CPI Calculation
Find the CPI for this project and deduce whether you are under budget or over budget.
  • You have a project to be completed in 12 months and the cost of the project is 100,000 USD. Six months have passed and 60,000 USD has been spent, but on closer review, you find that only 40% of the work has been completed so far.
  • Actual Cost (AC) = 60,000 USD
  • Planned Value (PV) = 50% of 100,000 = 50,000 USD
  • Earned Value (EV) = 40% of 100,000 = 40,000 USD
ValueMeaning
CPI<1.0Project is Over
CPI=1.0Project is On
CPI>1.0Project is Under
Transcript

Solution:

CPI = EV / AC

  • CPI = 40,000 / 60,000
  • CPI = 0.67
  • The project is over budget.