How should a project forecast final costs and completion time when current performance is unfavorable, and what steps should be taken?

How should a project forecast final costs and completion time when current performance is unfavorable, and what steps should be taken?

• A. Recalculate EAC using CPI and remaining work; update schedule.
• B. Recalculate EAC using CPI and remaining work, update the schedule, implement corrective actions, communicate changes to stakeholders, and adjust baselines via change control.
• C. Implement a revised plan without updating stakeholders or baselines.
• D. Terminate the project.

Answer: (B)

When performance is unfavourable, the first move is to reforecast final costs and completion time using the cost performance index (CPI) and the remaining work. This yields an estimate at completion that reflects how efficiently money is being spent and what still must be completed. With that forecast, update the project schedule to reflect the new finish date and adjust the plan to address the shortfall. Then put corrective actions in place to improve cost performance and schedule progress, and monitor their effectiveness. Communicate these changes to stakeholders so everyone understands the new expectations. Finally, formalize the updates by adjusting baselines through the change control process, ensuring the approved plan governs execution moving forward. This combination of reforecasting, schedule updates, corrective actions, stakeholder communication, and baseline changes is what properly aligns forecasted outcomes with governance and control.

When performance is unfavourable, the first move is to reforecast final costs and completion time using the cost performance index (CPI) and the remaining work. This yields an estimate at completion that reflects how efficiently money is being spent and what still must be completed. With that forecast, update the project schedule to reflect the new finish date and adjust the plan to address the shortfall. Then put corrective actions in place to improve cost performance and schedule progress, and monitor their effectiveness. Communicate these changes to stakeholders so everyone understands the new expectations. Finally, formalize the updates by adjusting baselines through the change control process, ensuring the approved plan governs execution moving forward. This combination of reforecasting, schedule updates, corrective actions, stakeholder communication, and baseline changes is what properly aligns forecasted outcomes with governance and control.