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CPI and SPI Project Performance Metrics
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- Fundamentals
- Earned Value Management combines scope, schedule, and cost information
- Planned Value (PV) represents authorized budget for scheduled work
- Earned Value (EV) measures value of work actually completed
- Actual Cost (AC) represents amount spent to perform work
- CPI
- CPI compares earned value to actual cost
- CPI = EV/AC, where 1.0 means budget is on track
- Values above 1.0 indicate underbudget, below 1.0 indicate overbudget
- Helps identify spending efficiency across project lifecycle
- SPI
- SPI measures time efficiency by comparing earned value to planned value
- SPI = EV/PV, where 1.0 means schedule is on track
- Values above 1.0 indicate ahead of schedule, below 1.0 indicate delays
- Allows comparison of projects of different sizes and budgets
- Key Differences
- SPI focuses on time efficiency, CPI on cost efficiency
- Both metrics can be used together for complete project health view
- SPI is dimensionless, CPI is ratio-based
- SPI can mask delays near project completion
- Best Practices
- Establish realistic baseline early
- Update progress regularly
- Use work-breakdown structures for detailed analysis
- Combine with qualitative analysis and other metrics