ECD — Estimated Completion Date

Estimate At Completion (EAC) Formulas In Project Management

ECD - Estimated Completion Date

You might be thinking why there are so many Estimate At Completion (EAC) formulas in project management and how are they used for Earned Value Management (EVM) calculations.

EVM full of confusing terms and formulas. Estimate At Completion seems a misnomer. Well! How can you estimate anything when it is already complete?

I have written this post to discuss EAC in detail. You will find a complete explanation of EAC including its definition, examples, and formulas in this post. You will also find the difference between Estimate At Completion and Estimate To Complete (ETC) in this post.

This post also contains derivation of various EAC formulas that are used for forecasting calculations. After reading this post, you will also be able to solve and compute PMP exam’s mathematical questions these formulas.

You can also look at the following video to understand EAC.

Estimate At Completion (EAC) In Project Management

Estimate At Completion is the revised estimate of the total funds required to complete total work of a project. It is the sum of the Actual Cost (expenditure already incurred or the money already spent) till the control date and Estimate to Complete (expected cost of remaining work).

Note: EVM helps in measuring current performance and forecast future performance of a project. EAC is a combination of performance till date and a forecast of future performance. In addition to EAC, Estimate To Complete, and To Complete Performance Index are also used for project forecasting.

The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete.

PMBOK Guide

You can also refer to Max Wideman Glossary to read some other standard definitions.

Estimate At Completion (EAC) vs Budget At Completion (BAC)

In EVM, the original and expected project budget is expressed as BAC and EAC respectively. BAC is approved budget at the start of a project. EAC is determined periodically at different control points as the project progresses.

The funds requirement of a project may change after the project starts. The original budget may no longer be valid. The project team may need more or less funds to complete the project.

This can happen due to various reasons cost variances, risks, incorrect assumptions etc. The team can analyze the reasons for the change and estimate or forecast a new budget. The new budgetary forecast is called Estimate At Completion.

It becomes revised project budget after the Sponsor’s approval.

Estimate At Completion (EAC) vs Estimate To Complete (ETC)

ETC is the expected cost of completing the remaining project work whereas EAC is the estimated budget to complete all the project work.

In my experience, most professionals are confused about the difference between EAC and ETC. I think PM books have not treated this topic well. The books describe EAC and then derive ETC. But, it should be done the other way. EAC should be derived after finding ETC. It will be much simpler to understand.

Let’s read the PMBOK Guide’s definition of EAC again. EAC is the sum of the actual cost to date and the estimate to complete. So, EAC should be calculated only after computing ETC.

You should read my other article on Estimate To Complete before reading this article. I have taken many references from that article to explain EAC formulas.

Generic Estimate At Completion Formula

Let’s read the EAC definition again and give it mathematical form. We can be write the following equation:

EAC = (Actual Expenditure Till Date) + (Estimated Future Expenditure)

Let us solve this further by replacing Actual Expenditure Till Date with AC and Estimated Future Expenditure with ETC. The above expression can be re-written as

EAC = AC + ETC

This is the only equation that we need to solve the PMP exam questions. It can be used to derive all the other formulas.

I will derive and explain following formulas in the subsequent section.

  1.  EAC = AC + ETC
  2.  EAC = AC + (BAC – EV)/CPI
  3. EAC = AC + (BAC – EV)
  4.  EAC = BAC/CPI
  5. EAC = AC + (BAC – EV)/CPIp
  6. EAC = AC + Bottom-up ETC
  7.  EAC = AC + [(BAC – EV)/(CPI * SPI)]
  8. EAC = AC + [(BAC – EV)/(x*CPI + y*SPI)]

The PMBOK Guide lists only 4 formulas. Most of the PMP study guides also talk about these same formulas. But, I have provided a more rounded view.

Let us derive each one of them. You should read my article on ETC in parallel for all the scenarios and examples.

Calculating EAC Formulas

The above formulas can be mathematically derived by suitably replacing ETC figure in our generic equation with a ETC formula from my article on Estimate To Complete.

Formula I

First one is same as our Generic Equation.

