You work as a Project Manager for Blue Well Inc. You are measuring schedule efficiency of a project.
The related key values are provided in the table below:
What is the schedule performance index (SPI) of the project at the current point of time?
A.
1.366
B.
0.923
C.
0.731
D.
1.083
Explanation:
According to the question, you are required to calculate the schedule performance index (SPI) of the
project. 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.
Now, putting the provided values on the formula:
SPI = EV / PV
= 325/300
= 1.083
As the SPI 1.083 is greater than 1, it shows that the schedule performance is better than expected.
What is BCWP (or EV)?
Budgeted cost of work performed (BCWP) or Earned Value (EV) is the value of completed work. It is
the budgeted amount for the work actually completed on the schedule activity during a given time
period.
What is BCWS (or PV)?Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV) is the authorized budget assigned
to the scheduled work to be accomplished for a schedule activity or Work Breakdown Structure
(WBS) component.
What is ACWP (or AC)?
Actual cost of work performed (ACWP) or Actual Cost (AC) is the total costs actually incurred and
recorded in accomplishing work performed during a given time period for a schedule activity. It is
the cost of the work to date, including direct and indirect costs. AC is money that has actually been
expended to date.