Fredrick works as a Project Manager for BlueWell Inc. A number of projects are running under his guidance. You, a team leader of a project, inform Fredrick about the performance indexes of your…

Question

Options

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

• A
  93% (14)
• C
  7% (1)

Explanation

According to the question, the SPI of your project is 1.325. This figure is greater than 1. Hence, it shows that the schedule performance is better than expected. 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 Answer option C is incorrect. SPI has nothing to do with cost performance. Answer options B and D are incorrect. An SPI value less than 1 or 0 indicates that the schedule performance is either below expectation or is right on target.

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