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The schedule performance index (SPI) is a measure of how close the project is to being completed compared to the schedule. As a ratio it is calculated by dividing the budgeted cost of work performed, or earned value, by the planned value. For example: A project has a budgeted cost of £120,000.
CPI is computed by Earned Value / Actual Cost. A value of above 1 means that the project is doing well against the budget. Schedule Performance Index (SPI): Represents how close actual work is being completed compared to the schedule. SPI is computed by Earned Value / Planned Value.
The cost performance index (CPI) is a measure of the financial effectiveness and efficiency of a project. It represents the amount of completed work for every unit of cost spent. As a ratio it is calculated by dividing the budgeted cost of work completed, or earned value, by the actual cost of the work performed.
Explanation. A Cost Performance Index (CPI) of 0.89 means that the total budget is 89 cents to every financed dollar.
The Cost Schedule Index (CSI) is defined as SPI × CPI and is a measurement of the overall efficiency of the project. The more the CPI is below 1, the harder will be to recover the project. In the example project, the has a CSI of is 0.69.
Schedule performance index (SPI) is a ratio of the earned value (EV) to the planned value (PV). SPI = EV ÷ PV. If the SPI is less than one, it indicates that the project is potentially behind schedule to-date whereas an SPI greater than one, indicates the project is running ahead of schedule.
A CPI of 1 means the project is on budget, which is also a good result. A CPI of less than 1 means the project is over budget. This represents a risk in that the project may run out of money before it is completed.
The cost performance index (CPI) is a measure of the conformance of the actual work completed (measured by its earned value) to the actual cost incurred: CPI = EV / AC. The schedule performance index (SPI) is a measure of the conformance of actual progress (earned value) to the planned progress: SPI = EV / PV.
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