Schedule Performance Index (SPI)

Correct Answer: The project's SPI will increase.

The Schedule Performance Index (SPI) is a measure of schedule efficiency on a project. It is the ratio of earned value (EV) to planned value (PV). In this scenario, a SPI less than 1 indicates the project is behind schedule. However, if the project is completed ten days earlier than planned, this means the project has been performed more efficiently than originally projected - the planned value (PV) has decreased while the earned value (EV) has remained the same. Therefore, the SPI (EV/PV) will increase. Answers 156103 and 156104 are incorrect because finishing a project earlier than planned will not decrease the SPI or leave it the same—it will increase. Answer 156106 is incorrect because completing a project early does not render the SPI irrelevant—it actually underlines its relevance, as SPI is a valuable indicator of project schedule performance.

Correct Answer: The SPI would decrease.

Schedule Performance Index (SPI) is a measure of schedule efficiency on a project. An SPI of more than 1 means the project is ahead of schedule, while an SPI of less than 1 means that it is behind schedule. In the given scenario, the client insists on adding new features without changing the project end date. Therefore, the project team needs to complete more work within the same timeframe. Consequently, this will decrease the SPI, as it will be more difficult for the project to maintain its schedule efficiency. The answer stating that 'The SPI would increase' is incorrect as adding more tasks without extending the timeframe would put more pressure on the project, not less. The option of 'The SPI would remain the same' is also not valid because adding tasks will undoubtedly impact the project's schedule efficiency. Similarly, the response stating that 'The SPI would be equal to the earned value' is unfounded because the SPI is a ratio, not a value.

Correct Answer: SPI = EV / PV = 35,000 / 36,000 = 0.97

The Schedule Performance Index (SPI) is a measure used in project management to determine how efficiently a project is progressing compared to its schedule. It is calculated by dividing the Earned Value (EV) by the Planned Value (PV). Here's the formula: SPI = EV / PV For your environmental conservation project: Earned Value (EV) = $35,000 Planned Value (PV) = $36,000 Now, let's calculate the SPI: SPI = 35,000 / 36,000 SPI ≈ 0.9722 The SPI of about 0.9722 indicates that the project is running slightly behind schedule, not ahead, as an SPI greater than 1 would indicate that the project is ahead of schedule. An SPI of less than 1, as in this case, means the project is progressing at a slower rate than planned.