Variance Analysis & Corrective Actions Flashcards
7 cards from real CAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Variance Analysis & Corrective Actions flashcards as text
What is a Corrective Action Plan (CAP) primarily designed to accomplish?
Answer: Identify specific actions to bring a control account back within acceptable performance thresholds
A CAP identifies specific actions, responsible parties, and timelines to address root causes and recover performance to acceptable levels going forward.
In variance analysis and risk response, a 'workaround' is best defined as:
Answer: A response to a risk event that was not previously identified in the risk register
A workaround is an unplanned response to an unanticipated risk event, distinguishing it from a contingency plan which was prepared in advance for a known risk.
Why is it significant to identify whether a variance is 'technical' in nature versus 'efficiency-based' when preparing a variance analysis?
Answer: The root cause type determines the most appropriate corrective action strategy
Identifying the variance type guides the corrective response: a technical problem may require design changes, while an efficiency problem points to resource, process, or estimation issues.
What is the primary difference between a formal 'baseline change' and a 'management reserve transfer'?
Answer: A baseline change modifies the PMB structure while a MR transfer moves budget from management reserve into the PMB
A baseline change restructures work or timing within the existing PMB, while a management reserve transfer adds budget from the MR pool into the PMB, increasing total authorized budgets.
Which metric is MOST useful for assessing whether a corrective action plan's performance target is realistically achievable?
Answer: To-Complete Performance Index (TCPI)
TCPI reveals the cost efficiency required to complete remaining work within budget; comparing TCPI against the current CPI shows whether the recovery target is realistic.
A cost overrun in a control account is traced to unanticipated overtime premiums. What is the most appropriate initial corrective action for the CAM?
Answer: Determine whether overtime was authorized and identify the root cause of the schedule pressure that necessitated it
Before requesting resources, the CAM must establish why overtime was required (root cause) and whether it was properly authorized, which drives all subsequent corrective decisions.
What relationship should exist between variance analysis frequency and the risk level assigned to a control account?
Answer: High-risk control accounts warrant more frequent variance analysis to enable earlier problem detection
Risk-based management principles require that higher-risk areas receive more frequent monitoring so that emerging problems are detected early enough for effective corrective action.