Definition:
A project performance metric that measures schedule efficiency by comparing earned value (EV) to planned value (PV), indicating whether a project is ahead, behind, or on schedule.
Key Components:
- Earned Value (EV): The value of actual work completed.
- Planned Value (PV): The budgeted value of scheduled work.
- SPI Formula: SPI = EV / PV (where SPI >1 indicates ahead of schedule, SPI <1 indicates behind schedule).
- Performance Trends: Used to forecast potential schedule delays or acceleration.
Use Cases/Industries:
- Oil & Gas Refinery Upgrades: Tracking work progress versus planned timelines.
- Energy Infrastructure Projects: Assessing delays in power grid expansions.
- Construction Mega-Projects: Monitoring EPC project schedule adherence.
Advantages:
- Real-Time Performance Assessment: Provides quick insights into project progress.
- Forecasting Capability: Helps predict whether deadlines will be met.
- Supports Decision-Making: Enables proactive corrective actions.
Challenges:
- Accuracy Depends on Earned Value Data: Poor EV tracking can lead to misleading SPI results.
- Limited Root-Cause Analysis: Identifies issues but does not explain delays.
- May Not Capture Soft Delays: External dependencies or regulatory approvals may not be reflected.
Related Terms:
Earned Value Management (EVM), Cost Performance Index (CPI), Schedule Variance (SV)
Example:
A geothermal power plant project calculates an SPI of 0.85, indicating that it is running behind schedule and corrective measures are needed to recover lost time.
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Synonyms:
Schedule Efficiency Metric, Earned Value Schedule Tracking
