Project Schedule Performance Index Calculation
Question
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?
Answers
Explanations
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A. B. C. D.B.
The Schedule Performance Index (SPI) is a ratio of the earned value to the planned value of the project schedule. It measures the efficiency of the project team in utilizing the planned time for the work completed. The formula for SPI is:
SPI = EV / PV
where EV is the earned value and PV is the planned value.
In this question, the contingency response for the NNH project is that the SPI should be less than 0.93. To calculate the SPI, we need to determine the earned value and planned value of the project.
Given data:
- Budget at Completion (BAC) = $945,000
- Percentage complete = 45%
- Planned percentage complete = 49%
- Actual cost incurred = $455,897
First, we can calculate the planned value (PV) of the project:
PV = BAC * Planned Percentage Complete PV = $945,000 * 0.49 PV = $463,050
Next, we can calculate the earned value (EV) of the project:
EV = BAC * Percentage Complete EV = $945,000 * 0.45 EV = $425,250
Now that we have both the earned value and planned value, we can calculate the Schedule Performance Index (SPI):
SPI = EV / PV SPI = $425,250 / $463,050 SPI = 0.918
The calculated SPI is less than the contingency response of 0.93. This indicates that the project team is behind schedule and the work completed is taking more time than planned.
Therefore, the answer is B. 0.92
