Join Aileen Ellis for an in-depth discussion in this video Predicting the future of the project with TCPI, part of Project Management: Calculating Earned Value.
The last Earned Value idea we will take…with the system upgrade example is called…the To Complete Performance Index.…It is an advanced Earned Value idea…and a very important idea.…TCPI tells us what performance index we need…going forward to be able to finish the job…with the money remaining.…There are multiple ways to calculate TCPI,…again, based on the assumptions we make.…
We will demonstrate two ways.…One assumption is that the Budget at Completion…is all the money we will get for the project.…The logical equation I like to use is…TCPI = work remaining/money remaining.…A more detailed equation, TCPI = (BAC-EV)/(BAC-AC).…
When we plug in the numbers,…we get a TCPI that equals approximately 1.43.…This means going forward we need to obtain $1.43 worth…of value for every dollar we spend.…This is a high order.…We now would need to sit with our team…and other stakeholders and determine how…to accomplish this.…Let's look at a different assumption.…
With the second assumption we're going to assume…that we are given the full EAC that we estimated earlier.…
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- What is earned value management?
- Who uses EVM?
- Determining budget at completion, planned value, and earned value
- Calculating schedule and cost variance as well as schedule and cost performance index
- Forecasting future costs
- Computing TCPI for project success
- Exploring limitations of EVM<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.