How to Measure Cost Performance Indicator

Learn about Cost Performance Indicator, including how to measure it, and leverage it in dashboards and visualizations with Metabase.

What is Cost Performance Indicator?

A cost performance indicator, or “cost performance index”, is a method of visualizing what you’ve spent compared to what you’ve earned. When applied from a developing standpoint, CPI is meant to show you how much the work on a project is costing you. CPI can help you learn more about your team’s skill level. You might notice a low CPI, which could indicate the scope of your team isn’t adequately fulfilling the needs of your project goals. You’ll end up spending more money on labor, in addition to causing unneeded stress to teams. On the opposite end of things, if your CPI indicates spending much less on labor, it could indicate that your teams are overqualified for the job you’re giving them. This is a bad practice that could result in unfulfilled devs and turnover issues later on.

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How to calculate Cost Performance Indicator

CPI is represented in a number or fraction. You’ll want to divide the earned value by the burned cost like this: Earned value / burned cost = CPI Ideally, you want your CPI to be somewhere in the range of 1.05 - 0.95. It’s important to note that it’s completely normal for your CPI to fluctuate. People aren’t robots, so it’s impossible for your CPI to be the same all the time.

Other KPIs to measure related to Cost Performance Indicator

  • Change Volume
  • Code Simplicity
  • Commit to Deploy Time
  • F1 Score
  • Flow Efficiency
  • Issue Resolution Time
  • Machine Learning Performance
  • Production Incidents
  • Queue Time

Why build a dashboard for Cost Performance Indicator?

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How to use Metabase to measure Cost Performance Indicator

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