Fredrick works as a Project Manager for BlueWell Inc. A number of projects are running under his
guidance. You, a team leader of a project, inform Fredrick about the performance indexes of your
project. The schedule performance index (SPI) of your project is 1.325. What does this figure
indicate?

A.
The schedule performance is better than expected.

B.
The schedule performance is right on target.

C.
The cost performance is better than expected.

D.
The schedule performance is below expectation.

Explanation:
According to the question, the SPI of your project is 1.325. This figure is greater than 1. Hence, it
shows that the schedule performance is better than expected. What is SPI? 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.
Answer option C is incorrect. SPI has nothing to do with cost performance.
Answer options B and D are incorrect. An SPI value less than 1 or 0 indicates that the schedule
performance is either below expectation or is right on target.