Hey guys, so sorry we’ve been MIA for the last few weeks. I’m busy studying for my PMP certification and Rocky’s been working on writing a few proposals for work. So this week’s question will be quick.
Since I’ve been doing a bunch of Project Management studying, it seems fitting to ask a question about it. So here it goes…
Question
A Schedule Performance Index of 0.90 means:
A. The project is over budget
B. The project is ahead of schedule
C. You are progressing at 90% of the rate originally planned
D. You are progress at 10% of the rate originally planned
Answer and Explanation
The Schedule Performance Index, or SPI, is the earned value of the project divided by the planned value of the project.
Earned Value estimates the worth of the work accomplished so far.
Planned Value estimates the value of the work planned to be completed so far.
So SPI indicates at what percentage of the rate originally planned is the project progressing at.
An SPI of greater than one is GOOD.
An SPI of less than one is BAD.
Therefore, the answer to this week’s question is C.
Closely related to the SPI is the Cost Performance Index, or CPI. The CPI indicates what value worth of work you’re getting out of the project for every dollar spend. It shows whether funds are being used efficiently or not.
The formula for CPI is Earned Value divided by Actual Cost (the actual cost incurred for the work accomplished at the time of calculation).
Similar to SPI, a CPI of greater than one is good. Less than one is bad.
Hope you enjoyed today’s question! Feel free to tweet at us @InformaticsPro if you want a specific question or topic clarified!