MANAGEMENT

Detailed explanation-1: -EAC = AC + BAC – EV / CPI x SPI: This is the formula used when schedule delays and expenses increase. In this case, it’s necessary to add the Schedule Performance Index (SPI) and the Earned Value (EV) to the equation.

Detailed explanation-2: -Estimate at Completion (EAC) is the current expectation of total cost at the end of a project. The EAC represents the final project cost given the costs incurred to date and the expected costs to complete the project. EAC is the expected spend where BAC (budget at completion) is the authorized spend on a project.

Detailed explanation-3: -Estimate at completion (EAC) predicts total costs, while estimate to complete (ETC) predicts the money a project still needs. ETC is the forecast of all additional money required to complete a project. It does not account for money already spent.

Detailed explanation-4: -This results in the standard EVM EAC equation of: EAC equals the ACWPcum plus the result of the BAC-BCWP divided by the selected performance factor. In practice all EVM related EACs are computed with this equation, the only thing that changes is the performance factor.