Confusion on EAC formula

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shankars
Posts: 10
Joined: Wed Dec 03, 2014 7:07 am

Confusion on EAC formula

Hi Saket
I did watch your you-tube video on EVM techniques and it helped me to clarify lot of grey areas. Thanks a lot.

I had a query. Why do use EAC= BAC/CPI and not EAC= AC +BAC/CPI in case we would like to continue with the current CPI.

Please clarify.

Regards
Shankar
signor_rk
Contributor
Posts: 182
Joined: Wed Jun 18, 2014 3:47 pm

Re: Confusion on EAC formula

hi Shankar ,

EAC = BAC/CPI is used when the current CPI is expected to continue till the completion of the project
EAC = AC + BAC - EV is used when the case is atypical , i.e., one time unexpected case has happened , but the remaining work i.e. BAC-EV will be completed as planned earlier.
EAC = AC + BAC/CPI is not a valid formula , it could be EAC = AC + (BAC-EV)/CPI , or EAC = AC + (BAC - EV) /(CPI*SPI)

Thanks
Regards ,

Ranjit
shankars
Posts: 10
Joined: Wed Dec 03, 2014 7:07 am

Re: Confusion on EAC formula

Thanks Ranjit a ton.
Regards
Shankar
bs_pani
Super Member
Posts: 663
Joined: Mon Sep 22, 2014 3:36 pm

Re: Confusion on EAC formula

One more thing I would like to share, we should use EAC = AC + (BAC - EV) /(CPI*SPI) when deadline of the project has to be met at any cost. There was a question in Quampus on this formula.

Cheers,
Bhabani
saket
Site Admin
Posts: 3127
Joined: Sat Dec 07, 2013 10:37 pm

Re: Confusion on EAC formula

we also wrote blogs on this topic and these blogs also has videos :

http://www.izenbridge.com/blog/what-is- ... -variants/

check the linked blogs as well.
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