Questions

What does a positive Tcpi mean?

Standard

What does a positive Tcpi mean?

– If the result is greater than 1 (say TCPI = 1.1) an improvement in performance is required. From the example above, to achieve the original BAC the TCPI is 1.2, this means all remaining work has to be completed with a cost performance that is 20% better than the original plan.

What does Tcpi less than 1 mean?

Results. A CPI equal to one or greater than one indicates that the project is within or under budget. If the CPI is less than one, the project is probably over budget. If TCPI is equal to or less than one, the project is within or under budget. If the TCPI is more than one, the project is likely over budget.

How do you interpret Tcpi?

The TCPI is computed by dividing the budget remaining, which is represented by subtracting the cumulative Actual Cost Work Performed (ACWP) from the target EAC, into the budgeted cost of work remaining, which is represented by subtracting the cumulative Budgeted Cost Work Performed (BCWP) from the Budget at Completion …

What does a CPI value greater than 1.0 indicate?

If the ratio has a value higher than 1 then it indicates the project is performing well against the budget. A CPI of 1 means that the project is performing on budget. A CPI of less than 1 means that the project is over budget.

What is the relationship between Tcpi and CPI?

The CPI indicates past expenditures and the amount of complete work for the budget spent. The TCPI tells the project manager the amount of earned value for each budget dollar for all future work in order for the project to meet the budget.

When CPI 1 What does it mean?

What is the meaning of an index of 1.00 on CPI?

What does CPI of 1 indicate?

A CPI ratio with a value higher than 1 indicates that a project is performing well budget-wise. A CPI value of 1 indicates that a project is performing on budget. A CPI value that is less than 1 indicates that a project is over budget.

How do you calculate SPI and CPI?

The cost performance index (CPI) is a measure of the conformance of the actual work completed (measured by its earned value) to the actual cost incurred: CPI = EV / AC. The schedule performance index (SPI) is a measure of the conformance of actual progress (earned value) to the planned progress: SPI = EV / PV.

How is EV earned value calculated?

The Formula for Earned Value (EV) Take the actual percentage of the completed work and multiply it by the project budget and you will get the Earned Value. Earned Value = % of completed work X BAC (Budget at Completion).

What does a CPI of 0.5 mean?

The CPI = 0.5 value indicates that the project has spent twice the amount that it should have at this point. When the CPI = 1.0, it means that the project is on budget. Meanwhile, if the CPI = 2.0, it means that the project has spent half the amount that it should have at this point.

What is Tcpi in project management?

TCPI is a calculated projection of cost performance that a project must achieve on the value of the remainder of the project work to achieve a specified end result.

Is your to complete performance index (TCPI) less than one?

“If the To Complete Performance Index is less than one, you are in a comfortable position.” – If it is less than one it means you are over budget, then how can you be in a comfortable position.

What is TCPI and how to calculate TCPI?

The formula to calculate the TCPI is: with the previously defined parameters. In other words: TCPI is the amount of the remaining work (BAC – EV) divided by the remaining budget (BAC – AC).

What happens if TCPI turns out to be one?

In another situation, if TCPI turns out to be one (1.0), a somewhat unusual case (project on budget), the value of the remaining project work must be executed at the same cost performance level as the previously completed project work. This may or may not be difficult, depending on the nature of the remaining project work.

Who should be interested in TCPI?

All of which we shall answer here. All project managers, project team members, project sponsors, functional managers, senior managers, and other stakeholders should be interested in TCPI, especially for those projects in distress (cost) and other projects that might be headed for distress.