In earned value analysis, the Estimate At Completion, usually abbreviated EAC, is the estimate of the final project cost given the past performance of the project. Thus, it allows the project manager to see what the final project cost estimate is. The EAC is one of four calculations in the Earned Value Management which allow you to forecast the future performance of … [Read more...]
In earned value analysis, the Estimate To Complete, usually abbreviated ETC, is the expected remaining cost to complete the project. It is not the final overall project cost (that's the EAC), rather it is the expenditure from now to the end of the project. It does not include what has already been spent. Thus, it allows the project manager to compare the funding needs … [Read more...]
Everybody has heard of a project whose cost spiralled out of control. Even big megaprojects where the difference measures in the billions are not immune to cost pressures. In fact, they are even more likely to go over budget. What is the official project management methodology for controlling project costs? To answer this question, we consult the … [Read more...]
The earned value method is the project management standard for cost control during a project. Whether you are a practicing project manager or studying for the PMP exam, you need to know how to calculate earned value. Fortunately, it involves nothing more than basic high school math. The more difficult part is knowing what each of the variables means and how … [Read more...]
