Question

An efficiency ratio that compares the work remaining on the project to the funds remaining on the project?

1) Schedule performance index
2) Planned value
3) To-complete performance index
4) Cost performance index

Answer 1

The To-complete Performance Index (TCPI) is the efficiency ratio that compares the remaining work to the remaining funds on a project. It is a crucial metric in project management that predicts the cost performance that must be achieved with the remaining budget to meet certain goals, analogous to predicting how long funds will last based on current spending.

Step-by-step explanation:

The efficiency ratio that compares the work remaining on the project to the funds remaining is the To-complete Performance Index (TCPI). The TCPI is used within the realm of project management to calculate the cost performance efficiency that must be achieved with the remaining resources in order to meet a specific management goal. If efficiency is less than 1, it indicates that less effort is required to complete the project than initially planned, whereas efficiencies greater than 1 would mean the opposite.

To further illustrate, using the concept of the R/P ratio or reserves-to-production ratio, if the remaining budget (reserve) is compared to the cost performance to date (production rate), the TCPI gives a projection much like calculating how long funds in a bank account will last based on current spending rates. This is analogous to understanding how long the remaining project budget will last given current project spending rates and expected outcomes.