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To-Complete Performance Index

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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 re…

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PMP - To-Complete Performance Index Example Questions

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Question 1

During a renovation project, you observe that your earned value (EV) is $280,000, your actual cost (AC) is $300,000, and your planned value (PV) is $290,000. What should be your To-Complete Performance Index (TCPI) if the project's total budget at completion rises to $700,000?

Correct Answer: 1.05

To calculate the To-Complete Performance Index (TCPI), we need to use the given information and the formula for TCPI. Given: - Earned Value (EV) = $280,000 - Actual Cost (AC) = $300,000 - Planned Value (PV) = $290,000 - New Budget at Completion (BAC) = $700,000 The formula for TCPI is: TCPI = (BAC - EV) / (BAC - AC) Let's solve the problem step by step: Step 1: Calculate the remaining work (BAC - EV) Remaining work = $700,000 - $280,000 = $420,000 Step 2: Calculate the remaining budget (BAC - AC) Remaining budget = $700,000 - $300,000 = $400,000 Step 3: Calculate the TCPI using the formula TCPI = (BAC - EV) / (BAC - AC) TCPI = $420,000 / $400,000 TCPI = 1.05

Question 2

You're handling an automation project. The earned value(EV) is $100,000 whereas the actual cost(AC) is $110,000. If the total budget is $500,000, calculate the To-Complete Performance Index (TCPI) to accomplish the project within the budget.

Correct Answer: 1.026

To find the To-Complete Performance Index (TCPI), we need to use the given information: - Earned Value (EV) = $100,000 - Actual Cost (AC) = $110,000 - Total Budget (Budget at Completion, or BAC) = $500,000 The TCPI is the ratio of the remaining work to the remaining budget. It indicates the efficiency needed to complete the project within the budget. Step 1: Calculate the remaining work (Budget at Completion - Earned Value). Remaining work = BAC - EV Remaining work = $500,000 - $100,000 = $400,000 Step 2: Calculate the remaining budget (Budget at Completion - Actual Cost). Remaining budget = BAC - AC Remaining budget = $500,000 - $110,000 = $390,000 Step 3: Calculate the To-Complete Performance Index (TCPI). TCPI = Remaining work ÷ Remaining budget TCPI = $400,000 ÷ $390,000 TCPI ≈ 1.026 Therefore, the To-Complete Performance Index (TCPI) is approximately 1.026. This means that the project team must work at an efficiency of 1.026 times the current efficiency to complete the project within the given budget.

Question 3

While managing a public awareness campaign, you note that the earned value (EV) is $20,000, the actual cost (AC) is $25,000, and the planned value (PV) is $22,000. If the campaign's budget is raised to $45,000, calculate the new To-Complete Performance Index (TCPI).

Correct Answer: 1.25

To calculate the To-Complete Performance Index (TCPI), we use the formula: TCPI = (Budget at Completion - Earned Value) / (Budget at Completion - Actual Cost) Given: Earned Value (EV) is $20,000. Actual Cost (AC) is $25,000. The budget is raised to $45,000, which becomes the new Budget at Completion (BAC). Substitute these values into the formula: TCPI = (45000-20000) / (45000 −25000) ​ Now, let's calculate this: The numerator is 45000 - 20000 = 25000. The denominator is 45000 - 25000 = 20000. Therefore, TCPI = 25000 / 20000. Calculating this gives us the TCPI value. The calculated To-Complete Performance Index (TCPI) for the campaign is 1.25.

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