Uploaded byRoberto Hernantes Cantero
EAC update process
This document outlines an earned value management process for updating project cost estimates each period. It describes initial project cost estimation and tracking actual costs incurred in Period 1. For Period 2, it calculates the estimated remaining costs arithmetically and re-estimates for the period. It tracks actual costs in Period 2 and repeats the process to estimate Period 3 costs. This continues each period until project completion to continually update total estimated costs.
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EAC update process
- 1. EAC Update Process Madrid,April 2013 Roberto Hernantes Cantero robertohernantes@hotmail.com roberto.hernantes.linkedin@gmail.com
- 2. Assumptions Earned Value notincluded within study Continous over-cost Estimated values in italics shaded letter, actual values in ‘usual’ letter Notation Focus in cost, not in duration Economic deviation analysis, not duration deviations Two periods under study
- 3. Initial project costestimation t = t0
- 4. € tQ1 Q2 Q3Q4 BAC = EAC Q1 BAC = EAC Q1
- 5. Q1 finish. Thus,we do know actual incurred values of the period t = end of Q1
- 6. ITD Q1 € tQ1 Q2Q3 Q4 BAC = EAC Q1 BAC = EAC Q1
- 7. ETC Q2 Arithmetical ITD Q1 € tQ1Q2 Q3 Q4 BAC = EAC Q1 BAC = EAC Q1 ETC Q2 arithmetical = BAC - ITD Q1
- 8. Remaining work re-estimation t= end of Q1
- 9. ETC Q2 Arithmetical ITD Q1 € tQ1Q2 Q3 Q4 BAC = EAC Q1 ETC Q2 -> New Estimation ETC Q2 Arit. = BAC - ITD Q1 BAC = EAC Q1
- 10. ETC Q2 Arithmetical ITD Q1 € tQ1Q2 Q3 Q4 BAC = EAC Q1 EAC Q2 BAC = EAC Q1 ETC Q2 Arit. = BAC - ITD Q1 ETC Q2 -> New Estimation ETC Q2 EAC Q2 = ITD Q1 + ETC Q2
- 11. ETC Q2 Arithmetical ITD Q1 € tQ1Q2 Q3 Q4 BAC = EAC Q1 EAC Q2 ETC Q2 EAC Q2 = ITD Q1 + ETC Q2 Dev. EAC Q2 = EAC Q2 – BAC BAC = EAC Q1 ETC Q2 Arit. = BAC - ITD Q1 ETC Q2 -> New Estimation = Dev. Actual Q1 + Dev. Estimated Q2
- 12. t = endof Q2 Q2 finish. Thus, we do know actual incurred values of the period
- 13. EAC Q2 ITD Q2 Q1Q2 Q3 Q4 BAC = EAC Q1 € t
- 14. EAC Q2 ETCQ3 Arithmetical ITD Q2 Q1 Q2 Q3 Q4 BAC = EAC Q1 € t ETC Q3 Arithmetical = EAC Q2 - ITD Q2
- 15. t = endof Q2 Remaining work re-estimation
- 16. EAC Q2 ETCQ3 Arithmetical ITD Q2 Q1 Q2 Q3 Q4 BAC = EAC Q1 € t ETC Q3 Arit. = EAC Q2 - ITD Q2 ETC Q3 -> New Estimation
- 17. EAC Q2 EAC Q3 ETCQ3 Arithmetical ETC Q3 ITD Q2 Q1 Q2 Q3 Q4 BAC = EAC Q1 € t EAC Q3 = ITD Q2 + ETC Q3 ETC Q3 Arit. = EAC Q2 - ITD Q2 ETC Q3 -> New Estimation
- 18. EAC Q2 EAC Q3 ETCQ3 Arithmetical ETC Q3 ITD Q2 Q1 Q2 Q3 Q4 BAC = EAC Q1 € t ETC Q3 Arit. = EAC Q2 - ITD Q2 ETC Q3 -> New Estimation EAC Q3 = ITD Q2 + ETC Q3 Dev. EAC Q3 = EAC Q3 – EAC Q2 = Dev. Actual Q2 + Dev. Estimated Q3
- 19. This process eachperiod until the end of the project
- 20. Thank you verymuch for your attention robertohernantes@hotmail.com roberto.hernantes.linkedin@gmail.com