Project Cost Estimation
page 9 of 10
by Arindam Ghosh
Feedback
Average Rating: 
Views (Total / Last 10 Days): 154122/ 64

Forecasting

Forecasting includes making estimates or predictions of conditions in the project’s future based on the information and knowledgeable available at the time of the forecast. As the project progresses, the forecasts are adjusted.

The earned value technique parameters of BAC, actual cost (AC^c) to date, and the cumulative CPI^c efficiency indicator are used to calculate ETC and EA, where the BAC is equal to the total PV at completion for a schedule activity, work package, control account, or other WBS component.

Formula: BAC=total cumulative PV t the completion

Forecasting technique parameters to assess the cost or the amount of work to complete schedule activities is called the EAC. Forecasting techniques also help to determine the ETC, which is the estimate for completing the remaining work for a schedule activity, work package, or control account. While the earned value technique of determining EAC and ETC is quick and automatic, it is not as valuable or accurate as a manual forecasting technique based upon the performing organization providing the estimate to complete.

ETC is based on the new estimate. ETC equals the revised estimate for the work remaining as determined by the performing organization. This more accurate and comprehensive completion for all the work remaining considers the performance estimate to complete all the work remaining and the performance or production of the resource to date. 

Alternatively, to calculate ETC using value data, one of the two formulas is typically used:

ETC based on atypical variances. This approach is most often used when current are seen as atypical and the project management team expectations are that similar variance will not occur in the future. ETC equals the BAC minus the cumulative earned value to date (EVC).

Formula: ETC= (BAC - EVC)

ETC based on typical variances. This approach is most often used when current are seen as typical of future variances. ETC equals the BAC minus the cumulative EVC (the remaining PV) divided by the cumulative cost performance index (CPIC).

EAC using a new estimate. EAC equals the actual costs to date (AC^c) plus a new ETC is provided by the performing organization.

Formula: EAC=AC^c + ETC


View Entire Article

User Comments

Title: 2012 NFL jerseys   
Name: NIKE NFL jerseys
Date: 2012-05-20 11:38:12 PM
Comment:
[/pre]Cheap NFL,NBA,MLB,NHL
[url=http://www.jersey2shop.com/]Jerseys From China[/url]
[url=http://www.jersey2shop.com/]2012 nike nfl Jerseys[/url]
[url=http://www.jersey2shop.com/]cheap China Jerseys[/url]
[url=http://www.jersey2shop.com/]Sports Jerseys China[/url]
[url=http://www.jersey2shop.com/NFL-Jerseys-c68/]NFL Jerseys China[/url]
[url=http://www.jersey2shop.com/NBA-Jerseys-c77/]NBA Jerseys China[/url]
NHL Jerseys China
[url=http://www.jersey2shop.com/MLB-Jerseys-c94/]MLB Jerseys China[/url]NFL jerseys For Sale online.All Our Jerseys Are Sewn On and Directly From Chinese Jerseys Factory
[/pre]
[pre]We Are Professional China jerseys Wholesaler
[url=http://www.cheapjersey2store.com/]Wholesale cheap jerseys[/url]Cheap mlb jerseys
[url= http://www.cheapjersey2store.com/]2012 mlb all atar jerseys[/url]
[url= http://www.cheapjersey2store.com/ [/url]Cheap China Wholesael[/url]
[url= http://www.cheapjersey2store.com/]Wholesale jerseys From China[/url]
[url=http://www.cheapjersey2store.com/]2012 nike nfl Jerseys[/url]Free Shipping,Cheap Price,7 Days Deliver
[/pre]
[/pre]
We are professional jerseys manufacturer from china,wholesal
sports [url= http://www.cheapjersey2store.com/]Jerseys From China[/url]
[url=http://www.cheapjersey2store.com/NFL-Jerseys-c68]NFL jerseys China[/url]
[url=http://www.cheapjersey2store.com/NHL-Jerseys-c96/]NHL Jerseys China[/url]
[url=http://www.cheapjersey2store.com/NBA-Jerseys-c77/]NBA Jerseys China[/url]
[url=http://www.cheapjersey2store.com/MLB-Jerseys-c94/]MLB Jerseys China[/url]
[url= http://www.cheapjersey2store.com/]China Jerseys[/url],Free Shipping
[/pre]
[/pre]
We are professional jerseys manufacturer from china,wholesal
sports [url= http://www.jerseycaptain.com/]cheap jerseys sale online [/url]
[url= http://www.jerseycaptain.com/]2012 nike nfl Jerseys[/url]
[url=http://www.jerseycaptain.com/NFL-Jerseys-c68]cheap NFL jerseys China[/url]
[url=http://www.jerseycaptain.com/NHL-Jerseys-c96/]NHL Jerseys C
Title: Software Project Estimation   
Name: Nikko Quilisadio
Date: 2011-11-09 6:51:43 AM
Comment:
Can you give me a Sample format of Software Project Estimation..,
any Format would do.

tnx
Title: cost istimation   
Name: helth club
Date: 2011-05-13 12:24:49 AM
Comment:
how decide the project cost on which base please send information on anandshindepatil@rediffmail.com
Title: cost estimation project   
Name: yahye haybe omar
Date: 2010-11-29 9:42:29 AM
Comment:
plz give one example of cost estimation
Title: Quantity Surveyor   
Name: Tayebwa Duncan
Date: 2010-11-24 7:49:08 AM
Comment:
The Topic was well discussed. However, i wish you could give details of the cost control process based on an hypothetical example,the ways and means and the challenges expected to be met in the process.

