PMI-RMP · Question #62
You are the project manager of the GGK project for your company. The GGK project has a budget of $1,265,100 and is currently 40 percent complete. In this project, you elected to add labor to the…
The correct answer is C. The CPI is .88 and the SPI is 1.14. Using Earned Value Management (EVM): BAC = $1,265,100, AC = $575,000. Earned Value (EV) = 40% × $1,265,100 = $506,040. Planned Value (PV) = 35% × $1,265,100 = $442,785. CPI = EV ÷ AC = $506,040 ÷ $575,000 ≈ 0.88 (under budget efficiency - costs more than earned). SPI = EV ÷ PV…
Question
You are the project manager of the GGK project for your company. The GGK project has a budget of $1,265,100 and is currently 40 percent complete. In this project, you elected to add labor to the project to increase the likelihood of completing the project early as the project was only scheduled to be 35 percent complete at this time. This positive risk response, while keeping the project ahead of schedule, has added significant costs to the project. You have already spent $575,000 to reach this point in the project. Management would like to know what your cost performance index and the schedule performance index is for this project. What are these values?
Options
- AThe CPI is -$68,960 and the SPI is $63,255.
- BThe CPI is .88 and the SPI is zero.
- CThe CPI is .88 and the SPI is 1.14.
- DThe CPI is 1.14 and the SPI is .88.
How the community answered
(43 responses)- A7% (3)
- B5% (2)
- C74% (32)
- D14% (6)
Explanation
Using Earned Value Management (EVM): BAC = $1,265,100, AC = $575,000. Earned Value (EV) = 40% × $1,265,100 = $506,040. Planned Value (PV) = 35% × $1,265,100 = $442,785. CPI = EV ÷ AC = $506,040 ÷ $575,000 ≈ 0.88 (under budget efficiency - costs more than earned). SPI = EV ÷ PV = $506,040 ÷ $442,785 ≈ 1.14 (ahead of schedule). A CPI below 1.0 means you are over budget, while an SPI above 1.0 means you are ahead of schedule - both consistent with adding labor to accelerate the project.
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