CPM Monitoring & Controlling Processes 2 — Questions and Answers
Question 1: A project manager notices that the cost performance index (CPI) is 0.82 after three months. What does this indicate?
- The project is 18% over budget for work completed (Correct answer)
- The project is ahead of schedule
- The project has completed 82% of planned work
- The project will finish 18 days late
Correct answer: The project is 18% over budget for work completed
A CPI below 1.0 means the project is spending more than planned for the value of work completed — specifically 18% over budget in this case.
Question 2: Which technique involves comparing actual project performance against the performance measurement baseline at regular intervals?
- Trend analysis
- Performance reviews (Correct answer)
- Variance analysis
- Reserve analysis
Correct answer: Performance reviews
Performance reviews are structured meetings or assessments that compare actual results to the baseline to measure and analyze project performance.
Question 3: During project execution, the team discovers scope creep occurring. What is the FIRST action the project manager should take?
- Immediately reject all new work requests
- Document and assess the impact of the additional scope (Correct answer)
- Notify the sponsor and close the project
- Update the project schedule to absorb the extra work
Correct answer: Document and assess the impact of the additional scope
The first step is to document and assess the impact before deciding whether to accept, reject, or escalate the scope change through integrated change control.
Question 4: What is the primary purpose of a control chart in project quality monitoring?
- To assign responsibility for quality defects
- To determine whether a process is stable and in control (Correct answer)
- To rank defects by frequency using a Pareto principle
- To document approved quality standards
Correct answer: To determine whether a process is stable and in control
Control charts display process data over time and use control limits to determine whether variation is within acceptable bounds, indicating process stability.
Question 5: A project manager calculates an Estimate at Completion (EAC) of $950,000 against a Budget at Completion (BAC) of $800,000. What does this forecast?
- The project will come in $150,000 under budget
- The project is expected to overrun by $150,000 (Correct answer)
- The project has earned $150,000 in value
- The project will finish $150,000 ahead of schedule
Correct answer: The project is expected to overrun by $150,000
EAC > BAC means the project is forecasted to exceed its original budget by the difference, in this case a $150,000 overrun.
Question 6: Which document is updated as a result of the Control Schedule process when corrective actions are approved?
- Project charter
- Schedule baseline
- Project schedule forecasts (Correct answer)
- Risk register
Correct answer: Project schedule forecasts
Approved corrective actions and schedule data updates result in revised project schedule forecasts, which reflect expected future performance.
Question 7: A stakeholder requests a change that falls within the project manager's authority to approve. What should the PM do NEXT after approving the change?
- Close out the change request with no further action
- Update relevant project documents and communicate the change (Correct answer)
- Submit the change to the change control board for review
- Suspend the project until all stakeholders agree
Correct answer: Update relevant project documents and communicate the change
After approving a change, the PM must update affected project documents and notify stakeholders to ensure everyone is aligned with the new direction.
CPM Monitoring & Controlling Processes 2
A project manager notices that the cost performance index (CPI) is 0.82 after three months.
What does this indicate?