contractual terms, and controlling data from various controlling processes especially here from cost, schedule, and scope (Work performance information)

She has to involve stakeholders to analyze these Work Performance Information to make appropriate decisions and to bring the project on track. Also, a consolidated report is produced which makes overall project progress transparent to make stakeholders act on the project issues.

The above analysis showing that question is about “Monitor & Control Project Work” process where Work Performace Report is produced using various Work Performance Information.

Here, Sandra, should prepare Project Work Performance Report and share it with all stakeholders and recommend for Steering Group Meeting. And Hence option C is correct.
komal
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Re: What to do when various variance reports showing alarming state?

Postby komal Mon Sep 25, 2017 4:23 pm

I am confused between Option A and C.

Both seems correct but i will go for Option A because Sponsor is part of senior management and we should convey him about status of project and how cost , scheduling is having impact rather than going to Stakeholder at initial level of risk.

Please suggest.
kushalks87
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Re: What to do when various variance reports showing alarming state?

Postby kushalks87 Tue Sep 26, 2017 8:44 am

Sponsor cannot help you get traction, he can help you get additional funds if need be. He is basically super boss whom we should go to if and only if we have exhausted all our options. The option C is indeed a valid option which we can use before reaching out to Sponsor.

not sure if my explanation is correct though.
nirajsys@gmail.com
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Re: What to do when various variance reports showing alarming state?

Postby nirajsys@gmail.com Sun Oct 01, 2017 1:07 pm

Komal,

To answer your query...

I feel option A &B are scenarios of "PM acting in hurry"...refer the word emergency meetings.

As far I remember,Saket in his numerous videos and Seema in her posts have given a tip to be beware of such options,where the choice in the question asks you to act in haste.

Option D talks about taking advise from past PM,which doesn't fit in the context in comparison to other options.

Hence option C is the best fit.

Hope this clarifies.

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