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Project Health |
  
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Project Health |
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The health of a project is assessed using two indices: CPI and SPI.
The indices are calculated as follows:
and
where StartDate, EndDate, Progress, EstimatedHours, and ActualHours are project parameters, and CurrentDate is the current date.
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Project started today has SPI=1 even if its progress is zero. |
Color coding
The chart explains the color coding being used to show what health a given project has:
CPI/SPI Values (T = Threshold) |
Color Code |
Comment |
CPI > T & SPI > T |
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Healthy project |
CPI > T & SPI < T |
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Project at risk |
CPI < T & SPI > T |
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Project at risk |
CPI < T & SPI < T |
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Troubled project |
Threshold
The default threshold for both CPI and SPI is 1.
The threshold is a value you set to match CPI and SPI against.
Generally, the higher the threshold the stricter your requirement for activity cost or schedule performance is.
However, setting the thresholds needs to be done with care. For example, 'having a CPI that is very high (in some cases, very high is only 1.2) may mean that the plan was too conservative, and thus a very high number may in fact not be good, as the CPI is being measured against a poor baseline. Management or the customer may be upset with the planners as an overly conservative baseline ties up available funds for other purposes, and the baseline is also used for manpower planning.' (a Wikipedia article on EVA).
Link with activity health
Project EVA is based on EVA of its activities. See Activity Health for details. The following rules apply:
| 1. | If at least one activity is 'yellow' (at risk), so is the project. |
| 2. | If at least one activity is 'red' (troubled), so is the project. |
Related links:
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