What is the project’s schedule performance index?

You are the project manager of the NNH Project. In this project you have created a contingency response that the schedule performance index should be less than 0.93. The NHH Project has a budget at completion of $945,000 and is 45 percent complete though the project should be 49 percent complete. The project has spent $455,897 to reach the 45 percent complete milestone. What is the project’s schedule performance index?

A.
0.92

B.
-$37,800

C.
0.93

D.
1.06

Explanation:

The schedule performance index can be found by dividing the earned value by the planned value. In this scenario it would be.
SPI=425,250/463,050
=0.92.
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 option C is incorrect. 0.93 is the cost performance index for this project. Answer option D is incorrect. 1.06 is the to-complete performance index. Answer option B is incorrect. -$37,800 is the schedule variance. Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"