fbpx

Reply: Earned Value Estimates based on Situation - EAC.

Name
E-mail
Your e-mail address will never be displayed on the site.
Subject
Message

Topic History of : Earned Value Estimates based on Situation - EAC.

Max. showing the last 6 posts - (Last post first)
12 years 8 months ago #2228

Tarek Al-Fahham

Tarek Al-Fahham's Avatar

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.
12 years 8 months ago #2227

Tarek Al-Fahham

Tarek Al-Fahham's Avatar

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.
12 years 9 months ago #2144

Tarek Al-Fahham

Tarek Al-Fahham's Avatar

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.
12 years 9 months ago #2142

Tarek Al-Fahham

Tarek Al-Fahham's Avatar

Thanks, Jean.

Tarek.
12 years 9 months ago #2122

Jean Reksodiputro

Jean Reksodiputro's Avatar

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.
12 years 9 months ago #2121

Tarek Al-Fahham

Tarek Al-Fahham's Avatar

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.

OSP INTERNATIONAL LLC
OSP INTERNATIONAL LLC
Training for Project Management Professional (PMP)®, PMI Agile Certified Practitioner (PMI-ACP)®, and Certified Associate in Project Management (CAPM)®

Login