Schedule Performance Index (SPI)

Correct Answer: The project is slightly ahead but may face future resource constraints

In Earned Value Management (EVM), an SPI of 1.08 indicates the project is performing 8% ahead of schedule, which is positive but moderate progress. However, when this is combined with frequent resource allocation changes, it suggests potential instability in resource management. The key consideration here is the combination of these two factors: 1. The SPI of 1.08 shows good schedule performance 2. Frequent resource allocation changes indicate underlying resource management challenges This combination typically suggests that while the project is maintaining good pace (ahead of schedule), the frequent resource changes could create future constraints or challenges in maintaining this performance. The other options are incorrect because: - Optimal resource utilization would not typically involve frequent resource allocation changes - Steady progress would not usually require frequent resource adjustments - The need for schedule compression would not align with an SPI > 1, as the project is already ahead of schedule

Correct Answer: The project will likely need 15% more time than planned to complete remaining work

An SPI (Schedule Performance Index) of 0.85 means the project is performing at 85% of the planned schedule efficiency. This means that for every planned unit of work, only 0.85 units are being completed. When this pattern is consistent over five reporting periods, it indicates a stable but below-optimal performance trend. The mathematical interpretation is: 1. SPI = 0.85 means working at 85% efficiency 2. To complete the same amount of work, you need: 1/0.85 = 1.176 3. This translates to approximately 15% more time needed (1.176 - 1 = 0.176 or ~15%) The other options are incorrect because: - Reducing resource allocation would further slow down the project - Suggesting an 85% increase in duration is a mathematical error (confusing the SPI value with the needed increase) - Increasing productivity by 0.15 points is an arbitrary number not based on the correct SPI calculation

Correct Answer: The project is running behind schedule by 8%

Let's analyze this step by step: 1. Schedule Performance Index (SPI) = 0.92 indicates earned value divided by planned value 2. When SPI < 1.0, it means the project is behind schedule 3. The percentage behind schedule can be calculated as: (1 - SPI) × 100 = (1 - 0.92) × 100 = 8% 4. Therefore, the project is running behind schedule by 8% The other options are incorrect because: - Increasing resources is a potential solution but not an analysis of the current schedule status - 92% of planned duration is a misinterpretation of SPI - Reducing schedule duration by 8% would actually make the schedule problem worse Note that while CPI=1.05 indicates good cost performance (5% under budget), it does not affect the schedule analysis.