Cost Performance Index (CPI)

Indexes to Monitor Progress

Cost Performance IndexCPI

Measures the cost efficiency of work accomplished to date. Are we burning through the money at the rate that we thought we would. CPI = EV/AC. Measures Costs Effectiveness

CPI =EVACCost Performance Index(CPI)CPI

Scheduling Performance Index (SPI)Measures scheduling efficiencySPI = EV/PV

TABLE 13.3Interpretation of CPI

SPI

CPIunder cost or under budgetover cost or over budgetOn CostOn Budget

Cost Performance Index(CPI)

Activity A: Total PV = $24,000CPI



50%Activity A: Total PV = $24,000(CPI)CPI


Cost Performance Index(CPI)Activity A: Total PV = $24,000

50%EV= $24,000

AC =* 50% = $12,000CPIEV$12,000$16,000


Cost Performance IndexCPI$12,000=

= .750.75$16,000



SPI


0.75

Interpretation of CPI

SPI

CPI

Project0.75

For every $1.00 of work I put into the project, I a


Activity A: Total PV = $24,000CPI



50%Activity A: Total PV = $24,000(CPI)CPI


Cost Performance Index(CPI)Activity A: Total PV = $24,000

50%EV= $24,000

AC =* 50% = $12,000CPIEV$12,000$9,600


Cost Performance IndexCPI$12,000=

= 1.25$9,6001.25



SPI


1.25

Interpretation of CPI

SPI

CPI

1.25Project

For every $1.00 of work I put into the project, I a

Cost Performance Index (CPI)

Engineering