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EAC stick
by unknown, a long time ago

Estimate At Completion
The EAC gives an idea of the final costs of a project.

Method A:
EAC = ACWP + (BAC - BCWP)
It means that you basically trust the project's plan (the budget) and consider the project's performance as an accident.
A typical example of such a situation is when a deviation occurs because of an unpredictable cause that isn't expected to have an impact on any other project's work.


Method B:
It takes into account the original budget (BAC), the Earned Value and the Cost Performance Index of the already completed works.
EAC = ACWP + ((BAC - BCWP)/CPI)
It means that you trust the project's performance the most.
This estimation is used when the reasons for deviations are likely to affect all other project's work


Method C: Balanced Estimate at Completion (link)
Method A uses a factor of 1 and Method B uses CPI as the factor.
Use Method A at the project's start, EACB at the project's and something in between the two factors (1 and CPI) as the project evolves.
EAC = ACWP + ((BAC - BCWP)/(SPI * (CPI - 1) + 1))
That would give an estimation reflecting more confidence on the CPI as the project progresses; and for that you need to define a factor that varies along the project's progress, that is, that varies with the Schedule Performance Index (SPI)


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