According to the PMBOK Guide, the schedule performance index (SPI) and the cost performance index (CPI) are two key indicators of the project performance measurement1. The SPI measures how efficiently the project team is using the time allocated for the project, while the CPI measures how efficiently the project team is using the resources allocated for the project1. An SPI or CPI value greater than 1 indicates that the project is ahead of schedule or under budget, respectively. An SPI or CPI value less than 1 indicates that the project is behind schedule or over budget, respectively1. In this question, the project manager notices that the SPI is 1.8 and the CPI is 0.1, which means that the project is ahead of schedule but over budget. This is a serious issue that needs to be addressed as soon as possible, as it may jeopardize the project viability and stakeholder satisfaction. The project manager should not ignore the project sponsor’s concern, as the project sponsor is the person who provides the financial resources and support for the project2. The project manager should also not assume that it is normal to spend more money in the design phase of a project, as this may indicate poor planning, estimation, or control of the project costs3. The project manager should not stop crashing the schedule, as this may affect the project scope, quality, or risk. The project manager should not use a resource-levelling technique, as this may delay the project completion and increase the project costs. The best option for the project manager is to manage the project sponsor closely and revise the project’s resource management plan to improve indicators. This means that the project manager should communicate frequently and transparently with the project sponsor, explain the reasons for the cost overrun, and seek their input and approval for any corrective actions. The project manager should also review and update the project’s resource management plan, which is the document that describes how the project resources will be estimated, acquired, managed, and controlled. The project manager should identify and implement strategies to reduce the project costs, such as optimizing the resource allocation, negotiating better rates, or eliminating unnecessary activities or resources. By managing the project sponsor closely and revising the project’s resource management plan, the project manager can improve the project performance indicators and increase the chances of delivering the project within the approved budget. References:
1: PMBOK Guide, Chapter 7, Section 7.4.2.1, Page 267
2: PMBOK Guide, Chapter 13, Section 13.1.2.1, Page 518
3: 5 Essential Tips for Schedule Control in Project Management
: PMBOK Guide, Chapter 6, Section 6.6.2.5, Page 215
: PMBOK Guide, Chapter 6, Section 6.4.2.5, Page 201
: Guide to Project Budgeting & Scheduling
: PMBOK Guide, Chapter 9, Section 9.1.3.1, Page 313
: How to Make a Project Budget: Project Budgeting Basics
