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CAPM Practice: Determine how to document project controls of predictive, plan-based projects

Question 40 of 85 in Determine how to document project controls of predictive, plan-based projects

A project manager is presenting the project status to the steering committee. The project shows: SPI = 0.81, CPI = 0.87, with 4 months remaining. The project manager proposes two options: Option A — crash the remaining critical path to recover schedule ($120,000 additional cost); Option B — reduce scope by removing 3 non-critical deliverables (saves $80,000, recovers 6 weeks of schedule). What information does the steering committee MOST need to make this decision?
Show answer & explanation

Correct answer: Whether the 3 non-critical deliverables in Option B are truly non-critical from the business perspective, and the acceptability of the total forecasted cost for each option

Explanation

The steering committee needs business-level information to decide: (1) Are those 3 deliverables truly non-essential from the business value perspective? (A deliverable can be 'non-critical path' technically but still important to the business.) (2) What is the total forecasted cost for each option — both options affect EAC differently and the committee needs to weigh business value against financial impact. The decision requires business judgment, not just project management analysis.

**Why not A:** While risk register entries are relevant context, they do not directly address the core decision the steering committee must make. The committee needs to evaluate business value of the deliverables and total cost impact to choose between the two options, not just review risk documentation.

**Why not B:** The project manager's personal preference and team morale are not the primary factors for a strategic steering committee decision. The committee needs objective business and financial information to make an informed choice between scope reduction and cost increase.

**Why not C:** Comparing to similar projects provides historical context but does not address the specific business value question at hand. The committee needs to know whether the deliverables being cut in Option B are essential to this project's business objectives, which is project-specific information.

Key Concept

This question covers Determine how to document project controls of predictive, plan-based projects under Determine how to document project controls of predictive, plan-based projects (Predictive, Plan-Based Methodologies).

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