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. Description harold kerzner’s essential strategies on measuring project management performance with the growth of complex projects, stakeholder involvement, and advancements in visual-based technology, metrics and kpis (key performance indicators) are key factors in evaluating project performance. The schedule performance index is a measure of project efficiency given by project management to gauge the progress and efficiency a schedule performance index score of 1 or greater is an optimum goal since it shows the project management that the project is on track and has favorable conditions of meeting the required goals.
Spi stands for schedule performance index the spi is a very powerful measure of the amount of work actually completed on a project it is part of the earned value management techniques according to pmbok guide, the schedule performance index definition is: a measure of schedule efficiency expressed as the ratio of earned value to planned value to calculate spi for any project, find out. Cost performance index and schedule performance index are key concepts for your pmp preparation the content pertains to the estimate costs process of the project cost management knowledge area earned value analysis is a key concept in project cost management. Definition of cost performance index (cpi): a measure of the efficiency of expenses spent on a project the formula that a business normally uses to assess the cost performance index (cpi) is the ratio of earned value (ev) over actual costs.
Project performance management this chapter describes features that enable project managers to monitor the performance of a project, identify problem areas and determine their severity, and track variances of actual performance against budgets, forecasts, and schedules. Cost performance index (earned value analysis) march 16, 2016 by bernie roseke, peng, pmp leave a comment in project management, getting an early indication of problems is the silver bullet that allows the project manager to correct the problems before they start. Cost performance index (cpi): a measure of cost efficiency on a project it is the ratio of earned value (ev) to actual costs (ac) it is the ratio of earned value (ev) to actual costs (ac) cpi _ ev divided by ac. Measuring project performance is an important part of project and program management it allows the pmo and project manager to identify cost and schedule problems early and take steps for remediation quickly. Cost performance index (cpi) = earned value / actual costs to excel as a project manager , you need to do more than inspire and motivate the proof is in the results—a manager needs to achieve (and exceed) business goals.
Schedule variance vs schedule performance index is the 40th post in our pmp concepts learning series designed to help those that are preparing to take the pmp or capm certification exam, each post within this series presents a comparison of common concepts that appear on the pmp and capm exams. To complete performance index definitions it is a measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the remaining budget. Takim and akintoye takim, r and akintoye, a (2002) performance indicators for successful construction project performance in: greenwood, d (ed), 18th annual arcom conference, 2-4 september 2002, university of northumbria. Abstract this paper examines the to-complete performance index (tcpi) as one of the forecasting tools of earned value management (evm) we explore why project personnel should care about earned value management's to-complete performance index (tcpi), what tcpi represents, how to calculate tcpi, and what the calculated tcpi results mean.
Join aileen ellis for an in-depth discussion in this video, calculating cost variance (cv) and cost performance index (cpi), part of project management: calculating earned value. Top project management benchmarking measures include return on investment (roi), productivity, cost performance, cycle time, customer satisfaction, schedule performance, employee satisfaction and alignment with strategic business goals. Cost performance index (cpi) per project is one of the most important kpis in project management cost performance index (cpi) allows to compare the progress of projects of different scopes unlike cost variance that shows the difference in dollars between baseline project cost (cost) and actual cost of a project. In 2014 we published an article on earned value management which looked at how a project manager can measure the performance of a project as a percentage metric additional metrics which a project manager may find use are schedule performance index (spi) and cost performance index (cpi.
This article introduces the concept of earned value management (evm) indexes, a project assessment technique, and control charts, a statistical tool for monitoring variation in a process, and describes how both may be used in tangent to capture more insight from project performance. Cost variance vs cost performance index is the 39th post in our pmp concepts learning series designed to help those that are preparing to take the pmp or capm certification exam, each post within this series presents a comparison of common concepts that appear on the pmp and capm exams. The basic premise of earned value management (evm) is that the value of a piece of work is equal to the amount of funds budgeted to complete it as part of evm, you use the following information to assess your schedule and cost performance throughout your project.
The to complete performance index (tcpi) is the third forecasting tool mentioned in the pmbok guide this is a relatively new term which was coined by the pmi to assist project managers in calculating the future cost performance of the project. Project management software has made it easy to track project and portfolio performance nearly every tool comes with pre-built and customizable dashboards and reports, putting a wealth of information into the hands of business leaders. The to complete performance index (tcpi) is a comparative earn value management (evm) metric used primarily to determine if an independent estimate at completion is reasonable it computes the future required cost efficiency needed to achieve a target estimate at completion (eac.