EAC = AC + ETC

Formula II – Typical Performance

To derive the this, let’s replace ETC with ETC Formula I in our generic equation. Project’s past performance was typical and future work will be accomplished at the same rate. The resultant expression becomes

EAC = AC + (BAC – EV) / CPI

Formula III – Atypical Performance

The PMBOK Guide lists Formula III but does not talk about Formula II. I have listed both these formulas separately as the former is a special case of the latter. In fact Formula IV is also a special case of Formula III.

To derive this, let’s replace ETC with ETC Formula II in our generic equation. Project’s past performance was atypical but the future work will be accomplished at the planned rate. The resultant expression becomes

EAC = AC + (BAC – EV)

Formula IV

Let us mathematically solve Formula III above.

EAC = AC + (BAC – EV) / CPI

EAC = AC + (BAC / CPI) – (EV / CPI)

Refer to Basics of Earned Value Analysis. Let us replace CPI in above expression with (EV/AC). The above expression reduces to

EAC = AC + (BAC / CPI) – EV/(EV/AC)

EAC = AC + (BAC / CPI) – AC

EAC = BAC / CPI

Formulas II and IV are also referred to as Independent Estimate at Completion (IEAC).

Formula V

To derive the this, let’s replace ETC with ETC Formula III in our generic equation. The resultant expression becomes

EAC = AC + (BAC – EV) / CPIp

This expression is similar to the Formula II above. However, it uses projected future CPIp instead of past CPI to calculate ETC.

Formula VI – Bottom-up ETC

Refer to Scenario V in The ETC article. To derive the this, let’s replace ETC with Bottom-up ETC in our generic equation. The resultant expression becomes

EAC = AC + Bottom-up ETC

The term “Bottom-Up” has no specific significance. It just means that a fresh ETC should be determined by using Work Breakdown Structure (WBS). It can by found by determining the cost of remaining (unfinished) work components (work packages and activities) at the bottom of WBS and then aggregating them Upwards.

Formula VII

Consider the following scenario.

The Sponsor wants to know the budgetary cost estimate for finishing the project work within the original schedule at current CPI.

None of the above expressions will work in this case. We need to factor in schedule performance as well.

We already know that project’s current efficiency is measured by two indices – Schedule Performance Index (SPI) and Cost Performance Index (CPI).

A SPI of ‘S’ means that ‘S’ units of work was done in each duration unit (e.g. a day).

A CPI of ‘C’ means that $C worth of work was done for each dollar spent.

We have to consider both CPI and SPI to determine the budgetary cost to complete the project work within original schedule at current CPI.

Refer to Formula III – it uses only CPI. If we modify it to include SPI also, then it becomes

EAC = AC + (BAC – EV) / (CPI * SPI)

Formula VIII

There is another variant of the above expression, which can also be used for calculations. In the following formula x & y are weights given to CPI & SPI respectively. These weights signify how much importance the project team is willing to give to each performance factor. The sum of x & y should be 1, e.g. 0.2 & 0.8 or 0.5 & 0.5.

EAC = AC + (BAC – EV) / (x*CPI + y*SPI)

How To Use EAC Formulas In The PMP Exam?

The PMBOK Guide describes only 4 formulas. In this post, I have extended the concept further to describe a generic equation and 8 different formulas.

If you are preparing for the PMP exam, only PMBOK Guide’s formulas should be sufficient. Here is my brief take on how you should solve the PMP questions.

You can use one of the following formulas depending the situation described in the exam question

When future work will be completed at the budgeted rate (at planned efficiency – atypical)

EAC = AC + BAC – EV

When future work will be completed at the current rate (at current CPI – typical)

EAC = AC + (BAC – EV) / CPI

Or

EAC = BAC / CPI

When future work will be completed at current rate within the original Schedule (considering both present CPI & SPI)

EAC = AC + (BAC – EV) / (CPI * SPI)

Final Thoughts

EAC provides an revised estimate to complete the project work. It is a derived from ETC. EAC and ETC are important metrics to gauge the health of a project. They should be revised periodically as project progresses and moves towards the completion.

There are number of other formulas in EVM. You can read Earned Value Management Formulas for a quick snapshot of all of them. You need to understand the these to answer the PMP questions correctly.

A mere memorization of the formulas is not useful. You may not be able to apply the correct formula in the exam question. It is better understand the concept and then apply the formula(s) as required.

