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PFMP · Question #303

What can you tell about the following portfolio status, having CPI weight = 80% and SPI weight = 20% Larger image

The correct answer is C. Work is progressing as planned and within range. In portfolio performance reporting, the Portfolio Performance Index (PPI) is calculated as a weighted combination of CPI (Cost Performance Index) and SPI (Schedule Performance Index). With CPI weighted at 80% and SPI at 20%, cost performance dominates the overall score. A…

Portfolio Performance Management

Question

What can you tell about the following portfolio status, having CPI weight = 80% and SPI weight = 20% Larger image

Options

  • AWork is not performing well and outside of range
  • BWork is not preforming well but within range
  • CWork is progressing as planned and within range
  • DWork is progressing as planned but outside range

How the community answered

(33 responses)
  • A
    6% (2)
  • B
    12% (4)
  • C
    79% (26)
  • D
    3% (1)

Explanation

In portfolio performance reporting, the Portfolio Performance Index (PPI) is calculated as a weighted combination of CPI (Cost Performance Index) and SPI (Schedule Performance Index). With CPI weighted at 80% and SPI at 20%, cost performance dominates the overall score. A result of C ('Work is progressing as planned and within range') indicates that the weighted PPI score falls within the acceptable performance threshold range. When the combined weighted score meets or exceeds 1.0 (or falls within the defined green zone), it signals that portfolio components are performing adequately both on cost and schedule, and no corrective action is needed.

Topics

#Earned Value Management (EVM)#Portfolio Performance Metrics#CPI & SPI Interpretation#Portfolio Monitoring

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