CFM - Certified Facility Manager Project Management 1 — Questions and Answers
Question 1: A facility manager is overseeing a HVAC replacement project that has fallen two weeks behind schedule. Which project management tool best helps identify which tasks must be accelerated to recover the overall timeline?
- Gantt chart
- Critical path method (CPM) analysis (Correct answer)
- Work breakdown structure (WBS)
- RACI matrix
Correct answer: Critical path method (CPM) analysis
CPM analysis identifies the sequence of dependent tasks that determine the project's minimum duration. Accelerating tasks on the critical path directly compresses the schedule, whereas speeding up non-critical tasks has no effect on the end date.
Question 2: During a large facility renovation, the project manager tracks planned value (PV), earned value (EV), and actual cost (AC). If EV is less than AC, what does this indicate?
- The project is ahead of schedule
- The project is over budget for the work completed (Correct answer)
- The project has a positive cost variance
- The scope has been reduced
Correct answer: The project is over budget for the work completed
When actual cost exceeds earned value, cost variance (CV = EV − AC) is negative, meaning the project is spending more than the budgeted value of work accomplished — a cost overrun condition.
Question 3: A facility manager is planning a capital project and must present a document that defines scope, schedule, budget, and stakeholder roles before work begins. What is this document called?
- Statement of work (SOW)
- Project charter (Correct answer)
- Request for proposal (RFP)
- Commissioning plan
Correct answer: Project charter
A project charter formally authorizes the project, establishes its objectives, defines major milestones, assigns the project manager authority, and identifies key stakeholders — serving as the foundational governance document before detailed planning begins.
Question 4: Which risk response strategy is being used when a facility manager purchases builder's risk insurance for a major construction project?
- Risk avoidance
- Risk transfer (Correct answer)
- Risk mitigation
- Risk acceptance
Correct answer: Risk transfer
Risk transfer shifts the financial consequences of a risk to a third party (the insurer) through a contractual mechanism such as insurance. The risk itself is not eliminated, but the organization's financial exposure is reduced by transferring it.
Question 5: A facility project has a total budget of $500,000 and is 40% complete, but has spent $230,000 to date. What is the cost performance index (CPI)?
- 0.87 (Correct answer)
- 1.15
- 0.46
- 1.30
Correct answer: 0.87
CPI = EV ÷ AC. Earned value = 40% × $500,000 = $200,000. CPI = $200,000 ÷ $230,000 ≈ 0.87. A CPI below 1.0 confirms the project is over budget relative to work completed.
Question 6: A facility manager needs to communicate project status to senior executives who want a high-level overview without detailed scheduling data. Which reporting format is most appropriate?
- Detailed Gantt chart with task-level dependencies
- Dashboard report with key performance indicators (KPIs) (Correct answer)
- Full earned value management (EVM) spreadsheet
- Network diagram showing all project activities
Correct answer: Dashboard report with key performance indicators (KPIs)
Executive stakeholders require concise, visual summaries of schedule, budget, and risk status. A dashboard with KPIs delivers this at the right altitude, while detailed Gantt charts, EVM spreadsheets, and network diagrams are more suited to the project team's operational use.
CFM - Certified Facility Manager Project Management 1
A facility manager is overseeing a HVAC replacement project that has fallen two weeks behind schedule.
Which project management tool best helps identify which tasks must be accelerated to recover the overall timeline?