What is To Complete Performance Index in Project Management

TO COMPLETE PERFORMANCE INDEX

(TCPI)

To Complete Performance Index (TCPI) is simply the budget for the work

remaining to be completed divided by the actual money available to do it. In other

words, it is the CPI for the remaining work as of today.

TCPI tells you the required remaining spending rate to stay within budget.

There are two scenarios to calculate TCPI:

TCPI = (BAC – EV) / (BAC – AC). This formula is used when the project

needs to be completed with the original estimated budget (BAC).

TCPI = (BAC – EV) / (EAC – AC). This formula is used when the project

needs to be completed within the original budget and it is valid for EAC.

Example 1:

You are the project manager for a project with an Earned Value (EV) =

$30,000. The Planned Value (PV) = $25,000. The Actual Cost = $25,000.

The Project is budgeted for $100,000. What is the To-CompleteChapter

1: Earned Value Measurement 22

Performance-Index (TCPI) to finish the project within the budgeted cost

(BAC)?

TCPI = ((BAC – EV) )/((BAC – AC))

TCPI = ($100,000 – $30,000) / ($100,000 – $25,000), or 0.93.

The CPI needs to stay equal to or be more than 0.93 to finish the project

within the BAC.

Example 2:

You are the project manager for a project with Earned Value (EV) =

$30,000. The Planned Value (PV) = $40,000. The Actual Cost = $50,000.

The Project is budgeted for $100,000. What is the To-Complete-

Performance-Index (TCPI) to finish this project within the forecasted

estimate at completion?

TCPI = (BAC – EV)

(EAC – AC)

CPI = EV / AC = $30,000/$50,000, or 0.6

EAC = BAC / CPI = $100,000 / 0.6, or $166,667

TCPI = ($100,000 – $30,000) / ($166,667 – $50,000), or 0.599.

That means the CPI needs to be 0.599 or more to finish the project within

the EAC.

Leave a Reply

Your email address will not be published. Required fields are marked *