Join Aileen Ellis for an in-depth discussion in this video Forecasting estimate to completion (ETC) and variance at completion (VAC), part of Project Management: Calculating Earned Value.
Another Earned Value forecasting idea…we have touched on slightly…is ETC.…ETC stands for Estimate to Complete.…It is an estimate or a forecast…of how much more we need to spend…over what we have already spent.…Let's discuss just 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.…
Let's continue to work with the fence example.…In the fence example we are estimating the total project…will cost $1,600.…Remember this is Assumption 1.…If we believe the whole project will cost $1,600,…and we have already spent $400,…then the ETC, the Estimate to Complete,…must be $1,600 minus $400.…
Therefore, we are estimating we need to spend…another $1,200 over what we have spent…to complete the project.…The equation ETC = EAC-AC.…When we plug in the numbers we get $1,200.…While this equation will be very useful…for those of us preparing to become…project management professionals,…it is not as useful on the actual projects.…
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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.