Variance Analysis in Schedule Reporting

Correct Answer: The Schedule Performance Index (SPI) to determine the efficiency rate of work completion

The Schedule Performance Index (SPI) is the most critical metric to examine next because: Given: - SV is negative (-120 hours), indicating the project is behind schedule - CPI is positive (1.15), indicating cost efficiency Reasoning: - SPI would provide the rate of schedule efficiency and complement the SV finding - SPI would quantify HOW efficiently the work is being completed relative to the plan - SPI combined with the negative SV gives a complete picture of schedule performance Why other options are less suitable: - EV/PV trend analysis is useful but premature before understanding the current efficiency rate - Critical path float patterns are important but secondary to understanding overall schedule performance efficiency - Resource utilization rates are more relevant to resource optimization than understanding schedule performance The negative SV already tells us we're behind schedule, but we need SPI to understand the efficiency rate of progress to make informed decisions about recovery actions.

Correct Answer: The activities are behind schedule but spending less than planned

In earned value management, schedule variance (SV) and cost variance (CV) tell us different aspects of project performance: Negative SV (-40 hours) indicates the project is behind schedule, as less work has been completed than planned. Positive CV (+$5000) indicates the project is spending less money than planned for the work completed. Combining these two metrics reveals that while the activities are taking longer than planned (behind schedule), they are being completed at a lower cost than budgeted. This could occur when using less expensive resources or having better cost efficiency despite the delays. The other options are incorrect because: - Activities cannot be progressing faster with negative SV - Resource productivity issues would typically result in negative CV - Schedule delays causing additional costs would result in negative CV, not positive

Correct Answer: Activity X is 25% ahead of schedule, while Activity Y is 20% behind schedule

Schedule Performance Index (SPI) is a measure that compares earned value to planned value, indicating schedule performance. When SPI > 1, work is being completed faster than planned: - SPI of 1.25 means the activity is progressing at 125% of the planned rate, or 25% ahead of schedule When SPI < 1, work is being completed slower than planned: - SPI of 0.80 means the activity is progressing at 80% of the planned rate, or 20% behind schedule The other options are incorrect because: - Resource usage relates to Cost Performance Index (CPI), not SPI - Work completion percentage and efficiency are different metrics from schedule performance - Baseline velocity and schedule compression references misinterpret the SPI metric's meaning SPI strictly measures the relationship between earned value and planned value, making it a pure schedule performance indicator.