Calculation example - calculate EAC at the Project Level

EAC method: Calculate at the project level

PIM = Hour-Based

Simple example: project has no children tasks

PIM = Hour-Based

EAC Method = Calculate at project level ****

  1. Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.

  2. Add Planned and Actual hours to each task and % Complete according to the table below:


    Task

    Pln Hrs

    Act Hrs

    % Complete

    Task 1

    5 hrs

    25 hrs

    20%

    Task 2

    10 hrs

    25 hrs

    30%

    Task 3

    15 hrs

    25 hrs

    40%

  3. Recalculate Finance on the project.

  4. CPI for Task 1 = .04 calculated as follows:
    CPI for Task 1 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
       ELSE CPI = 1
    CPI for Task 1 = 1 / 25
    CPI for Task 1 = .04

  5. EAC for Task 1 = 125 hrs calculated as follows:
    EAC for Task 1 = IF CPI <> 0 THEN EAC = Planned Hours/CPI
        ELSE EAC = Planned  Hours + Actual  Hours
    EAC for Task 1 = 5 / .04
    EAC for Task 1 = 125 hrs****

  6. CPI / EAC for Tasks 2 and 3 are:
    Task  2 = .12 / 83.33  hrs
    Task 3 = .24 / 62.5 hrs

  7. CPI for Project = .13 calculated as follows:
    CPI for Project = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
        ELSE CPI = 1
    CPI for Project = 10 / 75
    CPI for Project = .13

  8. EAC for Project = 225 hrs calculated as follows:
    EAC for Project = IF CPI <> 0 THEN EAC = Planned Hours/CPI
        ELSE EAC = Planned  Hours + Actual  Hours
    EAC for Project = 30 / .13333
    EAC for Project = 225 hrs

Complicated example: project has children tasks

PIM = Hour-Based

EAC Method = Calculate at project level

  1. Create Project A with six tasks where Task 3 is the parent of Tasks 4 and 5 and Task 1 is the parent of Tasks 2 and 3 as shown below:
    Task 1
       Task 2
       Task 3
          Task 4
          Task 5
    Task 6

  2. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.

  3. Add planned/ actual hours each task and % Complete according to the table below.

    NOTE

    For Tasks 1 and 3, you are only adding actual hours.


Task


Pln Hrs


Act Hrs

% Complete

Task 1

  

10 hrs

  

Task 2

5 hrs

10 hrs

20%

Task 3

  

10 Hrs

  

Task 4

10 hrs

10 hrs

40%

Task 5

15 hrs

10 hrs

50%

Task 6

20 hrs

10 hrs

60%

  1. Add 50 hours directly to the project (More>Hours>Log Hours).

  2. CPI for Task 2 = .1 calculated as follows:
    CPI for Task 2 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
        ELSE CPI = 1
    CPI for Task 2 = 1 / 10
    CPI for Task 2 = .1

  3. EAC for Task 2 = 50 hrs calculated as follows:
    EAC for Task 2 = IF CPI <> 0 THEN EAC = Planned Hours/CPI
        ELSE EAC = Planned  Hours + Actual  Hours
    EAC for Task 2 = 5 / .1
    EAC for Task 2 = 50 hrs

  4. The CPI / EAC for Tasks 4, 5, and 6 are as follows:
    Task 4: .4 / 25 hrs
    Task 5: .75 / 20 hrs
    Task 6: 1.2 / 16.67 hrs

  5. CPI for Task 3 = .38  calculated as follows:
    CPI for Task 3 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
        ELSE CPI = 1
    CPI for Task 3 = 11.5 / 30
    CPI for Task 3 = .38

  6. EAC for Task 3 = 65.22 hrs calculated as follows:
    EAC for Task 3 = IF CPI <> 0 THEN EAC = Planned Hours/CPI
        ELSE EAC = Planned  Hours + Actual  Hours
    EAC for Task 3 =  25 / .383333
    EAC for Task 3 = 65.22 hrs

  7. CPI for Task 1 = .25 calculated as follows:
    CPI for Task 1 = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
        ELSE CPI = 1
    CPI for Task 1 = 12.5 / 50
    CPI for Task 1 = .25

  8. EAC for Task 1 = 120 hrs calculated as follows:
    EAC for Task 1 = IF CPI <> 0 THEN EAC = Planned Hours / CPI
        ELSE EAC = Planned  Hours + Actual  Hours
    EAC for Task 1 =  30/ .25
    EAC for Task 1 = 120 hrs

  9. CPI for Project = .22 calculated as follows:
    CPI for Project = IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed/Actual Hours
        ELSE CPI = 1
    CPI for Project = 24.5 / 110
    CPI for Project = .22272
    CPI for Project = .22

  10. EAC for Project = 224.49  hrs calculated as follows:
    EAC for Project = IF CPI <> 0 THEN EAC = Planned Hours/CPI
        ELSE EAC = Planned  Hours + Actual  Hours
    EAC for Project =  50 / .22272
    EAC for Project = 224.49 hrs

