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A cost performance index of 0.6, is that a good or a bad thing?

Budgeting PMP Project Management Finance Management
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Question added by Ghada Sameer , Project Manager and media executive , CQA
Date Posted: 2014/05/04
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Bassem Al-Ahmad
by Bassem Al-Ahmad , Financial Director , ADR

Anything below1 is a bad indicator.

Amr Askar
by Amr Askar , Contracts Director , HASSAN ALLAM CONSTRUCTION, Egypt

CPI =0.6 meaning you are over budget which is BAD and You are currently getting0.6 income (USD Ex.) out of every1 (USD Ex. ) you spent.

 

To decide the best response / action to mitigate the situation, you shall check concurrently the SPI.

 

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