A cpi or spi value less than one indicates that the project is

Q: A CPI/SPI index value less than one indicates that the project is

A: under cost or behind schedule
B: over cost or ahead of schedule
C: under cost or ahead of schedule
D: over cost or behind schedule
E: on cost or on schedule

Answer

Cost performance index is given as ratio of earned value (EV) and actual cost (AC). CPI = EV/AC If the AC > EV, the CPI < 1, it means project is consuming more cost as compared to earned value, thus project is over cost. Schedule performance index (SPI) is given as ratio of earned value (EV) and Planned Value (PV). SPI = EV/PV If the PV > EV, the SPI < 1, it means project is consuming more time as compared to earned value, thus project is behind the schedule. If CPI/SPI index value are less than one, it indicates that the project is over cost or behind schedule.

Correct option: D. Over Cost or Behind Schedule

Leave a Comment