Completing Performance Index Essay Assignment Paper

## Question

If the variances are atypical, what is the Estimate at Completion?

If the project must meet the deadline, what is the Estimate at Completion?

What is the To Complete Performance Index for finishing the project within the $5,000 budget?

What does this TCPI tell us? Completing Performance Index Essay Assignment Paper

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Using the given information, we can calculate the Estimate at Completion (EAC) and To Complete Performance Index (TCPI) as follows: Completing Performance Index Essay Assignment Paper

To calculate the EAC when the variances are atypical, we use the formula: EAC = BAC / CPI, where BAC is the Budget at Completion. Since the CPI is greater than 1, the atypical variances suggest that the original budget was too conservative and the actual cost of completing the project will be less than the BAC. Therefore, we use the formula EAC = BAC / CPI = $5,000 / 1.1 = $4,545.45.

To calculate the EAC if the project must meet the deadline, we use the formula: EAC = AC + (BAC – EV) / (CPI x SPI), where AC is the Actual Cost and SPI is the Schedule Performance Index. Since the plan was to have 50% of the work completed by now, the SPI can be calculated as: SPI = EV / PV = $2,000 / ($5,000 x 0.5) = 0.4. Assuming the Actual Cost is $2,000, we can calculate the EAC as: EAC = $2,000 + ($5,000 – $2,000) / (1.1 x 0.4) = $9,090.91.

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To calculate the To Complete Performance Index (TCPI) for finishing the project within the $5,000 budget, we use the formula: TCPI = (BAC – EV) / (BAC – AC). Assuming the Actual Cost is $2,000, we can calculate the TCPI as: TCPI = ($5,000 – $2,000) / ($5,000 – $2,000) = 1.

The TCPI tells us how efficiently the remaining work must be performed to meet the budget. If the TCPI is less than 1, it means that the remaining work can be completed at a slower rate than planned and still meet the budget. If the TCPI is greater than 1, it means that the remaining work must be completed more efficiently than planned to meet the budget. In this case, the TCPI is equal to 1, which means that the remaining work must be completed as planned to meet the budget. Completing Performance Index Essay Assignment Paper