Join Aileen Ellis for an in-depth discussion in this video Forecasting EAC, part of Project Management: Calculating Earned Value.
Earned Value management is a great system…to help us integrate scope, schedule and cost.…By integrating these three elements on the project,…we can get an accurate measurement…of how the project is performing…both from a cost and a schedule standpoint.…Many project managers would stop here.…We will continue and demonstrate how…Earned Value management can be used…as a forecasting tool.…A real critical benefit of Earned Value management…is that we can use current results to predict…future performance.…
We will begin the focus with estimating…what the total cost of the project will be…when we finish all the work.…This estimate is called the Estimate at Completion,…EAC.…It is an estimate or you might say a forecast…of what we expect the entire project to cost.…There are several ways to come up with this forecast.…It all depends on the assumptions we make.…Assumption #1, we will assume that we will continue…to spend at the same rate we have been spending.…
In many projects this would not be the best assumption.…It is though the easiest assumption to understand…
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- What is earned value management?
- Who uses EVM?
- Determining budget at completion, planned value, and earned value
- Calculating schedule and cost variance as well as schedule and cost performance index
- Forecasting future costs
- Computing TCPI for project success
- Exploring limitations of EVM<br><br>
- The PMI Registered Education Provider logo is a registered mark of the Project Management Institute, Inc.