Earned Value Indices

CPI = \frac{EV}{AC} SPI = \frac{EV}{PV} CV = EV - AC

EV earned value, AC actual cost, PV planned value. CPI < 1 over budget; SPI < 1 behind schedule. CV and SV are differences with the same meaning. Estimate at completion EAC ≈ BAC/CPI if the overrun persists.

$E V$: Earned value
$A C$: Actual cost
$P V$: Planned value

Step-by-step solved example

PV = $80k, EV = $70k, AC = $90k. CPI, SPI, CV?

EV, PV, and AC as time-phased money like a cash-flow diagram.

1. CPI
CPI = 70/90 = 0.778 (over budget).
2. SPI
SPI = 70/80 = 0.875 (behind).
3. CV
CV = 70 − 90 = −$20k.
$CV = - 20 k$

Answer: CPI = 0.78, SPI = 0.88, CV = −$20k

10 practice questions

0/10 correct

1.CPI > 1 means

2.SPI < 1 means

3.SV =

4.EV = 50, AC = 50, PV = 40. The job is

5.EAC ≈ BAC/CPI is used when

6.BAC is the

7.CV = +10 k means

8.If EV = PV = AC the project is

9.Percent complete (cost) ≈

10.SPI does not use