A project has a Budget at Completion (BAC) of $500,000. The project has spent $200,000 to date (AC) and has realized an Earned Value (EV) of $160,000. If the project management intends to meet the original budget goals, what is the To-Complete Performance Index (TCPI)?
The TCPI is calculated based on the formula TCPI = (BAC - EV) / (BAC - AC). For this project, based on the provided information, the TCPI would be ($500,000 - $160,000) / ($500,000 - $200,000), which simplifies to $340,000 / $300,000, resulting in a TCPI of 1.13. This means the project needs to be approximately 13% more efficient with the remaining budget in order to meet the original budget goals.
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