Estimate at completion (EAC) is calculated as budget at completion divided by cost performance index. Estimate at completion (EAC) = Budget at completion (BAC) / Cost performance index (CPI)

PSYC 206

In Piaget’s theory, actions or mental representations that organize knowledge. Piagetian concept of using existing schemes to fit new information or experiences. Piaget’s concept of grouping isolated behaviors and thoughts into a higher-order, more smoothly functioning cognitive system.

The Formula for Earned Value (EV) The formula to calculate Earned Value is also simple. Take the actual percentage of the completed work and multiply it by the project budget and you will get the Earned Value. Earned Value = % of completed work X BAC (Budget at Completion).

The 8 Steps to Earned Value Analysis

1. Determine the percent complete of each task.
2. Determine Planned Value (PV).
3. Determine Earned Value (EV).
4. Obtain Actual Cost (AC).
5. Calculate Schedule Variance (SV).
6. Calculate Cost Variance (CV).
7. Calculate Other Status Indicators (SPI, CPI, EAC, ETC, and TCPI)
8. Compile Results.

Earned value is a project management technique for estimating how a project is doing in terms of its budget and schedule. The purpose of earned value is to obtain an estimate for the resources that will have been used at completion.

Planned Value (PV) = the budgeted amount through the current reporting period. Actual Cost (AC) = actual costs to date. Earned Value (EV) = total project budget multiplied by the % of project completion.

The value of EV cannot be greater than the authorized PV budget for a component. EV is also referred to as Budgeted Cost of Work Performed (BCWP).

The Planned Value “PV” is the amount of budget that was allocated to be consumed to date. The Earned Value “EV”, is the amount of work the project has completed in reference to the original project budget “BAC”.

You can calculate the EV of a project by multiplying the percentage complete by the total project budget. For example, let’s say you’re 60% done, and your project budget is $100,000 — your earned value is then $60,000.

50/50 RULE – A task is considered 50% complete when it starts. The remaining 50% credit is given when the task is completed. 20/80 RULE – A task is considered 20% complete when it starts. The remaining 80% credit is given when the task is completed.

Planned Value (PV) is the budgeted cost for the work scheduled to be done. This is the portion of the project budget planned to be spent at any given point in time. This is also known as the budgeted cost of work scheduled (BCWS). Actual Costs (AC) is simply the money spent for the work accomplished.

The Formula for the Cost Performance Index (CPI) You can calculate the Cost Performance Index by dividing the earned value by the actual cost. You can conclude that: You are earning more than what you have spent if the CPI is greater than one. The project is under budget.