EVM Webinar : SPI near 1

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EVM Webinar : SPI near 1

Postby saket Fri Aug 22, 2014 11:20 am

You are in the last month of your project, this project lasted for 24 months , you look at CPI and SPI and found CPI is .7 and SPI is .95 , does this mean that project was more or less on schedule but costed more than planned?
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Re: EVM Webinar : SPI near 1

Postby umeshbww Fri Aug 22, 2014 11:46 pm

project was more or less on schedule; project is over-budget

For every dollar we spent - we got only 0.7$ value back so far. Money was spent inefficiently on the project

SPI = EV/PV (if PV was 100$; then EV = 95)
then AC ~ 135$

CV= EV - AC = 95 - 135 = -40$ (over budget)
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Re: EVM Webinar : SPI near 1

Postby nagarwal Mon Aug 25, 2014 10:07 am

The project has neither ever been on schedule nor been on budget throughout the course of 24 months

Let's assume that this project whose duration is 24 months has a planned value of 1 in each month.

At the end of 24 months the PV=24
Now we have CPI= 0.7 and SPI= 0.95
0.95= EV/24
EV= 0.95*24= 22.8

Now use this EV to calulate AC from the CPI formula- CPI= EV/AC
AC= 22.8/0.7= 32.57

Now CV and SV will be negative here for during the 24th month

If we quickly do these calculations for 12th month and 6th month, we continue to get negative CV and SV values. This shows that budget and time have always been a problem on this project.

Suggestions/Thoughts are welcome.

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