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is that an early product release will give your organization a decisive competitive advantage in the marketplace. However, at the last stakeholder meeting, one of the stakeholders questioned how well the project was really going. They are worried that the project is over budget and that if it continues in this way, the project will face a serious budget shortfall by the end of the project, jeopardizing its completion.
At six months through the project, the SPI =1.2, and the CPI = . and variances are expected to continue at this rate. What is the best response you can offer that would address this stakeholder’s concerns?
a. The team will implement immediate corrective action to bring the budget back in line
b. With CPI of ., this puts us well within the range of a definitive estimate of +/ -%
c. The team will discuss potential scope reduction that can bring the cost back in line
d. At the current SPI, we will finish the project better than weeks early. With an early finish, cost increase is small, but competitive position is greatly improved, increasing profitability
D – This requires some critical thinking. Answer ‘A’ is premature. With a CPI of .95 it is somewhat of a knee-jerk reaction to start implementing corrective action when the problem may self-correct. Answer ‘B’ is technically correct, but at this point sounds somewhat dismissive of the customer’s concern. Answer ‘C’
might be an option if there are no other potential methods for educing costs, however that determination has not yet been made. Answer ‘D’ is the most reassuring - you are telling the customer that his one-year project will complete 10 weeks early, satisfying the need for a better competitive position. Since the project is designed to build a competitive advantage, finishing 10 weeks early may give the organization not only a significant competitive advantage but also a boost in profitability as well as
market share. While it’s slightly over budget, the benefits may greatly offset that amount in a big way.
I apologize for the answer,,,,,,,,,,,,,,,,,I leave the answer to experts specialists in this field ...
