One of the measures that should be included in a project is that of earned value management (EVM). In past studies, there has been the call to have value of the project align well with the budgeted cost and time. There are tools that have been put in place to ensure that the project has been followed to the latter ( Fleming, & Koppelman, 2016 ). There are two tools that are used in measuring this. One of the tools is Cost Performance Index (CPI) and To-Complete Performance Index (TCPI).
The use of CPI is very necessary as it highlights the costs that are associated with a project. The CPI is an indication of what had been presented in the budget of the project against the actual costs that has been met in the project. Budgets can be presented with the use of measures that can be taken ( Fleming, & Koppelman, 2009 ). Some of the measurements that can be used include the monitory costs, time, deliverables, and anything which is possible to be measured. Perfect CPI can be achieved if the value of CPI is 1.0. If the value is 0.75, it means that there is a gap of 0.25 and that the remaining phase of the project will need to be done exceedingly more than the pace that has already accomplished.
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To-Complete Performance Index (TCPI) is another tool which is used to measure how the remaining work in a project can be achieved in order to be at par with the project requirements. TCPI is a measure of the future performance of the work and is a useful tool for gauging at the future performance ( Fleming, & Koppelman, 2016 ). One of the requirements in order to use TCPI is to know the work that is remaining and how to ensure that the work will be accomplished in the stipulated budget.
One of the tools that could have been useful in my project is that of TCPI. One of the projects I did was that of installing a computer network in a company. When I compute the CPI, I get a value of 0.75. I ended up taking longer to complete the project. If I had known the use of this value I could have measured TCPI and increase my pace midway to the project.
References
Fleming, Q. W., & Koppelman, J. M. (2009). The two most useful earned value metrics: the CPI and the TCPI. Cost Engineering , 51 (3), 22.
Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management . Project Management Institute.
