Matthew MoreyProject Turn Around and Recovery Expert| C4 Explosive Leadership Training LLCOld Hickory, Tn, United States
I'm reviewing a process for project reporting and came across this equation: (% Complete*Total Budget)/Actual Cost for Earned Value. This is the standard CPI formula...
For CPI and SPI they are using:
CPI = Budget to Date (PV)/Actual Cost (AC),
SPI = Actual % complete/Target % complete.
These calculations are new to me. Has anyone seen these before? I even wonder about the consistency of them, as one divides the planned by the actual and the other divides the actual by the planned...
Second question. Is there a way to get a ratio for Earned Value? I think that's why they were working toward reporting to the client.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Mathew
SPI is the Earned Value to date divided by the Planned Value to date. CPI is the Earned Value to date divided by the Actual Cost to date.
Another name for earned value is Budgeted cost of work performed (BCWP)
In your CPI formula, Budget to Date is not PV, it is EV and your SPI formula doesn't seem to be correct or it is inaccurate.
You can represent CPI and SPI in percentages. If the percentage is about 100% then you're good in terms of schedule and budget (better than planned project performance), if not then you are either above budget or behind schedule.
Those are my two cents.
RK
...
3 replies by Kwiyuh Michael Wepngong, Matthew Morey, and Rajendra Medepalle
Jun 30, 2021 10:06 PM
Matthew Morey
...
Hello Rami,
I was looking at a process written by someone before my arrival and these formulas are just a few of the head-scratchers. I know they aren't the PMBOK/PMI standard but, unfortunately, the original author is no longer with the customer, so getting answers from the original source isn't an option.
Before I take these questions in front of the client I wanted to check with smarter minds. I'm hoping that someone may have seen these formulas before and could help me identify a source/intent so that I can acknowledge to the client the thought process behind the reporting system they just finished in PowerBI based on this information rather than tell them that the calculations are incorrect and the updates they've been providing to their clients is wrong.
Thank you for the help.
Jul 01, 2021 10:27 AM
Kwiyuh Michael Wepngong
...
Thanks Rami
Nov 05, 2021 4:49 PM
Rajendra Medepalle
...
Thanks Rami for the detailed information on CPI and SPI.
Saving Changes...
Matthew MoreyProject Turn Around and Recovery Expert| C4 Explosive Leadership Training LLCOld Hickory, Tn, United States
Jun 30, 2021 8:43 PM
Replying to Rami Kaibni
...
Mathew
SPI is the Earned Value to date divided by the Planned Value to date. CPI is the Earned Value to date divided by the Actual Cost to date.
Another name for earned value is Budgeted cost of work performed (BCWP)
In your CPI formula, Budget to Date is not PV, it is EV and your SPI formula doesn't seem to be correct or it is inaccurate.
You can represent CPI and SPI in percentages. If the percentage is about 100% then you're good in terms of schedule and budget (better than planned project performance), if not then you are either above budget or behind schedule.
Those are my two cents.
RK
Hello Rami,
I was looking at a process written by someone before my arrival and these formulas are just a few of the head-scratchers. I know they aren't the PMBOK/PMI standard but, unfortunately, the original author is no longer with the customer, so getting answers from the original source isn't an option.
Before I take these questions in front of the client I wanted to check with smarter minds. I'm hoping that someone may have seen these formulas before and could help me identify a source/intent so that I can acknowledge to the client the thought process behind the reporting system they just finished in PowerBI based on this information rather than tell them that the calculations are incorrect and the updates they've been providing to their clients is wrong.
Thank you for the help. Saving Changes...
Matthew MoreyProject Turn Around and Recovery Expert| C4 Explosive Leadership Training LLCOld Hickory, Tn, United States
Looking at the formulas again, I can see what was done for SPI
I'm still not sure about where the CPI formula from the client document came from:
CPI=Budget to Date/Actual Cost
I am interpreting from the documentation that Budget to Date means the budget value expected to be spent by the date, which should be the Planned Value.
That is an incorrect formula according to PMI.
Thanks in advance!
...
1 reply by Rami Kaibni
Jul 01, 2021 9:31 AM
Rami Kaibni
...
Mathew
I am not sure I agree that the SPI formula is correct but the CPI is actually correct. Please refer to my answer above.
I'm still not sure about where the CPI formula from the client document came from:
CPI=Budget to Date/Actual Cost
I am interpreting from the documentation that Budget to Date means the budget value expected to be spent by the date, which should be the Planned Value.
That is an incorrect formula according to PMI.
Thanks in advance!
Mathew
I am not sure I agree that the SPI formula is correct but the CPI is actually correct. Please refer to my answer above.
Financial Management Specialist | US Peace CorpsYaounde, Centre, Cameroon
Jun 30, 2021 8:43 PM
Replying to Rami Kaibni
...
Mathew
SPI is the Earned Value to date divided by the Planned Value to date. CPI is the Earned Value to date divided by the Actual Cost to date.
Another name for earned value is Budgeted cost of work performed (BCWP)
In your CPI formula, Budget to Date is not PV, it is EV and your SPI formula doesn't seem to be correct or it is inaccurate.
You can represent CPI and SPI in percentages. If the percentage is about 100% then you're good in terms of schedule and budget (better than planned project performance), if not then you are either above budget or behind schedule.
Those are my two cents.
RK
Thanks Rami Saving Changes...
Rajendra MedepalleProgram Manager| TATA Consultancy Services Ltd.Malvern, PA, United States
Jun 30, 2021 8:43 PM
Replying to Rami Kaibni
...
Mathew
SPI is the Earned Value to date divided by the Planned Value to date. CPI is the Earned Value to date divided by the Actual Cost to date.
Another name for earned value is Budgeted cost of work performed (BCWP)
In your CPI formula, Budget to Date is not PV, it is EV and your SPI formula doesn't seem to be correct or it is inaccurate.
You can represent CPI and SPI in percentages. If the percentage is about 100% then you're good in terms of schedule and budget (better than planned project performance), if not then you are either above budget or behind schedule.
Those are my two cents.
RK
Thanks Rami for the detailed information on CPI and SPI. Saving Changes...
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