Over To You

EVM is difficult topic. Do you still have any confusion about Estimate At Completion? You can write your question in the comments section below and I will respond to it.

To Complete Performance Index
EVM – Is it Useful?

PMP Exam Formulas

I have also compiled a PMP Formulas Cheat Sheet. It contains 45 formulas and 57 abbrviations. It will help you in your exam prep. You can freely download the PMP Formulas Sheet for your studies. It is the best and most comprehensive cheat sheet the PMBOK Guide 6th edition.

Download Free PMP Formulas

If you are looking beyond a cheat sheet, then I would suggest you to buy detailed PMP Exam Formula Study Guide by Cornelius Fichtner. It contains detailed explanations of all the formulas along with examples and 105 practice questions.

Disclosure: This article contains affiliate links — it means that, if you buy from any of these links, then I will receive a small commission that would help me in maintaining this blog for free. However, for you, there is no extra cost. I recommend only those products that I believe will definitely help the certification aspirants.

Источник: https://www.pmbypm.com/estimate-at-completion-eac-formula/

Different Ways to Calculate the Estimate at Completion (EAC)

ECD - Estimated Completion Date

The PMBOK® Guide clearly states how to calculate Estimate at Completion (EAC) in different situations.

I can tell you from my personal experience that the EAC calculation questions you may get during your PMP® examination can be quite confusing.

The PMP® exam assesses your ability to understand the concept of EAC as well as the correct application of EAC in each project—so you need to understand the different ways of calculating EAC.

EAC Calculation Categories

There are four general categories for EAC calculation.

They are as follows:

  1. EAC = AC + Bottom-up ETC

    This formula is used when the original estimation is fundamentally flawed. It calculates the actual plus new estimate for the remaining work.

  2. EAC =BAC/Cumulative CPI

    This formula is used when the original estimation is met without any deviation. It signifies that your project is going well: you are maintaining the CPI and SPI as 1, and you should continue the project in the same way. It is always good for a project manager if he or she is maintaining the CPI and SPI as 1 or even more than 1.

  3. EAC = AC + (BAC — EV)

    This formula is used when the current deviation with the original estimation is thought to be different in the future. It is generally AC plus the remaining value of the work to perform.

  4. EAC = AC + [BAC — EV / (Cumulative CPI x Cumulative SPI)]

    This formula is used to calculate actual to date plus the remaining budget changed the performance. It is used when we believe the current ratio is typical as planned. In other words, we have to meet the schedule earlier than originally determined, and we calculate the EAC accordingly to meet that schedule.

Example 1:

Abraham is the project manager for an ITES project. Suddenly, there is a scope change request from the customer, and upper management asked for a new estimate of the total cost of the project with this new implemented scope on the project.

The project has already incurred an amount of $250,000 and has a CPI of 1.08. The project manager discussed with the team and all the stakeholders and decided on some future investments, such as admin costs of $60,000, quality control costs at $25,000, and miscellaneous costs as $11,000.

What is the estimate at completion in this case?

How do you calculate this?

In this example, the original estimates are poor because they are a flawed approach. Therefore, you should calculate EAC using the formula from condition 1 here: Estimate at Completion = Actual Cost + Bottom-up Estimate to Complete By using the abovementioned formula, you can calculate: $250,000 + ($60,000 + $25,000 + $11,000) = $346,000.

Example 2:

Kate is a project manager who is managing a large and complex project. Midway through the project, upper management asked her for an updated estimate of the total cost of the project.

At the beginning of the project, the costs of the project were estimated at $150,000 for development, $170,000 for design costs, and $120,000 for quality control. The Cost Performance Index of the project is 1.04.

What is the Estimate at Completion at this stage?

Example 3:

Dave is the project manager for a software company. He and his team are working on a project to develop software for their customer. During execution, the project manager realized that mistakes were made while collecting the project requirements.

Dave has fixed the mistakes and put a mitigation plan in place. At the start of the project, the costs of the project were estimated at $200,000 for design, $300,000 for development, and $200,000 for quality control. The project has spent $400,000 so far.

The value of the work completed is $500,000. What is the Estimate at Completion?

