Do you need customer support or technical assistance? Click here to submit a support ticket...

TOPIC: Relation between CPI and TCPI

Relation between CPI and TCPI 3 years 5 months ago #10217

  • Anurag Singh
  • Anurag Singh's Avatar Topic Author
  • Offline
  • Fresh Boarder
  • Fresh Boarder
  • Posts: 1
  • Thank you received: 0

I want to start a thread for discussing relation between CPI and TCPI. I came across an exam question where I was asked to demonstrate relation between CPI and TCPI. So the question goes if the project is 50% complete and current CPI is 0.75. What is the TCPI? According to my calculations which I am demonstrating below the answer comes out to be 1.51 but the correct answer is 1.25. Attached is the discussion paper as well.

My Answer:
Since project is 50% complete EV = 0.5 * BAC

CPI = 0.75 => AC = (EV/0.75) = (0.5 * BAC)/(0.75) = 0.67 * BAC

TCPI = (BAC-EV)/(BAC-AC) = (BAC - 0.5 * BAC)/(BAC - 0.67 * BAC) = 1.51

This browser does not support PDFs. Please download the PDF to view it: Download PDF.

Relation between CPI and TCPI 3 years 3 months ago #10987

  • Tom Robbrecht
  • Tom Robbrecht's Avatar
  • Offline
  • Fresh Boarder
  • Fresh Boarder
  • Posts: 6
  • Thank you received: 1
I came across this thread when researching EVM and decided to revive it as a distraction from studying for a few minutes.

I believe the paper you're referring to may have used confusing terminology.
I believe what is meant with "50% complete" is actually "50% funds spent" (AC/BAC).
In that case a CPI of 1,25 would make sense: if your project was underperforming by 25% (CPI 0,75) for the first half of the budget, it should overperform by 25% for the remaining half of the budget in order to stay within the BAC.

More conventionlally, if you consider "50% complete" to be "half the work done" (EV/BAC), then your project was underperforming by 25% during half of the work, which means you've spent 0,5/0,75 = 67% or 2/3 of your funds, therefore your funds remaining are 1/3 of BAC.
TCPI=(work remaining)/(remaining funds) = 0,5/0,33 = 1,5
So, in order to keep your project within initial budget you'll need to overperform by 50% for the remaining 50% of the work.
Last edit: by Tom Robbrecht.
Moderators: Yolanda MabutasMary Kathrine PaduaCynthia Lim Louis, PMPTracy Shagnea, PMPGabriella Dellino, PMPPatrick Floris PhD PMPJoe PangJohn Paul BugarinAmy MartinezEmily Rivera, PMPLisa Sweeney PMPHarry ElstonMani SelvanDenver MartinEric Wanyutu Kahiga, PMPSarah FucciThiago França, PMP®Felix Kamanga, PMPChan RampersaudElena MekhanoshinaKyle Kilbride, PMP

Training for Project Management Professional (PMP)®, PMI Agile Certified Practitioner (PMI-ACP)®, and Certified Associate in Project Management (CAPM)®