The document discusses the To Complete Performance Index (TCPI), which is a measure of the future projected cost efficiency needed to complete the remaining work of a project within its original or revised budget. It provides definitions of TCPI and contrasts it with Cost Performance Index (CPI). An example project is used to demonstrate how to calculate TCPI using formulas that take the budget at completion (BAC), actual costs (AC), earned value (EV), and estimate to complete (ETC) into account. Formulas are presented for calculating TCPI based on the original budget and when the budget has been revised.

1. To Complete
Performance Index
TCPI FORMULAS IN PROJECT MANAGEMENT

2. Agenda
 Explanation & Definitions
 Understanding TCPI Through Example
 TCPI Formulas
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 2

3. Agenda
 Explanation & Definitions
 Understanding TCPI Through Example
 TCPI Formulas
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 3

4. Project Cost Efficiency
 Project Cost Efficiency can be defined as the ratio of work to cost.
 Work could be Completed Work or Remaining Work. (in appropriate units)
 Cost could be used up money or remaining money. (in dollars or any other monetary unit)
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 4
Project Cost Efficiency = Work / Cost

5. Two Cost Efficiencies - CPI v/s TCPI
CPI – COST PERFORMANCE INDEX
 Project’s current cost efficiency.
 Actual cost efficiency of completed
work.
 CPI = EV/AC
TCPI – TO COMPLETE PERFORMANCE
INDEX
 Project’s future cost efficiency.
 Projected cost efficiency of remaining
work.
 To be determined….
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 5
COMPLETED REMAINING
TOTAL PROJECT SCOPE/WORK
CPI TCPI ?
Reference
https://www.pmbypm.com/basics-earned-value-analysis/
https://www.slideshare.net/pmalik2/101-a-beginners-guide-to-earned-value-management

6. TCPI Definition
It is a measure of the cost performance that is required to be
achieved with the remaining resources in order to meet a specified
management goal, expressed as the ratio of the cost to finish the
outstanding work to the remaining budget.
Future projected cost efficiency to complete the project within
original or revised project budget.
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 6
PMBOK Guide

7. Graphical Representation Of A Project
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 7
Control Date
Time
CumulativeCost
EAC
BAC
AC
PV
EV

8. Agenda
 Explanation & Definitions
 Understanding TCPI Through Example
 TCPI Formulas
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 8

9. Project Plan – Example Project
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 9
Project Scope Build 80 Tables
Project Time Estimate (Duration) 5 Days
Cost Estimate Per Table $1000
Project Cost (Budget) $1000*80 = $80000
Reference
https://www.pmbypm.com/basics-earned-value-analysis/
https://www.slideshare.net/pmalik2/101-a-beginners-guide-to-earned-value-management

10. Project Status – Example Project
CPI = EV/AC
= 35000/36000
= 0.97
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 10
Work No. of Tables Cost Monetary Value
Total 80 BAC or EAC 80*$1000 = $80000
Completed 35 $36000 (AC)
35*$1000 = $35000
(EV)
Remaining 45 (80-35) ETC 45*$1000 = $45000
TCPI = Remaining Work/Remaining Funds
= 45000/(80000-36000)
= 1.02
If CPI < 1 then, TCPI needs to be greater than 1 in order to complete the remaining work within the original project budget

11. Calculating TCPI
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 11
TCPI = (monetary value of remaining work)/(remaining funds)
COMPLETED REMAINING
TOTAL PROJECT SCOPE/WORK
CPI TCPI ?

12. Calculating TCPI
 Monetary value of remaining work = monetary value of total work – monetary value
of completed work
 Monetary value of remaining work = BAC – EV
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 12
TCPI = (monetary value of remaining work)/(remaining funds)
EV REMAINING
BAC

13. Calculating TCPI
 Monetary value of remaining work = monetary value of total work – monetary value
of completed work
 Monetary value of remaining work = BAC – EV
 Remaining funds = total budget – actual expenditure
 Remaining funds = BAC – AC
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 13
TCPI = (monetary value of remaining work)/(remaining funds)

14. Agenda
 Explanation & Definitions
 Understanding TCPI Through Example
 TCPI Formulas
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 14

15. TCPI Formulas
If Sponsor decides to revise the Project Budget to EAC, the formula becomes
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 15
TCPIB = (BAC – EV) / (BAC – AC)
TCPIE = (BAC – EV) / (EAC – AC)

16. Calculations
 TCPIB = (80000 – 35000) / (80000 – 36000)
TCPIB = 1.02
If Budget imposed by Sponsor is $78000
 EAC = $78000
 TCPIE = ($80000 – $35000) / ($78000 – $36000)
TCPIE = 1.07
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 16

17. YOUR OPINION IS IMPORTANT
TO US
FOR ANY QUESTIONS OR SUGGESTIONS CONTACT US @
HTTPS://WWW.PMBYPM.COM/CONTACT-PRAVEEN-MALIK/
DESIGNED AND DEVELOPED BY WWW.PMBYPM.COM | COPYRIGHT 2018 17