Prince2 Practitioner: Actions for Dealing with Exceeded Effort and Cost Tolerance in Work Packages

Actions for Dealing with Exceeded Effort and Cost Tolerance in Work Packages

Question

Two weeks after starting work the Team Manager noticed that each completed product had exceeded its estimated effort by around 10%

If this trend continues the Work Package will exceed its agreed cost tolerance of 5%

Which 2 actions should the Team Manager take in response to this situation?

Answers

Explanations

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A. B. C. D. E.

AE.

The situation described in the question indicates that the actual effort spent on completing products is higher than what was estimated, and if this trend continues, the Work Package will exceed its agreed cost tolerance. As a result, the Team Manager needs to take appropriate actions to address the situation.

The correct actions to take in this situation are:

A. Check the status of the products currently being worked on and analyze the effort expended, to determine if the trend is continuing. E. Raise an issue that costs will exceed tolerance if the current trend continues.

Here's why:

A. Check the status of the products currently being worked on and analyze the effort expended, to determine if the trend is continuing.

The Team Manager needs to investigate the situation to determine if the trend of exceeding effort estimates is continuing. By checking the status of the products being worked on, the Manager can determine if there are any underlying issues that are causing the team to spend more effort than estimated. This analysis can help the Manager identify any corrective actions that need to be taken to address the issue.

E. Raise an issue that costs will exceed tolerance if the current trend continues.

It is important to raise the issue of exceeding cost tolerance early so that appropriate actions can be taken to address the issue before it becomes a major problem. By raising the issue, the Manager can communicate the potential impact to the relevant stakeholders and work with them to identify and implement appropriate corrective actions.

The other options are not the best actions to take in this situation:

B. Update the Team Plan by increasing all future work estimates by 10%.

This option is not the best course of action because it assumes that the trend of exceeding effort estimates will continue in the future. Instead, the Manager should investigate the situation to determine if there are any underlying issues that are causing the team to spend more effort than estimated and take appropriate corrective actions.

C. Amend the Work Package and ensure that the revised targets are met.

This option is not the best course of action because it assumes that the original Work Package targets are still achievable, which may not be the case if the team is consistently exceeding effort estimates. Instead, the Manager should investigate the situation to determine if there are any underlying issues that are causing the team to spend more effort than estimated and take appropriate corrective actions.

D. Escalate the situation in the next Checkpoint Report.

This option is not the best course of action because it assumes that the issue can wait until the next Checkpoint Report, which may not be the case if the team is consistently exceeding effort estimates. Instead, the Manager should raise the issue immediately and work with relevant stakeholders to identify and implement appropriate corrective actions.