The to-complete performance index (TCPI) is a ratio of remaining work compared to remaining budget and is represented as a percentage. It can be viewed as an efficiency formula where the higher the percentage, the more efficiency you're currently getting out of the task. A TCPI that is more than 20 percent higher or lower than the CPI means that the current EAC is not representative of past performance. Here is the TCPI formula:
TCPI = work remaining / funds remaining where: work remaining = BAC—BCWP
funds remaining = BAC—ACWP
For example, given the following project numbers, here's how you'd calculate the TCPI:
BCWP = 175,000
ACWP = 180,000
TCPI = (250,000—175,000) / (250,000—180,000) = 75,000 / 70,000
To compare TCPI to CPI, divide one into the other. If the result is between 1.2 and 0.8, then you're within the +/- 20% guideline:
TCPI / CPI = efficiency compared to past performance
In this case, a comparison of 1.1 means we're essentially on track in our project relative to past performance (provided, of course, that past performance was in line with our expectations).
Was this article helpful?