How do you integrate SPI with other EVM metrics and tools for comprehensive project monitoring and control?

1 Step 1: Calculate SPI

SPI is the ratio of earned value to planned value. It tells you how efficiently you are completing your project work according to your schedule baseline. A SPI of 1 means you are on schedule, a SPI greater than 1 means you are ahead of schedule, and a SPI less than 1 means you are behind schedule. You can calculate SPI by dividing the earned value (EV) by the planned value (PV) of your project at any point in time. For example, if your project has a total PV of $100,000 and an EV of $80,000 at the end of the fourth month, your SPI is 0.8, which indicates a schedule variance (SV) of -$20,000.

2 Step 2: Analyze SPI trends

SPI alone does not tell you the whole story of your project schedule performance. You also need to look at the trends and patterns of SPI over time to identify any issues or opportunities for improvement. You can use a control chart or a trend chart to plot the SPI values for each reporting period and compare them with the upper and lower control limits or the target value. This will help you detect any variations, outliers, or changes in the SPI behavior that may indicate problems or progress in your project. For example, if your SPI values are consistently below 1, you may have a chronic schedule problem that requires corrective action. On the other hand, if your SPI values are fluctuating around 1, you may have a stable schedule performance that needs to be maintained.

3 Step 3: Integrate SPI with other EVM metrics

SPI is not the only EVM metric that you need to monitor and control your project schedule. You also need to consider the cost performance index (CPI), which measures how efficiently you are using your project resources according to your budget baseline. A CPI of 1 means you are on budget, a CPI greater than 1 means you are under budget, and a CPI less than 1 means you are over budget. You can calculate CPI by dividing the EV by the actual cost (AC) of your project at any point in time. For example, if your project has an AC of $90,000 and an EV of $80,000 at the end of the fourth month, your CPI is 0.89, which indicates a cost variance (CV) of -$10,000.

SPI and CPI are related and can be used together to assess the overall health and status of your project. You can use a scatter chart or a performance index chart to plot the SPI and CPI values for each reporting period and compare them with the target values or the breakeven point. This will help you determine whether your project is under control, at risk, or in trouble, and whether you need to take any preventive or corrective actions. For example, if your SPI and CPI values are both above 1, you have a favorable project performance that can be leveraged to increase scope or quality. If your SPI and CPI values are both below 1, you have an unfavorable project performance that needs to be recovered or revised.

4 Step 4: Integrate SPI with other EVM tools

EVM metrics are not the only EVM tools you need to integrate with SPI for comprehensive project monitoring and control. You should also use schedule variance at completion (SVAC), to-complete schedule performance index (TSPI), and schedule performance report (SPR) to forecast, communicate, and report your project schedule performance. For example, SVAC is calculated by multiplying the total PV by the SPI, while TSPI is calculated by dividing the remaining PV by the remaining EV. The SPR document summarizes and presents SPI and other EVM metrics, including current and cumulative values of PV, EV, AC, SV, CV, CPI, SVAC, TSPI and more. By integrating SPI with other EVM tools, you can gain a comprehensive understanding of your project schedule performance and take appropriate actions to ensure a successful project outcome.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?