21. Based on the work breakdown structure (WBS) for a project with the requirement to lower a restaurant's food costs, preliminary work performance data indicate that the initial target has not been achieved. The project manager is reviewing suggestions to identify suitable actions for closing the gap. Once the desired scope change has been selected, the project manager will update the project plan.

Answer: C

Explanation:

The change in scope requires an update to the scope baseline, so the project manager should use the change control system to update the baselines for time and cost.

The project manager must utilize the change control system to ensure that any modifications to the scope are properly documented and integrated into the project plan. This process is critical for maintaining accurate baselines for time and cost, which are essential for effective project management.

A) The project plan needs to remain unchanged, so the project manager should reject the essential scope change to avoid incurring contractual penalties because of a delay.

Rejecting the essential scope change is not a viable option since it does not address the issue of not achieving the initial target for food cost reduction. Maintaining the project plan unchanged could lead to further inefficiencies and missed goals, potentially resulting in greater contractual penalties in the long run.

B) The change in scope is funded in the contingency allowance, so the project manager should accept the variances in baselines for scope, time, and cost.

While utilizing the contingency allowance may seem beneficial, simply accepting variances without formally updating the baselines does not align with project management best practices. Properly updating the scope baseline through the change control system is necessary to reflect the new project realities accurately.

C) The change in scope requires an update to the scope baseline, so the project manager should use the change control system to update the baselines for time and cost.

This option is correct as it emphasizes the importance of following a structured approach to manage changes in a project. By using the change control system, the project manager ensures that the project documentation remains accurate and that stakeholders are informed of the changes, which is essential for effective project governance.

D) The change in scope is funded in the budget for managerial reserves, so the project manager should draw upon the reserve to cover the variances in baselines for scope, time, and cost.

While drawing from managerial reserves may provide immediate financial relief, it does not address the need for formal updates to the project's baselines. Without updating the scope baseline through the change control system, the project manager risks misalignment between the project plan and actual conditions.

Conclusion

Option C is the definitive correct answer as it recognizes the necessity of updating the scope baseline through the change control system, ensuring that all aspects of the project, including time and cost, are accurately reflected. The other options either reject necessary changes, encourage improper acceptance of variances, or propose solutions that do not conform to standard project management practices, ultimately compromising project success.