George LewisProgram/Project Manager| DXC Technology CompanyHeredia, Costa Rica
You are compiling a monthly summary for your PMO reports. There are 4 projects reporting the following data: Project A has an EV of $500 and an AC of $505; Project B has a CPI of 1.08, Project C has an EV of $455 and an AC of $450; and Project D has a CPI of 0.98. Which project is the most cost efficient?
a) Project A.
b) Project B.
c) Project C.
d) Project D. Saving Changes...
Project B. The CPI of the A is below one as is D's so you are getting less than $1 value for ever $1 spent. CPI of C is 1.01 so it's slightly better than planned, but B has a better CPI. Saving Changes...
My Concern is depending on duration of completion, Projects B&C are cost efficient and CPI of BC but the duration is important if Project B took 1.5 year to complete and Project C took 6 months to complete, I will prefer to choose Project C as more cost efficient and valuable. What do you think?
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1 reply by Stéphane Parent
Sep 29, 2017 11:56 AM
Stéphane Parent
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You could make the point that project B has saved more money over its duration than did project C.
Saving Changes...
Andrey GrubinPMP, PMI-ACPBrooklyn, Ny, United States
I would agree with Peyman, that in real world project C could be the most efficient...
I would agree with Peyman, that in real world project C could be the most efficient...
Thanks :) Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Sep 29, 2017 5:09 AM
Replying to Peyman Mokhtarzadeh Sharabiani
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My Concern is depending on duration of completion, Projects B&C are cost efficient and CPI of BC but the duration is important if Project B took 1.5 year to complete and Project C took 6 months to complete, I will prefer to choose Project C as more cost efficient and valuable. What do you think?
You could make the point that project B has saved more money over its duration than did project C.
...
1 reply by Peyman Mokhtarzadeh Sharabiani
Sep 29, 2017 3:51 PM
Peyman Mokhtarzadeh Sharabiani
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We are discussing about more efficiency , I think for comparing these two projects need to know the duration. If we save less during 6 months, my idea is better than we save a little more during 18 months. my idea is project C may more efficient as we could invest with that saving during one year and will be more cost efficient as difference is not much... what do you think?
You could make the point that project B has saved more money over its duration than did project C.
We are discussing about more efficiency , I think for comparing these two projects need to know the duration. If we save less during 6 months, my idea is better than we save a little more during 18 months. my idea is project C may more efficient as we could invest with that saving during one year and will be more cost efficient as difference is not much... what do you think?
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1 reply by Stéphane Parent
Sep 29, 2017 4:54 PM
Stéphane Parent
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I agree with your point, Peyman. I've been telling PMs that our job is to come on time and on budget, not under. Why is that? Because the overestimated resources you've grabbed for your project are not available for another project.
But it all hinges on what we mean by cost efficiency. To me cost efficiency is about doing things the right way. (Effectiveness is about doing the right thing.)
Do you think that project C is doing things in a better way than project B?
Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Sep 29, 2017 3:51 PM
Replying to Peyman Mokhtarzadeh Sharabiani
...
We are discussing about more efficiency , I think for comparing these two projects need to know the duration. If we save less during 6 months, my idea is better than we save a little more during 18 months. my idea is project C may more efficient as we could invest with that saving during one year and will be more cost efficient as difference is not much... what do you think?
I agree with your point, Peyman. I've been telling PMs that our job is to come on time and on budget, not under. Why is that? Because the overestimated resources you've grabbed for your project are not available for another project.
But it all hinges on what we mean by cost efficiency. To me cost efficiency is about doing things the right way. (Effectiveness is about doing the right thing.)
Do you think that project C is doing things in a better way than project B?
...
1 reply by Peyman Mokhtarzadeh Sharabiani
Sep 29, 2017 5:04 PM
Peyman Mokhtarzadeh Sharabiani
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I totally agreed with you stephane, as view point of PM, Project B has more CPI indication rather than Project C and doing right thing but as point of stakeholders / shareholders in case duration more with concern of Business Part and involvement , I will prefer Project C, that means Project C doing things better for Company rather than B. That is my opinion only ...
