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# TOPIC: Formulas...need help with TCPI

## Formulas...need help with TCPI 6 years 11 months ago #9381

 Rahul Kakkar Offline Gold Boarder Posts: 161 Karma: 9 Thank you received: 56 Hi Tatiana, The formula for CPI is CPI = Earned Value / Actual Cost Earned Value = Completed Panels * Fixed Price per panel Earned Value = 350 * 75 = \$26,250 Actual Cost = \$45,000 CPI = 26250 / 45000 = 0.583 So this eliminates the first option (a). Similarly, you would realise that we can also eliminate option (b) by calculation. Now coming to option (c) The formula for TCPI is TCPI = Work Remaining / Funds Remaining Work Remaining = Total Work - Work Done Work Remaining = Total Panels - Completed Panels Work Remaining = 900 - 350 Work Remaining = 550 panels Work Remaining in \$ terms = 550 * 75 = \$41,250 Funds Remaining = Total Funds - Already Spent Funds Remaining = (900*75) - 45000 Funds Remaining = 67500 - 45000 Funds Remaining = \$22,500 Therefore TCPI = 41250 / 22500 TCPI = 1.833 TCPI basically means projecting what cost performance project needs to achieve in order to active the budget targets. In other words, what should be our projected CPI to ensure that the project work is completed within the original budget (which in this case is 900 * 75 = \$67,500) Hope this helps. Rahul Kakkar, PMP, MBA Community Moderator How are we doing? Your opinion matters. To help us improve, please check out our survey at www.surveymonkey.com/s/pmpexamforum The following user(s) said Thank You: Tatiana Abramova Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Formulas...need help with TCPI 6 years 11 months ago #9414

 Tatiana Abramova Topic Author Offline Fresh Boarder Posts: 7 Karma: 1 Thank you received: 3 Thank you Rahul for the detailed explanation! That helps:) Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.
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