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# Forecasting costs (etc, eac, vac) in Project Management

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How to calculate and interpret ETC, EAC, VAC, and TCPI as it is used in earned value analysis in project management. Download additional slides, videos, and resources at https://www.christiansonjs.com/

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### Forecasting costs (etc, eac, vac) in Project Management

1. 1. Forecasting
2. 2. \$0.00 \$1,250.00 \$2,500.00 \$3,750.00 \$5,000.00 0 Week 1 Week 2 Week 3 PV AC EV SV= -\$507CV= -\$933 \$3000 SPI = 0.80 \$2574 \$2,067 CPI = 0.69 BAC (Project Total PV) = \$4,134\$4,134
3. 3. Estimated Costs to Complete Remaining Work (ETC) ETC = BAC-EV EV / AC
4. 4. Estimated Costs to Complete Remaining Work (ETC) ETC = BAC-EV CPI
5. 5. \$0.00 \$1,250.00 \$2,500.00 \$3,750.00 \$5,000.00 0 Week 1 Week 2 Week 3 PV AC EV SV= -\$507CV= -\$933 \$3000 SPI = 0.80 \$2574 \$2,067 CPI = 0.69 BAC (Project Total PV) = \$4,134 0.69
6. 6. Estimated Costs to Complete Remaining Work (ETC) \$2,067-\$4,134 ETC = 0.69
7. 7. Estimated Costs to Complete Remaining Work (ETC) ETC = \$2,996
8. 8. Estimate At Completion (EAC) EAC =AC +ETC
9. 9. EAC = \$2,996(ETC) \$3,000(AC) \$5,996(EAC) Estimate At Completion (EAC) +
10. 10. \$0.00 \$1,500.00 \$3,000.00 \$4,500.00 \$6,000.00 0 Week 1 Week 2 Week 3 PV AC EV
11. 11. \$0.00 \$1,500.00 \$3,000.00 \$4,500.00 \$6,000.00 0 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 PV AC EV If CPI doesn’t change, AC at end of project (EAC) is \$5,996 EV, BAC, and PV will all be equal at end of project (\$4134)
12. 12. \$0.00 \$1,500.00 \$3,000.00 \$4,500.00 \$6,000.00 0 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 PV AC EV If CPI doesn’t change, AC at end of project (EAC) is \$5,996 EV, BAC, and PV will all be equal at end of project (\$4134) VAC
13. 13. Variance At Completion (VAC) VAC = BAC-EAC \$5,996 (EAC) \$4,134 (BAC) - -\$1,862(VAC)
14. 14. Get Back on Track
15. 15. To Complete Performance Index (TCPI) TCPI=BAC-EV BAC-AC \$2,067-\$4,134 \$3,000-\$4,134 = \$2,067 \$1,134 = 1.88
16. 16. TCPI 0 0.5 1 1.5 2 2.5 CPI 0.69 TCPI 1.88 ?