Certified Supply Chain Professional (CSCP) Practice Exam

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Study for the Certified Supply Chain Professional (CSCP) Practice Exam. Prepare with multiple choice questions, each accompanied by hints and explanations. Get ready to ace your exam!

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What does an SPI or CPI less than 1.0 or 100% signify?

Project is exceeding expectations
Project is on budget and behind schedule
Project is off schedule or over budget
Project is completed successfully

The correct answer is: Project is off schedule or over budget

When an SPI (Schedule Performance Index) or CPI (Cost Performance Index) is less than 1.0 (or 100%), it indicates that the project is not performing as planned. Specifically, a value less than 1.0 implies that the actual performance is worse than the baseline established for the project. An SPI less than 1.0 signifies that the project is behind schedule, meaning that the amount of work accomplished is less than what was scheduled for that point in time. Similarly, a CPI less than 1.0 indicates that the project is over budget, showing that the costs incurred exceed what was planned for the budget at this stage of the project. Overall, when both indices are below 1.0, it clearly reflects that the project is struggling either in terms of time or financial resources, hence confirming that the project is off schedule or over budget.