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

A CAP identifies specific actions, responsible parties, and timelines to address root causes and recover performance to acceptable levels going forward.

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 workaround is an unplanned response to an unanticipated risk event, distinguishing it from a contingency plan which was prepared in advance for a known risk.

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

Identifying the variance type guides the corrective response: a technical problem may require design changes, while an efficiency problem points to resource, process, or estimation issues.

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

A baseline change restructures work or timing within the existing PMB, while a management reserve transfer adds budget from the MR pool into the PMB, increasing total authorized budgets.

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

TCPI reveals the cost efficiency required to complete remaining work within budget; comparing TCPI against the current CPI shows whether the recovery target is realistic.

(CAM) Control Account Manager Certification Practice Test

(CAM) Control Account Manager Certification Practice Test

CAM Variance Analysis & Corrective Actions 3