A project manager is reviewing the cost performance index (CPI) and realizes that the project is currently running under budget with a CPI of 1.2. Considering the importance of maintaining an up-to-date budget, what is the BEST next step for the project manager to ensure proper budget management moving forward?
Reforecast the project budget based on current performance to determine if adjustments are needed.
Maintain the current spending rate as it indicates a well-estimated budget.
Immediately communicate to stakeholders that the project is under budget to demonstrate efficient use of resources.
Use the surplus budget to increase the project scope without further analysis.
The correct answer is "Reforecast the project budget based on current performance to determine if adjustments are needed." When the Cost Performance Index (CPI) is greater than 1, it indicates that the project is under budget. Reforecasting the budget allows the project manager to adjust future budget estimates and potentially reallocate resources or funds to areas that may be underfunded or require additional focus. Communicating to stakeholders without action does not leverage the under-budget status to improve project outcomes. Increasing the scope without assessment could lead to scope creep, and not addressing the spending rate might waste the opportunity for reallocation and better utilization of funds.
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