Hello, I have looked on the topics available until now and noticed that they were posted generally by experienced PMs. If my question does not match to the purpose of this site please let me know about other sites I could post questions like this. Thanks. So, I would like to know why BCWP(budgeted cost for work performed) should be higher than BCWS(budgeted cost for work schedualed)when calculating the SPI(Scheduale Efficiency.) Again, many thanks! Saving Changes...
The amount of work you accomplished (the budgeted cost of work performed) should be higher than the amount of work planned (the budgeted cost of work planned) for you to be ahead of schedule. So BCWP should be greater than or equal to BCWS. If the BCWP is less than BCWS, you have not done as much work as you planned and therefore you are behind schedule.
Thus, SPI 1.0 or greater is good, less than is bad.
Mark Price PerryBusiness Driven PMO Evangelist| BOT InternationalOrlando, Fl, United States
Hi Cristian, Ms. Perreault answers your post quite nicely. Of course, beware of projects that have been re-baselined numerous times. Their EVM might look good, but is it really..? Saving Changes...
HEMAM RANJIT KUMAR SINGHFounder & Director| TechSure Global Consultancy LLPGuwahati, Assam, India
hi,
Now (PMBOK Guide Fifth Edition) these terms are known as follows:
BCWP(Budgeted Cost of Work Performed) ...... Earned Value (EV)
BCWS(Budgeted Cost of Work Scheduled) ..... Planned Value (PV)
SPI = EV/PV ,
As well explained by Lauren , SPI = 1.0 or > 1.0 is good , <1.0 is bad
Thanks and best regards,
Ranjit
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1 reply by Rami Kaibni
Jan 14, 2016 10:55 PM
Rami Kaibni
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Perfect Explanation Hemam - Always executed work should be bigger or equal to the planned!
One word of caution, when your SPI is greater than 1.10 or 1.2 be cautious that your team is not being over optimistic in their response to percent complete. Use your proper judgement when reviewing. Saving Changes...
MAEN QADDOURAHProject Director| AJ SAUDIJeddah, Saudi Arabia
Make sure that you don't just use SPI alone. You also need to consider the CPI as well. A low CPI with a high SPI might be an indication of overtime worked. For many organizations, overtime is more expensive than regular work. Saving Changes...
PANKAJ KUMAR JOSHIGeneral Manager| Transrail Lighting LimitedNainital, Uttrakhand, India
What you have executed should be always more or equal to your planned work. Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Jun 08, 2015 12:54 PM
Replying to HEMAM RANJIT KUMAR SINGH
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hi,
Now (PMBOK Guide Fifth Edition) these terms are known as follows:
BCWP(Budgeted Cost of Work Performed) ...... Earned Value (EV)
BCWS(Budgeted Cost of Work Scheduled) ..... Planned Value (PV)
SPI = EV/PV ,
As well explained by Lauren , SPI = 1.0 or > 1.0 is good , <1.0 is bad
Thanks and best regards,
Ranjit
Perfect Explanation Hemam - Always executed work should be bigger or equal to the planned! Saving Changes...
Khai Ng.IT PMO | IT Project Manager| TTGROUPHanoi, Viet Nam
Remember that SPI calculated by dividing EV by PV. These two values are measured in dollars rather than time units so it may inaccurate when just translating dollars to time then tell if project will be ahead, on time, or behind. You should combine it with other methods (E.g. comparing the project network schedule against the actual network schedule). However, someone said that this index will be very useful after 20 or more percent of the project has been completed. Saving Changes...
Tariq JavedProgram Manager| Government of PakistanIslamabad, Federal Capital, Pakistan
SPI is one of the factors for estimating the project and executed work alone may not be true indication of the project progress / performance.I also tend to agree with Greg's remarks that higher values may reflect pessimist or extra cautious approach. Saving Changes...
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