The SPI is the abbreviation of the Schedule Performance Index. This tool is one of the most important and essential outputs of Earned Value Management. It basically tells the project managers how the project is doing. Whether it is running smoothly and with good pace or not. It shows how far and how behind you are according to the planned aspects of the project.
In this article we will discuss what is Schedule Performance Index Template (SPI), how do we calculate SPI? The key features of the Schedule Performance Index Template?
About Schedule Performance Index
It refers to SPI in abbreviation, and it’s the outcome of earned value management analysis. Basically, EVM analysis provides us two major outcomes, Cost performance analysis index and schedule performance index. This SPI index tells us the actual status of the project.
Essential Features of Schedule Performance Index Template (SPI)
The Schedule Performance Index is the amount and quality of project productivity to assess progress and effectiveness.
- If the Schedule Performance Index is gradually increasing it will evaluate the objectives and the present satisfactory circumstances to assess the goals of the project.
- The value of SPI shows the performance of the project. If the value is 1 the project is running smoothly and is on track.
- If the value shows a number more than 1 then it means that the project is progressing very smoothly. And you are even ahead of the timelines.
- Furthermore, if the value of the Schedule Performance Index (SPI) is less than 1 then it means you are behind and there is a problem in a project progress. In this situation, the managers should see the project plan and find out where the problem lies. And in the next step, the issue should be resolved as early as possible in order to kick start the progress again.
The Purpose of Using SPI Template
Schedule Performance Index provides you the information about the project development. It pinpoints and has a bird’s eye especially on the progress of the project. To do this the SPI does a thorough check on the Gantt Charts to see that where the project lies behind or ahead.
This mathematical assessment allows you to analyze, compare, and follow the performance with time.
The calculation is easily understandable and interpreted. There is no lengthy formula used. This is simple and easy and can be calculated very straightforwardly using a simple formula.
The calculation indicates to you if the project progress is on scheduled deadlines or not, and if not, how far and how much the progress is affected.
Significance of the Schedule Performance Index Template
The project Schedule Performance Index is a crucial and very significant project tool. It includes many things in it like task details that which task should be completed by who and when.
It also addresses and manages the resources needed and divided them among the project team. The important dates like due dates, delivery dates, and other important dates are also part of this. Furthermore, it accompanies the goals, their allocated times, and which goal should be achieved first.
Because of its great importance of schedule performance index project managers, focusses especially on Scheduling tools like – Gantt charts, PERT charts, the prioritization matrix, etc. These project management tools aids in keeping things on schedule. Then in the last comes the SPI which calculates the project’s definite presentation against the plan.
Now we will see how Performance Index is Calculated
How to Calculate Schedule Performance Index?
The Schedule Performance Index is calculated by using two things one is earned value and the other is planned value.
- Earned value (EV)
- Planned value (PV)
And the formula used to calculate this is
SPI = EV / PV
The value of this demonstrates how you are making progress related to the proposed project plan.
Furthermore, the Schedule Performance Index provides you knowledge on the time productivity and effectiveness of your project.
Cost Performance Index VS Schedule Performance Index
Cost Performance Index (CPI) and Schedule Performance Index (SPI) are the tools to determine and calculate the effectiveness and productivity of a project. The difference between these two is one calculates the cost whilst the other one procedure the plan. By using these two in comparison will help project managers to manage the project effectively. As it allows them to see the project progress at every point of the way.
By far, we have seen that the Schedule Performance Index is very important. Performance monitoring is the key to success in a business setup. Because if there is an underlying problem in progress and the performance is not monitor then you can have a great loss. To avoid this kind of critical situation you must use Schedule Performance Index Template (SPI).