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Calculating Cost Performance Index (CPI)

The Cost Performance Index (CPI) describes the relationship at the project or task level between the planned cost and actual cost. Project Managers review this metric to identify tasks or projects currently tracking under or over cost at a given point.  Cost can be measured in hours or dollars, depending on your Performance Index Method (PIM). For more information about setting the Performance Index Method, see "Setting the Performance Index Method (PIM)."

Only organizations that require time entry can use CPI. Furthermore, cost-based PIM values are accurate only in organizations that have defined cost rates for task assignees (job roles or users). 

Understanding CPI

Understanding the CPI Value

Project managers understand that a CPI value of 1 means the project is exactly on budget.  Values greater than 1 indicate a project is under budget (fewer hours or expenses have been recorded than originally planned), and values less than 1 mean a project is over budget (more hours or expenses have been recorded than originally planned).  The further from 1, the greater deviation from the plan.

CPI Value Indication on Budget
1 On plan or budget
> 1 (greater than 1) Under budget
< 1 (less than 1) Over budget

Understanding How CPI Is Calculated

In Workfront, the calculation for CPI depends on the Performance Index Method selected for the project. For more information about setting the Performance Index Method, see "Setting the Performance Index Method (PIM)."

CPI Calculations When Using Hour-Based PIM

IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1

For a non-parent task:
TotalBudgetedCostWorkPerformed = Planned Hours * (Percent Complete/100)

For a parent task:
TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all direct child tasks.

For a project:
TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all top level tasks (parents and standalone tasks).  

CPI Calculations When Using Cost-Based PIM

CPI = (Planned Cost of Work Performed + Planned Cost of Incurred Expenses) / (Total Actual Cost + Actual Cost of Incurred Expenses)

The fields in this calculation are described below:

Total Actual Cost = Actual (logged) Hours * Hourly Rate of assignees

Actual Cost of Incurred Expenses = the same as Actual Cost

Incurred Expense is the expense on which Actual Cost>0

Planned Cost of Incurred Expenses= Total of Planned Cost of all incurred expenses

Old calculation - taken out by Lilit and replaced below: Planned Cost of Work Performed= (planned labor cost) * (percent complete) / 100 where planned labor cost is the planned hours allocated to assignees * their rates.

Planned Cost of Work Performed=TotalBudgetedCostWorkPerformed/ Actual Cost

For a non-parent task:
TotalBudgetedCostWorkPerformed = Planned Labor Cost * Percent Complete/100

For a parent task:
TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all direct child tasks.

For a project:
TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all top level tasks.

Locating CPI in a Project or Task

  1. Navigate to the project or task where you want to view the CPI.
  2. Select the Project Details tab or the Task Details tab, depending on whether you are viewing CPI for a project or task.
  3. Click Finance.