Question

A project has a budget of $10K. At time X, it's supposed to be finished, but only 80% has been finished in reality. Assume S7K is the actual cost. What are the schedule performance index and cost performance index?

Answer 1

The schedule performance index (SPI) is 0.8 and the cost performance index (CPI) is 0.7.

Step-by-step explanation:

The schedule performance index (SPI) measures the efficiency or progress of a project in relation to its planned schedule. It is calculated by dividing the actual percent complete (80% in this case) by the planned percent complete (100%). In this case, the SPI is 0.8, indicating that the project is running behind schedule.

The cost performance index (CPI) measures the efficiency or progress of a project in relation to its planned cost. It is calculated by dividing the earned value (actual cost) by the planned value (budget). In this case, the CPI is 0.7 (7K/10K), indicating that the project is over budget.