A complete lowdown on Estimate To Complete (ETC). This presentation defines and explains project forecasting using ETC. It describes different scenarios and their associated formulas. It uses an example project to calculate ETC in different scenarios.

1. DETERMINING ESTIMATE
TO COMPLETE
4 SCENARIOS & 3
FORMULAS

2. AGENDA
• Definition & Explanation
• Calculating ETC
• Example Project
• ETC Formulas
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 2

3. AGENDA
• Definition & Explanation
• Calculating ETC
• Example Project
• ETC Formulas
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 3

4. ESTIMATE TO COMPLETE (ETC)
Estimate to Complete or ETC is the expected
cost to finish all the remaining project work.
How much money is needed to complete the
remaining project work?
4DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018

5. PROJECT STATUS
• On Control Date, some work has been completed while some is
remaining.
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 5
COMPLETED REMAINING
TOTAL PROJECT SCOPE/WORK

6. CALCULATING ETC
• Problem Statement – To Calculate Expected Cost of Remaining Work
(ETC)
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 6
EARNED VALUE
MONETARY VALUE
OF
REMAINING WORK
ORIGINAL PROJECT BUDGET (BAC)
ACTUAL COST/EXPENDITURE ETC
FORECASTED PROJECT BUDGET
?

7. AGENDA
• Definition & Explanation
• Calculating ETC
• Example Project
• ETC Formulas
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 7

8. CALCULATING ETC
Is ETC Equivalent to Monetary Value of Remaining Work?
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 8

9. CALCULATING ETC
Is ETC Equivalent to Monetary Value of Remaining Work?
• No
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 9

10. CALCULATING ETC
Is ETC Equivalent to Monetary Value of Remaining Work?
• No
• The ETC depends on the Project Team’s efficiency of utilizing the
money
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 10

11. CALCULATING ETC
Is ETC Equivalent to Monetary Value of Remaining Work?
• No
• The ETC depends on the Project Team’s efficiency of utilizing the
money
• If Efficiency = 1, ETC will be equal to Monetary Value
If Efficiency < 1, ETC will be more than Monetary Value
If Efficiency > 1, ETC will be less than Monetary Value
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 11
Reference –
Basics of Earned Value Analysis
Earned Value Management System Explained in Easy

12. CALCULATING ETC
12DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018
Reference –
Estimate to Complete
ETC = (monetary value of remaining work)/(future projected cost
efficiency)

13. CALCULATING ETC
 Monetary value of remaining work = monetary value of total work –
monetary value of completed work
 Monetary value of remaining work = BAC – EV
13DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018
Reference –
Estimate to Complete
ETC = (monetary value of remaining work)/(future projected cost
efficiency)

14. CALCULATING ETC
 Monetary value of remaining work = monetary value of total work –
monetary value of completed work
 Monetary value of remaining work = BAC – EV
 In EVM, Cost Efficiency is represented as Cost Performance Index (CPI)
 Let us represent the future projected cost efficiency as CPIp
14DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018
Reference –
Estimate to Complete
ETC = (monetary value of remaining work)/(future projected cost
efficiency)

15. GENERIC ETC EQUATION
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 15
ETC = (BAC – EV) /
CPIp

16. AGENDA
• Definition & Explanation
• Calculating ETC
• Example Project
• ETC Formulas
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 16

17. PROJECT PLAN – EXAMPLE
PROJECT
Refer to the example in the previous presentation
(https://www.slideshare.net/pmalik2/101-a-beginners-guide-to-earned-
value-management)
17DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018
Project Scope Build 80 Tables
Project Time Estimate (Duration) 5 Days
Cost Estimate Per Table $1000
Project Cost (Budget) $1000*80 = $80000

18. PROJECT STATUS – EXAMPLE
PROJECT
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 18
Work Completed 35 out of 80 tables
Actual Expenditure $36000 for building 35 tables
Remaining Project Work 45 tables
ETC ?

19. AGENDA
• Definition & Explanation
• Calculating ETC
• Example Project
• ETC Formulas
DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018 19

20. SCENARIO I
• The project team believes that the project’s past performance will
continue to effect the future performance.
• The project would continue to expend money at the current rate.
• The remaining work would be completed at project’s current cost
efficiency.
• Replacing CPIp with CPI, Generic ETC equation becomes
ETC = (BAC – EV) / CPI
20DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018

21. SCENARIO I - CALCULATION
• ETC = ($80000-$35000)/($35000/$36000)
= $46286
• It simply means that the project team will require $46286 to build
the remaining 45 tables.
21DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018

22. SCENARIO II
• The project team believes that the project’s past performance will
not effect the future performance.
• The irregularities of the past would not be repeated in future.
• The remaining work would be completed at project’s 100% cost
efficiency (as per the original estimates).
• Replacing CPIp with 100%, Generic ETC equation becomes
ETC = (BAC – EV)
22DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018

23. SCENARIO II - CALCULATION
• ETC = ($80000-$35000)
= $45000
• It simply means that the project team will require $45000 to build
remaining 45 tables.
23DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018

24. SCENARIO III
• The project team believes that the project’s past performance will
not effect the future performance.
• The team also believes that project would expend money neither at
current rate nor at 100%.
• The remaining work would be completed at new cost efficiency -
CPIp.
• Generic ETC equation becomes formula for the current Scenario
ETC = (BAC – EV) / CPIp
24DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018

25. SCENARIO III - CALCULATION
• Let us assume that the project team determines that future cost
efficiency would be 120% (or 1.2).
• ETC = (80000 – 35000)/1.2
= $37500
• It simply means that the project team will require $37500 to build 45
remaining tables.
25DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018

26. SCENARIO IV
• After analysing the project’s past performance, The project team
believes that the original estimates were not good.
• The cost of remaining work should be re-estimated i.e. ETC should
be determined afresh.
• A fresh ETC can by found by estimating the cost of remaining
(unfinished) work from the Work Breakdown Structure (WBS).
• The project team can re-estimate the cost of remaining work
components (work packages and activities) and then total then total
them Upwards in the WBS to determine a fresh ETC.
• There is no ETC formula for this scenario.
26DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018

27. YOUR OPINION IS
IMPORTANT TO US
For Any Questions Or
Suggestions Contact Us @
https://www.pmbypm.com/c
ontact-praveen-malik/
27DESIGNED AND DEVELOPED BY HTTPS://WWW.PMBYPM.COM | COPYRIGHT 2018