A $60 million airport project is in the construction phase with 11 gates delivered after 11 months. If 30 gates are to be delivered over 24 months with even intervals, what is the project's current SPI?

A $60 million airport project is in the construction phase with 11 gates delivered after 11 months. If 30 gates are to be delivered over 24 months with even intervals, what is the project's current SPI?

• A. 0.5
• B. 0.8
• C. 1.0
• D. 1.25

Answer: (B)

SPI measures schedule performance as the ratio of earned value to planned value. Here, assume the budget is evenly spread across the 30 gates, so each gate has a value of $2 million. Earned value after 11 gates delivered: EV = 11 × $2m = $22m. Planned value by month 11 with even delivery over 24 months for 30 gates: PV = (11 × 30/24) gates × $2m per gate = 13.75 × $2m = $27.5m. SPI = EV / PV = $22m / $27.5m = 0.8. So, the project is behind schedule, with an SPI of 0.8.

SPI measures schedule performance as the ratio of earned value to planned value. Here, assume the budget is evenly spread across the 30 gates, so each gate has a value of $2 million.

Earned value after 11 gates delivered: EV = 11 × $2m = $22m.

Planned value by month 11 with even delivery over 24 months for 30 gates: PV = (11 × 30/24) gates × $2m per gate = 13.75 × $2m = $27.5m.

SPI = EV / PV = $22m / $27.5m = 0.8.

So, the project is behind schedule, with an SPI of 0.8.