Guide to To-Complete Performance Index (TCPI)
The To-Complete Performance Index (TCPI) is a fundamental concept in the PMBOK Guide 7th Edition. It is a crucial aspect of Earned Value Management (EVM) which helps project managers understand, control costs and predict future performance of projects.
Why is it Important:
TCPI allows project managers to assess the efficiency at which project resources must be utilized for the remaining work to meet a specific management goal. It's an early warning tool that allows managers to correct or change the course of action.
What is TCPI:
TCPI is the calculated projection of cost performance that must be achieved on the remaining work to meet a specific management goal. It's the ratio between the remaining work and remaining funds.
How it Works:
TCPI is calculated by taking the difference between the Budget at Completion (BAC) and Earned Value (EV), then dividing by the difference between the Estimate at Completion (EAC) and the Earned Value (EV).
Exam Tips on answering questions about TCPI:
Understanding and memorizing the formula to calculate TCPI is important. Review examples of TCPI calculations to understand how it's applied in real-world scenarios. If TCPI is more than one, then more efficiency is needed to complete the project. If it's less than one, then the efficiency currently being observed is sufficient for completing the project within the budget. Use these insights to answer questions.
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To-Complete Performance Index practice test
To-Complete Performance Index (TCPI) is an EVM metric that helps project managers estimate the required future cost efficiency to achieve a specific project goal, like meeting a target budget. The index is calculated by dividing the remaining work (Budget at Completion minus Earned Value) by the remaining budget (Budget at Completion minus Actual Cost), i.e., TCPI = (BAC - EV) / (BAC - AC). A TCPI greater than 1 indicates that the project must perform more efficiently in the future to meet the cost objective, while a TCPI less than 1 implies that the project can afford to be less efficient. By monitoring TCPI, project managers can identify potential issues early and take corrective actions to improve project performance and increase the likelihood of meeting the desired objectives.
Time: 5 minutes Questions: 5
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Project Management Professional Preparation Package (2024)
- Earn 35 PDUs needed for your PMP certification
- 12955 Superior-grade Project Management Professional practice questions.
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- Unlock Effortless PMP preparation: 5 full exams.
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- Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!