To-Complete Performance Index (TCPI) is a metric used to measure the performance of a project. It is calculated by taking the total budgeted cost of work remaining and dividing it by the total budgeted cost of work performed plus the total budgeted cost of work remaining. The result is expressed as a percentage, which indicates how much more money needs to be spent in order to complete the project.
The formula for calculating TCPI is: TCPI = (Budgeted Cost of Work Remaining / (Budgeted Cost of Work Performed + Budgeted Cost of Work Remaining)) x 100. This formula can be used to calculate the TCPI at any point during the project's life cycle, allowing project managers to track progress and make adjustments as needed.
TCPI is an important metric for project managers because it provides insight into how well a project is progressing. By tracking this metric, project managers can identify areas where additional resources may be needed or where costs may need to be reduced in order to stay within budget. Additionally, it can help project managers determine when a project should be terminated if it appears that it will not meet its objectives.