What does CPI and SPI mean?
The Cost Performance Index (CPI) is defined as the ratio of Earned Value to Actual Cost, while the Schedule Performance Index (SPI) is defined as the ratio of cumulative Earned Value to cumulative Planned Value (PMI, 2000).
When CPI 1 What does it mean?
cost performance index
What is a good SPI?
As with the CPI, SPI values under 1 are not good because they mean the project is behind schedule. A value of 1 means the project is on schedule, and a value more than 1 means the project is ahead of schedule.
How would a project manager use the CPI?
How would a project manager use the CPI? Project managers can use CPI to measure the cost efficiency of project related work accomplished to date. It’s useful as an early warning signal and allows project managers to make budget or scope adjustments.
What does a CPI of 0.22 calculated mid way through your project indicate?
What does a CPI of 0.22 calculated mid-way through your project indicate? $0.22 is earned for every dollar spent. Include the project closure phase in your project plan and make sure that the project does not end until closure takes place.
What is EAC formula?
They are as follows: EAC = AC + Bottom-up ETC. This formula is used when the original estimation is fundamentally flawed. It calculates the actual plus new estimate for the remaining work. EAC =BAC/Cumulative CPI.
When would you as a project manager recommend the project baseline be changed?
Once the project starts execution, the project’s baseline is put under change control to help you evaluate any further change and its impact on the project. No meaningful measurements can be made if the scope, cost and schedule are not under strict change control disciplines.
What are the three baselines that must be set for every project?
In project management there are three baselines – schedule baseline, cost baseline and scope baseline. The combination of all three baselines is referred to as the performance measurement baseline. A baseline is a fixed schedule, which represents the standard that is used to measure the performance of the project.
How many baselines are allowed in any project?
A project baseline typically has three components: schedule, cost, and scope. Often, these three baselines are separately monitored, controlled, and reported to ensure each is on track. When fully integrated, it may be referred to as a performance measurement baseline (PMB).
What does baselining a project mean?
The simple definition of a project baseline is the starting point for your project plan. Once it’s established, you use it to measure progress and overall performance. When you’re wondering whether you’re on track and within budget, the good or bad news can be found in the baseline.
Why is baselining so important?
Why Is Baselining Important? Establishing a baseline allows you to assess performance throughout the duration of a project. If a project is performing behind time schedule or above budget, it is time to either make changes to the baseline or add more resources by increasing time or costs.
What are the elements of project?
But, project success will depend on a solid plan, one that includes 8 essential elements:Identification of stakeholder’s needs.Smart project objectives.Clear deliverables and deadlines.A detailed project schedules.Clearly defined roles.Project costs.A communication plan.The right systems and processes.
What are the three main characteristics of a project?
Projects are temporary in nature, have definite start and end dates, result in the creation of a unique product or service, and are completed when their goals and objectives have been met and signed off by the stakeholders.
What is a project life cycle?
A project life cycle is the sequence of phases that a project goes through from its initiation to its closure. In a predictive life cycle, the specifics are defined at the start of the project, and any alterations to scope are carefully addressed.