Join Aileen Ellis for an in-depth discussion in this video Forecasting estimate at completion (EAC), part of Project Management: Calculating Earned Value.
Earned Value 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 schedule and a cost standpoint.…Many project managers may stop here,…but we will continue.…A real critical benefit of Earned Value management…is that we can use the current results…to predict future performance.…We will begin our focus with estimating…what the total cost of the project will be…when we finish all the work.…
This estimate or this forecast is called…the Estimate at Completion, or 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 really depends on the assumptions we make.…The first assumption we will make is…that we will continue to spend at the same rate…we have been spending at.…Let's use logic first to determine this estimate…and then we will use an Earned Value equation.…
We have spent $400 to complete the north side of the fence.…
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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.