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PMP Process — Managing Technical Aspects Practice Question

Your project is in execution phase. The earned value metrics show: EV = $400,000, PV = $500,000, AC = $450,000, BAC = $1,000,000. Which THREE actions should you take to address the project's performance?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Re-estimate the estimate at completion (EAC) based on current performance

The project is behind schedule (EV < PV) and over budget (EV < AC). The correct actions are to re-estimate the EAC to reflect current performance (A), analyze root causes of variances (B), and identify and implement corrective actions (D). Crashing the critical path (C) is a potential schedule recovery technique but should not be done without first analyzing the causes; it may increase costs. Escalating to sponsor (E) is premature without attempting corrective actions first.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Re-estimate the estimate at completion (EAC) based on current performance

    Why this is correct

    When project performance deviates, re-estimating the Estimate at Completion (EAC) is a crucial step in the Control Costs process. This involves recalculating the projected total cost of the project based on actual costs incurred to date and the current performance trends. Updating the EAC provides stakeholders with a realistic forecast of the project's final cost, enabling informed decision-making and proactive financial management.

  • Analyze the root causes of the schedule and cost variances

    Why this is correct

    Before implementing any changes, it is imperative to analyze the root causes of significant schedule and cost variances identified through earned value analysis. This involves investigating the underlying factors contributing to the deviations, rather than just addressing symptoms. Understanding the true causes ensures that any subsequent corrective actions are effective and prevent recurrence, aligning with the Control Schedule and Control Costs processes.

  • Immediately crash the critical path to recover schedule

    Why it's wrong here

    Crashing the critical path is a schedule compression technique that involves adding resources to critical path activities to shorten their duration, often at an increased cost. However, immediately crashing without prior root cause analysis or evaluating other options is premature and risky. Such an action could lead to inefficient resource allocation, unnecessary cost increases, or even new problems if the underlying issues are not addressed first.

  • Identify and implement corrective actions to improve cost and schedule efficiency

    Why this is correct

    Following a thorough analysis of variances and their root causes, identifying and implementing appropriate corrective actions is essential to bring project performance back in line with the plan. These actions are designed to improve future cost and schedule efficiency, addressing the identified issues directly. This proactive management step ensures the project remains on track to meet its objectives and stakeholder expectations.

  • Escalate the performance issues to the sponsor with a request for additional budget

    Why it's wrong here

    Escalating performance issues to the sponsor with an immediate request for additional budget is generally premature and demonstrates a lack of proactive project management. A project manager's responsibility includes first analyzing the situation, identifying root causes, and exploring potential solutions within their authority. Escalation should occur only after internal efforts have been exhausted or when the required solution exceeds the PM's authority or the project's current scope/budget.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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