Forecasting
SV= -$507CV= -$933$3000SPI = 0.80$2574$2,067CPI = 0.69BAC (Project Total PV) = $4,134$4,134
Estimated cost to complete remaining work
Estimated Costs to Complete Remaining Work (ETC)ETC =BAC-EVEV / AC
Estimated Costs to Complete Remaining Work (ETC)ETC =BAC-EVCPI
SV= -$507CV= -$933$3000SPI = 0.80$2574$2,067CPI = 0.69BAC (Project Total PV) = $4,1340.69
Estimated cost to complete remaining work
Estimated Costs to Complete Remaining Work (ETC)$2,067-$4,134ETC =0.69
Estimated cost to complete remaining work
Estimated Costs to Complete Remaining Work (ETC)ETC =$2,996
Estimated cost to complete remaining work
Estimate At Completion (EAC)EAC =AC +ETC
Methods Used to Revise Estimates of Future Project Costs:EACreAllows experts in the field to change original baseline durations and costs because new information tells them the original estimates are not accurateEACfUses actual costs-to-date plus an efficiency index to project final costs in large projects where the original budget is unreliable
EAC =$2,996(ETC)$3,000(AC)
$5,996(EAC)Estimate At Completion (EAC)+
Estimated cost to complete remaining work
Estimated cost to complete remaining work
If CPI doesnt change, AC at end of project (EAC) is $5,996
EV, BAC, and PV will all be equal at end of project ($4134)
Estimated cost to complete remaining work
If CPI doesnt change, AC at end of project (EAC) is $5,996
EV, BAC, and PV will all be equal at end of project ($4134)
VAC
Estimated cost to complete remaining work
Variance At Completion (VAC)VAC =BAC-EAC$5,996(EAC)$4,134(BAC)
--$1,862(VAC)
VAC indicates expected actual over-or underrun cost at completion.VACCost variance at completion (BAC-EACre), where EACre is derived by estimators in the field.Or, alternatively, cost variance at completion (BAC-EACf), where EACf is derived from a formula using actual and earned value costs.VAC indicates expected actual over-or underrun cost at completion.
Get Back on Track
To Complete Performance Index (TCPI)TCPI=BAC-EVBAC-AC$2,067-$4,134
$3,000-$4,134=$2,067$1,134
=1.88
TCPI = the amount of value each remaining dollar in the budget must earn to stay within budget, or what does our CPI need to be to get back on track
TCPI
CPI0.69
TCPI
1.88
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