posted 2¾years ago by Illia
© Copyright: Rita Mulcahy, PMP Exam Prep, Rita's Course in a Book for Passing the PMP Exam, Fifth Edition, RMC Publications Inc. (2005), page 223, question 34
Cost Management | CPI | Earned Value Analysis | Schedule | SPI
A manufacturing project has a schedule performance index (SPI) of 0.89 and cost performance index (CPI) of 0.91. Generally, what is the BEST explanation for why this occurred?
A. The scope was changed.
B. A supplier went out of business and a new one needed to be found.
C. Additional equipment needed to be purchased.
D. A critical path activity tool longer and needed more labor hours to complete.
george (2½years ago):
SPI=0.89 means that we already spent more time than planned. CPI=0.91 means that we already spent more cost than planned.
A: If the scope was changed - "planned time" would be changed as well. So, this wouldn't affect EV or AC.
B: Supplier changing MAY affect project cost (AC), but only due to the mistake made by PM. Otherwise, the project won't pay more than planned to the supplier, no matter who this supplier is (old one or a new one).
C: Additional equipment would affect project cost, and EV. Thus, CPI wouldn't be decreased. Maybe increased.
Right answer is D
angel (10months ago):
it says that currently the project is over budgeted, and behind schedule.
D seems about right.
A,B and C will cause D.
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