A project manager who takes over halfway through a project d - PMP Practice Questions
Question
A project manager who takes over halfway through a project determines that the cost performance index (CPI) is 0.65. A detailed audit identifies that the project cost was analogously estimated, and the audit team thinks that something was missing in the way the estimates were done. What should have been done to avoid this problem?
Answers
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Explanation
The correct answer is D
Bottom-up estimating would have been the best approach to prevent this cost performance issue because it provides the most accurate and detailed cost estimates by breaking down work packages into smaller, more manageable components and estimating each individually. With a CPI of 0.65, the project is significantly over budget (for every dollar spent, only $0.65 of value is being earned), suggesting that the original analogous estimation method missed critical cost components or underestimated the complexity of the work. While analogous estimating uses historical data from similar projects, it can be inaccurate if the projects aren't truly comparable or if important details are overlooked. Bottom-up estimating would have forced a detailed analysis of all work components, resources, and activities, leading to more accurate initial estimates.
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