CPP Earned Value Management 5

Question 1

On a project, the cumulative CPI is 0.78 after consuming 60% of the schedule. Statistically, what is the most likely outcome?

Accepted Answer

The final CPI will likely remain near 0.78, resulting in a cost overrun

Answer

Research shows that CPI rarely improves significantly after 20% project completion; a 0.78 CPI strongly predicts a final cost overrun.

Question 2

Estimate to Complete (ETC) using a new estimate is most appropriate when:

Accepted Answer

The original estimate is deemed fundamentally flawed or conditions have changed significantly

Answer

A new ETC estimate (bottom-up) is used when the original plan is no longer valid due to changed conditions or faulty assumptions.

Question 3

What does a negative Variance at Completion (VAC) indicate?

Accepted Answer

The project is projected to overrun its authorized budget

Answer

VAC = BAC − EAC; when EAC > BAC, VAC is negative, indicating a forecasted cost overrun.

Question 4

In EVM, 'Management Reserve' differs from 'Contingency Reserve' in that Management Reserve:

Accepted Answer

Is held outside the PMB for unknown-unknown risks and requires formal approval to use

Answer

Management Reserve is held outside the PMB for unforeseen scope and requires senior management approval to access.

Question 5

A project manager reports SPI = 1.0 but the project is clearly running late on a critical path activity. What is the most likely explanation?

Accepted Answer

The EV technique being used is Level of Effort, masking schedule slippage

Answer

LOE activities earn value with the passage of time regardless of output, which can make SPI appear healthier than actual schedule performance.

(CPP) Certified Project Professional Practice Test