SPI

  Your project has a budget of $240,000 and is expect to last for 1 year, with the work and budget spread evenly across all months. The project is now in the fourth month, but the actual work completed is 20% of the total work. What is Schedule Performance Index (SPI) in this case?

A)1.66

B)1  

C)2.5

D)1.9

EV= (Total Cost / total project months) * total months completed = ($240,000 / 12) * 4 = $80,000

PV = Total Cost *percentage actually completed = $240,000 * 20 / 100 = $48,000

SPI = $80,000 / $48,000 = 1.66

 

Regards,

Manoj

 

 Hi Manoj,

Your calculation makes sense however my question is how you came to conclusion that total months completed are 4? Question mentioned "The project is now in the fourth month, but the actual work completed is 20% of the total work."

Can you please explain?

Thanks

 

cnppmp's picture

BAC=240,000


PV= 4/12 * 240,000=80,000


EV=20% of 240000= 480000


SPI= EV/ PV= 80000/ 48000


= 1.66


Regards


CN Patil

 Yes, Patil. It's correct

 PV= 80000

EV = 48000

SPI = EV/PV 

= 48000/80000

This  is not equal to 1.66, SPI should be below 1.

@Patil


  As per your calculation PV = 80000 and EV = 48000


SPI = EV/PV = 48000/80000 = 0.6


But the answer is not in the list? Could you please explain

cnppmp's picture

Vijaya


Please make sure you udnerstand the basic concepts of the EV, PV, AC, BAC. If you have these in the question or you have to derive one of them the sufficient information would be provided in it.


For example, consider the above question.


  Your project has a budget of $240,000 and is expect to last for 1 year, with the work and budget spread evenly across all months. The project is now in the fourth month, but the actual work completed is 20% of the total work. What is Schedule Performance Index (SPI) in this case?



  • Expect to complete in one year, so it is 12 months right..so project lenght or period is 12 months.

  • project is in fourth month, this will be input for knowing PV i.e (4/ 12)*BAC, the work expected to complete.

  • completed / accomplished / finished refers to EV always.

  • actual cost will be mentioned in terms of spent, cost incurred  (which not provided) and not relevant here. 

  • you know the BAC

  • so it is easy to deirve the SPI, SV

Regards


CN Patil


 

 Thank You very much Mr.Patil, for the piece of advise. I'll definitely keep in mind

PV at the end of 4 months = $240,000*(4/12) = $80,000

EV at the end of 4 months = 20% of $240,000 = $48,000

SPI = EV/PV = 48,000/80,000 = 0.6

 

This is not listed in the options, am I missing something here, can someone please clarify.

EV = BAC * 20% = 48000

PV = 4/12 * 240,000 = 80,000

SPI = EV/PV = 48000/80000 = 0.6

 

The question does not have this option. But this shall be the correct answer according to me. Would appreciate if the admin can contribute with opinion.

 

Regards,

Subinoy

 

 

How can the SPI for the given project be greater than 1? From the given data, it is clear that the project is behind schedule.

Also, the question says that the project is NOW in the 4th month. I would interpret the question as meaning that the project has now entered the 4th month and hence would go for 3 months completed (and not 4). Regardless of this choice, the SPI would be less than 1.

Vijaya, can you please tell us the officially provided explanation for this question? Thanks.

 

Regards.

 

@pmpnewster

This is the explanation provided "Schedule Performance Index (SPI) = Earn Value / Planned Value Earn Value = (Total Cost / total project months) * total months completed = ($240,000 / 12) * 4 = $80,000 Planned Value = Total Cost *percentage actually completed = $240,000 * 20 / 100 = $48,000 SPI = $80,000 / $48,000 = 1.66"

 

the reason why I have posted this question is 

1) I too have taken the time as 3 months instead of 4 months and found no option available

2)Then I have started working with 4 months. Even then, in the explanation given, Planned Value = Total Cost *percentage actually completed 

PV = BAC * % planned and EV = BAC * % actually completed (as per my understanding)

 

hence posted this question

 

Regards

Vijaya

 EV - % work actually completed * Project budget

= 0.2 * 240,000 = 48,000 means EV = 48,000

 

PV = Budgeted cost of work scheduled 

scheduled is 4 month

PV = 20,000 * 4 month = 80,000

 

SPI = EV/PV = 48,000 / 80,000 = 0.6

But this option not available.

 

Since work is behind schedule anyway 1.66 is not correct.

Any comment ? agreement ? I am confused as I saw this in practice test.