CDFM Performance Management and Metrics 3

Question 1

What is the purpose of an Organizational Assessment in the context of DoD performance management?

Accepted Answer

To assess whether an organization's programs and processes are achieving intended results and using resources efficiently

Answer

An Organizational Assessment evaluates whether an organization's programs, processes, and resource use are producing intended results, supporting continuous improvement and accountability.

Question 2

In DoD resource management, what is a 'should-cost' analysis?

Accepted Answer

An estimate of what a program should cost based on efficient management and realistic assumptions, used as a management target

Answer

A should-cost analysis estimates what a program should cost under efficient management, giving program managers a target to drive cost reduction and negotiate better prices with contractors.

Question 3

Under DoD's Performance-Based Logistics (PBL), how is contractor performance typically measured?

Accepted Answer

By outcome-based metrics such as system availability and reliability rather than inputs or activities

Answer

PBL contracts measure contractors on outcomes such as system availability, reliability, and operational readiness rather than counting inputs or activities, aligning contractor incentives with mission success.

Question 4

What is the 'Program Manager's Assessment' in the context of major defense acquisition programs?

Accepted Answer

A periodic report where the PM evaluates program cost, schedule, and performance status against the approved baseline

Answer

The Program Manager's Assessment is a periodic self-evaluation where the PM reports on cost, schedule, and technical performance relative to the approved Acquisition Program Baseline, flagging variances and risks.

Question 5

What does 'zero-based budgeting' require of a DoD program manager compared to traditional budgeting?

Accepted Answer

Justifying every dollar of funding from scratch each cycle rather than assuming prior-year funding as a baseline

Answer

Zero-based budgeting requires justifying all program funding needs from scratch each budget cycle rather than using the prior year's allocation as an automatic starting point, promoting efficiency and prioritization.

CDFM - Certified Defense Financial Manager Practice Test

CDFM - Certified Defense Financial Manager Practice Test

CDFM Performance Management and Metrics 3