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When the expected cash flow s –curve is above the cost performance base line the project manager should?

A. investigate the varience to determine if corrective reaction is required.B. bring the situation to the attention of senior management for action.C. adjust the cost baseline to reflect the actual cost to this point.D. do nothing since the project is performing above plan.

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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2016/09/25
Krishna   KHASANIS  PMP
by Krishna KHASANIS PMP , Project Manager-Electrical , Larsen & Toubro Ltd, P T & D (International)

Thanks for the invite. 

Cash flows going above cost baseline - does it happen in reality ? 

If it happens , a PM should first do option A and then option B .

 

Imran Ahmed
by Imran Ahmed , Manager-Planning & Delay Analyst , Nesma United Industries (NUI) Saudi Arabia

Option-A investigate the variance to determine if corrective reaction is required.

The variance is indicating that actual progress is behind the schedule (Baseline). It can be because of many reasons. It should be analyzed for necessary action. like increase resources etc.

Ihab Zaki
by Ihab Zaki , Chief Technology Officer (Cto) , EGID

A. investigate the variance to determine if corrective reaction is required.

Amshar Yoosuf  ACMA UK
by Amshar Yoosuf ACMA UK , Head of Accounts , Group for Wooden Industries

since the scenario described is temporary,   PM should first investigate ( option A) and try to adjust to reflect the actual ( option c) if the variance is casued by uncontrollobale factors and if the variance still persists, then inform the senior management ( option B)

Thanks for invitation -

With the choice - A*

B. An alert senior management of the new situation. Managers of senior management will consult with the estimator who worked bid. If everything is correct it is expected that the site will get a financial reward for good work.

AhmadReza Mardani
by AhmadReza Mardani , Engineering Project Manager , Danone Dairy Pars

Normally it's not going to be happened, by the way the method is to "investigate the varience to determine if corrective reaction is required". this investigation should be concluded to necessary actions, e.g, control contracts & resources, people extra hrs, some extra job requested by company, ...

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