What CPI > 1 and SPI < 1 mean?

The correct answer is C. Under budget, behind schedule. CPI (Cost Performance Index) = Earned Value ÷ Actual Cost. A CPI greater than 1 means you have earned more value than you spent - the project is under budget (cost efficient). SPI (Schedule Performance Index) = Earned Value ÷ Planned Value. An SPI less than 1 means you have…

Predictive, Plan-Based Methodologies

Question

What CPI > 1 and SPI < 1 mean?

Options

AUnder budget ahead of schedule
BOver budget, behind schedule
CUnder budget, behind schedule
DOver budget, ahead of schedule

How the community answered

(46 responses)

A
4% (2)
C
93% (43)
D
2% (1)

Explanation

CPI (Cost Performance Index) = Earned Value ÷ Actual Cost. A CPI greater than 1 means you have earned more value than you spent - the project is under budget (cost efficient). SPI (Schedule Performance Index) = Earned Value ÷ Planned Value. An SPI less than 1 means you have completed less work than was planned for this point in time - the project is behind schedule. Therefore, CPI > 1 combined with SPI < 1 means the project is under budget but behind schedule. This is a scenario where the team is working efficiently cost-wise but is not completing work fast enough to meet the planned schedule.

Topics

#Earned Value Management#CPI#SPI#Performance Measurement

Community Discussion

No community discussion yet for this question.

Full CAPM Practice