4.) You are managing a task on the critical path which has a BAC of $500,000....

4.) You are managing a task on the critical path which has a BAC of $500,000. The task is 80 percent complete. The team has completed 10 weeks on the task, and it was scheduled to take 10 weeks. You have spent $400,000 on the task so far. Calculate the cost performance index (CPI) and schedule performance index (SPI). Briefly explain what the reults mean.

Solutions

Expert Solution

Total end value = 500,000

Since 80% of the project is over, Earned Value = .8* 500,000 = 400,000

Actual cost = 400,000

Cost Performance Index, CPI = Earned Value / Actual Cost = 400,000/ 400,000 = 100%

Hence, the project is in control of its cost

Since the planned duration was 10 weeks, Total Planned value at the end of 10 weeks = 500,000

Actual Earned value at the end of 10 weeks = 400,000

Therefore, scheduled performance Index, SPI = Earned Value/ Planned Value = 400,000/500,000 = 80%

This indicates that the project is running behind schedule by 20%

Total end value = 500,000

Since 80% of the project is over, Earned Value = .8* 500,000 = 400,000

Actual cost = 400,000

Cost Performance Index, CPI = Earned Value / Actual Cost = 400,000/ 400,000 = 100%

Hence, the project is in control of its cost

Since the planned duration was 10 weeks, Total Planned value at the end of 10 weeks = 500,000

Actual Earned value at the end of 10 weeks = 400,000

Therefore, scheduled performance Index, SPI = Earned Value/ Planned Value = 400,000/500,000 = 80%

This indicates that the project is running behind schedule by 20%

keosha answered 6 months ago

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