Variance Analysis & Corrective Actions Flashcards
7 cards from real CAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Variance Analysis & Corrective Actions flashcards as text
A control account's Schedule Performance Index (SPI) is 1.15. What does this indicate?
Answer: The project is accomplishing 15% more work than planned for time elapsed
An SPI greater than 1.0 indicates favorable schedule performance; the control account is earning more value than was planned for the period elapsed.
In earned value management, what is a 'reprogramming' action?
Answer: A formal comprehensive rebaselining that establishes a new Performance Measurement Baseline
Reprogramming is a formal rebaselining action that creates a new PMB when the original baseline is no longer a viable management tool, typically requiring customer approval.
A CAM observes that the period Schedule Variance is negative but the cumulative SV remains positive. What is the most likely correct interpretation?
Answer: Recent performance has declined but the project still has a schedule cushion from prior work
A negative period SV combined with a positive cumulative SV means recent performance has slowed but earlier favorable performance provides enough buffer to keep the project ahead overall.
A schedule variance is traced to a delayed material delivery. Which corrective action most directly addresses the root cause?
Answer: Expedite the material delivery or re-sequence work to utilize available resources productively
Re-sequencing work or expediting the delivery directly attacks the root cause (material unavailability) while keeping the workforce productive during the delay.
What is the primary purpose of an Estimate to Complete (ETC) in variance analysis?
Answer: To project the expected cost of completing all remaining authorized work
ETC represents the expected future cost to complete all remaining authorized work and is the key forward-looking input for projecting the final Estimate at Completion (EAC).
A project has a Budget at Completion (BAC) of $1,000,000 and a cumulative CPI of 0.90. Using the CPI-based EAC formula, what is the Estimate at Completion?
Answer: $1,111,111
EAC = BAC ÷ CPI = $1,000,000 ÷ 0.90 = $1,111,111; this formula assumes future work will be performed at the same cost efficiency as past work.
Which variance analysis output most requires immediate escalation to program management?
Answer: A negative Variance at Completion indicating the control account will overrun its total budget
A negative VAC projects a total budget overrun for the entire control account, a condition that directly threatens overall program cost and requires management attention and formal corrective action.