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Jenny works as a Project Manager for Blue Well Inc. She is measuring the schedule efficiency of her project. The key values are provided in the table below: Measurements Values BCWP (or EV)425 BCWS (or PV) 400 ACWP (or AC)510 What is the schedule performance index (SPI) of the project at the current point of time?
According to the question, you are required to calculate the schedule performance
index (SPI) of the project. 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. Here, SPI is calculated as
follows:
SPI = EV / PV
= 425/400
= 1.0625
As the SPI (1.0625) is greater than 1, it shows that the schedule performance is better than
expected.
What is BCWP (or EV)?
Budgeted cost of work performed (BCWP) or Earned Value (EV) is the value of completed work. It is
the budgeted amount
for the work actually completed on the schedule activity during a given time period.
What is BCWS (or PV)?
Budgeted Cost of Work Scheduled (BCWS) or Planned Value (PV) is the authorized budget assigned
to the scheduled work
to be accomplished for a schedule activity or Work Breakdown Structure (WBS) component.
What is ACWP (or AC)?
Actual cost of work performed (ACWP) or Actual Cost (AC) is the total costs actually incurred and
recorded in accomplishing
work performed during a given time period for a schedule activity. It is the cost of the work to date,
including direct and
indirect costs. AC is money that has actually been expended to date.