Dear PP members,
Please help me to solve this problem.
Presently we are doing a project of
1.Total duration = 6 months.
2. Total budgeted cost = 8 million.
3. Elapsed time = 3.5 months.
4. Work progress = 44%
5. Cost to date = 4 million
6. One time cost for the entire project incurred at the beginning = 1 million.
Now to calculate the CPI, I had to calculate the actual cost incurred so far.
In my finance manager’s view it should be the total cost so far, which is 4 million.
But I think it should be (Total cost – One time cost) + ( One time cost * Progress)
That is (4 – 1) + (1*44%) = 3.44 million. I think the CPI will be more realistic done this way. Our SPI is nearly one.
Please help,
Manu.
Please help me to solve this problem.
Presently we are doing a project of
1.Total duration = 6 months.
2. Total budgeted cost = 8 million.
3. Elapsed time = 3.5 months.
4. Work progress = 44%
5. Cost to date = 4 million
6. One time cost for the entire project incurred at the beginning = 1 million.
Now to calculate the CPI, I had to calculate the actual cost incurred so far.
In my finance manager’s view it should be the total cost so far, which is 4 million.
But I think it should be (Total cost – One time cost) + ( One time cost * Progress)
That is (4 – 1) + (1*44%) = 3.44 million. I think the CPI will be more realistic done this way. Our SPI is nearly one.
Please help,
Manu.