PIM= Cost-Based

Simple example: project has no children tasks

PIM = Cost-Based

EAC Method = Calculate at project level

  1. Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.
  2. Add planned/ actual hours to each task and % Complete according to the table below:

Task


Pln Hrs


Pln Lbr Cost


Act Hrs


Act Lbr Cost

% Complete

Task 1

5 hrs

$500.00

25 hrs

$2,500.00

20%

Task 2

10 hrs

$1,000.00

25 hrs

$2,500.00

30%

Task 3

15 hrs

$1,500.00

25 hrs

$2,500.00

40%
  1. Add expenses to each task according to the table below:

Task

Expense

Planned Amount

Actual Amount

Task 1

Task 1 Exp 1

$300.00

$400.00

Task 1

Task 1 Exp 2

$500.00

$0.00

Task 2

Task 2 Exp

$200.00

$100.00

Task 3

Task 3 Exp

$800.00

$700.00
  1. Add two expenses to the project (i.e. not tied to a task) as follows:

Expense

Planned Amount

Actual Amount

Project Exp 1

$1,000.00

$1,500.00

Task 1 Exp 2

$2,500.00

$0.00
  1. Based on the above values, the Incurred/ Not Incurred Costs are determined as follows:

Task

Not Incurred Planned Expense

Incurred Planned Expense

Incurred Actual Expense

Task 1

$500.00

$300.00

$400.00

Task 2

$0.00

$200.00

$100.00

Task 3

$0.00

$800.00

$700.00

Project

$3,000.00

$2,300.00

$2,700.00

  1. From Project Actions, run Recalculate Finance

  2. CPI for Task 1 = .14

  3. CPI****for Task 1 = .14 calculated as follows:
    CPI  for Task 1 = IF Actual Labor Cost + IncurredActualExpenseCost  <> 0 THEN

    CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)

        ELSE CPI = CPI_Labor
    CPI****for Task 1 = (100+300) / (2500+400)
    CPI  for Task 1 = 400 / 2900
    CPI  for Task 1  = .14****

  4. EAC****for Task 1 = $13,400.00
    CPI Labor  for Task 1 = IF Actual Labor Cost <> 0 THEN

    CPI_Labor = TotalBudgetedCostWorkPerformed/Actual Labor Cost

       ELSE CPI_Labor = 1
    CPI Labor  for Task 1 = 100/2500
    CPI Labor  for Task 1 = .04EAC Laborfor Task 1 = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost/CPI_Labor
        ELSE EAC  Labor = Planned Labor Cost + Actual Labor Cost
    EAC Labor****for Task 1 = 500.00/.04
    EAC Labor****for Task 1 = $12,500.00
    EAC Expense****for Task 1 = IncurredActualExpenseCost + NotIncurredPlannedExpense
    EAC Expense****for Task 1 = $400.00 + $500.00
    EAC Expense****for Task 1 = $900.00
    EAC****for Task 1 = EAC Labor + EAC Expense
    EAC****for Task 1  = $12,500.00 + $900.00
    EAC****for Task 1  = $13,400.00

  5. Here are the CPI / EAC values for Task 2 and Task 3:
    Task 2 = .19 / $8,433.33
    Task 3 = .44 / $6,950.00

  6. CPI for Project = .32 calculated as follows:
    CPI****for Project = IF Actual Labor Cost + IncurredActualExpenseCost  <> 0 THEN

    CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost)/ActualLaborCost + IncurredActualExpenseCost)

       ELSE CPI = CPI_Labor
    CPI****for Project = (1000 + 2300) / (7500 + 2700)
    CPI****for Project = 3300 / 10200
    CPI****for Project = .32

  7. EAC for Project = $28,200.00 calculated as follows:
    CPI Labor****for Project = IF Actual Labor Cost <> 0 THEN

    CPI_Labor = TotalBudgetedCostWorkPerformed/Actual Labor Cost

       ELSE CPI_Labor = 1
    CPI Labor****for Project = 1000 / 7500
    CPI Labor****for Project = .13333
    CPI Labor****for Project = .13

    EAC Labor****for Project = IF CPI_Labor <> 0 THEN

    EAC Labor = Planned Labor Cost/CPI_Labor

       ELSE EAC  Labor = Planned Labor Cost + Actual Labor Cost
    EAC Labor****for Project = 3000/ .13333
    EAC Labor****for Project = $22,500.00

    EAC Expense****Project =

    IncurredActualExpenseCost + NotIncurredPlannedExpense

    EAC Expense****Project = $3000.00 + 2,700.00
    EAC Expense****Project = $5,700.00

    EAC****Project = EAC Labor + EAC Expense
    EAC****Project  = $22,500.00 + $5,700.00
    EAC****Project  = $28,200.00

Complicated example: project has children tasks

PIM = Cost-Based

EAC Method = Calculate at project level

  1. Create Project A with six tasks where Task 3 is the parent of Tasks 4 and 5 and Task 1 is the parent of Tasks 2 and 3 as shown below:
    Task 1
       Task 2
       Task 3
          Task 4
          Task 5
    Task 6

  2. Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.

