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Cost Performance Index (CPI)

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How to calculate and interpret CPI as it is used in earned value analysis in project management. From Project Management Fundamentals, a new type of textbook designed to be: granular, easy to use with a "flipped" classroom approach, and designed for electronic distribution on iPads, kindle readers, and PCs/Mac. Find out more at http://pmf.education/

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Cost Performance Index (CPI)

  1. 1. Indexes to Monitor Progress
  2. 2. Cost Performance Index CPI
  3. 3. CPI = EV AC Cost Performance Index (CPI)CPI
  4. 4. TABLE 13.3 Interpretation of CPI 0 0.5 1 1.5 2 2.5 SPI CPI under cost or under budgetover cost or over budget On Cost On Budget
  5. 5. Cost Performance Index (CPI) Activity A: Total PV = $24,000 CPI
  6. 6. Cost Performance Index (CPI) 50% Activity A: Total PV = $24,000 (CPI)CPI
  7. 7. Cost Performance Index (CPI) Activity A: Total PV = $24,000 50% EV= $24,000 AC = * 50% = $12,000 CPI EV $12,000 $16,000
  8. 8. Cost Performance Index CPI $12,000 = = .75 0 0.5 1 1.5 2 2.5 0.75 $16,000
  9. 9. TABLE 13.3 Interpretation of CPI 0 0.5 1 1.5 2 2.5 SPI CPI under cost or under budgetover cost or over budget On Cost On Budget 0.75
  10. 10. Interpretation of CPI 0 0.5 1 1.5 2 2.5 SPI CPI Project 0.75
  11. 11. Cost Performance Index (CPI) Activity A: Total PV = $24,000 CPI
  12. 12. Cost Performance Index (CPI) 50% Activity A: Total PV = $24,000 (CPI)CPI
  13. 13. Cost Performance Index (CPI) Activity A: Total PV = $24,000 50% EV= $24,000 AC = * 50% = $12,000 CPI EV $12,000 $9,600
  14. 14. Cost Performance Index CPI $12,000 = = 1.25 $9,600 0 0.5 1 1.5 2 2.5 1.25
  15. 15. TABLE 13.3 Interpretation of CPI 0 0.5 1 1.5 2 2.5 SPI CPI under cost or under budgetover cost or over budget On Cost On Budget 1.25
  16. 16. Interpretation of CPI 0 0.5 1 1.5 2 2.5 SPI CPI 1.25 Project

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