You’re managing a project with a schedule performance index (SPI) of 1.07 and a cost performance index (CPI) of 0.94. How would you best describe this project?

Options
- The project is ahead of schedule and within its budget
- The project is behind schedule and within its budget
- The project is ahead of schedule and over its budget
- The project is behind schedule and over its budget

CORRECT ANSWER : The project is ahead of schedule and over its budget

Discussion Board
The project is ahead of schedule and over its budget

According to cost performance index, if it is less than one then you are over the budget. Here, CPI is 0.94 means you are earning 0.94 USD for every 1 USD.
Formula for CPI is: CPI = EV/AC
The conclusions for above formula:
-If the CPI is less than one, you are earning less than the amount spent. In other words, you’re over budget.
-If the CPI is greater than one, you are earning more than the amount spent. In other words, you are under budget.
-If the CPI is equal to one, this means earning and spending are equal.

Formula for SPI is: SPI = EV/PV

The conclusions for above formula:

-If the SPI is greater than one, this means more work has been completed than the planned work. -In other words, you are ahead of schedule.
If the SPI is less than one, this means less work has been completed than the planned work. In other words, you are behind schedule.
-If the SPI is equal to one, this means work is being completed at about the same rate as planned, you are on time.

Here, in this example, SPI is 1.07
SPI is greater than 1 hence, The project is ahead of schedule.


Sapna Ambadkar 03-20-2017 02:17 AM

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