Guide on To-Complete Performance Index (TCPI)

The To-Complete Performance Index (TCPI) is a critical concept often covered in courses related to project management or financial analysis.

Importance: TCPI helps managers understand whether achieving the project's budget or cost objectives is feasible based on current project performance. This key metric can guide decision-making and resource allocation.

What it is: TCPI is the ratio of work remaining to the budget remaining. More specifically, it's calculated as the division of 'the cost required to complete the remaining work' by 'the remaining budget'.

How it Works: If TCPI is greater than 1, it indicates that the project needs to perform better than its current performance to meet the budget. If TCPI is less than or equal to 1, it suggests that the current level of performance is sufficient to meet the budget.

Answering Questions: To answer TCPI questions effectively in an exam, make sure to understand the formula, committing it to memory, and practicing example problems. It's also important to understand the interpretation of the TCPI value.
Exam Tips: Be prepared to interpret varying TCPI values and their implications on the project. If given a scenario, try to determine if budget or performance adjustments would be required based on the TCPI.
Finally, remember not to panic if you see a complex problem. Often, these questions rely on breaking down the problem into simpler, manageable components.