Schedule Performance Index

5 minutes 5 Questions

The Schedule Performance Index (SPI) is another essential performance indicator in project management that measures how efficiently the project is progressing based on the timeline. SPI helps project managers evaluate the project's schedule variance and decide if corrective actions are required to …

Guidance on Schedule Performance Index (SPI)

Schedule Performance Index (SPI) is a crucial topic within the area of Project Cost Management as prescribed by the PMBOK Guide Seventh Edition.

Why it is important:
The SPI is an integral part of performance measurement techniques, which compares the work performed against the work scheduled. By quantifying this data, project managers can identify whether the project is ahead or behind the scheduled timeline. This allows for timely adjustments and decision-making to keep the project running on schedule.

What it is:
The Schedule Performance Index (SPI) is an index showing the efficiency of time utilised on the project. It is calculated by dividing the Earned Value (EV) by the Planned Value (PV). A SPI score of less than 1 indicates that the project is running behind schedule, whereas a score greater than 1 indicates that it’s ahead of schedule.

How it works:
For Example, if a project has an Earned Value (EV) of $200,000 and a Planned Value (PV) of $250,000, the SPI would be 0.8 (200,000 ÷ 250,000), indicating the project is running behind schedule.

Exam Tips: Answering Questions on Schedule Performance Index:
(i) Understand the SPI calculation formula and interpret what various SPI scores indicate about project's status.
(ii) When given a case study, identify the EV and PV in the scenario to calculate SPI.
(iii) Always remember, an SPI less than 1 indicates project is behind schedule which requires corrective actions.
(iv) Practice sample SPI calculation questions for better understanding and mastery.
Remember, accuracy and ease in calculating SPI will come with regular practice. Therefore, make it a point to practice schedule management related numericals regularly.

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PMP - Schedule Performance Index Example Questions

Test your knowledge of Schedule Performance Index

Question 1

In a project where the Earned Value (EV) is $75,000 and the Planned Value (PV) is $60,000, what does the resulting Schedule Performance Index (SPI) indicate about the project's progress?

The project is behind schedule and needs acceleration The project is exactly on schedule as planned The SPI calculation requires additional cost information The project is ahead of schedule

Correct Answer: The project is ahead of schedule

The correct answer is that the project is ahead of schedule. To determine the project's progress, we need to calculate the Schedule Performance Index (SPI). The formula for SPI is: SPI = Earned Value (EV) / Planned Value (PV) Given: EV = $75,000 PV = $60,000 SPI = $75,000 / $60,000 = 1.25 When SPI is greater than 1, it indicates that the project is ahead of schedule. In this case, the SPI of 1.25 shows that the project has completed 25% more work than planned at this point. The other answers are incorrect: - The project being exactly on schedule would result in an SPI of 1.0. - The project being behind schedule would result in an SPI less than 1.0. - The SPI calculation does not require additional cost information; we have all the necessary data to calculate it using EV and PV.

Question 2

In a construction project, the Earned Value (EV) is $50,000, the Planned Value (PV) is $45,000, and the project is completed. Yet the final Actual Cost (AC) is $55,000. What can be inferred about the Schedule Performance Index (SPI)?

The SPI indicates that the project was ahead its schedule The SPI indicates that the project went over-budget The SPI indicates that the project was behind its schedule The SPI indicates that the project's budget was well-maintained

Correct Answer: The SPI indicates that the project was ahead its schedule

In project management, the Schedule Performance Index (SPI) is a measure of schedule efficiency. It is calculated as the ratio of the Earned Value (EV) to the Planned Value (PV). In this case, SPI is EV/PV = $50,000/$45,000 which is greater than 1. If the SPI is greater than 1, it means the project is ahead of schedule. Hence, the correct answer is : 'The SPI indicates that the project was ahead its schedule'. Now, let's see why the other options are incorrect: 'The SPI indicates that the project was behind its schedule': SPI being more than 1, we can infer the project was actually ahead of schedule, not behind. 'The SPI indicates that the project went over-budget': Budget and costs of the project are determined by the Cost Performance Index (CPI), not SPI. Hence, this option is incorrect. 'The SPI indicates that the project's budget was well-maintained': It's irrelevant as SPI indicates schedule performance, not cost performance or budget maintenance, so this option is incorrect.

Question 3

In a school renovation project, the Earned Value (EV) is $30,000, Actual Cost (AC) is $40,000, and Planned Value (PV) is $38,000. The project is finished ahead of the expected time. What is the project's Schedule Performance Index (SPI)?

None of the above SPI = EV / AC = 30,000 / 40,000 = 0.75 SPI = AC / PV = 40,000 / 38,000 = 1.05 SPI = EV / PV = 30,000 / 38,000 = 0.79

Correct Answer: SPI = EV / PV = 30,000 / 38,000 = 0.79

The Schedule Performance Index (SPI) in project management is calculated using the formula SPI = Earned Value (EV) / Planned Value (PV). From the question, the Earned Value (EV) is given as $30,000 and the Planned Value (PV) is $40,000. Plugging these values in our formula, we get SPI = 30,000 / 38,000 = 0.79. The other answers are incorrect because they either use a wrong formula or have incorrect calculations. The second answer uses the wrong formula SPI = Actual Cost (AC) / Planned Value (PV) which doesn't give the SPI. The third answer also uses a wrong formula where SPI = EV / AC. The fourth answer that states 'None of the above' is incorrect because the correct answer is in the options provided.

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