PMP Process — Managing Technical Aspects Practice Question
Your project's earned value analysis shows CPI = 0.85 and SPI = 0.90. The project is behind schedule and over budget. Several stakeholders are concerned about the viability of the project. What is the BEST course of action?
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
✓
Conduct a variance analysis, identify root causes, and present a recovery plan to stakeholders.
With negative cost and schedule variances, the project manager should analyze root causes, develop a recovery plan, and submit a change request if needed. Updating the project management plan and communicating transparently with stakeholders is key.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Request additional budget from the sponsor to cover the overrun.
Why it's wrong here
Requesting additional budget prematurely, without a thorough variance analysis and root cause identification, is an irresponsible project management practice. It fails to address the underlying issues causing the cost overrun and shifts accountability without demonstrating due diligence. A project manager must first understand 'why' the overrun occurred and propose a recovery strategy before seeking more funds, which should be a last resort after exploring all other options.
- ✓
Conduct a variance analysis, identify root causes, and present a recovery plan to stakeholders.
Why this is correct
The most appropriate initial response to performance variances is to conduct a detailed variance analysis to understand the magnitude and impact of the deviations from the plan. This must be followed by a thorough root cause analysis to identify the underlying reasons for the cost and schedule performance issues. Subsequently, a comprehensive recovery plan, outlining specific corrective and preventive actions, should be developed and presented to stakeholders for informed decision-making and approval, aligning with the Monitor and Control Project Work process.
- ✗
Reduce scope by removing lower-priority features to cut costs.
Why it's wrong here
Unilaterally reducing project scope by removing features is a significant change that directly impacts project deliverables and stakeholder expectations. This action bypasses the formal Integrated Change Control process, which is mandatory for any baseline modification. While scope reduction might be a viable component of a recovery plan, it must be proposed, analyzed for impact, and formally approved through the change control board, rather than being an immediate, unapproved first step.
- ✗
Re-baseline the project schedule and cost to reflect current performance.
Why it's wrong here
Re-baselining the project schedule and cost without first conducting a root cause analysis and implementing corrective actions is a deceptive practice that merely resets performance metrics without resolving underlying problems. Baselines serve as critical benchmarks for measuring performance, and prematurely adjusting them can obscure the true extent of project issues and hinder effective control. Re-baselining should be a carefully considered last resort, typically after significant, approved changes or a major recovery effort, not an initial response to poor performance.
Go deeper
Related to this question
Learn chapter
Introduction to the PMP Exam and Project Management Basics
Key term
Team Building
Team building is the process of creating a cohesive group of people who work together effectively toward a shared goal.
Key term
Training and Development
Training and Development is the process of enhancing team members' skills, knowledge, and competencies to improve project performance and achieve career growth.
About these practice questions
This PMP question is part of Courseiva's 800-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
Same concept, more angles
1 more way this is tested on PMP
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. You are managing a large infrastructure project. At the midpoint, earned value analysis shows CPI = 0.85 and SPI = 0.90. The project budget is $10 million, and the schedule is tight. Several stakeholders are concerned about cost overruns. What should you do FIRST?
hard- A.Immediately reduce scope to bring costs back in line.
- B.Submit a change request to increase the budget by 15% to cover the overrun.
- C.Instruct the team to reduce quality to lower costs.
- ✓ D.Analyze the cost and schedule variances to identify root causes and develop corrective actions.
Why D: The first step when facing cost and schedule variances is to analyze the variances to understand their root causes before taking any corrective action. This aligns with the PMI's iterative process of monitoring and controlling. Option A is incorrect because immediately reducing scope without analysis may negatively impact project objectives. Option B is premature; a change request should only be submitted after analysis and determination of necessary actions. Option C is incorrect because reducing quality compromises the project's deliverables and is not a recommended corrective action.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This PMP practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the PMP exam.