SPI vs CPI

[Fai]

Hi,

Donno about others, but have always had a challenging time with the
Schedule Variances (SVs) and Cost Variances (CVs).

Does someone on this forum have a trick/tip to remember them?

Fai!

[Callum Wright]

I think of it this way:

C

I think of them this way

CV = Cost Variance = is concerned with costs alone (sorry for the obvious) = means we want to compare what we've 'earned/made' (EV) from our customer to what we've actually spent (AC).  It's an interim measure of profit margin.  The Cost designation triggers me to use AC.

SV = Schedule Variance = is concerned with costs as they relate to the schedule = means we want to compare what we've 'earned/made' (EV) from our customer to what we should have actually already spent if our PLAN was executed perfectly (PV).  The Schedule designation triggers me to use PV.

Hope that helps!

[Prar]

Here is one trick that was thought to me in a class....

Start with writing 4 EVs
EV
EV
EV
EV

Next, write couple of AC and PV next to those

EV AC
EV AC
EV PV
EV PV

Next, write -ve and / signs alternatively; - ves are variances, / are
indexes...

EV - AC = CV
EV / AC = CPI
EV - PV = SV
EV / PV = SPI

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[Fai]

Wow! Prar. This is indeed one heck of a trick. Thanks for sharing..

Got more? ;)

Fai!