Cost Performance Index Notes: Definitions & Explanations PDF | Download eBooks
Study Cost Performance Index lecture notes PDF with project management definitions and explanation to study What is Cost Performance Index?. Study cost performance index explanation with project management terms to review project management course for online MBA programs.
Cost Performance Index Definitions:
Cost performance index (CPI) is a measure of the cost efficiency with which the project is being performed.
Successful Project Management by Jack Gido and James P. Clements
Cost performance index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost.
A Guide to the Project Management Body of Knowledge by Project Management Institute
Cost Performance Index Notes:
Monitoring of a project is necessary. The difference between the planned work and the actual work is not a new thing. Also, the project can incur costs that are different from the estimated costs. The cost performance of a project is analyzed using different performance measures. One of the cost performance indicator is called cost performance index. It shows the cost efficiency with which a project is performed till that point. Cost performance index considers cumulative earned value and cumulative actual cost of a project or a work package in the calculation. The value of cost variance is calculated dividing cumulative earned value by cumulative actual cost. A cost performance index less than 1 shows that the value of actual work performed is less and smaller values of CPI need corrective action.
Keep Learning with Project Management Notes
What is Resource Leveling?
Resource leveling is also called resource smoothing. It is a method of schedule development which aims to cover the fluctuations ...
What is Gantt Chart?
A Gantt chart is a technique used for network planning. Developed in 1900's, it is the simplest tool of network ...
What is Status Review Meeting?
Meetings are conducted to communicate with everyone involved in the project. There are different types of meetings conducted throughout the ...
What is Work Performance Data?
When a project is carried out, it is important to monitor the performance of the project by observing the activities ...
What is Critical Path?
Usually network diagrams for large projects are complex and involve a large number of activities. A network diagram consists of ...
What is Communication Model?
Communication can be made between two or more parties. The way of communicating the information, the parties involved, the involved ...
