The To Complete Performance Index (TCPI) is a comparative Earn Value Management (EVM) metric used primarily to determine if an independent estimate at completion is reasonable. It computes the future required cost efficiency needed to achieve a target Estimate at Completion (EAC). The TCPI is computed by dividing the budget remaining, which is represented by subtracting the cumulative Actual Cost Work Performed (ACWP) from the target EAC, into the budgeted cost of work remaining, which is represented by subtracting the cumulative Budgeted Cost Work Performed (BCWP) from the Budget at Completion (BAC). The TCPI is compared to the cumulative Cost Performance Index (CPI) to determine if a target EAC is reasonable.
The TCPI is:
- Reasonable if within .5 of CPI
- Overly Optimistic if greater than .5 of CPI
- Overly Conservative if CPI is more than .5
If the TCPI is calculated to be 1.25, the program must spend an .25 extra of budget work to achieve EAC. If the TCPI is .90, the program can spend .10 less than budget work to achieve EAC.
- TCPI is a new term that recently appeared in the new Project Management Institute’s (PMI) Project Management Body of Knowledge (PMBOK) 4th Edition.
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