Benefit Analysis

Correct Answer: Benefits Management Plan

During project initiation, the Benefits Management Plan is developed to define how the project's benefits will be realized, measured, and sustained after project completion. This document outlines the target benefits, strategic alignment, timeframe for realizing benefits, and metrics for measuring those benefits. It ensures that the project delivers value and that the benefits continue beyond the project's end. The Project Charter authorizes the project and provides high-level objectives and constraints but does not detail the management of benefits. The Stakeholder Engagement Plan focuses on strategies to effectively engage stakeholders throughout the project, not on benefit realization. The Scope Management Plan defines how the project scope will be defined, validated, and controlled; it does not address the sustaining of project benefits after completion.

Correct Answer: Evaluate the sunk costs versus the potential benefits moving forward through benefit analysis.

The best course of action in this scenario would be to perform a benefit analysis to evaluate sunk costs versus the potential benefits moving forward. Answer 148495 is incorrect because terminating the project immediately can result in losses without potential gains. This action doesn't take into consideration the possible benefits of completing the project. Answer 148496 is incorrect because asking the client to fund extra costs is not a professional practice unless previously agreed upon under certain conditions in project contracts. Answer 148497, which suggests outsourcing to a cheaper vendor, could potentially compromise the quality of the project and may not be feasible or beneficial in the long run.

Correct Answer: Benefit-Cost Ratio

To determine if a project's expected benefits justify the costs before proceeding, the project manager should perform a Benefit-Cost Ratio analysis. This analysis involves calculating the ratio of the project's benefits to its costs. A ratio greater than 1 indicates that the benefits outweigh the costs, justifying the project's initiation. Benefit Realization Analysis focuses on tracking and measuring the actual benefits achieved during or after project implementation, rather than assessing expected benefits beforehand. Cost Variance Evaluation examines the differences between planned and actual costs during project execution, but it does not compare benefits to costs. Stakeholder Impact Study assesses how the project will affect stakeholders, without evaluating the project's financial justification. Therefore, the Benefit-Cost Ratio is the appropriate analysis for determining if the expected benefits justify the costs before proceeding with the project.