The cost performance index (CPI) measures the value of the work completed at the measurement date against the actual cost. It is one of the most important EVM measurements because it tells you the cost efficiency for the work completed to date or at the completion of the project. If CPI is greater than 1, you are spending less than anticipated at the measurement date. If CPI is less than 1, you are spending more than anticipated for the work completed at the measurement date.
The cost performance index (CPI) is calculated this way:
CPI = EV / AC
Plug in the numbers to see where you stand:
70,000 / 71,000 = .99
Since the result is less than 1, it means cost performance is worse than expected.
The project schedule performance index (SPI) is 1.1, which means the project is ahead of schedule, and the cost performance index (CPI) is 0.9, which means the project is under budget. Therefore, the project status can be described as "Ahead of schedule and under budget." The correct option is C.
"The schedule performance index (SPI) measures the progress to date against the progress that was planned. This formula should be used in conjunction with an analysis of the
critical path activities to determine whether the project will finish ahead of or behind
schedule.*** If SPI is greater than 1, your performance is better than expected, and you’re ahead of schedule. If SPI is less than 1, you’re behind schedule at the measurement date."***
The cost performance index (CPI) measures the value of the work completed at the
measurement date against the actual cost. It is one of the most important EVM
measurements because it tells you the cost efficiency for the work completed to date or at the completion of the project. ***If CPI is greater than 1, you are spending less than
anticipated at the measurement date. If CPI is less than 1, you are spending more than
anticipated for the work completed at the measurement date.***
an SPI above 1 equates to being ahead of schedule, whereas an SPI under 1 means you're behind schedule. And, if your SPI is equal to 1, your project is exactly on schedule. In summary: SPI > 1: The project is ahead of schedule; more work has been completed than expected.
If the ratio has a value higher than 1 then it indicates the project is performing well against the budget. A CPI of 1 means that the project is performing on budget. A CPI of less than 1 means that the project is over budget.
As others have stated the answer is A.
SPI < 1 = Behind schedule
SPI =1 is on schedule
SPI >1 is ahead of schedule
CPI < 1is Over budget
CPI =1 is on budget
CPI >1 is under budget
The correct answer is A
How do you read the schedule performance index SPI?
Formula: SPI = EV / PV.
If the ratio has a value higher than 1 this indicates the project is progressing well against the schedule. If the SPI is 1, then the project is progressing exactly as planned. If the SPI is less than 1 then the project is running behind schedule.
How do you interpret CPI in project Management?
Formula CPI = EV / AC.
The project manager will have a value of less than 1 (project over budget), of 1 (project on budget), or greater than 1 (project under budget). CPI in project management measures the cost efficiency of a project.
To reiterate the same thing others have said..... For Indexes, BELOW 1.0 results are BAD.
CPI less than 1.0 = over budget......BAD
CPI more than 1.0 = under budget......GOOD
SPI less than 1.0 = behind schedule......BAD
SPI more than 1.0 = ahead of schedule.......GOOD
CORRECT ANSWER: A
I think given answer is correct. Since:
An SPI value less than one indicates that less work has been completed than planned, and an SPI greater than one indicates that more work has been completed than planned.
A CPI greater than one indicates that the project is over budget, and a CPI less than one indicates that the project is under budget.
https://learning.oreilly.com/library/view/comptia-project-cert/9780134713250/ch03.xhtml
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