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KPI for Measuring of Schedule Performance Index (SPI) posted in category Project Management

WinningKPI - Project Management - KPI for Measuring of Schedule Performance Index (SPI) posted in category Project Management

KPI details:KPI Expert Oana Boteanu

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This indicator is for measuring the efficiency with which the time is being utilized in completing the project and it evaluates the progress achieved against the planned progress. This is calculated by divided Earned Value by Planned Value.

Earned Value (EV) stands for the actual time that was spent on completing the project (or the current stage of the project) and Planned Value (PV) represents the time the project completion (or project stage completion) should have taken to complete.

Formula:

EV/PV

For example, if a project was set with a total budget of $10000, and 10 milestones were set, each needing 10h, at a price of $100 per hour.

If half way through the project the manager wants to assess the SPI, assuming 5 milestones should have been finished according to the plan but 4 have actual been completed, the formula is:

SPI= EV/PV

Where

PV=5 milestones * 10h*100= 5000

Actual Cost (AC) = 4 milestones *10h*100= 4000

% complete = AC/ (AC+ETC)

ETC is Estimate to Complete

% complete = 4000/ (4000+6000) = 40%

EV= $10000*40%= 4000

SPI=EV/PV= 4000/5000=0.8

A SPI below 1 means that the project is running below schedule, and every 0.8 hours of planned work is taking 1 hour of actual work.

KPI Units: number

KPI Time Frame: update during or at the end of project

Posted by Oana Boteanu | Help to protect community: Flag for moderation

Ideas suggested by WinningKPI community:

Here are comments:

KPI Expert This is a great tool to assess the project’s performance in terms of how ‘on time’ the tasks are being delivered.

If SPI =1, the schedule is on time, all work is completed as planned

IF SPI>1, the schedule is ahead, with more work being completed than planned. This could be positive, if personnel is working harder and achieving tasks in less time. Otherwise, this could just mean that work was rushed and quality standards could be affected.

If SPI<1, the schedule is behind and less work has been completed than planned. This could be due either to poor project planning, or simply due to unpredictable circumstances. However, if the plan does not have a contingency period to deal with this, the end delivery date is likely to be delayed.

This KPI can be used together with the Cost Performance Index (CPI) that looks at how efficiently the project budget is being utilized.

This is calculated as following:

Earned Value/ Actual Cost

Oana Boteanu | September 6, 2012 at 8:45 am

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