CAM Variance Analysis & Corrective Actions 3

Question 1

What is a Corrective Action Plan (CAP) primarily designed to accomplish?

Accepted Answer

Identify specific actions to bring a control account back within acceptable performance thresholds

Answer

Document the historical record of past variances

Answer

Request additional budget from management reserves

Answer

Justify the validity of original cost estimates

Question 2

In variance analysis and risk response, a 'workaround' is best defined as:

Accepted Answer

A response to a risk event that was not previously identified in the risk register

Answer

A permanent fix applied to a recurring root cause

Answer

A technique to accelerate the schedule through resource loading

Answer

A strategy to reallocate budget between work packages

Question 3

Why is it significant to identify whether a variance is 'technical' in nature versus 'efficiency-based' when preparing a variance analysis?

Accepted Answer

The root cause type determines the most appropriate corrective action strategy

Answer

Technical variances are always more severe than efficiency variances

Answer

Only technical variances require formal management approval to address

Answer

Efficiency variances are always fully recoverable over time

Question 4

What is the primary difference between a formal 'baseline change' and a 'management reserve transfer'?

Accepted Answer

A baseline change modifies the PMB structure while a MR transfer moves budget from management reserve into the PMB

Answer

Management reserve transfers always require customer approval while baseline changes never do

Answer

Baseline changes are always unfavorable while MR transfers are always favorable

Answer

There is no meaningful difference between the two actions

Question 5

Which metric is MOST useful for assessing whether a corrective action plan's performance target is realistically achievable?

Accepted Answer

To-Complete Performance Index (TCPI)

Answer

Budget at Completion (BAC)

Answer

Planned Value for the next reporting period

Answer

Schedule Variance from a single reporting period

Question 6

A cost overrun in a control account is traced to unanticipated overtime premiums. What is the most appropriate initial corrective action for the CAM?

Accepted Answer

Determine whether overtime was authorized and identify the root cause of the schedule pressure that necessitated it

Answer

Immediately request additional budget from management reserves

Answer

Reduce the scope of remaining work packages to recover cost

Answer

Accelerate procurement of outstanding materials

Question 7

What relationship should exist between variance analysis frequency and the risk level assigned to a control account?

Accepted Answer

High-risk control accounts warrant more frequent variance analysis to enable earlier problem detection

Answer

High-risk control accounts should be analyzed less frequently to reduce administrative burden

Answer

All control accounts must be analyzed at the same frequency regardless of risk

Answer

Variance analysis frequency is determined solely by contractual reporting periods