Join Aileen Ellis for an in-depth discussion in this video Predicting the future of the project with the to-complete performance index (TCPI), part of Project Management: Calculating Earned Value.
The last earned value idea we will take with this fence example…is called "to complete performance index," TCPI.…It is a very advanced earned value idea and a very important one.…TCPI tells us what performance index we need going forward…to be able to finish the job with the money we have remaining.…Let's use the fence example again.…We will discuss two ways to calculate TCPI.…
The first way, we will assume that the original budget of $400…is all the money we are receiving.…No other money will be added to the budget.…The logical equation I like to use is…TCPI equals work remaining divided by money remaining.…Let's solve it logically first…and then we will plug numbers into the equation.…Ask yourself how much work is remaining in the fence example?…The plan was to build four sides.…
We have completed one side.…Therefore, three sides remain.…In this equation though, we need to convert everything into currency.…What is the value of the three sides remaining?…The budgeted value is $300.…So $300 goes in the top part of the equation.…
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- Identify the fundamentals of calculating budget at completion, planned value, earned value, and actual cost.
- Recognize the steps to forecast estimate at completion.
- Determine the steps in calculating BAC, PV, EV, and AC.
- Break down how to calculate CV and CPI.
- Examine the elements of forecasting EAC.
- Explore the steps involved in forecasting ETC and VAC.