ToComplete Performance Index

To-complete performance index (TCPI) is the projected performance level the remaining work of the project must achieve in order to meet the BAC or EAC. It's calculated by dividing the work that's remaining by the funds that are remaining. The formula for TCPI when using the BAC is as follows:

Assume for this example that BAC is $1,000, EV is $700, and AC is $800.

This means you'll need to reach a CPI rate that's 1.5 times what you've experienced to date in order to meet the BAC goal. If the result is less than one, future work does not have to be performed as efficiently as past performance.

When the BAC is no longer attainable, the project manager should calculate a new EAC and this new estimate becomes the goal you'll work toward once it's approved by management. The TCPI formula when EAC is the goal you're aiming for is as follows:

We'll use the same assumptions as we did in the formula earlier and note that EAC is $1,200. The formula looks like this:

There is one last thing to note regarding this formula. If cumulative CPI falls below one, all future project work must be performed at the TCPI

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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