The project manager calculated a schedule performance index of 0.8 and a cost performance index of 1.1 for the project. What is the actual status of this project?

Question

Options

• ABehind schedule and over budget
• BBehind schedule and under budget
• CAhead of schedule and under budget
• DAhead of schedule and over budget

• A
  7% (3)
• B
  76% (31)
• C
  15% (6)
• D
  2% (1)

Explanation

SPI = 0.8 means the project is behind schedule - any Schedule Performance Index below 1.0 indicates less work was completed than planned. CPI = 1.1 means the project is under budget - a Cost Performance Index above 1.0 means each dollar spent is buying more than a dollar of planned work.

Why the distractors are wrong:

• A is wrong because CPI = 1.1 (above 1.0) means under budget, not over.
• C is wrong because SPI = 0.8 (below 1.0) means behind schedule, not ahead.
• D is wrong on both counts - SPI < 1 is behind schedule, and CPI > 1 is under budget.

Memory tip: Think of these indices like a grade - below 1.0 is a failing grade (bad: behind schedule or over budget), above 1.0 is above average (good: ahead of schedule or under budget). The two indices are independent, so a project can score well on one and poorly on the other simultaneously.

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