EVM EVM Performance Metrics and Indices 1

Question 1

What is the formula for Cost Performance Index (CPI)?

Accepted Answer

EV / AC

Answer

CPI = EV / AC, where a value above 1.0 indicates the project is under budget.

Question 2

A project has a CPI of 0.78. What does this indicate?

Accepted Answer

The project is over budget by 22 cents for every dollar spent

Answer

A CPI below 1.0 means the project is getting less value than the money spent, indicating a cost overrun.

Question 3

What does the Schedule Performance Index (SPI) measure?

Accepted Answer

Efficiency of scheduled time utilization

Answer

SPI = EV / PV and measures how efficiently the project team is using its scheduled time.

Question 4

A project reports SPI = 1.15. What does this mean?

Accepted Answer

The project is ahead of schedule

Answer

An SPI greater than 1.0 means the project is earning more value than planned, indicating it is ahead of schedule.

Question 5

The To-Complete Performance Index (TCPI) based on BAC is calculated as:

Accepted Answer

(BAC - EV) / (BAC - AC)

Answer

TCPI(BAC) = (BAC - EV) / (BAC - AC), representing the required cost efficiency to finish within the original budget.

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