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EAC Formula- Still Making Mistake

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Mahfuz
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EAC Formula- Still Making Mistake

Postby Mahfuz Fri Oct 23, 2015 12:30 am

EAC= BAC/CPI- Variance will remain. Most often required on the exam
EAC=AC+ Bottom-up ETC- original estimate was fundamentally flawed
EAC= AC+(BAC-EV) Original budget is more reliable, Variance will not occur again
EAC=AC+ (BAC-EV)/SPI*CPI- when you have schedule and cost constraint.

===================================
I was doing Oliver Lehman's 75Q ( number 49)
You are assigned as the project manager to a project which had a one-time cost variance in the past caused by unexpected rework which has meanwhile been finished.
You perform earned value analysis and get the following results:
EV: 250,000; PV: 200,000; AC 275,000

BAC is 500,000.

What is right?
EAC = 550,000
EAC = 525,000
EAC = 500,000
EAC = 425,000
=======================================
I have no problem picking answers for option 2 and 4. However, i am still making mistake for option 1 and 3. Can someone help me sharpen my SAW?
Kind regards,
Mahfuz Rahman ,PMP
vivek3377
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Re: EAC Formula- Still Making Mistake

Postby vivek3377 Fri Oct 23, 2015 2:29 am

I don't understand your problem Mahfuz... it is one time variance. So my take will be on EAC = AC + (BAC-EV).
ujjal_show
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Re: EAC Formula- Still Making Mistake

Postby ujjal_show Fri Oct 23, 2015 9:10 am

Yes.. Mahfuz you are correct.. we are making mistake for application of EAC= BAC/CPI and EAC= AC+(BAC-EV). Same question I had ask to saket also.

So consolidate tricks are:

EAC= BAC/CPI : nothing mention in the question, problem can’t be solve (I.e. manpower replaced by costliest), variance will influence throughout the project, variance is typical etc.
EAC= AC+(BAC-EV) : problem/issue are fixed now, remain work will close within budget rate, variance is one time, variance is atypical

So in this example if you have choose EAC= AC+(BAC-EV) you are good, irrespective off answer.
rameshsa@yahoo.com
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Re: EAC Formula- Still Making Mistake

Postby rameshsa@yahoo.com Thu Jan 21, 2016 8:39 am

Hello Ujjal,

Waiting for ur MP3 ... Bro please share on drop box i already gave u a link.
ujjal_show
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Re: EAC Formula- Still Making Mistake

Postby ujjal_show Thu Jan 21, 2016 12:17 pm

I'm extremely sorry dear, PMI ethics says "not for distribution, sale or reproduction"
rameshsa@yahoo.com
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Re: EAC Formula- Still Making Mistake

Postby rameshsa@yahoo.com Thu Jan 21, 2016 5:02 pm

Thank you Bro :).

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