How do you answer this

Submitted by vikasmisra on Sat, 04/07/2012 - 19:38

In your project, there have been several changes in the cost and schedule estimates, and the original estimating assumptions are no longer valid.

Calculate the estimate at completion (EAC) for your project based on the following data?

BAC = $ 300,000 AC = $ 100,000 EV = $ 150,000 CPI = 1.2 ETC = $ 120,000

 

 

According to me it should be BAC/CPI. What do you guys think

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swaroopk

Sat, 04/07/2012 - 19:58

In the question its given "Since original estimating assumptions are no longer valid", so I guess it's
EAC=AC+ETC
= $100000 + $120000
= $220000

vikasmisra

Sat, 04/07/2012 - 20:17

Thanks Swaroop,

Isnt EAC=BAC/CPI applied in a scenario where the original assumption are not valid.

I guess it doesnt say that current CPI is going to continue, it just says that you are running behind (or ahead) and hence use the formula EAC=AC+ETC.

Any suggestions

projmanpro

Sun, 04/08/2012 - 22:16

From where did u take this question?  

My analysis of the question is - THIS IS NOT A TYPE OF QUESTION THAT MUST BE IN THE PMP EXAM, but this question could be an instruction or training sample question, as this question may have three calculations  depending on how the situation would be.

  • Does this question imply that given the changes in cost and schedule estimates, there will be no more variation in the remaining work? the answer is NO. If only it does so, then the formula to be used must be ETC = BAC – EV & that means EAC = AC + ETC (BAC-EV);
  • Does this question imply that given the changes in cost and schedule estimates, these changes will continue to occur in the remaining work, the formula that must be used is EAC = BAC/CPI (Only cost efficiency is considered now).
  • Does the question imply that the same effciency rate will be used considering cost and schedule performance index? if it does, the formula to be used is EAC = AC + (ETC/CPI x SPI) & ETC = BAC-EV.

In worst scenario, it this question appears in the actual PMP exam, i will solve this question, disregarding the situation given, and instead calculate based on the given data. Hence, the 3rd formula to be used.