You work as a Project Manager for Tech Perfect Inc. Several projects are running under your supervision. Martha, a team leader of a project, informs you about the performance indexes of her project…

Question

Options

• AThe schedule performance is right on target.
• BThe schedule performance is better than expected.
• CThe cost performance is better than expected.
• DThe schedule performance is below expectation.

• B
  4% (1)
• C
  8% (2)
• D
  88% (21)

Explanation

According to the question, the SPI of Martha's project is 0.835. This figure is less than 1. Hence, it shows that the schedule performance is below expectation. What is SPI? Schedule performance index (SPI) is the measure of schedule efficiency on a project. It is used in trend analysis to predict future performance. SPI is the ratio of earned value to planned value. The SPI is calculated based on the following formula: SPI = Earned Value (EV) / Planned Value (PV) If the SPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The SPI value of 1 indicates that the project is right on target. Answer options B and A are incorrect. An SPI value of 1 or above indicates that the schedule performance is either right on target or better than expected. Answer option C is incorrect. SPI has nothing to do with cost performance.

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