Example 4:

Lisa is working on a project. The CEO has told the shareholders that the new system will be in place in six months, without discussing this first with the PMO.

At the start of the project, the costs of the project were estimated at $150,000 for design, $700,000 for development, and $225,000 for quality assurance. The project has spent $450,000 so far. The CPI for the project is 0.9, and the SPI is 0.8.

The value of the work completed is $375,000. What is the Estimate at Completion?

How do you calculate?

In this example, the CPI is considered abnormal.

So you can calculate Estimate at Completion using the formula from condition 4:Estimate at Completion = Actual Cost + [(Budget at Completion — Earned Value) / (Cost Performance Index x Schedule Performance Index)]

By using the above-mentioned formula: = $450,000 + [($1,075,000 — $375,000) / (0.9 x 0.8)] = $450,000 + [$700,000 / 0.72] = $450,000 + $972,222.23 = $1,422,222.23 

Enroll in our PMP Certification Course today and develop a strong foundation in the principles of project management.

Conclusion

Now that you have a better understanding of the different ways to calculate the Estimate at Completion, you’re well on your way to attaining the PMP® certification. Want more project management training? Simplilearn offers everything you need to train for your PMP® exam and pass it on the first try.

PMBOK®, PMP®, and PMI® are registered trademarks of the Project Management Institute, Inc.

Источник: https://www.simplilearn.com/calculating-eac-article

13.4.5 Initiating and Working a Case on TAMIS | Internal Revenue Service

ECD - Estimated Completion Date

(1) This transmits a revised IRM 13.4.5, Creating and Working a Case on TAMIS dated April 24, 2015.

Material Changes

(1) 13.4.5.2.1.5 (8) — add new How Received code to list «I — XFER from NTA» .

Audience

Taxpayer Advocate Service employees using TAMIS application.

Effective Date

(06-10-2015)

Signed by Nina E. Olson
National Taxpayer Advocate

  1. This section provides direction for initiating a case on TAMIS and addresses all of the screens necessary to work the case.

  2. This section also addresses how to generate, view, download and print a Form 911H, Taxpayer Advocate Service Case Information History.

  1. To create the initial case on TAMIS, there are several screens that you must complete. Depending on the circumstances of the case, additional screens are required; e.g., a Power of Attorney (POA) screen.

  2. This section describes how to complete the following screens:

    1. Taxpayer Screens 1, 2, 4, and 5. Taxpayer Screen 3, 7811 Determination, is discussed in IRM 13.4.5.3, Working a Case on TAMIS;

    2. Power of Attorney (POA);

    3. Congressional; and

    4. Transfer.

  3. As the case progresses, additional screens may be necessary, and fields may need to be updated. In order to maintain the accuracy of TAMIS, updates should be documented as close to the action as possible.

    The proper usage of lower and upper case letters is very important in all of the fields.

  1. There are five Taxpayer Screens; however, only screens 1, 2, 4, and 5 are completed when the case is initially created.

  2. Taxpayer Screen 1 of 5 displays upon selecting TAMIS on the Main Menu. If your Inventory screen displays, select the Case navigation button.

    Taxpayer Screen 1 of 5 has options to add an individual taxpayer with a domestic or foreign address, or a business taxpayer with a domestic or foreign address. These options are addressed in IRM 13.4.5.2.1.

    1 , Taxpayer Screen 1 of 5 – Individual Taxpayers, Domestic or Foreign Address.

  3. If you attempt to initiate a case on TAMIS and a case with a matching TIN already exists on the system, the warning message «This TIN is already present on an existing TAMIS case.

    Do you want to continue?» displays. Choose either the «Yes» or «No» option to continue. Research and determine if this is a duplicate, or a potential reopen. See IRM 13.4.5.

    6, Reopen Screen, for instructions on how to reopen a case.

    Until you have determined a case should be added, do not add the potential duplicate case.

  4. When a case or screen is initially saved, at a minimum, all the fields in which the label is in bold font must be completed. The bold fields represent the minimum amount of fields that must be entered to save the record.

  5. To navigate between fields you can either use the Tab key or the mouse.

  6. Once Taxpayer Screens 1, 2, 4 and 5 are completed, save your actions by selecting Save from the icon bar or Action and Save from the menu bar. This saves the case and generates a case file number. If required fields are not completed, the system prompts which fields require data to be entered.

