Consider that you have collected the following data from your solar farm project

Question

Consider that you have collected the following data from your solar farm project. Its budget is RM750,000 and it is expected to complete in eight (8) months. After four (4) months, you have calculated the following information about the project:

PV = RM450,000

EV = RM370,000

AC = RM330,000

Calculate the project:

A - Schedule Performance Index (SPI)

B - Cost Performance Index (CPI)

C - Based on the SPI and CPI values, estimate the:

i - Estimated time to completion

ii - Budgeted cost at completion

D - Discuss your assessment of the project progress based on the above findings?

Explanation / Answer

A - Schedule Performance Index (SPI)

SPI = EV/PV = RM370,000/RM450,000 = 0.82

SPI is less than 1 which means less work has been completed than the planned work. In other words, you are behind schedule.

B - Cost Performance Index (CPI)

CPI = EV/AC = RM370,000/RM330,000 = 1.16

CPI is greater than 1 it means we are earning more than the spending. In other words, you are under budget.

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