The document discusses the Cost Performance Index (CPI) with various calculations and interpretations. It defines CPI as the ratio of earned value (EV) to actual cost (AC) and provides a framework for assessing whether a project is under budget, on budget, or over budget. The document includes specific examples with numerical data related to project activities and their respective CPI values.

1. Indexes to Monitor Progress

2. Cost Performance Index
CPI

3. CPI =
EV
AC
Cost Performance Index
(CPI)CPI

4. 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

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

6. Cost Performance Index
(CPI)
50%
Activity A: Total PV = $24,000
(CPI)CPI

7. Cost Performance Index
(CPI)
Activity A: Total PV = $24,000
50%
EV= $24,000
AC =
* 50% = $12,000
CPI
EV $12,000
$16,000

8. Cost Performance Index
CPI
$12,000
= = .75
0 0.5 1 1.5 2 2.5
0.75
$16,000

9. 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

10. Interpretation of CPI
0 0.5 1 1.5 2 2.5
SPI
CPI
Project
0.75

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

12. Cost Performance Index
(CPI)
50%
Activity A: Total PV = $24,000
(CPI)CPI

13. Cost Performance Index
(CPI)
Activity A: Total PV = $24,000
50%
EV= $24,000
AC =
* 50% = $12,000
CPI
EV $12,000
$9,600

14. Cost Performance Index
CPI
$12,000
= = 1.25
$9,600
0 0.5 1 1.5 2 2.5
1.25

15. 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

16. Interpretation of CPI
0 0.5 1 1.5 2 2.5
SPI
CPI
1.25
Project