  7. The Static Display information (TIN, MFT, Age, Secondary TIN, and TP) will not update until the case information has been refreshed. If you leave the case area and access a different part of the system (e.g., Inventory), the Static Display information will be present when you return to the case.

  1. The default setting for the Taxpayer Information Screen 1 of 5 is an individual taxpayer with a domestic address. If the taxpayer has a foreign address, check the Foreign Address field located at the top of the screen by either using the mouse or Space Bar. Selecting the checkbox displays a foreign address format.

  2. If the taxpayer is a business, you must check the Business field/checkbox located at the top of the screen. See IRM 13.4.5.2.1.2, Taxpayer Screen 1 of 5 – Business Taxpayers, Domestic or Foreign Address, for additional instructions.

  3. The Monitor and Suspend checkboxes are not used when initially adding a case to TAMIS. See IRM 13.4.5.3, Working a Case on TAMIS, for additional information regarding these checkboxes.

  4. Although all fields are not required to save the record, it is important to add as much information as possible when creating the case. In order to save the case, all the fields in bold font displayed on the screen must be completed. Taxpayer Screen 1 of 5 is the starting point for adding a case. The field descriptions follow.

  5. TINPrimary and Secondary — the Taxpayer Identification Number (TIN) for individuals consists of a nine-digit Social Security Number (SSN).

    The hyphens must be input in the proper format for SSNs. If there is a File Source Code, you must input it in the field immediately following the Primary or Secondary SSN.

    Selecting question mark (?) displays the following list of values (LOV).

    1. * or asterisk = Invalid SSN IMF;

    2. D = Temporary TIN;

    3. N = Valid NMF;

    4. P = Valid SSN IRAF;

    5. V = Valid SSN BMF;

    6. W = Invalid SSN BMF; and

    7. X = Invalid SSN IRAF.

  6. Last Name – A 20-character field containing the taxpayer's last name. If the case involves married filing joint taxpayers, input the last name of the secondary taxpayer in the second Last Name line. This is a required field.

    For married filing joint returns, which have or will have a split assessment account due to the filing of an Innocent Spouse Election, Separate Liability or Equitable Relief claim, only enter the inquiring taxpayer’s entity data on Taxpayer Screen 1 of 5. Enter the non-inquiring taxpayer’s TIN in the X-Ref field on Taxpayer Screen 5 of 5.

  7. First Name – A 15-character field containing the taxpayer's first name. If the case involves married filing joint taxpayers, input the first name of the secondary taxpayer in the second First Name line.

  8. M.I. – Middle Initial — A one-character field containing the middle initial of the taxpayer, if known. If married filing joint, input middle initial of secondary taxpayer, if known, in the second Middle Initial field.

  9. Title – A five-character field indicating the title of the taxpayer. The LOV entries provided are Miss, Mr., Mrs., and Ms.

  10. Address – Three-lines, each containing up to 35 characters for the taxpayer's address.

  11. City – A 33-character field indicating the name of the taxpayer's city.

  12. State – A two-character field indicating the state abbreviation where the taxpayer resides. Select a state from the LOV. The field populates with the correct abbreviation for the selection.

    The LOV also includes abbreviations for Armed Forces the Americas, Armed Forces Europe, Armed Forces Pacific, America Samoa, District of Columbia, Federated States of Micronesia, Marshall Islands, Northern Marianna Islands, and Virgin Islands US.

  13. Zip Code – A three-section, 12-character field to indicate the taxpayer’s ZIP Code.

    A phone number is required if a complete address has not been entered.

    A complete address consists of either a domestic address with the Address, City, State, and Zip Code or a foreign address including the country.

    If you attempt to save the case when both the phone number and complete address are missing, an error message displays indicating that one or the other is required.

  14. Contact – A 17-character field to provide the name of the person to contact. For example, if the inquiry relates to a joint account, input the name of the spouse who should be contacted.

  15. Contact Title – A 17-character field to provide the title of the contact. For example: executor, CEO, Partner, or Vice- President or the title of a business taxpayer.

