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A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data. You are reporting on a roadway project, which was estimated to be 10 miles of road. It was scheduled to be completed in 16 weeks, which is this week. According to your calculations, the project has a schedule performance index of 0.80. What would you advise the management about the scheduled completion date?
Correct Answer: C
The Schedule Performance Index (SPI) is a measure of schedule efficiency and is calculated as: SPI=Earned Value (EV)Planned Value (PV)\text{SPI} = \frac{\text{Earned Value (EV)}}{\text{Planned Value (PV)}}SPI=Planned Value (PV)Earned Value (EV) An SPI of 0.80 indicates that the project is progressing at 80% of the planned rate. To find the total time needed to complete the project: Adjusted Schedule Duration=Original DurationSPI=16 weeks0.80=20 weeks\text{Adjusted Schedule Duration} = \frac{\text{Original Duration}}{\text{SPI}} = \frac{16 \text{ weeks}}{0.80} = 20 \text{ weeks}Adjusted Schedule Duration=SPIOriginal Duration=0.8016 weeks=20 weeks Since 16 weeks have already passed, the project will require 4 more weeks to complete. Hence, the correct answer is C. Project will be completed in 4 more weeks.