Difference between EAC and "final project completion estimates"

Discussion in 'PMP' started by Dwayne Hammond, Mar 9, 2018.

  1. Dwayne Hammond

    Dwayne Hammond Active Member
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    I must not be understanding EAC properly... I thought EAC was the estimate of the final cost. Can anyone clarify why B is incorrect?

    SPI is sometimes used with CPI to forecast _____.

    A) Schedule and cost variance
    B) EAC
    C) Final project completion estimates
    D) What additional resources are required to get the project back on schedule

    Correct: C

    Explanation: Schedule performance index (SPI) is sometimes used in conjunction with cost performance index (CPI) to forecast the final project completion estimates.​
     
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  2. _19325

    _19325 Well-Known Member

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    EAC only tackles cost
     
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  3. tim jerome

    tim jerome Well-Known Member
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    EAC is the revised estimate, considering progress to date plus forecasted remaining work. We can consider EAC as a sum of AC plus (BAC-EV), where BAC-EV is normalized by a product of CPI and SPI (EAC = AC+([BAC-EV]/[SPI*SPI]).

    HOWEVER - the above is a direct quote from the PMBOK Guide - it's used with CPI to develop forecasted estimates. That's the primary function of SPI and CPI - to forecast. You can find the quote on p. 263.
     
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