Calculate 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 Set 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).
Access requirements
You must have the following access to perform the steps in this article:
| table 0-row-2 1-row-2 2-row-2 3-row-2 layout-auto html-authored no-header | |
|---|---|
| ÃÛ¶¹ÊÓƵ Workfront plan | Any |
| ÃÛ¶¹ÊÓƵ Workfront license |
New: Light or higher or Current: Review or higher |
| Access level configurations | View access to Projects and Financial Data |
| Object permissions | View or higher permissions to the project with permissions to View Finance |
For more detail about the information in this table, see Access requirements in Workfront documentation.
Overview of the Cost Performance Index (CPI)
The CPI value 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.
How CPI is calculated how-cpi-is-calculated
In ÃÛ¶¹ÊÓƵ 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 Set the Performance Index Method (PIM).
CPI calculations when using Hour-based PIM cpi-calculations-when-using-hour-based-pim
If
Actual Hours > 0 THEN CPI = Total Budgeted Cost Work Performed / Actual Hours
Otherwise
CPI = 1
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For a non-parent task:
code language-none Total Budgeted Cost Work Performed = Planned Hours * (Percent Complete / 100) -
For a parent task:
Total Budgeted Cost Work Performed = the sum of the Total Budgeted Cost Work Performed field for all direct child tasks. -
For a project:
Total Budgeted Cost Work Performed = the sum of the Total Budgeted Cost Work Performed field for all top level tasks (parents and standalone tasks).
For information about the total Budgeted Cost Work Performed (BCWP), see Calculate Budgeted Cost Work Performed (BCWP).
CPI Calculations when using Cost-based PIM cpi-calculations-when-using-cost-based-pim
If
Actual Labor Cost + Incurred Actual Expense Cost <> 0 THEN CPI = (Total Budgeted Cost Work Performed + Incurred Planned Expense Cost) / (Actual Labor Cost + Incurred Actual Expense Cost)
Otherwise
CPI = 1
The fields in this calculation are described below:
Total Actual Cost = Actual (logged) Hours * Hourly Rate of assignees
Incurred Actual Expense Cost = 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
-
Planned Cost of Work Performed is calculated by the following formula:
code language-none Planned Cost of Work Performed = Planned cost * Percent Complete / 100
The Total Budgeted Cost Work Performed is calculated for the following:
-
For a non-parent task:
code language-none Total Budgeted Cost Work Performed = Planned Labor Cost * Percent Complete / 100 -
For a parent task:
code language-none Total Budgeted Cost Work Performed = SUM(Total Budgeted Cost Work Performed field from all direct child tasks) -
For a project:
code language-none Total Budgeted Cost Work Performed = SUM(Total Budgeted Cost Work Performed field for all top level tasks)
Locate CPI in a project or task
You can display the CPI of a project or a task in a project or task list or report. In addition, you can view it at the project or task level.
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Go to the project or task where you want to view the CPI.
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Expand Project Details or Task Details in the left panel, depending on whether you are viewing CPI for a project or task.
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Click Finance.
The CPI displays in the CPI/ SPI/ CSI field.
