A project sponsor is reviewing the project dashboard and does not understand what a CPI of 0.87 and an SPI of 1.02 indicate. Which of the following describes the project status?
A.
The project is over budget and behind schedule.
B.
The project is under budget and ahead of schedule.
C.
The project is over budget and ahead of schedule.
D.
The project is under budget and behind schedule.
I am sorry but you are wrong.
ANY index over 1 is a good thing
ANY index under 1 is a bad thing
CPI = 0.87 is bad, ei. over budget
SPI = 1.02 is good, ei. ahead of schedule
The correct answer is C.
CPI = EV/AC - if the EV is higher than the AC, the resulting quotient will be >1, if the AC is higher than the EV, the resulting quotient will be <1. So if it's less than 1, the actual cost is higher than the earned value, meaning you're over budget
upvoted 3 times
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