Question

Consider the following data:

	Initiation	Planning	Analysis	Design	Implementation	Testing	Closure
# Months estimated to complete	2	6	8	6	18	6	2
Budgeted Cost $	2000	6000	12000	12000	80000	36000	4000
% work completed	100%	100%	80%	0%	0%	0%	0%
Actual Cost $	4000	8000	16000	20000

We are tracking the amount of work completed after 22 months. For the data given, find the Schedule Performance Index at the end of 22 months.

	a.	0.47
	b.	0.55
	c.	0.87
	d.	0.67

Answer 1

SPI for the project after 22 months (22 months will include Initiation, Planning, Analysis and Design; 2+6+8+6 = 22 months)

Schedule performance index (SPI) = Earned Value (EV) of project after 22 months/Planed Value (PV) of project after 22 months

Where,

Earned Value (EV) is valued earned to the proportion of the completion of the task at point of time

Planned Value (PV) is the value which was supposed to earn at that point of time

Planned value (PV) calculation:

Initiation: 100% * Budgeted Cost = 100% *$2,000 = $2,000

Planning: 100% * Budgeted Cost = 100% * $6,000 = $6,000

Analysis: 100% * Budgeted Cost = 100% * $12,000 = $12,000

Design: 100% * Budgeted Cost = 100% * $12,000 = $12000

Total Planned value (PV) =$2,000 + $6,000 + $12,000 + $12,000 = $32,000

Earned value (EV) calculation:

Initiation: 100% * Budgeted Cost = 100% *$2,000 = $2,000

Planning: 100% * Budgeted Cost = 100% * $6,000 = $6,000

Analysis: 80% * Budgeted Cost = 80% * $12,000 = $9,600

Design: 0% * Budgeted Cost = 0% * $12,000 = $0

Total Earned value (EV) =$2,000 + $6,000 +$9,600 +$0 = $17,600

Therefore

Schedule performance index (SPI) = $17,600/$32,000 = 0.55

Therefore correct answer is option b. 0.55