## EAC = BAC/CPI vs ac + bac - ev

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staneja
Beginner
Posts: 45
Joined: Sun Feb 16, 2014 6:31 pm

### EAC = BAC/CPI vs ac + bac - ev

EAC = BAC/CPI ..to be used when variance are seen in the work and will continue provided that CPI remains same

ac + bac - ev to be used when variance is seen only one time and then project continues at the budgeted rate.

Which formula do we use if variance type x is seen then variance type y is seen.I mean to say the variances are not following any trend in the project but they continue.

Thanks
Staneja
indusharma
Super Member
Posts: 349
Joined: Wed Dec 11, 2013 2:55 am

### Re: EAC = BAC/CPI vs ac + bac - ev

I would recommend to use the formula - EAC = AC + Bottom-up ETC

Its better to re-estimate if PM can foresee so much of variances with the planned values.
Indu Sharma
PMP Trainer
iZenbridge Consultancy Pvt Ltd
signor_rk
Contributor
Posts: 182
Joined: Wed Jun 18, 2014 3:47 pm

### Re: EAC = BAC/CPI vs ac + bac - ev

Is it possible to use this formula in this case ?

Regards ,
Ranjit
Regards ,

Ranjit
indusharma
Super Member
Posts: 349
Joined: Wed Dec 11, 2013 2:55 am

### Re: EAC = BAC/CPI vs ac + bac - ev

Ranjit,

To use formula EAC =AC+[(BAC-EV)/(CPI*SPI)], we need to see the following three points:

point #1 typical variation in cost so CPI is required
Point#2 variations in schedule

If the scenario fulfills all 3 points, then only we can use above said formula.

Let me know if u have any followup query

Regards
Indu Sharma
PMP Trainer
iZenbridge Consultancy Pvt Ltd
signor_rk
Contributor
Posts: 182
Joined: Wed Jun 18, 2014 3:47 pm

### Re: EAC = BAC/CPI vs ac + bac - ev

Tha's fine. Thanks Indu.

Regards,

Ranjit
Regards ,

Ranjit
sunku65
Contributor
Posts: 261
Joined: Mon May 26, 2014 7:23 am

### Re: EAC = BAC/CPI vs ac + bac - ev

signor_rk wrote:What about EAC =AC+[(BAC-EV)/(CPI*SPI)] ?
Is it possible to use this formula in this case ?

Regards ,
Ranjit

We can add additional resources to the schedule with the amount of worth of VAC (Eac-BAC).
Then the project will complete on time.