Betsy GreenOnboarding Manager| TownNews.comMoline, Il, United States
I send a weekly status report to my team. At the top is a small dashboard with your typical stoplight red, yellow, and green indicators for a number of categories, including budget.
The PMs in my company don't currently use CPI as a performance indicator, but I think we should up our game and start including that information.
My question is this: what should my CPI standards be for red, yellow, and green? Obviously, green should be a CPI of 1 or greater. How would you draw the line for a yellow or red indicator? Saving Changes...
Bob PatrinoConsultant/Senior Technical Project Manager| TamazariNewport, KY, United States
What is your definition of CPI?
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1 reply by Betsy Green
Aug 31, 2017 4:28 PM
Betsy Green
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Earned Value/Actual Costs
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Betsy GreenOnboarding Manager| TownNews.comMoline, Il, United States
Aug 31, 2017 4:18 PM
Replying to Bob Patrino
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What is your definition of CPI?
Earned Value/Actual Costs Saving Changes...
Eric SimmsSenior Program ManagerBaltimore, Maryland, United States
For the IT industry I’d use the following CPI values:
Green – CPI is greater than or equal to 1.0
Yellow – CPI ranges from .80 to .99
Red – CPI is .79 or below
I might assign different value ranges to particular projects, but these are my general ranges.
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1 reply by Markus Kopko
Sep 01, 2017 2:26 AM
Markus Kopko
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i would go with this
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Drew CraigSr. Agile & Product Coach| VanguardPhiladelphia, Pa, United States
Once you have the criteria, you can set the thresholds. What Eric presents above is a good start. You mention there is already a stop light indicator. How is that status determined?
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1 reply by Betsy Green
Sep 01, 2017 10:21 AM
Betsy Green
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Ramachandran's description of what would be considered red, yellow, and green are our standards. But it's also a bit of a judgement call. That's why I'd like to use CPI to determine those indicators, making it objective.
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Jaeho ChoDirector of PM/PMO. Look for opportunities| self-employeedSeoul, South Korea
No specific and crireria for those three green, yellow, and red is prepared but it shall be depend on the risk appetite and acceptable tolerance of the enterprise.
Personally, but it is recommened to utilize the contingeny set for project as a base line of classification simply say within or beyond contingency ratio.
Same principle shall also be applied for SPI simply utilizing consumtion of float and buffer allocated as a contingency. Saving Changes...
Markus KopkoAI Enabler for Project & Program Mgmt | Founder PMotion.ai / The PM
AI Coach| PMotion.aiHamburg, Hamburg, Germany
Aug 31, 2017 5:42 PM
Replying to Eric Simms
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For the IT industry I’d use the following CPI values:
Green – CPI is greater than or equal to 1.0
Yellow – CPI ranges from .80 to .99
Red – CPI is .79 or below
I might assign different value ranges to particular projects, but these are my general ranges.
i would go with this Saving Changes...
Ramachandran SwaminathanRegional Delivery Manager| Oracle Consulting IndiaBangalore, Karnataka, India
As Eric and Andrew mentioned, the thresholds vary from organization to organization and from project to project within an organization. First things to be done is to define the threshold and then accordingly adjust the CPI ranges. I would go add another status and below would be my guideline
Green - Very low risk and very low delivery issues, cost escalation currently and in near future
Amber/Green - Some minor issues, which do not jeopardize the on-time/on-budegt delivery of project which can be resolved with appropriate actions. The risks can be fully mitigated
Amber/Red - Some issues exist which cannot be fully mitigated and would continue to exist throughout the project unless strong project management principles are applied(etc; Reducing the scope of increasing the funding)
Red - Issues exist at various levels of severity, many of which cannot be fully mitigated. These have significant -ve impact on the delivery/financials of the project. If these continue, the project objectives would not be met or project may become unviable. Needs immediate higher management intervention
See if the above thresholds help, and you can decide the threshold accordingly Saving Changes...
Ramachandran SwaminathanRegional Delivery Manager| Oracle Consulting IndiaBangalore, Karnataka, India
Some correction in my post earlier. The 4 statuses are the criteria for classifying the thresholds. If you plan to use CPI to monitor the health of the project, please assign the CPI ranges to each of the above. It is better to discuss with the high mgmt about these, because determining the CPI ranges is somewhat related to the risk appetite of the organization for taking project risks Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
While a CPI above 1 is always good, you might want to consider setting a "too good" threshold. It would indicate that your estimates were way off.
Remember: We are called to be on time and on budget, not under.
When we leave resourcces - financial or otherwise - on the table, those are resources that could have been used for another project. Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
I usually set my "yellow" thresholds between 5 and 10% of my target. The larger the threshold, the harder it is to get it back on track. Saving Changes...
