EMEKA UHARAPROJECT MANAGER| PRIME SOURCES LIMITEDLagos, Nigeria
Is it correct to say that labour productivity and cost performance index are basically same only that while one is measured in manhours, the other is measured in dollars? Saving Changes...
Emeka, I believe you are referring to Labour cost performance index
LCPI = EH / AH , where EH = Earned Hours, AH = Actual Hours Saving Changes...
EMEKA UHARAPROJECT MANAGER| PRIME SOURCES LIMITEDLagos, Nigeria
Thanks for the insight. Can we now say that LCPI is the same as Productivity? The general PMI standard talks about CPI, but in my organization, we use productivity and if you look at the calculations, it follows that while CPI is Earned Value / Actual Cost EV/AC, Productivity is Earned Hours/ Actual Hours EH/AH.
However, the earned hours can be multiplied by a rate to get the value in any currency. And both are measured against 1. If the result is less than 1, then it's performing under budget and if it's above 1, then it's performing on budget and if it's 1, then it's on budget.
To get the Earned Value or hours, you will have to multiply the progress percentage by the planned value or the budgeted cost of work scheduled (BCWS). Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Emeka,
Productivity is not Earned Hours vs. Actual Hours, it is Manhours (MHRS) / Unit Rate. For example, in construction we measure Concrete Productivity as MHRS / Cubic Meter and so on.
There is a difference between CPI and Productivity but don't low productivity will affect the CPI. Saving Changes...
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