EAC Calculation - Typical [Scribd vs Rita]

ramzy's picture

Hi guys,

 

I've just completed the mathematical questions from Scribd: http://www.scribd.com/doc/28680971/101-PMP-Sample-Questions-for-the-PMP-...

I find one EAC formula which contradicts with Rita which is EAC calculation for Current Variances thought to be Typical.

Rita states the formula as AC + (BAC - EV)/(CPI x SPI)

However, in Scribd, it's stated as AC + (BAC - EV)/CPI

Which is correct formula to use?

Please advice, thank you.

:) if you see SPI and CPI in the question its ritas answer - and if you see only CPI then its teh other one .

It depends on what indicies you are considering while calculating the EAC -

Project has

CV & SV then EAC = AC + ( BAC - EV ) /CPI X SPI

only CV and no SV then EAC = AC + ( BAC - EV ) /CPI

Only SV and no CV = EAC = BAC

EAC 'typical' = AC + (BAC - EV) / CPI     (this also correct formula)

formula on pbok page 185;  AC + (BAC - EV)/(CPI x SPI)

you use this formula if you are -ve cost performance to date and a requirement to meet the firm deadline commited on the project.   (just read the PMBOK page 185) 

 

 shouldnt we use EAC = BAC/CPI for typical ?

 

please advise 

ramzy's picture

Hi mady_1982,

You will use BAC/CPI when your spending rate is the same throughout.

EAC Typical would be AC + [(BAC-EV) / (CPI x SPI)].

ramzy's picture

Thank you for the tips viralmeen & vikula01.