A project team is developing an online customer portal with an approved budget of $600,000 and a six-month schedule. At the end of Month 3, the project manager reviews the following earned value information: PV = $300,000, EV = $210,000, and AC = $300,000. Integration testing has also identified defects that may affect deployment. In addition, customer service representatives have requested interface changes that could affect the project's scope, cost, and schedule. Based on the information available, what is the most significant challenge currently facing the project?
My Remark / NotePersonal note for this question
Correct Answer
Why each answer is correct or incorrect
A. Incorrect Answer
Incorrect. Resistance from customer service representatives is an important stakeholder issue that should be assessed and managed. However, the scenario provides objective performance data demonstrating a more significant current problem affecting both cost and schedule.
B. Incorrect Answer
Incorrect. The integration defects could affect the planned deployment and therefore require attention. However, the earned value data already demonstrates that the overall project is both behind schedule and over budget.
C. Correct Answer
Correct. The project's EV of $210,000 is lower than its PV of $300,000, indicating unfavorable schedule performance. EV is also lower than AC of $300,000, indicating unfavorable cost performance. Therefore, the project is currently both behind schedule and over budget.
D. Incorrect Answer
Incorrect. The requested interface modifications could affect scope, cost, and schedule and should be evaluated through the appropriate change process. However, these are potential impacts, whereas the EVM information demonstrates an existing cost and schedule performance problem.
Overall Explanation
The earned value data provides objective evidence of the project's current performance. Schedule Variance (SV) = EV - PV = $210,000 - $300,000 = -$90,000, which means the project is behind schedule. Cost Variance (CV) = EV - AC = $210,000 - $300,000 = -$90,000, which means the project is over budget. Although stakeholder resistance, defects, and requested changes are important issues, the EVM data demonstrates an existing and measurable overall project performance problem. Therefore, the best answer is C - Unfavorable cost and schedule performance.
Exam Tip
When a PMP question provides PV, EV, and AC, focus first on the quantitative evidence. EV < PV means behind schedule. EV < AC means over budget. When both conditions exist, the project has unfavorable schedule and cost performance.