It is an index that integrates the three variables of a project (scope, time and cost) into a single value-based index where: The DIPP was originally proposed as a value-based metric that quantified the key variables in the decision of whether to continue funding or terminate an ongoing project.
The formula is: In 1999, a simplified form of the DIPP was introduced[4] as a technique for monetizing and integrating all three variables of the traditional project "Iron Triangle" into a single value-based baseline for measuring what the project's expected return is scheduled to be at any given future progress reporting date.
Changes in an organization's portfolio of projects often stretch limited resources and result in project-level delays or pruning of scope, both of which would be reflected in lower DIPPs for each impacted project and sometimes of the entire portfolio.
The portfolio-level DIPP is then tracked and maximized, and used to target resources to the project where they will add the greatest value.
Tomoichi Sato of JGC Corporation and Tokyo University has proposed the use of an "Extended DIPP"[7] for setting project priorities, where the Extended DIPP is equal to the risk-based project value (RPV) divided by the Cost ETC.