TCPI (To Complete Performance Index)
To Complete Performance Index means work remaining over funds remaining.
The ratio shows that the team will have to work at an efficiency of $___ dollars per every dollar spent to bring the project back on track.
The lower TCPI number mean better efficiency and are better.
1. Completing the Project with the Original Budget at Completion (BAC)
Under this assumption money remaining is the budget at completion less actual costs.
TCPI = work reaming/Money remaining
TCPI = (Total Budget less Earned Value) / Money remaining
Money Remaining = Total Budget less Actual Costs
TCPI = (BAC-EV)/(BAC-AC)
2. Completing the Project with the Current Estimate at Completion (EAC)
When we must complete the project with the current EAC (We are given EAC)
Under this assumption money remaining is the estimate at completion less the actual cost.
TCPI = work reaming/money remaining
Money Remaining = Estimate At Completion less Actual Costs
TCPI = (BAC-EV)/(EAC-AC)
Note: The cost performance index means for every dollar we spend going forward we need to achieve $ ___ of value
BAC = Budget at Completion
Answers how much we BUDGETED for the TOTAL project to cost.
EV = Earned Value
Answers what the estimated value of the work actually accomplished today is.
AC = Actual Cost
Answers what the actual cost incurred for the work accomplished up to today is.
CPI vs TCPI
Cost Performance Index is the past performance of the project whereas TCPI is the future performance of the project.
If you are under budget, calculate the TCPI based on the BAC.
If you are over budget, calculate the TCPI based on the EAC.
If the To Complete Performance Index in less than one, you are in a comfortable position.
If the To Complete Performance Index is greater than one, you have to perform with better cost performance than the past cost performance.
If the To Complete Performance Index is equal to one, you can continue with the same cost performance.