  16. Best Time – A 13-character field indicating the best time to contact the taxpayer or representative. Suggested format hh:mm a or p (h=hour, m=minute, a = am, p = pm).

  17. Phone – A 25-character field for the taxpayer’s phone number. Input the phone number with dashes. Space is available to add extension numbers. For example, 222-555-5555 ext 2555.

    If no phone number is available, input all zeroes in phone number format or the literal «No Phone» .

    To enter additional phone numbers beyond the two visible fields, while in the phone field, select the Insert Record icon from the icon bar or Record from the menu bar followed by Insert. The valid type of phone entries are as follows:

    1. B = Business;

    2. C = Cell;

    3. F = Fax;

    4. H = Home;

    5. M = Message;

    6. O = Other;

    7. P = Pager.

    The checkbox next to the Phone Number field is used to identify the primary contact phone number.

    This field is for the taxpayer's phone number only. Refer to the applicable screens for phone numbers of authorized representatives or Congressional offices.

    If the taxpayer is hearing impaired and uses a TTY phone number for communication, select «Other» from the list of values and put TTY after the phone number in the taxpayer phone field.

  18. E-Mail – A 40-character field indicating the taxpayer’s email address. Refer to IRM 13.6.1.13.6, E-Mail Restrictions, for TAS policy regarding corresponding with taxpayers via email.

  19. Outreach – Two fields indicating how the taxpayer learned about TAS, or how the taxpayer’s inquiry was routed to TAS. If the outreach information is available when the case is identified, the code should be added at that time.

    If the outreach information is not available at the time the case is created, update the information as soon as known. An entry is required by case closure.

    The first field identifies whether it is the taxpayer’s initial request, subsequent request, or whether the operating division or function referred the inquiry and the taxpayer did not specifically request TAS. The LOV follows:

    1. 1 — Initial TP request for TAS assistance.

    2. 2 — Subsequent TP request for TAS assistance.

    3. 0 — Indirect receipt (no direct TP/Rep request for TAS assistance).

  20. Outreach – The second field indicates how the taxpayer learned about TAS. The LOV follows:

    1. 10 — IRS Publications/Forms/Notices

    2. 11 — IRS Websites

    3. 12 — Telephone directory listings: TAS offices/NTA Toll-free number

    4. 13 — TP/Rep made aware of TAS by BOD/Other Functional Area

    5. 20 — TAS Outreach to Congressional Offices

    6. 30 — TAS Outreach to Tax Practitioner/Tax Professional Community

    7. 40 — TAS external meetings/speeches/events

    8. 41 — TAS outreach to low income taxpayer clinics

    9. 50 — TAS outreach through the media (TV/radio/newspaper, etc.)

    10. 60 — Local Advocate Outreach Program

    11. 70 — Friend/acquaintance/neighbor

    12. 80 — Other (to be used when no other code is appropriate)

    13. 90 — TAS Disaster-Related Outreach (FEMA)

    14. 91 — TAS Disaster-Related Outreach (LITC)

    15. 92 — TAS Disaster-Related Outreach (SBDC)

    16. 95 — TAS Disaster-Related Outreach (Other)

    17. 00 — Indirect receipt (no direct TP/Rep request for TAS assistance)

      Code 00 is used when the operating division or function sends a referral to TAS and TAS assistance is not specifically requested by the taxpayer; or a Congressional inquiry not addressed to TAS and not requesting TAS assistance. Secondary code 00 can only be used when the primary Outreach code is 0.

  21. Taxpayer Issue – A three-character field used to capture the taxpayer's perception of the problem/issue.

    The Taxpayer Issue Code (TIC) is a required field when creating a case based upon the information available at the time the case is created. Update the TIC if appropriate.

    Refer to the TAMIS Issue Codes listing located on the TAMIS IRM web page at http://tas.web.irs.gov/tech/tamis/updates/7127.aspx.

  22. If the taxpayer has a foreign address check the Foreign Address field to bring up the format for adding a foreign address.

    The Address field is comprised of four lines, 35 characters each, and the 20-character Country field replaces the City, State and Zip Code fields.

    All fields are the same as previously described, except for the Address, City, State and Zip Code fields.

