Study EVM (Earned Value Management) - Part 2
Once the CPI/SPI were calculated at some time-stamp, project manager should be deeper analyses, he need to predict the future cost: ETC (Estimate To Completion) Then EAC (Estimate At Completion) = AC + ETC How to calculate ETC based on current situation (EV/AC/PV and SPI&CPI), there are usually three methods: Regardless of current Schedule/Cost Performance Index This way is simple, I don’t care what’s happened, EAC = BAC + EAC – AC, in other words, project team is confident to finish the project below estimated cost. Estimated based on current CPI This way is stra...