+360-Questions-and-Answers-For-PMBOK-Guide-SIXTH -Edition

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EarnedValue Management

Schedule performance index. The schedule performance index (SPI) is a measure of schedule
efficiencyexpressedastheratioofearnedvaluetoplannedvalue.Itmeasureshowefficientlythe
projectteamisusingitstime.Itissometimesusedinconjunctionwiththecostperformanceindex
(CPI)toforecastthefinalprojectcompletionestimates.

AnSPIvaluelessthan 1. 0 indicateslessworkwascompletedthanwasplanned.AnSPIgreaterthan

1. 0 indicatesthatmoreworkwascompletedthanwasplanned.SincetheSPImeasuresallproject
   work,theperformanceonthecriticalpathalsoneedstobeanalyzedtodeterminewhetherthe
   projectwillfinishaheadoforbehinditsplannedfinishdate.TheSPIisequaltotheratiooftheEVto
   thePV.Equation:SPI=EV/PV

Costperformanceindex.Thecostperformanceindex(CPI)is ameasureofthecostefficiencyof
budgetedresources,expressedasaratioofearnedvaluetoactualcost.Itisconsideredthemost
criticalEVMmetricandmeasuresthecostefficiencyfortheworkcompleted.ACPIvalueoflessthan

1. 0 indicatesacostoverrunfor workcompleted.A CPIvalue greater than 1. 0 indicatesa cost
   underrunofperformancetodate.TheCPIisequaltotheratiooftheEVtotheAC.Theindicesare
   usefulfordeterminingprojectstatusandprovidingabasisforestimatingprojectcostandschedule
   outcome.Equation:CPI=EV/AC

Thethreeparametersofplannedvalue,earnedvalue,andactualcostcanbemonitoredand reported
onbothaperiod-by-periodbasis(typicallyweeklyormonthly)andonacumulativebasis. Figure 7 –
12 usesS-curvestodisplayEVdataforaprojectthatisperformingoverbudgetandbehindschedule.

TheSVandCVvaluescanbeconvertedtoefficiencyindicatorstoreflectthecostandschedule
performanceofanyprojectforcomparisonagainstallotherprojectsorwithinaportfolioofprojects.
Thevariancesareusefulfordeterminingprojectstatus.

Schedule performance index. The schedule performance index (SPI) is a measure of schedule
efficiencyexpressedastheratioofearnedvaluetoplannedvalue.Itmeasureshowefficientlythe
projectteamisusingitstime.Itissometimesusedinconjunctionwiththecostperformanceindex
(CPI)toforecastthefinalprojectcompletionestimates.

AnSPIvaluelessthan 1. 0 indicateslessworkwascompletedthanwasplanned.AnSPIgreaterthan

1. 0 indicatesthatmoreworkwascompletedthanwasplanned.SincetheSPImeasuresallproject
   work,theperformanceonthecriticalpathalsoneedstobeanalyzedtodeterminewhetherthe
   projectwillfinishaheadoforbehinditsplannedfinishdate.TheSPIisequaltotheratiooftheEVto
   thePV.Equation:SPI=EV/PV

Costperformanceindex.Thecostperformanceindex(CPI)is ameasureofthecostefficiencyof
budgetedresources,expressedasaratioofearnedvaluetoactualcost.Itisconsideredthemost
criticalEVMmetricandmeasuresthecostefficiencyfortheworkcompleted.ACPIvalueoflessthan

1. 0 indicatesacostoverrunfor workcompleted.A CPIvalue greater than 1. 0 indicatesacost
   underrunofperformancetodate.TheCPIisequaltotheratiooftheEVtotheAC.Theindicesare
   usefulfordeterminingprojectstatusandprovidingabasisforestimatingprojectcostandschedule
   outcome.Equation:CPI=EV/AC

Thethreeparametersofplannedvalue,earnedvalue,andactualcostcanbemonitoredand reported
onbothaperiod-by-periodbasis(typicallyweeklyormonthly)andonacumulativebasis.