A project scheduler updates the project status with the following information: SPI = 1.25 and CPI = 0.85. Which of the following can the project manager infer about the current project status?

The correct answer is C. The project is ahead of schedule and over budget. Earned Value Management (EVM) uses two key performance indices. The Schedule Performance Index (SPI) = Earned Value (EV) / Planned Value (PV). An SPI of 1.25 means the project is earning $1.25 of value for every $1.00 of planned work - the project is ahead of schedule. The Cost…

Project Management Concepts

Question

Options

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

How the community answered

(43 responses)

A
5% (2)
B
16% (7)
C
72% (31)
D
7% (3)

Explanation

Earned Value Management (EVM) uses two key performance indices. The Schedule Performance Index (SPI) = Earned Value (EV) / Planned Value (PV). An SPI of 1.25 means the project is earning $1.25 of value for every $1.00 of planned work - the project is ahead of schedule. The Cost Performance Index (CPI) = Earned Value (EV) / Actual Cost (AC). A CPI of 0.85 means the project is only getting $0.85 of value for every $1.00 spent - the project is over budget. Therefore, SPI > 1 = ahead of schedule AND CPI < 1 = over budget, which corresponds to answer C.

Topics

#Earned Value Management#Schedule Performance Index (SPI)#Cost Performance Index (CPI)#Project Performance Analysis

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