PMP Practice Question 1663 - Process
During a project status update by the project management office (PMO), the CEO is concerned that the status of all projects suddenly changed from green to red, without warning. Upper management is used to reading traditional reports related to progress and cost, and they want to continue viewing this information. How should the PMO implement a better way to report the project's health?
- ✓ Correct A.Explore reporting the earned value (EV) key performance indicators (KPls) using agile progress as an input.
- B.Perform a root cause analysis (RCA) to find out why the status of projects is deteriorating so fast.
- C.Request the program managers to be more accurate when presenting status reports.
- D.Ask the project managers to report on their projects using a Kanban board format.
Correct answer: A
Explanation
When the CEO is concerned that all project statuses suddenly changed from green to red without warning, the PMO should explore reporting earned value (EV) KPIs using agile progress as input. EV provides objective, quantitative measures of schedule and cost performance that detect trends early. Performing root cause analysis (B) investigates past failures but does not improve reporting. Requesting more accurate reports (C) is vague. Using Kanban boards (D) changes the format without addressing predictive metrics.
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