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CAPM Practice: Demonstrate an understanding of a project management plan schedule

Question 16 of 85 in Demonstrate an understanding of a project management plan schedule

During schedule monitoring, the project manager notices that the SPI = 0.85. What does this indicate?

Show answer & explanation

Correct answer: For every dollar planned to be spent, $0.85 of work has been completed — the project is behind schedule

Explanation

SPI = EV/PV. When SPI = 0.85, for every $1 of work planned to be done (PV), only $0.85 worth of work has actually been completed (EV). The project is behind schedule — it is getting only 85 cents of schedule progress for every dollar of schedule planned. The project is running at 85% schedule efficiency.

**Why not A:** An SPI of 0.85 means the project is behind schedule, not 15% ahead. An SPI above 1.0 would indicate ahead-of-schedule performance. The 0.85 value means only 85% of planned work has been completed, representing a 15% shortfall.

**Why not C:** Spending 15% more than planned would be reflected in the Cost Performance Index (CPI), not the Schedule Performance Index (SPI). SPI measures schedule efficiency (work accomplished vs. work planned), not cost efficiency (value earned vs. money spent).

**Why not D:** SPI does not indicate overall project completion percentage. An SPI of 0.85 means the project is achieving only 85% of planned schedule progress at this point in time, not that the project is 85% finished. The actual completion percentage depends on where the project is in its timeline.

Key Concept

This question covers Demonstrate an understanding of a project management plan schedule under Demonstrate an understanding of a project management plan schedule (Predictive, Plan-Based Methodologies).

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