Join Aileen Ellis for an in-depth discussion in this video Forecasting ETC and VAC, part of Project Management: Calculating Earned Value.
Another earned value forecasting idea…that we have touched on slightly is ETC.…ETC stands for Estimate to Complete.…It is an estimate of how much more we need to spend…over what we have already spent.…Let's discuss two ways to determine ETC.…The first way assumes we already know the estimate…at completion and we are working with the assumption…we will continue to spend at the same rate.…
The equation for ETC using this assumption is…ETC = EAC-AC.…When we plug in the numbers we get…that ETC = $375,000.…This tells us we are estimating…that we are going to spend $375,000 more…than what we have already spent.…While this equation will be useful…for those of you preparing to become…project management professionals,…it is not very useful on most of the actual projects.…
On actual projects, we most likely will…not have forecasted Estimate at Completion yet.…Therefore, someone on our team,…most likely multiple people on the team…will need to determine a bottoms up ETC.…Another common earned value term is the VAC,…the Variance at Completion.…
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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.