Cost Performance Index (CPI) Calculation
The Cost Performance Index (CPI) is a key metric in project management that measures the cost efficiency of a project. It is calculated as:
CPI = Earned Value (EV) / Actual Cost (AC)
A CPI value greater than 1 indicates a project is under budget, while a value less than 1 indicates it is over budget.
FAQs on Cost Performance Index Calculation
- What is Cost Performance Index?
- How do you calculate CPI?
- Why is CPI important in project management?
- What is the ideal CPI value?
- What happens if CPI is less than 1?
- Can CPI be negative?
- What is Earned Value (EV) in CPI calculation?
- How does CPI impact project decisions?
- What is the difference between CPI and SPI?
- How can CPI be improved?