Jabari is managing an office move project to one floor above where his company currently rents in a skyscraper. The project has a budget of $30,000 and is 30% complete. It’s a 4-month project and the company had planned to spend $7,500 per month. At the end of the first month, Jabari’s manager asks him to evaluate project performance and he wants a specific percentage as to how much ahead of schedule they are to provide to their Board of Directors. What formula does Jabari need to use in order to provide this information?
A: CPI = EV ÷ AC
B: CV = EV – AC
C: SPI = EV ÷ PV
D: SV = EV – PV
Knowledge Area:
Control Costs
Source: ThorTeaches.com PMP practice tests
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C:
The schedule performance index (SPI) is a measure of schedule efficiency
expressed as the ratio of earned value to planned value. It measures how efficiently the project team is accomplishing the work. An SPI greater than 1.0 indicates that more work was completed than was planned. In this example, $30,000×30%=$9,000 (Earned Value or EV). PV=$7,500. So $9,000 ÷ $7,500 = 1.2 which means that Jabari can tell his manager that the project is 20% ahead of schedule.
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