Cost/Schedule
Control – estimate at completion (EAC)
You can feel the question coming: “Well, what is this
project going to cost by the time it’s over?” Yes,
you will be expected to forecast the cost at completion at
any time during the execution of a project. The official term
for it is Estimate at Completion (EAC).
There are several different
formulae for calculating the Estimate at Completion. The
one we prefer is applicable once the cumulative
CPI stabilizes, and it assumes that CPI for the
remainder of the project will be the same as the stabilized
cumulative
CPI
to date. This is used when your current variances are typical.
|