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You are the project manager of the NNH project. In this project you have created a contingency response that the cost performance index should be less than 0.93. The NHH project has a budget at completion of $945,000 and is 45 percent complete - though the project should be 49 percent complete. The project has spent $455,897 to reach the 45 percent complete milestone. What is the project's cost performance index?
Suggested Answer: D
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34 comments · newest first
LO
Lonna
10 months ago
This doesn't add up, something feels off here.
AL
Allene
10 months ago
I think it's closer to 0.92.
VI
Vi
10 months ago
CPI is calculated as EV/AC.
RO
Rolf
10 months ago
The project is over budget, for sure.
DI
Diego
10 months ago
Wait, how can it be less than 0.93 if it's already at 0.92?
MI
Ming
11 months ago
I feel like I might confuse the CPI with the schedule performance index. I just need to focus on the actual costs and earned value for this one.
WY
Wynell
11 months ago
I practiced a similar question where we had to find the CPI, and I think the formula is CPI = EV / AC. So if I get the EV right, I should be able to find the CPI.
RO
Ronnie
11 months ago
I’m a bit unsure about the calculations, but I think if the project is 45% complete, the earned value would be around $425,250. Does that sound right?
MA
Mariko
11 months ago
I remember that the cost performance index (CPI) is calculated by dividing the earned value by the actual cost. I think I need to figure out the earned value first.
KR
Kris
11 months ago
Alright, I think I see how to do this. The key is to calculate the planned value based on the percent complete, and then use that along with the actual cost to find the cost performance index. I'm feeling pretty confident I can get the right answer.
MI
Michel
12 months ago
Hmm, I'm not sure I fully understand how to approach this. Maybe I should start by reviewing the definitions of cost performance index and planned value. Then I can try to set up the calculation step-by-step.
TE
Tenesha
12 months ago
I've got this! The cost performance index is calculated as the actual cost divided by the planned value. With the budget at completion and the current percent complete, I can figure out the planned value and then plug that into the formula.
DE
Delisa
12 months ago
This looks like a tricky one. I'm a bit confused about how to calculate the cost performance index from the information given. I'll need to review the formulas and double-check my work.
FR
Franchesca
1 year ago
Okay, let's think this through step-by-step. We have the budget at completion, the current percent complete, and the actual spend so far. I think we need to calculate the planned value and the actual cost to determine the cost performance index.
MI
Miriam
1 year ago
Hmm, let's see... If the project is 45% complete but should be 49%, that's gotta mean the CPI is less than 1. Aha, it's C!
JA
Jani
1 year ago
Hold up, I'm getting some serious deja vu here. Didn't we do a similar problem last week? Oh well, time to put on my project management hat and crunch those numbers.
AN
Annita
1 year ago
C) 0.92
RY
Ryan
1 year ago
B) 0.93
OD
Odelia
1 year ago
A) 1.06
SA
Sabine
1 year ago
Okay, let's break this down. BAC of $945,000, 45% complete, and $455,897 spent... Yup, that's gotta be option C for sure.
CA
Cassi
1 year ago
Great, let's go with option C then.
TA
Tamra
1 year ago
Yes, I'm confident in my calculation.
CO
Coletta
1 year ago
Are you sure about that?
SH
Shaun
1 year ago
Option C) 0.92
JE
Jerlene
1 year ago
Haha, the project manager's trying to pull a fast one with that contingency response! Let's see if they can keep their CPI under 0.93.
PE
Penney
1 year ago
B) 0.93
GA
Gabriele
1 year ago
Haha, that project manager is definitely trying to play it safe with that contingency response!
AL
Alline
1 year ago
A) 1.06
FR
Franklyn
1 year ago
C) 0.92
WI
Wilda
1 year ago
B) 0.93
AI
Ailene
1 year ago
A) 1.06
WI
Wilbert
1 year ago
I calculated the cost performance index to be 0.92 based on the given information.
PR
Providencia
1 year ago
I agree, the project is behind schedule and over budget.
WI
Wilda
1 year ago
I think the cost performance index should be less than 0.93.