help needed on TCPI Calculation
Submitted by Patta on Sat, 08/27/2011 - 16:33
The below question is pretty straight forward,but I don't understand why EAC should be calculated with BAC/CPI and not with AC + BAC-EV. I chose the latter option and ended up with wrong answer, where as the solution chose the first option to calculate EAC. I really don't get it. Pls help!!!!!!
Calculate the to-complete performance index of your project, based on EAC, when the actual cost of your project is $200,000, cost variance of your project is $25,000 and the budget at completion of your project is $350,000.
1.125
-1.4
1
-1
Forums:
satish_multi
Sun, 08/28/2011 - 15:03
Permalink
In the question mentioned
In the question mentioned above they have not mentioned that the mangement wants to complete the future performance of the work at Budjeted Rate. In that case the formula EAC= AC + BAC - EV will be used.
Since they have not mentioned about how the future work will be performed then it is assumed that future performance of the work will be the same as past performance of the project so the formula EAC= BAC/CPI is used.
For the exam point of view, Patta they will clearly mention wether the future EAC should be at budjeted rate or the future work should be performed considering both CPI & SPI. If they do not mention any of the above then you should caculate EAC= BAC/CPI.
Hope that helps and best luck for your prepration.
Satish