CPP CPP Performance Measurement & Reporting 2 — Questions and Answers
Question 1: What does a Schedule Performance Index (SPI) value of 0.85 indicate?
- The project is 15% ahead of schedule
- The project is only accomplishing 85 cents of scheduled work for every dollar of work planned (Correct answer)
- The project has a 15% cost overrun
- The project team is 85% efficient
Correct answer: The project is only accomplishing 85 cents of scheduled work for every dollar of work planned
An SPI below 1.0 means the project is behind schedule, completing only 85% of the planned work per time unit.
Question 2: Variance at Completion (VAC) is calculated as:
- BAC minus EAC (Correct answer)
- EV minus AC
- PV minus EV
- EAC minus BAC
Correct answer: BAC minus EAC
VAC = BAC − EAC, and a negative VAC means the project is forecast to finish over budget.
Question 3: A forecast report differs from a status report in that it:
- Looks backward at what has been completed
- Projects future performance based on current trends and assumptions (Correct answer)
- Only covers schedule information
- Is prepared by the project sponsor
Correct answer: Projects future performance based on current trends and assumptions
Forecast reports use current performance data to predict future costs, timelines, or outcomes, whereas status reports reflect what has already occurred.
Question 4: Which reporting frequency is most appropriate for a high-visibility project during a critical delivery phase?
- Quarterly
- Annually
- Weekly or daily (Correct answer)
- Only at project closeout
Correct answer: Weekly or daily
During critical phases, more frequent reporting ensures stakeholders and management can respond quickly to emerging issues.
Question 5: A stoplight chart uses color coding to represent project health. Which color typically indicates a significant issue requiring immediate action?
- Green
- Yellow
- Red (Correct answer)
- Blue
Correct answer: Red
Red in a stoplight chart signals a serious problem that requires immediate attention or escalation.
Question 6: The To-Complete Performance Index (TCPI) answers which question?
- How much work has been completed to date?
- What cost efficiency must the project achieve on remaining work to meet the budget? (Correct answer)
- How many risks remain open?
- What percentage of scope has been approved?
Correct answer: What cost efficiency must the project achieve on remaining work to meet the budget?
TCPI tells the project manager the required cost performance ratio on all remaining work to hit the target budget (BAC or EAC).
CPP CPP Performance Measurement & Reporting 2
What does a Schedule Performance Index (SPI) value of 0.85 indicate?