Forecasting costs (etc, eac, vac) in Project Management

Download Forecasting costs (etc, eac, vac) in Project Management

Post on 15-Apr-2017

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<p>Forecasting</p> <p>SV= -$507CV= -$933$3000SPI = 0.80$2574$2,067CPI = 0.69BAC (Project Total PV) = $4,134$4,134</p> <p>Estimated cost to complete remaining work </p> <p>Estimated Costs to Complete Remaining Work (ETC)ETC =BAC-EVEV / AC</p> <p>Estimated Costs to Complete Remaining Work (ETC)ETC =BAC-EVCPI</p> <p>SV= -$507CV= -$933$3000SPI = 0.80$2574$2,067CPI = 0.69BAC (Project Total PV) = $4,1340.69</p> <p>Estimated cost to complete remaining work </p> <p>Estimated Costs to Complete Remaining Work (ETC)$2,067-$4,134ETC =0.69</p> <p>Estimated cost to complete remaining work </p> <p>Estimated Costs to Complete Remaining Work (ETC)ETC =$2,996</p> <p>Estimated cost to complete remaining work </p> <p>Estimate At Completion (EAC)EAC =AC +ETC</p> <p>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</p> <p>EAC =$2,996(ETC)$3,000(AC)</p> <p>$5,996(EAC)Estimate At Completion (EAC)+</p> <p>Estimated cost to complete remaining work </p> <p>Estimated cost to complete remaining work </p> <p>If CPI doesnt change, AC at end of project (EAC) is $5,996</p> <p>EV, BAC, and PV will all be equal at end of project ($4134)</p> <p>Estimated cost to complete remaining work </p> <p>If CPI doesnt change, AC at end of project (EAC) is $5,996</p> <p>EV, BAC, and PV will all be equal at end of project ($4134)</p> <p>VAC</p> <p>Estimated cost to complete remaining work </p> <p>Variance At Completion (VAC)VAC =BAC-EAC$5,996(EAC)$4,134(BAC)</p> <p>--$1,862(VAC)</p> <p>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.</p> <p>Get Back on Track</p> <p>To Complete Performance Index (TCPI)TCPI=BAC-EVBAC-AC$2,067-$4,134</p> <p>$3,000-$4,134=$2,067$1,134</p> <p>=1.88</p> <p>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</p> <p>TCPI</p> <p>CPI0.69</p> <p>TCPI</p> <p>1.88</p> <p>?</p>

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