If SPI > 1 and CPI > 1, what can be inferred about project performance?

If SPI > 1 and CPI > 1, what can be inferred about project performance?

• A. Project is behind schedule and over budget.
• B. Project is on schedule and under budget.
• C. Project is ahead of schedule and cost-efficient.
• D. Project performance cannot be determined.

Answer: (C)

SPI and CPI are earned value metrics that show how well a project is meeting its schedule and cost goals. SPI (schedule performance index) compares earned value to planned value; CPI (cost performance index) compares earned value to actual cost. If SPI > 1, more work has been completed than planned for the given time, meaning the project is ahead of schedule. If CPI > 1, the value of work done costs less than it was planned, meaning cost efficiency or under budget for the work performed. When both indices exceed 1, you have favorable results in both dimensions. So, the project is ahead of schedule and cost-efficient.

SPI and CPI are earned value metrics that show how well a project is meeting its schedule and cost goals. SPI (schedule performance index) compares earned value to planned value; CPI (cost performance index) compares earned value to actual cost. If SPI > 1, more work has been completed than planned for the given time, meaning the project is ahead of schedule. If CPI > 1, the value of work done costs less than it was planned, meaning cost efficiency or under budget for the work performed. When both indices exceed 1, you have favorable results in both dimensions. So, the project is ahead of schedule and cost-efficient.