| |
Cost performance index is a project metric calculated as the ratio of earned value to actual cost. This is calculated as:cost performance index = earned value / actual costEarned value is defined as the authorized budget for work completed for a project. Actual cost represents the total project expenditures to date. The cost performance index is a measure of the cost efficiency of a project. In other words, it indicates if you're over budget.
|
Type | | Definition | | Also known as | CPI | Example | A project has spent $1 million dollars and completed work associated with an authorized budget of $800,000. Resulting in a cost performance index of 800,000:1,000,000 or 0.8. Any measure below 1 indicates a lag between spending and delivery of work. This can be interpreted as being currently over budget.
A measure above 1 indicates work is being delivered faster than money is being spent. This can be interpreted as being currently under budget. | Value | A measure of the value delivered for project expenditures. | Related Concepts | |
Project Metrics
This is the complete list of articles we have written about project metrics.
If you enjoyed this page, please consider bookmarking Simplicable.
A few ways to measure a project.
A list of common business metrics.
How to measure innovation including early stage, late stage and overall program metrics.
A definition of project productivity with 3 example calculations.
An overview of stakeholder satisfaction.
A list of change management first principles.
An overview of project goals with detailed examples.
An overview of project management with examples.
The definition of project with examples.
A list of common project risks.
A list of basic project management techniques.
A definition of workaround with examples.
A list of project branding techniques.
An overview of project stakeholder management with examples.
A definition of action plan with examples.
The primary types of cost overrun.
The definition of document control with examples.
A guide to project oversight.
A definition of design driven development with examples.
TrendingThe most popular articles on Simplicable in the past day.
Recent posts or updates on Simplicable.
Site Map
© 2010-2024 Simplicable. All Rights Reserved. Reproduction of materials found on this site, in any form, without explicit permission is prohibited.
View credits & copyrights or citation information for this page.
|