This is really bad but we say that having CPI > 1 means we are on schedule. Thanks in advance.To calculate the SPI you should have EV and PV on hand.I have already calculated EV and PV, but for example EV = 5000 and PV = 0 because the task has begun ahead of schedule. In this situation, you can assume the budget was distributed evenly for each month. You can work out your calculations using Microsoft Excel. • There are five separate tasks that will take 20 hours each. I took the simplest example to make concept clear.There a project A which is to be completed in 20 days but it gets completed in 10 days.But sir can SPI & CPI be 2 or more or can it be negative?And sir what will be the CPI & SPI to the same problemIf the same activity was to be completed in 20 days but it got completed in 140 daysSPI and CPI depends on EV, PV and AC. Simply explained by a PMI-certified Project ManagerThe cost performance index, also referred to by the abbreviation (CPI), refers specifically to a method, chart, or other instrument that is implemented for the purposes of determining/measuring the This term is defined in the 3rd and the 4th edition of theDear Visitor, I am a PMP (Project Management Professional), certified by the Project Management Institute since 2004. SPI is EV/PV; what about when change orders are added and your PV suddenly changes? SPI = 0.825. Resulting in a cost performance index of 800,000:1,000,000 or 0.8. No. Some organizations are comfortable with 0.9 to 1.1 and others are not.It is up to your organization to decide the benchmark for them depending on their risk tolerance.Deliverable can be met even if the project is behind schedule.It is not possible to complete the project and spi is still 0.6 because once the project is complete, no work left and spi = 1.How is that possible Fahad – Deliverables are met, but the project is behind schedule? If CPI is greater than one then the project is under budget. You can find efficiency through indexes.Schedule Performance Index and Cost Performance Index help you analyze the progress of a project.

The project is under budget.You are earning less than what you have spent if the CPI is less than one. (a) Given the profit you have and assuming a discount rate of 5%, perform and document appropriate NPV calculations for all possible investment options you identified. • The project estimates include a total of 100 hours of development time. Total budget for the project is $10,000. It measures the value of the work completed compared to the actual cost spent.According to the PMBOK Guide, “The Cost Performance Index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost.”The Cost Performance Index specifies how much you are earning for each dollar spent on the project. If AC is zero means you did not spend a single penny on it.If you have a project that is complete and the CPI=1 and the SPI=237 on an expedited project is this a valid way to represent that the project completed significantly ahead of schedule?If SPI = 2 this means you have completed the project in half time.Question: Allen is managing a new product development project. You can not compare the SPI with CPI.You will calculate the PV based on the current schedule.

Which is the best answer?It suggests the project was terminated before completion.At completion the SPI is always marked as 1 irrespective of when the work was completed.EV at completion should be 1. Cost variance CV = EV – AC = 10000 Schedule variance SV = EV – PV = -20000 Cost performance index (CPI) = EV/AC = 1.11 over 100% Schedule performance index (SPI) = EV/PV = 0.83 less than 100% b). Good discussion. No. You are doing well if the ratio is higher than one. eg.

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