A project has a |'||¡ of $850,000
The project manager has identified and documented that certain key applications were not included in the scope management plan.
As reported, the CPI is 0.8, and the PMO allows only a 5% additional increment to the planned budget.
Which of the following should the project manager do NEXT?
Click on the arrows to vote for the correct answer
A. B. C. D.C.
In this scenario, the project has a planned budget of $850,000 and the project manager has identified that certain key applications were not included in the scope management plan. The Cost Performance Index (CPI) is 0.8, which means that the project is over budget. Additionally, the PMO allows only a 5% additional increment to the planned budget.
Given this situation, the project manager should take the following steps:
Step 1: Evaluate the impact of adding new work to the project. The project manager should assess the impact of adding the required work to complete the project. This evaluation should consider the impact on the project timeline, resources, and cost. The project manager should also identify any potential risks associated with the additional work.
Step 2: Justify the need for additional work to the project. If the evaluation indicates that the additional work is necessary, the project manager should prepare a justification for the need for the additional work. This justification should highlight the benefits of the new work and demonstrate how it aligns with the project's objectives. The justification should also address any potential risks associated with the additional work.
Step 3: Obtain approval from the Change Control Board (CC). If the justification is accepted, the project manager should obtain approval from the CC. The CC is responsible for reviewing and approving any changes to the project's scope, timeline, or budget.
Step 4: Request a budget increase if necessary. If the CC approves the additional work but the 5% additional increment to the planned budget is not sufficient to cover the costs, the project manager may need to request a budget increase. In this case, option D, requesting a budget increase of $170,000, may be necessary.
In conclusion, the correct answer to the question is B. Evaluate the impact and justify adding new work to the project. The project manager should first evaluate the impact of adding new work, justify the need for the new work, obtain approval from the CC, and only if necessary, request a budget increase.