All Articles by B K S Prasad

To-Complete Performance Index (TCPI)

TCPI is to calculate the cost performance to be achieved in order to meet the project goals. The ratio of remaining work to be completed with remaining budget provides the TCPI.

To calculate TCPI first we need to calculate the EVM (Earned Value Management) and then based on AC (Actual Cost) , EV (Earned Value) we can calculate TCPI. TCPI is calculated under two conditions one with original budget and the other with new budget.

TCPI=(BAC-EV)/(BAC-AC)—With planned budget

TCPI=(BAC-EV)/(EAC-AC)—With new budget

BAC = Budget at completion

The ratio should be ideally 1. If it greater than 1, then difficult to complete and if less than 1 easier to complete.

TCPI is used as a technique under the process Control Costs.

Cost Benefit Analysis

Cost Benefit Analysis technique is used to see the benefit we can get after investing the money. This technique can be used during initialization to check is it worth to invest by calculating the return as part of business case and or can be for improving the quality while considering the cost of quality.

For example, what can be the reduction in the defect, how much of network downtime can be reduced, how much of wastage or scrapping of the raw materials can reduced etc…

We know that as the quality increases the cost also increases. But in the end we need to see is it worth for the investment so as to get the benefit. Cost Benefit Analysis technique is used under the process Plan Quality Management.