After reading this post, you will. If SPI is less than 1 then project is behind schedule. In other words, you are earning more value than what you have spent. It is easier to complete the project. In other words, you will cover the remaining distance (24 km) in remaining time (2 km). SV = EV – PV SV = 25,000,000 USD – 40,000,000 USD = – 15,000,000 USD. After running for 2 hours, you realize that you have completed only 18 km. You can write your question in the comment section below and I will respond to it.

I have written this post to provide detailed explanation of To Complete Performance Index. You can read Earned Value Management Formulas for a quick snapshot of all of them. The cost performance index can change over the life of a project depending on the ways in which the earned values and actual cost have changed. The project CPI could be any one of the following: CPI is a measure of current cost efficiency of the project. CPI > 1 – it means that value earned value is more than the money spent.

This can be done by increasing the future cost efficiency. It can be done in two ways. Future projected cost efficiency to complete the project within original or revised budget. The Cost Performance Index (CPI) formula is: \[Cost~ Performance~ Index~ (CPI) = \frac{Earned~ Value~ (EV)}{Actual~ Cost~ (AC)}\] If CPI is greater than 1, the project is under budget (good). If CPI is less than 1 then project is over budget. So that we are behind the schedule. Do you have any follow-up questions?

CPI = (monetary value of completed work)/(expenditure till control date), TCPI = (monetary value of remaining work)/(remaining funds). It is better understand the concept and then apply the formula(s) as required. Hi Angelo, by far is the best explanation on TCPI vs CPI I have found in the Net. Cost Performance Index (CPI): Cost Performance Index (CPI) is the measure of the cost efficiency of project. A resulting value that is less than one indicates that the conditions of cost efficiency for the project are considered to be less than favorable. Question: The Cost Performance Index (CPI) ---- Question 35 Options: 1) Indicates That A Project Is Under Budget If CPI Is Less Than One. If CPI ≥ 1, then the project is (most probably) doing well.

TCPI < 1 – it means that project has more funds and less work. When TCPI turns out to be greater than one (> 1.0), a more normal case for BAC calculations, the value of the remaining project work must be executed at a better cost performance level than the project's completed work. Calculating Cost Performance Index (CPI) in the new Workfront experience. The Generic Equation reduces to: TCPIB = (80000 – 35000) / (80000 – 36000). CPI and SPI are both less than 1.0: The project is over budget and behind schedule (boo!) The cost of building 1 table was estimated as 1000 units of money and the total budget was 80000 units of money. For all CPI c less than 1.0, the TCPI will be greater than 1.0. CPI < 1 – it means that value earned value is less than the money spent.

Cost performance index (CPI) is a ratio of the earned value (EV) to the actual costs (AC). answered 9 years ago by sdcapmp ( 45,840 points) Going by the above definitions and applying pure mathematical logic, we can write a generic TCPI equation as: monetary value of remaining work = monetary value of total work – monetary value of completed work, monetary value of remaining work = BAC – EV, remaining funds = total project budget – actual expenditure, remaining funds = total project budget – AC, TCPI = (BAC – EV) / (total project budget – AC). SPI shows how the work is progressing compared to the original schedule indicating whether the project is ahead or behind schedule. TCPI is very similar to the above example. Using the same example I used in my previous post: You have a project to build a billing solution, the project is expected to last 10 months, and you have estimated the total cost to be $100,000. This is the formula of Schedule Performance Index (SPI): \[Schedule~ Performance~ Index~ (SPI) = \frac{Earned~ Value~ (EV)}{Planned~ Value~ (PV)}\]. On the other hand, if CPI < 1 then the project is likely to be in trouble. CPI = 1 – it means that value earned value is equal to the money spent. Ain’t that Slightly confusing? As very well you appointed, sometimes the PMBOK definitions yet true are hard to swallow. To Complete Performance Index (TCPI) is a forecasting technique of Project Management (PM). How is your project performing in terms of schedule and cost after 4 months? The Both BAC and EAC formulas are valid. It means that the project is ahead of schedule by 120% or 1.2 of the planned rate, and you are a happy Project Manager. needs to build another 45 tables to complete the project (remaining project work). It contains detailed explanations of all the formulas along with examples and 105 practice questions. You can also look at the following video to understand TCPI. remaining work is 45 tables – remaining funds are 44000 units of money. However, for you, there is no extra cost. It will help you in your exam prep.

What is your take on To Complete Performance Index? Schedule Performance Index (SPI) and Cost Performance Index (CPI) are discussed in this post, these two indexes are derived from the basic elements of the Earned Value Management I discussed in my previous post ‘Earned Value Management Basic Elements’.