Successfully reported this slideshow.
Upcoming SlideShare
×

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

830 views

Published on

How to calculate and interpret ETC, EAC, VAC, and TCPI as it is used in earned value analysis in project management. From Project Management Fundamentals, a new type of textbook designed to be: granular, easy to use with a "flipped" classroom approach, and designed for electronic distribution on iPads, kindle readers, and PCs/Mac. Find out more at http://pmf.education/

Published in: Engineering
• Full Name
Comment goes here.

Are you sure you want to Yes No
• Be the first to comment

• Be the first to like this

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

1. 1. Forecasting
2. 2. \$0.00 \$1,250.00 \$2,500.00 \$3,750.00 \$5,000.00 0 Week 1 Week 2 Week 3 PV AC EV SV= -\$507CV= -\$933 \$3000 SPI = 0.80 \$2574 \$2,067 CPI = 0.69 BAC (Project Total PV) = \$4,134\$4,134
3. 3. Estimated Costs to Complete Remaining Work (ETC) ETC = BAC-EV EV / AC
4. 4. Estimated Costs to Complete Remaining Work (ETC) ETC = BAC-EV CPI
5. 5. \$0.00 \$1,250.00 \$2,500.00 \$3,750.00 \$5,000.00 0 Week 1 Week 2 Week 3 PV AC EV SV= -\$507CV= -\$933 \$3000 SPI = 0.80 \$2574 \$2,067 CPI = 0.69 BAC (Project Total PV) = \$4,134 0.69
6. 6. Estimated Costs to Complete Remaining Work (ETC) \$2,067-\$4,134 ETC = 0.69
7. 7. Estimated Costs to Complete Remaining Work (ETC) ETC = \$2,996
8. 8. Estimate At Completion (EAC) EAC =AC +ETC
9. 9. EAC = \$2,996(ETC) \$3,000(AC) \$5,996(EAC) Estimate At Completion (EAC) +
10. 10. \$0.00 \$1,500.00 \$3,000.00 \$4,500.00 \$6,000.00 0 Week 1 Week 2 Week 3 PV AC EV
11. 11. \$0.00 \$1,500.00 \$3,000.00 \$4,500.00 \$6,000.00 0 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 PV AC EV If CPI doesn’t change, AC at end of project (EAC) is \$5,996 EV, BAC, and PV will all be equal at end of project (\$4134)
12. 12. \$0.00 \$1,500.00 \$3,000.00 \$4,500.00 \$6,000.00 0 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 PV AC EV If CPI doesn’t change, AC at end of project (EAC) is \$5,996 EV, BAC, and PV will all be equal at end of project (\$4134) VAC
13. 13. Variance At Completion (VAC) VAC = BAC-EAC \$5,996 (EAC) \$4,134 (BAC) - -\$1,862(VAC)
14. 14. Get Back on Track
15. 15. To Complete Performance Index (TCPI) TCPI=BAC-EV BAC-AC \$2,067-\$4,134 \$3,000-\$4,134 = \$2,067 \$1,134 = 1.88
16. 16. TCPI 0 0.5 1 1.5 2 2.5 CPI 0.69 TCPI 1.88 ?