CAM Variance Analysis & Corrective Actions 2 — Questions and Answers
Question 1: A control account's Schedule Performance Index (SPI) is 1.15. What does this indicate?
- The project is 15% over budget
- The project is accomplishing 15% more work than planned for time elapsed (Correct answer)
- The project is 15% behind schedule
- The project will complete 15% late
Correct 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.
Question 2: In earned value management, what is a 'reprogramming' action?
- Updating project scheduling software tools
- A formal comprehensive rebaselining that establishes a new Performance Measurement Baseline (Correct answer)
- Reassigning resources to different work packages
- Changing the program's reporting period
Correct 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.
Question 3: A CAM observes that the period Schedule Variance is negative but the cumulative SV remains positive. What is the most likely correct interpretation?
- The project is in immediate crisis requiring escalation
- Recent performance has declined but the project still has a schedule cushion from prior work (Correct answer)
- The EVM data is likely corrupted
- The project is behind schedule on a cumulative basis
Correct 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.
Question 4: A schedule variance is traced to a delayed material delivery. Which corrective action most directly addresses the root cause?
- Increase the budget for the affected work package
- Crash the schedule by adding labor to all critical path activities
- Expedite the material delivery or re-sequence work to utilize available resources productively (Correct answer)
- Submit a contract change request immediately
Correct 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.
Question 5: What is the primary purpose of an Estimate to Complete (ETC) in variance analysis?
- To calculate the original budget for remaining work
- To project the expected cost of completing all remaining authorized work (Correct answer)
- To measure earned value for work already performed
- To determine the schedule variance at project completion
Correct 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).
Question 6: 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?
- $900,000
- $1,100,000
- $1,111,111 (Correct answer)
- $1,000,000
Correct 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.
Question 7: Which variance analysis output most requires immediate escalation to program management?
- A 3% favorable cost variance in the current period
- A negative Variance at Completion indicating the control account will overrun its total budget (Correct answer)
- A one-day schedule variance on a non-critical-path activity
- A CPI of exactly 1.0
Correct 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.
CAM Variance Analysis & Corrective Actions 2
A control account's Schedule Performance Index (SPI) is 1.15.
What does this indicate?