CPI & SPI causes

Submitted by anaz on Mon, 05/19/2014 - 06:08

I saw this question on a mock exam and I don't agree with the answer given.

 

1. A manufacturing project has SPI .89 and CPI of .91. What is the best explanation why this occured?

a. Equipment purchased was more expensive than expected

b. At least one task has taken more time than expected

c. Less experience resources were used

d. Human resources used were more expensive than expected

 

My justification: a and d deal only with cost, so that doesn't explain the low SPI. Between b and c, I chose b. If a task has taken more time, it explains the low SPI. From cost perspective: the resource worked longer on this task than expected, so he charged longer hence the cost also increased.

But, the exam gave C as the answer. Less experience resource explains the low SPI, but it doesn't justify the cost.

Can others weigh in on this?

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Sundara.damaraj...

Mon, 05/19/2014 - 08:49

CPI and SPI less than one means, earned value is "Low".

We will have to find in which case earned value is "low".

A and D-- Says actual cost is more

To conclude "B" inforamtion is not suffient.

 Hence "C" is the right answer. EV will be low with less experienced resources.

sunku65

Mon, 05/19/2014 - 09:35

Answer C is correct.

Like Road Roller  : Consume more Diesel Run slow.

Like Elephant      : eat more food (Cost) and Walks slower(Schedule).

Less Experience : Work less (Schedule) eats More Time(Time is Cost of money).

anaz

Mon, 05/19/2014 - 10:44

sunku65: Very apt analogy.

anaz

Mon, 05/19/2014 - 10:44

Thanks for claryfying. I like your technique of looking at low EV. It makes sense now.