Guys, why do we need SPI and CPI when we are already having variances ( SV and CV ) to measure the performance of the project or progress of the project , Like variances , indexes also help you analyze the performance of the project....
Satish, SPI and CPI represent the variance as a percentage rather than just value. SV and CV simply show how much the project is off in schedule/cost. However, the variance alone does not show how big this is relative to the size of the project. This is where SPI and CPI are important. A variance of $20,000USD on a $30,000USD project is much bigger than a $20,000USD variance on a $5,000,000USD project. SPI and CPI make the variance relative (as a ratio) to the total size of the project.
The Simplilearn community is a friendly, accessible place for professionals of all ages and backgrounds to engage in healthy, constructive debate and informative discussions. Get your pressing questions answered,
participate in monthly contests, create polls to get a feel for the market, build your network, and more! Pull up a chair and come join the discussion -today!