PMP · Question #386
During the design phase of a project, the project manager notices that the schedule performance index (SPI) is 1,8 and the cost performance index (CPI) is 0,1. In a weekly meeting with top management,
The correct answer is B. Stop crashing the schedule. With an SPI of 1.8 (ahead of schedule) and a critically low CPI of 0.1 (severely over budget), the project manager should immediately stop crashing the schedule, which is likely causing the extreme cost overruns.
Question
During the design phase of a project, the project manager notices that the schedule performance index (SPI) is 1,8 and the cost performance index (CPI) is 0,1. In a weekly meeting with top management, the project manager reports concerns about these indicators. However, the most concerned person was the project sponsor who said that if the trend continues, they will be forced to prematurely close the project. What should the project manager do?
Options
- AMonitor the project sponsor, but understand that it is normal to spend more money in the design
- BStop crashing the schedule
- CManage the project sponsor closely and revise the project's resource management plan to
- DUse a resource-leveling technique
How the community answered
(36 responses)- A6% (2)
- B69% (25)
- C8% (3)
- D17% (6)
Why each option
With an SPI of 1.8 (ahead of schedule) and a critically low CPI of 0.1 (severely over budget), the project manager should immediately stop crashing the schedule, which is likely causing the extreme cost overruns.
A CPI of 0.1 is never normal in any project phase; it signifies a critical budget problem requiring immediate intervention, not just monitoring.
A high Schedule Performance Index (SPI > 1) combined with a very low Cost Performance Index (CPI << 1) strongly indicates that the project's schedule is being aggressively accelerated or 'crashed' by throwing excessive resources at it. Stopping this schedule crashing is the immediate and most logical step to mitigate the severe cost issue and prevent project closure.
While sponsor management is ongoing, the immediate technical problem is the catastrophic CPI; revising the resource plan might be a subsequent step, but the first action is to stop the presumed cause of the current problem.
Resource leveling aims to optimize resource utilization and can sometimes extend the schedule, which is not the immediate concern when the project is already far ahead of schedule but critically over budget due to aggressive acceleration.
Concept tested: Earned Value Management (EVM) interpretation and corrective actions
Topics
Community Discussion
5B is correct. An SPI of 1.8 means you are way ahead of schedule while a CPI of 0.1 means you are burning through cash at a ridiculous rate, which is a classic sign of schedule crashing. Stop crashing the schedule and the costs should come back in line.
A is my pick. Design = spend money now, build later. SPI 1.8 looks great on paper but CPI 0.1 is bleeding cash. Crashing burns budget to save time. Stop the bleeding, let design finish naturally.
Actually it is B. CPI of 0.1 means you are getting almost no value for every dollar spent, so the priority is fixing the cost problem first, and a cost audit is the direct action for that.
D. SPI 1.8 screams overallocation from crashing, leveling fixes it fast, flag and move on.
Actually it is B, because SPI tells you about schedule efficiency, not resource utilization. You would want to look at resource leveling to resolve the overallocation, then update the schedule baseline through the change control process.