You are the project manager of the GHY Project. This project is scheduled to last for one year and
has a BAC of $4,500,000. You are currently 45 percent complete with this project, though you are
supposed to be at your second milestone which accounts for half of the project completion. There
have been some errors in the project which has caused you to spend $2,073,654. What is this
project’s schedule performance index?

A.
1.02

B.
0.98

C.
0.90

D.
-$108,120

Explanation:
The schedule performance index shows how well the project is performing on its schedule goals.
The SPI can be found by dividing the earned value by the planned value. In this instance, it is
$2,025,000 divided by $2,250,000 for .90. The closer to 1, the better the performance. 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 B is incorrect. 0.98 is the cost performance index.
Answer option A is incorrect. 1.02 is the to-complete performance index.
Answer option D is incorrect. -$108,120 is the variance at completion based on current
performance.