Cost Performance Index (CPI)

Want to measure your project’s cost efficiency? Let’s dive into Cost Performance Index (CPI)!

Cost Performance Index (CPI) measures the cost efficiency of budgeted resources. It’s the ratio of earned value to actual cost.

CPI helps you understand how well you’re using your budget. It identifies cost efficiency and potential savings.

Formula:

CPI = Earned Value (EV) / Actual Cost (AC).

Calculate CPI regularly. A CPI above 1 means you’re cost-efficient; below 1 means you’re overspending.

Use CPI to ensure cost efficiency in your projects. It’s a vital tool for successful project management!

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