- Project Management Terms
- Agile - The Definition of Continuous Change
- Servant Leadership - A Key Leadership Style in Agile
- 6 Steps to making reasonable decisions
- What is the BOSCARD method
- PEST Analysis: How Political, Economic, Social, and Technological Factors Impact Your Business
- 49 Processes in Project Management
- What is Aggregate Planning in Project Management?
- 25 PMP Formulas you must remember to pass the PMP exam
- Example with formulas Earned Value, Cost Variance and Schedule Variance
- Example with formular Cost Performance Index (CPI), Schedule Performance Index (SPI) and Estimate at Completion (EAC)
- Example with formulas Beta Value in PERT, Expected Monetary Value (EMV) and Risk Priority Number
- Example with formular Variance at Completion, Estimate to Complete (ETC) and To Complete Performance Index (TCPI)
- Example with formular Standard Deviation, Communication Channels and Cost plus Percentage of Cost
- Example with formular Cost plus Fixed Fee, Cost plus Award Fee and Cost plus Incentive Fee
- Example with formular Return on Investment (ROI), Payback Period and Cost Benefit Ratio
- Example with formular Present Value (PV), Future Value (FV), Target Price and Point of Total Assumption
- Kanban Board - Agile Project Chart
- Gantt Chart - Roadmap Project Chart
- What is a Timeline View in Project Management?
- PERT Chart - The Most Popular Project Management Diagram
- Work-Breakdown Structure (WBS) Chart
- Flowchart in Project Management
- Cause-Effect Project Charts - Fishbone Diagram
- Burn-up and Burn-down Project Charts
- Bar Chart in Project Management
- What is Pareto Chart
- What is Pie Chart
- What is Control Chart
- What is Matrix Diagram
- What is Critical Path Diagram
- What is Cumulative Flow Project Chart
- What is Enterprise Environmental Factors
- What is Arrow Diagramming Method (ADM)
- What is Cost Baseline
- What is Cost-Benefit Analysis
- What is Cost Engineering?
- What is Cost Management Plan
- What is Cost of Quality?
- What is Cost Overrun?
- What is Cost Performance Index?
- What is Cost Plus Fixed Fee Contract?
- What is Cost Plus Incentive Fee Contract?
- What is Cost Plus Percentage Of Cost Contract
- What is Cost Reimbursable Contract?
Example with formular Variance at Completion, Estimate to Complete (ETC) and To Complete Performance Index (TCPI)
10. Variance at Completion
Formula: Variance at Completion = Budget at Completion – Estimate at Completion
Variance at Completion calculates how much the project budget is accurate to the planned budget. This will help you to plan and estimate requirements more accurately.
If the Budget at completion was $20,000 and you find that the Estimate at completion is $25,000, then you could calculate the Variance at completion by calculating:
Budget at Completion – Estimate at Completion
20000 – 25000 = -5000
You will get at Variance at Completion of –5000. Which means the project is going beyond the initial budget by $5000
11. Estimate to Complete (ETC)
Formula: Estimate to Complete = Estimate at Completion – Actual Cost
Estimate to Complete or ETC is a measure of how much funds will be required to complete the remaining work. This will help you by giving a dynamic value that is more accurate than your initial estimates.
For example, if the Estimate to complete is calculated at $25,000 and the Actual Cost incurred is $10,000. In this case you can calculate the Estimate to Complete as follows.
Estimate at Completion – Actual Cost
25000 – 10000
This means that you will need $15,000 at this point to successfully complete the project.
12. To Complete Performance Index (TCPI)
TCPI = (Budget at Completion – Earned Value) / (Estimate at Completion – Actual Cost)
TCPI = (Budget at Completion – Earned Value) / (Budget at Completion – Actual Cost)
To Complete Performance Index (TCPI) gives the cost performance required to meet project goals based on the budget that is available. If the Budget at completion is $20,000, Estimate at Completion is $25,000, Earned Value is at $10,000 and Actual Cost is at $ 12,000. In this situation we would calculate TCPI as (Budget at Completion – Earned Value) / (Estimate at Completion – Actual Cost)
= 10000/13000 = 0.77
The TCPI would be at 0.77