In project management, CPI stands for what?

CPI stands for Cost Performance Index, which is a crucial metric in project management used to evaluate the cost efficiency and financial effectiveness of a project. It is calculated using the formula: CPI = Earned Value (EV) / Actual Cost (AC). This index provides insights into how well the project is performing financially; a CPI greater than 1 indicates that the project is under budget, while a CPI less than 1 suggests that it is over budget.

Understanding CPI allows project managers to make informed decisions about resource allocation, budget adjustments, and overall project health. It serves as a vital tool for monitoring progress and facilitating effective communication with stakeholders about the financial aspects of the project.