A project sponsor is reviewing the project dashboard and does not understand what a CPI of 0.87 and an SPI of 1.02 indicate. Which of the following describes the project status?

The correct answer is C. The project is over budget and ahead of schedule. These are Earned Value Management (EVM) metrics. CPI (Cost Performance Index) = Earned Value ÷ Actual Cost: a CPI of 0.87 (less than 1.0) means the project is over budget - it is only getting $0.87 of value for every $1.00 spent. SPI (Schedule Performance Index) = Earned Value…

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Options

AThe project is over budget and behind schedule.
BThe project is under budget and ahead of schedule.
CThe project is over budget and ahead of schedule.
DThe project is under budget and behind schedule.

How the community answered

(19 responses)

A
11% (2)
B
5% (1)
C
79% (15)
D
5% (1)

Explanation

These are Earned Value Management (EVM) metrics. CPI (Cost Performance Index) = Earned Value ÷ Actual Cost: a CPI of 0.87 (less than 1.0) means the project is over budget - it is only getting $0.87 of value for every $1.00 spent. SPI (Schedule Performance Index) = Earned Value ÷ Planned Value: an SPI of 1.02 (greater than 1.0) means the project is ahead of schedule - more work has been completed than was planned. Therefore, the project is over budget and ahead of schedule.

Topics

#earned value management#CPI#SPI#project status indicators

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