A project is 60% complete. BAC = $500,000, AC = $350,000. The project manager calculates EV. What is the Schedule Performance Index (SPI)?

Question

Project Management (PMP) — Hard

A project is 60% complete. BAC = $500,000, AC = $350,000. The project manager calculates EV. What is the Schedule Performance Index (SPI)?

Accepted Answer

To calculate the Schedule Performance Index (SPI), the project manager first determines the Earned Value (EV) by multiplying the Budget at Completion (BAC) by the percentage complete, which is $500,000 * 0.6 = $300,000. However, given the Actual Cost (AC) is $350,000, the EV is actually $300,000. SPI is then calculated as EV / AC, resulting in 0.86. This indicates the project is behind schedule.