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# TOPIC: Earned Value Estimates based on Situation - EAC.

## Earned Value Estimates based on Situation - EAC. 12 years 5 months ago #2114

 Tarek Al-Fahham Topic Author Offline Senior Boarder Posts: 71 Karma: 3 Thank you received: 0 I seems to me that there are som differences between the information provided in the Formula Email Course and the Formula Study Guide regarding EAC. In the email course it mentiones this: EAC=BAC/CPI No variances from the BAC have occurred or are expected to continue at the same rate of spending. This is the formula most often required on the exam. And also: EAC = AC+((BAC-EV) / CPI) Current variances are thought to be typical in the future. However, on the Formula Guide, I find this: EAC = BAC / CPI Assumption: use formula if current variances are thought to be typical in the future. This is the formula most often required on the exam. and also this: EAC = AC + ((BAC - EV) / (CPI * SPI)) Assumption: use formula if project is over budget but still needs to meet a schedule deadline. I am a little bit lost. There is no 100% match between both sources. I just need to know which one to consider. Note that this formula for example: EAC = AC+((BAC-EV) / CPI) is provided in the Email Course, but not found in the Formula Study Guide. Tarek. 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:Earned Value Estimates based on Situation - EAC. 12 years 5 months ago #2121

 Tarek Al-Fahham Topic Author Offline Senior Boarder Posts: 71 Karma: 3 Thank you received: 0 Reference to this link: www.pmlead.net/images/stories/PDF/pmp__formulas.pdf I can see differences with reference to which EAC formula to use depending on Project Situation, comparing it to Formula Study Guide. Appreciate your confirmation. Tarek. 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:Earned Value Estimates based on Situation - EAC. 12 years 5 months ago #2122

 Jean Reksodiputro Offline Fresh Boarder Posts: 7 Thank you received: 0 Hello Tarek, I think you should only use the below only if it's mentioned "Schedule" at all: EAC = AC + ( (BAC - EV) / (CPI + SPI) ) Other than that, I think you should these: *) No variance - Typical (mostly used): EAC = BAC / CPI ETC = EAC - AC *) Previous variance settled - Atypical: EAC = AC + (BAC - EV) ETC = BAC - EV HTH, Jean R. 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:Earned Value Estimates based on Situation - EAC. 12 years 5 months ago #2142

 Tarek Al-Fahham Topic Author Offline Senior Boarder Posts: 71 Karma: 3 Thank you received: 0 Thanks, Jean. Tarek. 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:Earned Value Estimates based on Situation - EAC. 12 years 5 months ago #2144

 Tarek Al-Fahham Topic Author Offline Senior Boarder Posts: 71 Karma: 3 Thank you received: 0 I am now watching the PM PrepCast Episode E07.04.02, and I just learned that: EAC = BAC / CPI = AC + (BAC - EV) / CPI I was able to prove the above formula. This is really great fun. Also, it is clearly mentioned that the above fomulas (2 forms) are same and are used if the Original Estimates were worng (there are variances), and the current performance is correct. I hope my understanding now is correct. Tarek. 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:Earned Value Estimates based on Situation - EAC. 12 years 4 months ago #2227

 Tarek Al-Fahham Topic Author Offline Senior Boarder Posts: 71 Karma: 3 Thank you received: 0 I am now reviewing the formulas to memorize them: Noticed that: EAC = (BAC / CPI) = AC + (BAC - EV) / CPI Will have to be used if there are actually variances, why ? Becuase if there are no variances, this means: AC = EV and CPI = 1 and EAC = BAC Tarek. 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:Earned Value Estimates based on Situation - EAC. 12 years 4 months ago #2228

 Tarek Al-Fahham Topic Author Offline Senior Boarder Posts: 71 Karma: 3 Thank you received: 0 This means that this formula is also valid: EAC = BAC / (CPI*SPI) which is similar to this: EAC = AC + (BAC - EV) / (CPI*SPI) Which will factor in both cost performance and schedule requirements. I don't recal this formula above (first one) was mentioned in the formula guide. Tarek. 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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