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CAPM Practice: Demonstrate an understanding of a project management plan schedule

Question 75 of 85 in Demonstrate an understanding of a project management plan schedule

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A project manager has a project that is behind schedule (SPI = 0.82) and over budget (CPI = 0.91). The sponsor wants to know the most likely date of project completion. Using EVM, what approach provides the BEST forecast?
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Correct answer: Divide remaining planned duration by SPI to forecast remaining duration, then add to current date

Explanation

Using SPI to forecast schedule: if Planned Remaining Duration = PD_remaining, then Forecasted Remaining Duration = PD_remaining / SPI = PD_remaining / 0.82. This accounts for the current schedule efficiency rate. At SPI = 0.82, for every planned day of work, the team is taking 1/0.82 ≈ 1.22 days. So the project will take approximately 22% longer than originally planned for remaining work. Add this forecasted remaining duration to today's date for the estimated completion date.

**Why not A:** EVM can be used to forecast completion dates through the SPI metric. While EVM is well-known for cost forecasting, schedule performance metrics like SPI provide meaningful schedule forecasting capability by measuring the rate at which work is being completed.

**Why not B:** Adding SV (schedule variance) to the planned end date is conceptually incorrect. SV is measured in monetary units (EV - PV), not time units, making it unsuitable for directly adjusting calendar dates. The SPI-based approach correctly translates efficiency into duration.

**Why not D:** Multiplying BAC by CPI gives EAC (cost forecast), not a schedule forecast. CPI measures cost efficiency, not schedule efficiency. To forecast schedule completion, you need to use SPI, which measures schedule efficiency and can be applied to remaining planned duration.

Key Concept

This question covers Demonstrate an understanding of a project management plan schedule under Demonstrate an understanding of a project management plan schedule (Predictive, Plan-Based Methodologies).

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