Monitoring and Control

Correct Answer: The project is on schedule but over budget

The correct answer is 'The project is on schedule but over budget'. This conclusion can be drawn from the given information:

1. Schedule Performance Index (SPI) close to 1:
SPI is a measure of schedule efficiency. An SPI of 1 indicates that the project is progressing as planned in terms of schedule. The question states that the SPI is close to 1, meaning the project is on schedule.

2. Actual costs significantly higher than planned costs:
This clearly indicates that the project is over budget.

Combining these two pieces of information, we can conclude that the project is on schedule (due to SPI ≈ 1) but over budget (due to higher actual costs).

The other options are incorrect:

- 'The project is ahead of schedule and under budget' is incorrect because while the schedule is on track, the project is over budget, not under.

- 'The project is behind schedule and under budget' is incorrect on both counts. The schedule is on track, not behind, and the project is over budget, not under.

- 'The project is experiencing scope creep and requires immediate intervention' is not supported by the given information. While scope creep could be a reason for increased costs, we don't have enough information to make this conclusion. The question focuses on schedule and cost performance, not scope.

Correct Answer: The project is behind schedule

The correct answer is 'The project is behind schedule.'

In project management, Earned Value (EV) and Planned Value (PV) are key metrics used to assess project performance. When the Earned Value is consistently lower than the Planned Value, it indicates that the project is not progressing as quickly as planned, meaning it is behind schedule.

Earned Value represents the amount of work actually completed at a given point in time, while Planned Value represents the amount of work that was scheduled to be completed. If EV < PV, it means less work has been accomplished than what was planned, indicating a schedule delay.

The other options are incorrect:

'The project is over budget and requires additional funding' is not necessarily true based solely on EV < PV. Cost performance is measured by comparing Actual Cost (AC) to Earned Value (EV), not Planned Value.

'The project is progressing faster than anticipated' is the opposite of what EV < PV indicates. If the project were progressing faster, we would see EV > PV.

'The project's scope has expanded beyond the original plan' cannot be determined from EV < PV alone. Scope changes would typically be reflected in changes to the baseline plan and thus the Planned Value itself.

Correct Answer: Use a detailed Work Breakdown Structure (WBS)

The best approach to monitor small but important tasks more effectively would be to 'Use a detailed Work Breakdown Structure (WBS)'. A WBS enables you to break down projects into manageable pieces and keep track of each component, including small tasks. Increasing the size of the team would not necessarily address the issue of missing tasks, as it could even create more coordination problems. Excluding small tasks from the project plan is not a recommended approach as each task, no matter the size, contributes to the success of the project. Using a simplified Gantt chart while helpful in visualizing a project's timeline, would not provide the level of detail needed to manage small tasks effectively compared to a detailed WBS.