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Topic History of : PM study coach - TCPI demystified

Max. showing the last 6 posts - (Last post first)
13 years 10 months ago #1501

Gerald Derflinger

Gerald Derflinger's Avatar

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
14 years 1 week ago #1354

Gerald Derflinger

Gerald Derflinger's Avatar

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
14 years 1 week ago #1353

Nitin Shekhar

Nitin Shekhar's Avatar

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)
14 years 2 weeks ago #1352

Gerald Derflinger

Gerald Derflinger's Avatar

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

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