What is SPI - Schedule Performance Index? - Ten Six Consulting

Schedule Performance Index gives you useful information about whether the project is progressing to plan. Of course, you could simply look at ... Menu TrainingClasses▼PrimaveraP6TrainingDeltekTrainingEarnedValueManagementTrainingProjectManagementTrainingCustomizedVideoTrainingOpenTrainingClassDatesSchedulingServicesEVMSServices▼Consulting▼RFPSupportYourEVMSystemCertificationDataAnalysisandReportingPostContractSupportStaffAugmentationWBSGuidelinesforGovernmentAcquisitionPrograms(MIL-STD881D)Tools▼PrimaveraP6▼KnowledgeTransfer,MentoringandCoachingBIPublisherServicesPrimaveraUnifierDeltekCobra▼KnowledgeTransfer,CoachingandMentoringStaffAugmentationMicrosoftProjecttoPrimaveraP6ConversionServicesMicrosoftProject▼BuildinganIntegratedMasterSchedule(IMS)IntegratingMicrosoftProjectwithDeltekCobraMigratingFromMicrosoftProjectToOraclePrimaveraP6Blog▼DeltekAcumenDeltekCobraEarnedValueMgmtMicrosoftProjectPMOPrimaveraP6ProjectManagementRiskManagementContactUs SkiptomaincontentSkiptoprimarysidebarSkiptofooterYouarehere:Home/EarnedValueMgmt/WhatisSPI–SchedulePerformanceIndex?November9,2020ByTenSixSchedulePerformanceIndex(SPI)isatermyoumighthavecomeacrossinrelationtoearnedvaluemanagementmethods.Ifyourorganizationusesearnedvaluetotrackprojectperformance,youmighthavetocalculateandreportonSPIregularly. Butwhatexactlyisit?InthisguidetoSPIinprojectmanagementwe’llcoverwhatyouneedtoknowabouttrackingscheduleperformanceinthisway. First,let’sdefinewhatthetermmeans. Here’sadefinitionofSPI: SPImeasureshowmuchworkhasbeencompletedonaprojectcomparedtohowmuchprogresswasplanned. It’sawayofcomparinghowmuchtimeyousaidyou’dneedtodelivertheprojectagainsthowmuchtimeitisactuallytaking.It’sausefulwayoflookingattheefficiencyandeffectivenessofprojectperformance. What’sthepurposeofSPI? SchedulePerformanceIndexgivesyouusefulinformationaboutwhethertheprojectisprogressingtoplan.Ofcourse,youcouldsimplylookattheprojectbaselineanddoavisualcheckonaGanttcharttoseewhethertheprojectisbehindschedule.However,SPIprovidesamathematicalassessmentandafigurethatletsyoucompareandtrackperformanceovertime. It’susefulbecausetheSPInumberiseasytounderstandandhelpswithprojectcommunication.Youcanpresentasubjectiveviewofprogresssummedupinanumber.That’ssomethingprojectexecutivescangetbehind.Inourexperience,measuringprogresslikethishelpsavoiddiscussionsaroundalternativewaysofinterpretingthedata.Thereisonenumber,onewayofviewingprogress,andthat’showperformanceistracked. Thecalculationshowsyouwhethertheprojectismeetingtheplanneddeadlinesornot,andifnot,howfaroutprogressis.Theschedulevarianceisusefulinformationthatactsasanearlywarningindicator.Watchoutfortrendsinthenumberasyoumeasureitovertime.Thenconsiderwhatcorrectiveactionyoucantaketoensuretheprojectmaintainsgoodprogressagainsttheplannedschedule. WhatdoyouneedtocalculateSPI? TocalculateSPIyouneed: Thebaselinedprojectschedule:usethistoworkouthowmuchworkshouldhavebeencompletedtodate(theplannedvalue) Thebaselinedprojectbudget:usethistoworkouttheplannedcostforthescheduledwork Theactualschedule:usethistoworkouthowmuchworkhasactuallybeencompletedtodate