What formula would you use if your project had a BAC of $450,000, you have spent $191,000, and
you are 40 percent complete though you are supposed to be 55 percent done and management
wants to know your project’s schedule performance index?

A.
($450,000 – $180,000) / ($450,000 – $191,000)

B.
$450,000 – $477,500

C.
$180,000 / $247,500

D.
$180,000 – $247,500

Explanation:
The schedule performance index can be found by dividing the earned value by the planned value.
In this instance, it is $180,000 / $247,500 for a value of .73. 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. This is the schedule variance formula of EV-PV.
Answer option A is incorrect. This is the TCPI formula of 1.04.
Answer option B is incorrect. This is the VAC formula with a result of -$27,500.