Holly is the project manager of the NDS project and she is 85 percent complete with her project
though she should be 95 percent complete. Her project has a BAC of $9,850,400 and she has
spent $8,011,221 to date. What is Holly’s schedule performance index for this project?

A.
1.07

B.
0.98

C.
0.89

D.
Ten percent

Explanation:
The schedule performance index is found by dividing the earned value by the planned value. For
Holly’s project, it would be as follows:
SPI = EV/PV
= (0.85*9,850,400)/(0.95*9,850,400)
=8,372,840/9,357,880
=0.89
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 D is incorrect. Ten percent is not a valid calculation for this question.
Answer option B is incorrect. 0.98 is the cost performance index.
Answer option A is incorrect. 1.07 is the to-complete performance index based on the BAC.