Thoseinputsgiveyoutherequiredinformationforthecalculation.Thefinaltwocostsareusedtocalculateearnedvalue. Ifyou’rereadingthosedatapointsandareconcernedthatyoudon’thaveaccuratewaysofgettingthedata,thenthat’syourstartingpointforimprovingprojectperformancetracking.Thinkabouthowyoucanimprovethewayplannedandactualdataarecapturedforscheduling.Youneedaccuratemethodsfortrackingactualperformance,suchastimesheetsorprojectmanagementsoftwarethatenablesreal-timedatacapture. HowisSPIcalculated? SPIispresentedasaratio.It’scalculatedbytakingthebudgetedcostofworkcompleted(alsoknownastheearnedvalueorEV)anddividingitbytheplannedvalue. TheSPIformulais: SPI=EV/PV Thatgivesyouanumber,whichinturntellsyouhowtheprojectisperformingagainsttheanticipateddeliverytime. Remember,theSPImeasureisonlyasgoodasthedatausedtocalculateit.MakesureyourprojecttrackingmethodsareasrobustandaccurateaspossiblesoyougetthemostaccurateSPIthatyoucan. Whatisagoodscheduleperformanceindex? AnSPIof1meansthatyourbudgetedcostofworkscheduledisthesameastheactualcostofworkperformed:inotherwords,yourprojectisexactlyonschedule.That’sapositivething! IfyourSPIisgreaterthanone,yourprojectisaheadofschedule.Theteamhasmanagedtocompletemoreactivitythanwasplannedinthetime. However,iftheSPIoftheprojectislessthanone,you’llwanttounderstandwhythatisthecase.AnSPIoflessthanonetellsyouthatyourprojectisbehindschedule.Let’ssaytheSPIis0.75.Thattellsyouthatforeveryhourofplannedwork,theteamisonlycompleting45minutesofactualwork. Thisinformationisusefulforplanningforwardintheproject:youmaywanttolookathowestimateswerecalculatedandrevisethetaskdurationofupcomingworktoallowforthecurrentlevelsofperformance. AswithCPI,it’simportanttounderstandthedrivingforcebehindthenumber.Perhapsateammemberhasgoneoffworksicksoprogressisslower.Therecouldbearangeofreasonsforthecurrentperformance.Astheprojectmanager,yourjobistounderstandandthencourse-correctasfarasyoucantoensuretheprojectgetsbackontrack.Whenyouhaveadeepunderstandingofthedata,youcanmakebetterdecisionsaboutwhatmanagementactionstotake. HowdoesSPIrelatetoCPI? SchedulePerformanceIndexisuseful,butitdoesonlytellyouaboutprogressmeasuredbytimetaken.Itsaysnothingabouthowmuchmoneyhasbeenspenttogettowhereyouaretoday.That’swhereCostPerformanceIndex(CPI)comesin. CPIgivesyoutheotherhalfofthestory:it’scalculatedinasimilarwayandtellsyouhowefficientandeffectivetheprojecthasbeenatdeliveringonbudget. Together,costandschedulemeasuresgiveyouacompleteviewofperformanceincludingvariancesagainstyouranticipatedprogress.Thesetwonumbersofferinsightsintohowtheprojectisgoingandawayofansweringstakeholderquestionsaboutwhatprogresslookslikeandwhethertheprojectisontracktocompleteaspertheoriginalplan. BothSPIandCPIarepartofthedatasetforearnedvaluemanagement:aholisticwayoflookingatprojectperformancethatcombinesplannedbudgetandschedulewithactualperformanceinawaythatallowstheteamtotrackandforecastprogress. Earnedvalueanalysisissometimesmandatedbycontractsbecauseitissuchaneffectivewayoftrackingandreporting.Areyouconsideringimplementingearnedvalueonyourprojects?Itcanbecomplicatedtogetstartedsoletusknowhowwecanhelp. PrimarySidebar JoinOurMailingList PhoneThisfieldisforvalidationpurposesandshouldbeleftunchanged. 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