## EVM Hangout : Question 2

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saket
Posts: 3113
Joined: Sat Dec 07, 2013 10:37 pm

### EVM Hangout : Question 2

You are the project manager and want to calculate TCPI based on EAC for your project. The data you have with you is BAC: \$ 135,000, earned value for your project : \$ 45,000, actual costs : \$ 70,000 and EAC is \$130,000. What is the TCPI that you will get from these values?
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kshitij_y
PMP
Posts: 229
Joined: Wed Dec 11, 2013 9:39 am

### Re: EVM Hangout : Question 2

TCPI = BAC-EV / EAC-AC

BAc= 1.35 lacs
EV= 45000
AC=70000
EAC = 1.30 Lacs

TCPI =30,000
saket
Posts: 3113
Joined: Sat Dec 07, 2013 10:37 pm

### Re: EVM Hangout : Question 2

TCPI = Work Remaining / Fund Remaining , TCPI > 1 mean we have more work left than funds …so manage your cost aggressively

Value Work remaining = Total Work – value of done work = BAC – EV = 135,000 - \$ 45,000 = 90,000
Funds = Approved Budget or Estimate – Money already spend = EAC – AC = 130,000 – 70,000 = 60,000

TCPI = 90,000 / 60,000 = 9/6 = 1.5 Very Aggressive Planning
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kshitij_y
PMP
Posts: 229
Joined: Wed Dec 11, 2013 9:39 am

Thanks Saket