With PV $140,000, EV $160,000 and AC $145,000, what are the SPI and CPI?

With PV $140,000, EV $160,000 and AC $145,000, what are the SPI and CPI?

• A. 1.14, 1.14
• B. 1.11, 1.1
• C. 1.1, 1.14
• D. 1.14, 1.1

Answer: (D)

The key idea here is using earned value indices to gauge performance: SPI shows how efficiently the work is being done against the plan, while CPI shows how efficiently cost is being spent against actual cost. Calculate SPI by comparing earned value to planned value: 160,000 divided by 140,000 equals about 1.1429, which rounds to 1.14. This means the project is progressing about 14% faster than planned. Calculate CPI by comparing earned value to actual cost: 160,000 divided by 145,000 equals about 1.1034, which rounds to 1.10. This indicates cost performance is better than planned, spending roughly 10% less than the value of the work completed. Since both indices exceed 1, the project is ahead of schedule and under budget relative to the original plan.

The key idea here is using earned value indices to gauge performance: SPI shows how efficiently the work is being done against the plan, while CPI shows how efficiently cost is being spent against actual cost.

Calculate SPI by comparing earned value to planned value: 160,000 divided by 140,000 equals about 1.1429, which rounds to 1.14. This means the project is progressing about 14% faster than planned.

Calculate CPI by comparing earned value to actual cost: 160,000 divided by 145,000 equals about 1.1034, which rounds to 1.10. This indicates cost performance is better than planned, spending roughly 10% less than the value of the work completed.

Since both indices exceed 1, the project is ahead of schedule and under budget relative to the original plan.