Billy is the project manager of the PQW Project and she has an assigned project budget of
$655,000. Currently she is 80 percent complete with the project though she was scheduled to be
100 percent done by this date. She has spent $490,000 to date and other than the project
schedule, which was delayed because of a vendor, the project is going well. What should Billy
report as her schedule performance index for this project?

A.
1.23

B.
100 percent because the vendor caused her lateness

C.
.80

D.
$524,000

Explanation:
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. You can find the planned value by multiplying where Billy should be in the project, 100
percent, by the project’s budget. In this instance the planned value is $655,000 because she is to
be 100 percent complete.
Answer option B is incorrect. The SPI simply reports a value not an explanation.
Answer option A is incorrect. 1.23 is the cost performance index for the project.
Answer option D is incorrect. $524,000 is the earned value for the project.