What is the status of a project if the Cost Performance Index is 1.25 and the Schedule Performance Index is 0.75?

Question

Options

• AUnder budget and behind schedule
• BOver budget and ahead of schedule
• CUnder budget and ahead of schedule
• DOver budget and behind schedule

• A
  79% (23)
• B
  7% (2)
• C
  10% (3)
• D
  3% (1)

Explanation

Option A is correct because each index is interpreted relative to 1.0: a CPI of 1.25 means you're getting $1.25 of value for every $1 spent - you're spending less than planned (under budget). An SPI of 0.75 means you're completing only 75% of the work planned for this period - you're progressing slower than planned (behind schedule).

Why the distractors are wrong:

• B reverses both interpretations - CPI > 1 is under budget, not over, and SPI < 1 is behind schedule, not ahead.
• C gets the budget right but flips the schedule - SPI of 0.75 is below 1, which means behind, not ahead.
• D gets the schedule right but flips the budget - CPI of 1.25 is above 1, which means under budget, not over.

Memory tip: Think of both indices as "bang for your buck" ratios - above 1 is good, below 1 is bad. CPI > 1 = under budget (good on cost), SPI > 1 = ahead of schedule (good on time). Here, CPI is good (1.25 > 1) but SPI is bad (0.75 < 1), so the project is in good financial shape but running late.

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