In earned value management, which metric is the ratio of Earned Value to Planned Value (EV/PV)?

In earned value management, which metric is the ratio of Earned Value to Planned Value (EV/PV)?

• A. Schedule Performance Index
• B. Cost Variance
• C. Cost Performance Index
• D. Schedule Variance

Answer: (A)

In earned value management, the ratio of Earned Value to Planned Value is called the Schedule Performance Index. It measures schedule efficiency by comparing the value of work actually performed (EV) to the value that was planned to be completed (PV). Interpreting SPI: if it equals 1, you’re exactly on the planned schedule; if it’s greater than 1, you’re delivering value faster than planned (ahead of schedule); if it’s less than 1, you’re behind schedule. For example, with PV of 1,000 and EV of 800, SPI is 0.8, indicating the project is progressing at 80% of the planned pace. The other metrics capture different aspects: CPI (EV/AC) reflects cost efficiency, while Schedule Variance (EV - PV) and Cost Variance (EV - AC) indicate the absolute differences in value or cost rather than the efficiency ratio.

In earned value management, the ratio of Earned Value to Planned Value is called the Schedule Performance Index. It measures schedule efficiency by comparing the value of work actually performed (EV) to the value that was planned to be completed (PV). Interpreting SPI: if it equals 1, you’re exactly on the planned schedule; if it’s greater than 1, you’re delivering value faster than planned (ahead of schedule); if it’s less than 1, you’re behind schedule. For example, with PV of 1,000 and EV of 800, SPI is 0.8, indicating the project is progressing at 80% of the planned pace. The other metrics capture different aspects: CPI (EV/AC) reflects cost efficiency, while Schedule Variance (EV - PV) and Cost Variance (EV - AC) indicate the absolute differences in value or cost rather than the efficiency ratio.