Thank you once again
Title: cost estimation   
Name: Gloria Thomas
Date: 2010-11-23 8:46:39 PM
Comment:
Great information. I read about Hybrid: Phase estimating by Larson and Gray and was wondering where does it fit in the category discussed here
Title: cost estimating and budgeting   
Name: PCC Student
Date: 2010-10-07 12:11:39 AM
Comment:
Base in the actual society, their are lots of project baseline which involved cost estimating and budgeting. This kind of strategy are very applicable to the business project management.
Title: CIVIL ENGINEER   
Name: PETETI SUBBARAYUDU
Date: 2010-09-22 1:01:37 AM
Comment:
GOOD EXPLANATION.ONE SUGGETION ACCORDING TO MY KNOLDGE PLS GIVE ONE EXAMPLE OF BUILDING COSTING
Title: Quantity Surveyor   
Name: Cris
Date: 2010-06-17 9:46:11 PM
Comment:
Great info... I would be glad if you can send me a manhour table for computing the labor cost of a construction project of a multi-storey building that is applicable in the Philippines.
Title: cost engineer   
Name: manish
Date: 2010-04-05 9:16:33 AM
Comment:
very well explained but should add more engineering based case studies if u peopkle find anything related to cost estimation pls forward to shingala_manish2000@yahoo.com
Title: Project Cost Estimation   
Name: Shekar
Date: 2010-03-18 2:25:21 AM
Comment:
Thank you. Good Explanation. A few examples would be great. if any particular templates with this will be more value added.
Once again Thank you very much.

Thanks,
Shekar.K
Title: Project Cost Estimation   
Name: Kuldeep Shige
Date: 2010-03-10 9:00:53 AM
Comment:
well explained post for Project Cost Estimation;
Title: cost easimating   
Name: ashok bahuguna
Date: 2009-12-25 8:49:55 AM
Comment:
Kindly explaine me about cost eastimation
Title: cost estimation   
Name: rupali
Date: 2009-09-27 4:26:06 AM
Comment:
excellent...!!!!!!!!! :)
Title: Assistant Professor   
Name: D Bhattacharya
Date: 2009-08-27 2:44:44 AM
Comment:
Thank you for the great insight of the subject.Please do give us some more knowledge about project management.

Regards
Title: Cost Estimation   
Name: Ali
Date: 2009-05-03 4:08:28 PM
Comment:
Good explanation.
Title: Research Scholar   
Name: Jagannath Malllick
Date: 2009-03-30 3:26:02 AM
Comment:
The article is very excellent. Please provide one example.

Thanks
Jagannath
Title: Project Manager   
Name: Ritesh Lakhani
Date: 2008-10-07 10:55:23 AM
Comment:
Ultimate article, involves everything related to cost of project in a small and single article. good one.
Title: Costestimation Comment   
Name: Mohitraj
Date: 2008-05-21 8:25:08 AM
Comment:
We feel proud after take a look on this topic but u should need to expaned in the detail of the given topic.............!!!!!!!!!
Title: Proect Planning and management consultant   
Name: S Vijaya Bhaskar
Date: 2008-04-26 8:12:24 PM
Comment:
Clear Explanation. Hats off to Arindam Ghosh.
Title: mba   
Name: venicia
Date: 2008-04-13 1:14:53 PM
Comment:
thank you,good information
Title: kumai   
Name: indra
Date: 2008-03-27 4:21:41 AM
Comment:
very good site
Title: teacher   
Name: madina
Date: 2008-02-22 1:25:57 AM
Comment:
very clear explanations.
Thank you.
Title: MBA 08   
Name: Kevin
Date: 2008-02-01 11:04:18 PM
Comment:
Well-explained. Thank you.

Kevin
Title: Project Manager   
Name: Vasoula Christoforides
Date: 2007-12-17 4:44:52 PM
Comment:
Your article is very informative. Successful Estimation is not simple, your article has provided a better understanding. A few examples would be great. Thank you
Title: Cost estimation   
Name: Hariharan
Date: 2007-10-15 1:57:57 PM
Comment:
Really very impressive. Good Arindam. Apart from a conceptual, If any practical sample documents / Templates added with this will be more value added.
If any one of you have such things pl. send across to nhariharann@rediffmail.com

Many thanks again to Arindam Ghosh...
Hari
Title: Manager   
Name: Neelakandan
Date: 2007-10-07 2:39:05 PM
Comment:
I read the document and was very impressed. I want one Example for the Estimation, kindly send as the earliest.
Thanks
Neelakandan
Title: Consultant   
Name: sankar jayaram
Date: 2007-08-15 11:28:16 PM
Comment:
Excellent ..
jshankar.2002@gmail.com
Title: Project Cost Management   
Name: Rahul Gurchal
Date: 2007-06-09 2:01:20 AM
Comment:
Hello,
I read the document and was very impressed with the kind of depth the topic was covered with.I thank you for the great insight i received from your article on this topic.

Thanks & regards,
Rahul Gurchal,

Savoir Faire Management Solutions Pvt Ltd,
New mumbai, Vashi sector 17.
Title: GIVE SOME PRACTICAL EXAMPLE OF PROJECT COST ESTIMATION   
Name: P.C.E
Date: 2007-02-17 12:30:47 PM
Comment:
GIVE SOME PRACTICAL EXAMPLE OF PROJECT COST ESTIMATION

Product Spotlight
Product Spotlight 





Community Advice: ASP | SQL | XML | Regular Expressions | Windows


©Copyright 1998-2024 ASPAlliance.com  |  Page Processed at 2024-02-29 2:22:01 PM  AspAlliance Recent Articles RSS Feed
About ASPAlliance | Newsgroups | Advertise | Authors | Email Lists | Feedback | Link To Us | Privacy | Search