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
Click on the arrows to vote for the correct answer
A. B. C. D.D.
To find the project's schedule performance index (SPI), we need to calculate the planned value (PV) and earned value (EV) of the project, and then divide EV by PV.
The planned value (PV) is the budgeted cost of the work scheduled to be done up to a particular point in time. In this case, the PV can be calculated as follows:
PV = BAC x Planned Percentage Complete = $945,000 x 49% = $463,050
The earned value (EV) is the budgeted cost of the work actually performed up to a particular point in time. In this case, the EV can be calculated as follows:
EV = BAC x Actual Percentage Complete = $945,000 x 45% = $425,250
Now we can calculate the SPI:
SPI = EV / PV = $425,250 / $463,050 = 0.918
Therefore, the project's schedule performance index (SPI) is 0.918.
Since the contingency response was that the SPI should be less than 0.93, the project is behind schedule according to the contingency plan.
The correct answer is D. 0.92. Answer A is incorrect because 1.06 is greater than 1, which would indicate the project is ahead of schedule. Answer B is incorrect because it is the contingency threshold, not the actual SPI. Answer C is incorrect because it is not a valid SPI value.
