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Cost Performance Index (CPI)

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J. Scott Christianson
J. Scott Christianson

How to calculate and interpret CPI as it is used in earned value analysis in project management. Download additional slides, videos, and resources at https://www.christiansonjs.com/ Signup for The Free-Range Technologist, a monthly newsletter filled with creative commons resources, useful apps, and lifehacks: https://mailchi.mp/f8f0219bc305/jscott

Engineering
1 of 16
Indexes to Monitor Progress
Cost Performance Index CPI
CPI = EV AC Cost Performance Index (CPI)CPI
TABLE 13.3 Interpretation of CPI 0 0.5 1 1.5 2 2.5 SPI CPI under cost or under budgetover cost or over budget On Cost On Budget
Cost Performance Index (CPI) Activity A: Total PV = $24,000 CPI
Cost Performance Index (CPI) 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% = $12,000 CPI EV $12,000 $16,000
Cost Performance Index CPI $12,000 = = .75 0 0.5 1 1.5 2 2.5 0.75 $16,000
TABLE 13.3 Interpretation of CPI 0 0.5 1 1.5 2 2.5 SPI CPI under cost or under budgetover cost or over budget On Cost On Budget 0.75
Interpretation of CPI 0 0.5 1 1.5 2 2.5 SPI CPI Project 0.75
Cost Performance Index (CPI) Activity A: Total PV = $24,000 CPI
Cost Performance Index (CPI) 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% = $12,000 CPI EV $12,000 $9,600
Cost Performance Index CPI $12,000 = = 1.25 $9,600 0 0.5 1 1.5 2 2.5 1.25
TABLE 13.3 Interpretation of CPI 0 0.5 1 1.5 2 2.5 SPI CPI under cost or under budgetover cost or over budget On Cost On Budget 1.25
Interpretation of CPI 0 0.5 1 1.5 2 2.5 SPI CPI 1.25 Project

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Cost Performance Index (CPI)

Editor's Notes

  1. 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
  2. Scheduling Performance Index (SPI) Measures scheduling efficiency SPI = EV/PV
  3. Scheduling Performance Index (SPI) Measures scheduling efficiency SPI = EV/PV
  4. Scheduling Performance Index (SPI) Measures scheduling efficiency SPI = EV/PV
  5. Scheduling Performance Index (SPI) Measures scheduling efficiency SPI = EV/PV
  6. Scheduling Performance Index (SPI) Measures scheduling efficiency SPI = EV/PV
  7. For every $1.00 of work I put into the project, I a
  8. Scheduling Performance Index (SPI) Measures scheduling efficiency SPI = EV/PV
  9. Scheduling Performance Index (SPI) Measures scheduling efficiency SPI = EV/PV
  10. Scheduling Performance Index (SPI) Measures scheduling efficiency SPI = EV/PV
  11. Scheduling Performance Index (SPI) Measures scheduling efficiency SPI = EV/PV
  12. For every $1.00 of work I put into the project, I a