Holly is the project manager of the NDS project and she is 85 percent complete with her project though she should be 95 percent complete. Her project has a BAC of $9,850,400 and she has spent $8,011,221 to date. What is Holly's schedule performance index for this project?
Correct Answer: C
Explanation/Reference:
Explanation:
The schedule performance index is found by dividing the earned value by the planned value. For Holly's project, it would be as follows:
SPI = EV/PV
= (0.85*9,850,400)/(0.95*9,850,400)
=8,372,840/9,357,880
=0.89
Schedule performance index (SPI) is the measure of schedule efficiency on a project. It is used in trend analysis to predict future performance. SPI is the ratio of earned value to planned value. The SPI is calculated based on the following formula:
SPI = Earned Value (EV) / Planned Value (PV)
If the SPI value is greater than 1, it indicates better than expected performance, whereas if the value is less than 1, it shows poor performance. The SPI value of 1 indicates that the project is right on target.
Incorrect Answers:
A: 1.07 is the to-complete performance index based on the BAC.
B: 0.98 is the cost performance index.
D: Ten percent is not a valid calculation for this question.