To calculate TCPI first we need to calculate the EVM and then based on AC, EV, we can calculate TCPI. TCPI is calculated under two conditions one with original budget and the second with new budget.
TCPI=(BAC-EV)/(BAC-AC)—With planned budget
TCPI=(BAC-EV)/(EAC-AC)—With new budget
The ratio should be ideally 1. If it greater than 1, then difficult to complete and if less than 1 easier to complete.
TCPI is used as a technique under the process Control Costs.
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