cost tolerances being set at three different levels: project, stage, and work package of a project. In this project, the team manager forecasts that he/she will spend $9,000 more than $4,000 he/she has been allocated for work package1, and $4,000 more than $2,000 he/she has been allocated for work package2 (this project has only two work packages).

1.Is this an exception situation or not? Explain why.

2.Whom should the team manager escalate this situation to? C

3.Who has the authority to deal with this situation

4.Explain why in the projects the project board sets negative tolerance for the project manager (what is the point of a negative tolerance?)

Corporate, programme management, or the customer level Corporate, programme management, or the customer sets the project budget Project budget = $40,000 Tolerance = +$12,000/-$18,000 Project Board Level Project board sets the stage budget Stage budget = $15,000 Project manager level Tolerance = +$6,000/-$7,000 Project manager sets the budget for the work packages The budget for work packagel = $4,000 The budget for work package2 = $2,000 Tolerance for work packagel = +$1,000/-$2,000 Tolerance for work package2 = +$500/-$600 Team manager and team level