Describe How the SPI and CPI Can Be Used to Forecast

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The Answer is The schedule performance index (SPI) provides a ratio of the work performed to the work scheduled. This metric provides a measure of schedule efficiency. An SPI ratio greater than one indicates that the project is ahead of schedule and an SPI under one indicates the project is behind schedule. The cost performance index (CPI) tells us how much work we are completing for every dollar we spend. It is the ratio the budgeted cost of work performed to the actual cost of work performed. Suppose one were to calculate the SPI and the CPI in the midst of a project and find their values different from one (i.e. the project is ahead or behind schedule and over or under budget). If nothing changes (i.e., the project's performance does not get any better or any worse) then the minimum cost of completing the project could be estimated by dividing the original total budget by the CPI. However, if the SPI ratio were to persist and things continued to get better or worse (depending on the SPI value), then the final project cost could be estimated by dividing the original budget by the product of the CPI and the SPI.

Describe How the SPI and CPI Can Be Used to Forecast

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Describe How the SPI and CPI Can Be Used to Forecast

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Correct Answer:
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