In a situation where we face some problems in the project, and the problems are 'one time only' situations. For example, someone comes down with malaria. Its a situation that is a rare probability that it will repeat again. Then we can say that the original plan was correct. We determine the estimate to completion, assuming that things will proceed as originally planned from today onwards -
EAC = AC + (BAC-EV)
In a situation where we face some problems in the project, and we figure out that it is something that would happen consistently through the project. For example, we thought someone would be able to write 400 lines of code in a day, but can actually write only 350 lines of code in a day. In this case we can expect the rest of the project to proceed at the same 'rate' as it is doing presently.
EAC = AC + (BAC-EV)/CPI -> I remember this by thinking that we need to bring in the current cost performance index, because this is the actual cost performance index for the project.
In a situation where we face some problems in the project, and we figure out that both the CPI and the SPI that we assumed during original estimation were incorrect.
EAC = AC + (BAC-EV)/(CPI * SPI) -> Same logic as the one above.
Please dont go by my examples. They are just things I have made up and could not be completely accurate. Also, you can do some more reading with these concepts in mind. They will help you understand.
Moderators: Yolanda Mabutas, Timothy Enalls, Scott Gillard, Mary Kathrine Padua, ERIC BARTLETT, Kevin Nason, Steven Mudrinich, PMP, Mark Wuenscher, PMP, John Wolverton, Tracy Shagnea, PMP, Jada Garrett, Mark Lacattiva, Patrick Floris PhD PMP, Ty Weston, PMP, Genevieve Pluviose, PMP
This interview with Simona Fallavollita (LinkedIn Profile) was recorded at the magnificient Project Management Institute (PMI)® Global Conference 2017 in Chicago, Illinois. We discuss the how, what, why and when of the changes that are coming to the PMP exam.