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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Schedule Performance Index practice test
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 get the project back on track. It is calculated by dividing the Earned Value (EV) by the Planned Value (PV). An SPI equal to 1 indicates the project is on schedule, while an SPI greater than 1 suggests that the project is ahead of the schedule. In contrast, an SPI less than 1 indicates that the project is behind schedule, and appropriate actions should be taken to get it back on track.
Time: 5 minutes Questions: 5
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Project Management Professional Preparation Package (2024)
- Earn 35 PDUs needed for your PMP certification
- 12955 Superior-grade Project Management Professional practice questions.
- Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
- Unlock Effortless PMP preparation: 5 full exams.
- 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
- Bonus: If you upgrade now you get upgraded access to all courses
- Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!