You are managing a hydroelectric project for the government and you are getting

Question

You are managing a hydroelectric project for the government and you are getting pressure from your sponsor to deliver the project within your baselines. You are made aware of a potential labor shortage that is a risk that you have not accounted for. You need to determine how your project is progressing and report to your sponsor so you can request additional funding, if needed. Your project has a CPI of 0.81 and TCPI = 1.25. You know that your project is: O A) Over budget and ahead of schedule O B) Under budget and ahead of schedule ° C) Over budget and TCPI is an index of cost performance relative to schedule performance and reflects overall effort required to complete the project on time and on schedule D) Over budget and TCPI is a projection of cost performance that must be achieved on the remaining work

Explanation / Answer

CPI ( COST PERFORMANCE INDEX) determines the current performance of the project. it is the project's current cost efficiency or actual efficiency of completed work.

If

CPI< 1 :- VALUE EARNED< MONEY SPENT (Project is over budget)

CPI= 1:- VALUE EARNED = MONEY SPENT (Project is good as per the budget)

CPI> 1:- VALUE EARNED > MONEY SPENT (Project is under budget)

Given CPI is 0.81 which is less than 1. So the project is over budget.

TCPI (TO COMPLETE PERFORMANCE INDEX)

= Work Remaining / Funds remaining

TCPI <1 (Easier to complete the project)

TCPI =1 ( Perfectly good to complete)

TCPI >1 ( Harder to complete)

Given TCPI is 1.25 which is gretaer than 1.It means that the project must spend .25 extra of budget to achieve estimate at completion.

TCPI is the projection of cost performance to be achieved on the remaining work.

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