Question

You have collected the following data based on three months of your project’s performance. Complete the table. Calculate cumulative CPI (CPI^C). How is the project performing after these three months? Is the trend positive or negative?

	EV	EVC	AC	ACC	CPI	CPIC
January	$30,000		$35,000
February	$95,000		$100,000
March	$125,500		$138,000

Answer 1

Answer:

When we divide the sum of EVs by the summation of ACs, we will get the CPI. CPI indicates the progress of the project. IF the CPI is less than 1 then it means we are running behind the budget and if the CPI is more than 1 then it means we are running ahead of budget. If we calculate the same month's cumulative figures then we can track the progress of the project through the trend of CPI

Below is the calculation of the same:

	EV	EVC	AC	ACC	CPI	CPIC
January	$30,000.00	$30,000.00	$35,000.00	$35,000.00	0.86	0.86
February	$95,000.00	$1,25,000.00	$1,00,000.00	$1,35,000.00	0.95	0.93
March	$1,25,500.00	$2,50,500.00	$1,38,000.00	$2,73,000.00	0.91	0.92

As we can see that in February CPI improved but again it came down in the month of March. The overall trend is positive as the improvement in the month of February was significant and there is a marginal decrease in the month of march therefore, overall trend is positive.