- ETC (Estimate to Complete): ETC represents the estimated cost required to complete the remaining work in a project. It's a forward-looking metric used to predict how much additional money will be needed to finish the project. ETC is often calculated by subtracting the actual cost incurred to date from the project's total budget.
- EAC (Estimate at Completion): EAC represents the estimated total cost of the project once it's completed. It takes into account the actual costs incurred to date as well as the projected costs for completing the remaining work. EAC helps project managers forecast the final cost of the project based on current performance.There are different formulas to calculate EAC, including:EAC = AC + (BAC - EV), which assumes the original budget is no longer accurate.EAC = AC + ETC, which assumes future performance will be similar to past performance.
- VAC (Variance at Completion): VAC represents the difference between the budgeted cost of the work performed and the estimate of the total project cost at completion. It indicates whether the project is expected to be over or under budget at completion.VAC = BAC - EACIf VAC is positive, the project is under budget.If VAC is negative, the project is over budget.
- TCPI (To-Complete Performance Index): TCPI is a measure of the cost performance required to achieve a specific management goal, such as completing the project within budget. It shows the efficiency needed in future work to meet the project's financial goals.There are two types of TCPI:TCPI based on BAC (Budget at Completion): This TCPI represents the efficiency required to complete the remaining work within the original budget. TCPI(BAC) = (BAC - EV) / (BAC - AC)TCPI based on EAC (Estimate at Completion): This TCPI represents the efficiency required to complete the remaining work within the revised budget. TCPI(EAC) = (BAC - EV) / (EAC - AC)
Project managers use these metrics to assess project performance, make informed decisions, and take corrective actions if necessary to ensure the project stays on track in terms of cost and schedule.
