Establishing Project Controls for the Outsourcing Project

C.

Outsourcing project, like any other project, requires a robust control system to ensure its success. The project controls should cover various aspects of the project such as cost, schedule, quality, risks, and scope. The controls should be designed to detect deviations from the planned performance and allow corrective action to be taken promptly. In this context, the question asks which project controls should be established for the outsourcing project among the options A, B, and C.

Option A suggests Highlight Reports to the Project Manager and Exception Reports to the Project Board when project tolerances are forecast to be exceeded. The Highlight Reports are summary reports that provide information on the project's progress against the plan, such as milestones achieved, issues identified, risks, and changes to the baseline. The Exception Reports, on the other hand, are reports that notify the Project Board of any deviations from the project's plan or when project tolerances are forecast to be exceeded.

Option B suggests Highlight Reports to the Project Board and Exception Reports to corporate management when stage tolerances are forecast to be exceeded. This option proposes Highlight Reports to the Project Board, which is similar to option A. Still, the Exception Reports are escalated to corporate management instead of the Project Board when stage tolerances are forecast to be exceeded.

Option C suggests Highlight Reports to the Project Board and Exception Reports to the Project Board when stage or project tolerances are forecast to be exceeded. This option is similar to option B, except that the Exception Reports are also escalated to the Project Board.

Considering the nature of outsourcing projects, option C seems to be the best answer. Outsourcing projects usually involve external vendors or contractors, and their performance may significantly impact the project's success. Therefore, it is essential to have a robust control system that provides timely information on the project's progress, risks, and issues, and deviations from the plan. In this context, Highlight Reports to the Project Board and Exception Reports to the Project Board when stage or project tolerances are forecast to be exceeded can provide an effective control system that enables timely corrective action.