  23. Select the «» and «

  24. Источник: https://www.irs.gov/irm/part13/irm_13-004-005

    Estimate at Completion (EAC) – A Project Forecasting Tool

    ECD - Estimated Completion Date

    Estimate at Completion (EAC) is a forecasting tool in project management.

    Forecasting helps predict the future performance of projects. It is the past performance of the project and objective data. With this information in hand, you can guess future progress and find early indications of a deviation.

    We have three forecasting techniques in project management:

    1. Estimate at Completion (EAC)
    2. Estimate to Complete (ETC)
    3. To Complete Performance Index (TCPI)

    In this blog post we will discuss Estimate at Completion (EAC) in detail and the other two techniques briefly.

    What is Estimate at Completion (EAC)?

    According to the PMBOK Guide, Estimate at Completion is “The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete.”

    Just in case the definition above doesn’t give you a complete picture, let me give you a simple example.

    Let’s say you are somewhere in your project. The client comes and asks you how much they have to spend to complete the project and your project has deviated from the cost baseline.

    Therefore, you will estimate the new budget and give this number to the client. This is the Estimate at Completion (EAC). Estimate at Completion allows the project manager to see the final project cost estimate.

    Project work does not always go as planned. There are many circumstances beyond your control that may require a change in your plan. Funding requirements keep on changing from the moment the project starts.

    It is your responsibility as a project manager to influence the factors that cause changes. However, if alterations occur, you have to manage them.

    You will evaluate the impact of each change on the project’s objectives and take action as needed.

    You can calculate the Estimate at Completion in three different scenarios.

    Case 1: EAC = BAC / CPI

    You assume that the project will continue to perform, to the end, as it has been performing in this scenario.

    In other words, your future performance will be the same as past performance. Therefore, the CPI will remain unchanged until the project ends.

    Formula for the Estimate at Completion

    You can calculate Estimate at Completion by dividing the Budget at Completion by the Cost Performance Index.

    Estimate at Completion = (Budget at Completion) / (Cost Performance Index)

    Or,

    EAC = BAC / CPI

    • If the CPI = 1, then EAC = BAC. This means you can complete your project with your approved budget analysis.
    • The Estimate at Completion will be equal to the budget at completion at the start of the project, i.e., EAC = BAC.

    Here, you have deviated from your budget estimate, but from now on you can complete the remaining work as planned.

    Unforeseen circumstances or one-time incidents can cause this to happen and will increase costs. However, it will not happen again and you can complete the remaining work as planned.

    In this formula, you add the money spent to date to the budgeted cost of the remaining work.

    Forecasting Technique #3: To Complete Performance Index (TCPI)

    The To Complete Performance Index estimates how fast you have to move to achieve the target.

    It is the estimate of the future cost that you may need to complete the project within the approved budget. This budget may be the BAC or an updated budget, i.e., Estimate at Completion (EAC).

    TCPI = (Remaining Work) / (Remaining Funds)

    TCPI = (BAC – EV) / (BAC – AC)

    Or

    TCPI = (BAC – EV) / (EAC – AC)

    Summary

    The Estimate at Completion is an excellent forecasting tool. It allows project managers to make realistic budget revisions. It gives you a mid-project estimation of the overall cost that your project may take to complete.

    Once this estimate is approved, this will be your new budget. The EAC is not fixed, it may change as the project progresses. Estimate at Completion should be revised periodically or as defined in the project management plan.

    How often do you use Estimate at Completion (EAC) during your projects? Please share your experience in the comments section.

    This blog post is the fifth in a series of seven on Earned Value Management and project forecasting. Please read through my previous posts before reading this post if you’re coming here from a search engine or a referral.

    The following are the links for other blog posts:

    Источник: https://pmstudycircle.com/2012/05/estimate-at-completion-eac-a-project-forecasting-tool/

    The WES Credential Evaluation Process Explained

    ECD - Estimated Completion Date

    Thursday | November 7, 2019 | by Justine D’Souza

    The WES credential evaluation process involves four basic steps. Here’s a brief overview, and you can read a more in-depth explanation of each step below:

    In the first step, evaluators ensure that WES has received all required documents in the manner specified for that country and credential.

    The second step consists of reviewing the documents to ensure that they are authentic and issued by duly recognized institutions.

