Consider the following information: PV = $300,000, EV = $250,000, AC = $400,000, and BAC =
$650,000. Use the schedule performance index (SPI) and cost performance index (CPD) values to
determine how project is performing
(A) Project is on time, but over budget.
B) Project is behind schedule and under budget.
(C) Project is behind schedule and over budget.
(D) Can't be determined with given information
Answers
Answer:
Schedule Performance Index (SPI) and Cost Performance Index (CPI) allow you to assess the project’s performance.
Schedule performance and cost performance are the two most important parameters of your project. SPI and CPI help you analyze the efficiency of any project.
Management is always looking at these parameters for any deviations from the baseline. Deviations from the baseline cost a great deal in project management. Therefore, it is important that you understand these concepts well.
Since these concepts involve mathematical calculations, many aspirants ignore them. Once you understand the math, solving questions on the PMP exam will be easy for you.
Schedule Performance Index (SPI)
The Schedule Performance Index (SPI) shows how you are progressing compared to the planned project schedule.
According to the PMBOK Guide, “The Schedule Performance Index (SPI) is a measure of schedule efficiency, expressed as the ratio of earned value to planned value.”
The Schedule Performance Index gives you information on the time efficiency of your project.
The Formula for the Schedule Performance Index (SPI)
You can find the Schedule Performance Index by dividing Earned Value by Planned Value.
Schedule Performance Index = (Earned Value) / (Planned Value)
SPI= EV / PV
You can conclude that:
The completed work is equal to the planned work if the SPI is equal to one; the project is on schedule.