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CMA Intermediate · Operations Management and Strategic Management · Project Management, Monitoring and Control

A project has a budgeted cost of work scheduled (planned value) of ₹8,00,000 to date, earned value of ₹6,40,000 and actual cost of ₹7,20,000. What are the schedule performance index (SPI) and cost performance index (CPI)?

SPI is 0.80 and CPI is about 0.89. SPI equals earned value divided by planned value, 6,40,000/8,00,000, and CPI equals earned value divided by actual cost, 6,40,000/7,20,000. Both below 1 show the project is behind schedule and over budget.

  1. ASPI 0.80; CPI 0.89Correct
  2. BSPI 0.89; CPI 0.80
  3. CSPI 1.25; CPI 1.12
  4. DSPI 0.80; CPI 1.12

Explanation

SPI = EV/PV = 6,40,000/8,00,000 = 0.80. CPI = EV/AC = 6,40,000/7,20,000 = 0.889, about 0.89. The option with SPI 0.89 and CPI 0.80 swaps the denominators. The project is behind schedule and over cost.

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