    In the third step, analysts evaluate the documents and assess their equivalency in terms of Canadian or U.S. education.

    In the fourth and final step, the evaluator issues the credential evaluation report. Each step is essential in creating an accurate and high-value report.

    Start your credential evaluation application now!

    If you ever need an update, WES provides an easy-to-use online tracking system. You can log in to My Account to check the status of your application at any time. If you require further assistance, please visit our Help Center or contact our customer support team.

    Benefits of the WES Evaluation Process

    The WES credential evaluation process involves reviews from both documentation and education system specialists. Our document collection, authentication, evaluation, analysis, and quality control standards lead to more accurate evaluation reports.

    Our stringent review process ensures that a WES evaluation is widely accepted and preferred by more than 2,500 educational, business, licensing, and governmental institutions in the U.S. and Canada.

    As stated above, every credential evaluation proceeds through four major stages at WES:

    Stage 1: Document Imaging

    When documents arrive at WES, documentation specialists review each individual page and scan it into our system. In many cases, we can accept electronic documents directly from your international institution. Check your Required Documents to see if that is an option for you.

    If your institution would to send your documents to us electronically, please have them submit a request via our Contact Us form. They can choose the “Other” category on the form.

    We will communicate with your institution to explore possibilities for digital document transmission.

    Once your files are in our system, your My Account timeline will reflect: “We are processing a new package or document for your application.”

    Stage 2: Document Review and Authentication

    In this stage, document examiners compare the scanned images to the physical documents we received to make sure that the file is complete and submitted in the manner specified by WES. After reviewing, they determine whether the documents should be accepted.

    At this step, your My Account timeline will reflect: “We are reviewing your documents.”

    Stage 3: Analysis and Equivalency Assessment

    The next phase involves document analysis and evaluation. A team of analysts with country-specific knowledge handles this operation. They review the authenticated documents for accuracy and completeness.

    At this step, your My Account timeline will reflect: “We are analyzing and evaluating your documents.”

    The analysts will decide on next steps and update your account accordingly. If the evaluators determine that all the required documents have been received in the manner specified by WES, that they are authentic and complete, they will queue the file for evaluation and issue an estimated date of completion.

    At this step, your My Account timeline will reflect: “We are reviewing your evaluation.”

    If the evaluators determine that any of the documents require secondary verification, they will reach out directly to the appropriate institution for verification. If your documents require secondary verification, your My Account timeline will reflect: “We are waiting for your institution(s) to verify your documents. (Learn More.)”

    Related Reading

    What to Know About the Verification Status

    If evaluators notice that required documentation or information is missing, they will contact you and request the missing documentation. During this step, your My Account timeline will reflect: “We are waiting for your documents.”

    Whenever a file requires secondary verification or additional documents are required, the file is placed on hold.

    It is only when all the necessary information and verification have been obtained that the file is ready for evaluation and a completion date is issued.

    Before making any of these decisions, evaluators carefully analyze documents, perform necessary research, and consult with domain specialists.

    Related Reading

    6 Reasons Your Credential Evaluation Might Be Put on Hold

    Stage 4: Evaluation Report Production

    The final phase involves quality control. Specialists review the report draft and make any necessary changes. Then, they send the report for printing and mailing or electronic delivery. At this step, your My Account timeline will reflect: “Your report is under final review and your evaluation will be sent to your recipient(s).”

    How to Avoid Delays 

    To ensure the WES credential evaluation process goes as smoothly as possible, follow these tips:

    • Submit all required documents in the manner specified for your country of education on our Required Documents page.
    • Include your WES reference number on all envelopes sent to WES.
    • Review your application for accuracy and complete it in full before submitting it.
    • When you fill out your application, make sure that you spell your name correctly and add your accurate date of birth.

    Remember, you can check the status of your application any time by logging in to My Account. If you require further assistance, you can always visit our Help Center or contact our customer support team.

    Credential evaluations can help you achieve your academic and professional goals in the U.S. and Canada.

    Learn more: About WES Credential Evaluations.

    Or: Apply for your credential evaluation today!

    Источник: https://www.wes.org/advisor-blog/wes-credential-evaluation-process/

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