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When we will call project under budget or over budget?

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push5
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Joined: Sat Jul 24, 2021 1:16 am

When we will call project under budget or over budget?

Sat Sep 18, 2021 2:27 pm

Please confirm, when the project is under/ over budget. i.e. term of planned value, Earned value and Cost.
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saket
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Re: When we will call project under budget or over budget?

Sun Sep 19, 2021 5:18 am

Cost performance index.

The cost performance index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost

CPI = EV/AC

A CPI value of less than 1.0 indicates a cost overrun : Overbudget, mean the Actual Cost is more than Earned Value, mean we are less effective in managing Cost

A CPI value greater than 1.0 indicates a cost underrun of performance to date. Underbudget, mean we earned more than actual cost, so we making better use of our money spent than originally planned.
push5
Posts: 5
Joined: Sat Jul 24, 2021 1:16 am

Re: When we will call project under budget or over budget?

Sat Oct 30, 2021 5:42 pm

Thanks

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