Welcome to Project Management Questions!

You can ask any question on Project Management and you can rest assured that real Project Managers will answer your shortly!

What is a good cost performance index?

+1
vote
What is the value of CPI (Cost Performance Index) that you think is good? I know that 1 means that the project is on budget, and anything below it means that the project is over budget, but can we say that a CPI of 0.8 or 0.9 is still good? I mean what is the minimum value of CPI that is still acceptable and the project can still be considered "good"?
asked 8 years ago by anonymous

2 Answers

0
votes
A correction to the first line of the below answer by sdcapmp:

The best is 1, which is perfection...The worst are below 1.

A CPI cannot be below 0, as it's always the division of two positive numbers.
answered 8 years ago by LonelyProjectManager (4,420 points)
0
votes
The best is 1, which is perfection.  The costs are right as projected.  The worst are <1 -- this is an over budget project.  

Those that are >1 may be good or bad.  If you are too far behind in budget (say more than 10-20%, chances are the estimates you are working with were unreliable and you have possibly locked in funds that could have been productively spent on other projects.  You should re-estimate the project to see if funds or resources can be released for other work.
answered 8 years ago by sdcapmp (45,840 points) edited 8 years ago by sdcapmp

Related questions

+1
vote
1
answer
0
votes
1
answer
0
votes
2
answers
asked 8 years ago by anonymous
© 2010 - 2012 Project Management Questions - All Rights Reserved