## How to work out cost performance index

It shows how well the project is sticking to the budget. The Formula for the Cost Performance Index (CPI). You can calculate the Cost Performance Index by  Earned value project management calculator solving for cost performance index CPI given budgeted cost of work performed BCWP and actual cost of work  We use cookies on our site. To learn more about the information we collect, how we use it and your choices visit our Privacy Policy . OK.

Often the easiest work is done first on a project, throwing off any percentage calculations of work remaining. A cost performance index (CPI) of 0.89 means: Schedule Performance Index ( SPI ), SPI = EV / PV If Cost Variance (CV) is a negative number, it means that performing the work cost more than planned. If not, how much are we lagging or ahead than the planned work? We can calculate this by using a simple subtraction formula. Schedule Variance (SV) = Earned  The value is positive if the budgeted cost of the work performed is greater than The Cost Performance Index (CPI) is defined as the ratio of Earned Value (EV) It can be used to forecast the Estimate At Completion (EAC) using the Budget At  30 Nov 2018 CPI is defined as the earned value of work performed divided by the actual It combines cost, schedule and performance into an integrated  Cost Performance Index (CPI) CPI is the measure of how efficiently are the budgeted resources being utilized on a project. It is mathematically expressed as

## 20 Aug 2017 I always like to use my favorite example of the boundary wall project to illustrate the calculation of SPI here and CPI later. So, here it is again. SPI

3 Mar 2016 An overview of Cost Performance Index for projects including an example. to actual cost. Earned value is defined as the authorized budget for work completed for a project. In other words, it indicates if you're over budget. Humphreys & Associates : Budgeted Cost for Work Performed (BCWP) A cost performance index (CPI) is calculated by dividing earned value by actual costs. of performance, the SV should only be used as an indicator because it does not  9 Oct 2009 Schedule Performance Index (SPI)=EV ÷ PV You are progressing at __% Index (CPI)=EV ÷ AC You are getting \$_____ worth of work out of  BCWS, = Budgeted Cost of Work Scheduled, now more properly known as the Planned Value (PV). ACWP, = Actual CPI, = Cost Performance Index = BCWP/ ACWP You can extrapolate performance to date to calculate the EAC as follows:. 19 Dec 2019 Planned Value (PV) is defined as budgeted cost for work planned to be Cost Performance Index (CPI): It is used to determine whether you

### According to the PMBOK ® Guide, the cost performance index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of Earned Value (EV) to Actual Cost (AC). CPI is considered the most critical EVM metric and measures the cost efficiency for the work completed.

2 Aug 2019 For example, its Schedule Performance Index SPI has a complete As seen in Table 1, to calculate the planned critical path duration, the ES of  3 Mar 2016 An overview of Cost Performance Index for projects including an example. to actual cost. Earned value is defined as the authorized budget for work completed for a project. In other words, it indicates if you're over budget. Humphreys & Associates : Budgeted Cost for Work Performed (BCWP) A cost performance index (CPI) is calculated by dividing earned value by actual costs. of performance, the SV should only be used as an indicator because it does not  9 Oct 2009 Schedule Performance Index (SPI)=EV ÷ PV You are progressing at __% Index (CPI)=EV ÷ AC You are getting \$_____ worth of work out of  BCWS, = Budgeted Cost of Work Scheduled, now more properly known as the Planned Value (PV). ACWP, = Actual CPI, = Cost Performance Index = BCWP/ ACWP You can extrapolate performance to date to calculate the EAC as follows:.

### Earned value project management calculator solving for cost performance index CPI given budgeted cost of work performed BCWP and actual cost of work performed ACWP

Earned value project management calculator solving for cost performance index CPI given budgeted cost of work performed BCWP and actual cost of work performed ACWP Cost Performance Index (CPI) The Cost Performance Index helps you to analyze the cost efficiency of the project. It measures the value of the work completed compared to the actual cost spent. According to the PMBOK Guide, “The Cost Performance Index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost.” Step 2: Compute the Cost Performance Index (CPI) and Schedule Performance Index (SPI). Cost Performance Index (CPI) = EV / AC = \$24,000 / \$40,000 = 0.6. Schedule Performance Index (SPI) = EV / PV = \$24,000 / \$20,000 = 1.2. The cost performance index (CPI) is a measure of the financial effectiveness and efficiency of a project. It represents the amount of completed work for every unit of cost spent. As a ratio it is calculated by dividing the budgeted cost of work completed, or earned value, by the actual cost of the work performed. The cost performance index is determined by measuring the ratio of earned value (also known by the abbreviation of EV) to actual costs (also known by the abbreviation of AC).The equation to determine the cost performance index can be derived by the following equation: CPI=EV divided by AC. If the resulting value is greater than one indicates that the conditions of cost efficiency for the project are considered to be favorable. In the example above, if the project is 80% complete at the end of the build state, the earned value of the project (at 80%) is \$75,000 (\$50,000 + \$25,000). Let's apply this to our cost performance index formula: The cost performance index is less than one which indicates that the project is over budget at this stage. The ratio of earned value to actual cost for a project. A project has spent \$1 million dollars and completed work associated with an authorized budget of \$800,000. Resulting in a cost performance index of 800,000:1,000,000 or 0.8. Any measure below 1 indicates a lag between spending and delivery of work.

## Step 2: Compute the Cost Performance Index (CPI) and Schedule Performance Index (SPI). Cost Performance Index (CPI) = EV / AC = \$24,000 / \$40,000 = 0.6. Schedule Performance Index (SPI) = EV / PV = \$24,000 / \$20,000 = 1.2.

Earned value project management calculator solving for cost performance index CPI given budgeted cost of work performed BCWP and actual cost of work performed ACWP

If you enjoyed reading this post, check out all of our post on PMP Concepts Cost variance (CV) and cost performance index (CPI) are two earned value That is not always accurate and as such, the PM must use their judgment and  10 Jan 2020 As name suggests Cost Performance index is based on cost that has been spent in Cost Performance Index (CPI) represents the amount of work being measures the performance regarding the budget of the project and it  If you enjoyed reading this post, check out all of our post on PMP Concepts Learning Schedule variance (SV) and schedule performance index (SPI) are two at completion (BAC) and what percentage of work has been completed and how