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# TOPIC: PM study coach - TCPI demystified

## PM study coach - TCPI demystified 14 years 3 months ago #1352

 Gerald Derflinger Topic Author Offline Fresh Boarder Posts: 4 Thank you received: 0 Hi Cornelius, I have a question on the TCPI demystified paper from the PMstudy coach cost mgmt. lesson. On page 3 there is a calculation of the required EAC to be able to calculate the TCPI (based on EAC). Here are the numbers from Frank's dog house: status on day 3: BAC=500 USD EV=300 USD AC=400 USD To calculate TCPI, we first need to calculate EAC. Per definition the EAC=AC+ETC (one possibility). So, corresponding to this example we have to make a new forecast on ETC as we need to earn 2 USD value for every 1 USD we spend (as posted in the example). Therefore new ETC = 400 USD ( 200 USD / day). Now, in the calculation of the EAC there is the EV used instead of AC - so, can you tell me please what is the reason for this? I thought we need AC to calculate the EAC? I look forward to your reply. thanks, Gerald Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Re:PM study coach - TCPI demystified 14 years 2 months ago #1353

 Nitin Shekhar Offline Fresh Boarder Posts: 1 Thank you received: 0 TCPI demontrated overall performance and is calculated by dividing the Total work remaining by Total fund remaining. In this case, the total work remaining will be BAC-EV and Total fund remaining will be BAC-AC thus, the formula is TCPI = (BAC-EV)/(BAC-AC) Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Re:PM study coach - TCPI demystified 14 years 2 months ago #1354

 Gerald Derflinger Topic Author Offline Fresh Boarder Posts: 4 Thank you received: 0 Thx for feedback first of all. I agree to your formula in principle, but when you look at the example following to your posted formula, it is necessary also to calculate the TCPI based on EAC: TCPI = (BAC-EV) / (EAC-AC) To be able to calculate this formula now, it is necessary to calculate actual EAC first. Therefore 2 possible way would work: 1) EAC = AC + BAC - EV = 400 + 500 - 300 = 600 2) EAC = AC + ETC = 400 + 400 = 800 In this example you have 400 USD, 200 USD per day, 2 days left. So, described on the paper it is calculated as following: EAC = 700 -> (EV + 400) , EV = 300 (3 days are already over, 100 USD per day) As you can see here, in the example ones is using EAC = EV + ETC instead of EAC = AC + ETC Do you know why this has been chosen? thx, gerald Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Re:PM study coach - TCPI demystified 14 years 3 weeks ago #1501

 Gerald Derflinger Topic Author Offline Fresh Boarder Posts: 4 Thank you received: 0 I almost forgot on my entry here sorry for that - comming back to it, maybe does anyone know the answer on it? Or can anyone correct me? (if my thoughts are wrong) would be really appreciated... thx,gerald Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.
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