Earned Value results show CPI

Question

Earned Value results show CPI < 1 and SPI < 1. Which conclusion is MOST accurate?

BlackTom AI · Accepted Answer

To tackle this question, I’ll evaluate what CPI and SPI indicate in Earned Value Management and then test each answer choice against those indicators. Option 1: 'Ahead of schedule but over budget' would require SPI > 1 (better schedule performance) and CPI < 1 (cost overrun). Since the question states both CPI < 1 and SPI < 1, this option is inconsistent with the given data. Option 2: 'Performance cannot be assessed' would imply insufficient or ambiguous data. However, CPI and SPI values provide concrete performance metrics about cost and schedule, so this statement is incorrect because we do have evaluative information. Option 3: 'Behind schedule and over budget' aligns with CPI < 1 and SPI < 1. CPI less than 1 means cost overruns relative to the planned cost; the project is spending more than planned for the work completed. SPI less than 1 means the rate of progress is lagging behind the planned progress, i.e., the project is behind schedule. Taken together, these two indicators describe the project as both behind schedule and over budget. Option 4: 'Over budget but efficient' would describe a situation where costs are high (CPI < 1) but schedule performance is good or favorable (SPI > 1 or around 1 indicating efficiency). Since SPI is given as < 1, this option mischaracterizes the schedule performance and is therefore incorrect. In summary, the combination CPI < 1 and SPI < 1 points to deteriorated performance in both cost and schedule. The only option that matches this dual shortfall is 'Behind schedule and over budget'.

BU.300.620.51.FA25 Managing Complex Projects – Final Exam (35Q)

Earned Value results show CPI < 1 and SPI < 1. Which conclusion is MOST accurate?

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