  3. Add planned/actual hours each task and % Complete according to the table below.

    NOTE

    For Tasks 1 and 3, you are only adding actual hours.


Task


Pln Hrs


Pln Lbr Cost


Act Hrs


Act Lbr Cost

% Complete

Task 1

    

10 hrs

$1,000.00

  

Task 2

5 hrs

$500.00

10 hrs

$1,000.00

20%

Task 3

    

10 Hrs

$1,000.00

  

Task 4

10 hrs

$1,000.00

10 hrs

$1,000.00

40%

Task 5

15 hrs

$1,500.00

10 hrs

$1,000.00

50%

Task 6

20 hrs

$2,000.00

10 hrs

$1,000.00

60%
  1. Add 50 hours directly to the project (More>Hours>Log Hours) so that there is $5,000.00 of actual labor cost recorded directly to the project. ****
  2. Add expenses to each task according to the table below (I’ve added a blank row in between each task to make it easier to read):

Task

Expense

Planned Amount

Actual Amount

Task 1

Task 1 Exp 1

$300.00

-$400.00

Task 1

Task 1 Exp 2

-$500.00

$800.00

Task 1

Task 1 Exp 3

$400.00

$0.00
       

Task 2

Task 2 Exp 1

$500.00

$700.00

Task 2

Task 2 Exp 2

-$400.00

$0.00

Task 2

Task 2 Exp 3

-$200.00

$600.00

Task 2

Task 2 Exp 4

$700.00

-$200.00
       

Task 3

Task 3 Exp

$0.00

$1,000.00
       

Task 4

Task 4 Exp 1

$800.00

$0.00

Task 4

Task 4 Exp 2

-$100.00

$300.00

Task 4

Task 4 Exp 3

-200.00

$0.00
       

Task 5

Task 5 Exp 1

$700.00

$800.00

Task 5

Task 5 Exp 2

-$100.00

$300.00

Task 5

Task 5 Exp 3

-$400.00

-$200.00
       

Task 6

Task 6 Exp 1

$600.00

$700.00

Task 6

Task 6 Exp 2

$500.00

-$300.0
  1. Add two expenses to the project (i.e. not tied to a task) as follows:

Expense

Planned Amount

Actual Amount

Project Exp 1

$1,000.00

$1,500.00

Task 1 Exp 2

$2,500.00

$0.00

  1. Based on the above values, the Incurred/Not Incurred Costs are determined as follows:

Task

Not Incurred Planned Expense

Incurred Planned Expense

Incurred Actual Expense

Task 1

$400.00

-$500.00

$800.00

Task 2

-$400.00

$300.00

$1,300.00

Task 3

$0.00

$0.00

$1,000.00

Task 4

$600.00

-$100.00

$300.00

Task 5

$0.00

$600.00

$1,100.00

Task 6

$0.00

$600.00

$700.00

Project

$2,500.00

$1000.00

$1,500.00

  1. From Project Actions, run Recalculate Finance

  2. CPI for Task 2 = .17 calculated as follows:
    CPI Task 2 = IF Actual Labor Cost + IncurredActualExpenseCost  <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
       ELSE CPI = CPI_Labor
    CPI****Task 2 = (100+300) / (1000+1300)
    CPI****Task 2  = 400 / 2300
    CPI****Task 2  = .17

  3. EAC for Task 2 = $5,900.00
    CPI Labor****Task 2 = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
       ELSE CPI_Labor = 1
    CPI Labor****Task 2 = 100/1000
    CPI Labor****Task 2 = .1

    EAC Labor****Task 2 = IF CPI_Labor <> 0 THEN

    EAC Labor = Planned Labor Cost/CPI_Labor

       ELSE EAC  Labor = Planned Labor Cost + Actual Labor Cost
    EAC Labor****Task 2 = 500.00/.1
    EAC Labor****Task 2 = $5,000.00EAC ExpenseTask 2 = IncurredActualExpenseCost + NotIncurredPlannedExpense
    EAC Expense****Task 2 = $1,300.00 + -$400.00
    EAC Expense****Task 2 = $900.00

    EAC****Task 2 = EAC Labor + EAC Expense
    EAC****Task 2  = $5,000.00 + $900.00
    EAC****Task 2  = $5,900.00

  4. The CPI/EAC for Tasks 4, 5, and 6 are determined the same way so I’ll just provide those values below:
    Task 4: .23 / $3,400.00
    Task 5: .64 / $3,100.00
    Task 6: 1.06 / $2,366.67

  5. CPI for Task 3 = .31 calculated as follows:
    CPI****Task 3 = IF Actual Labor Cost + IncurredActualExpenseCost  <> 0 THEN

    CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost)/(ActualLaborCost + IncurredActualExpenseCost)

       ELSE CPI = CPI_Labor
    CPI****Task 3  = (1,150 + 500) / (3000 + 2400)
    CPI****Task 3  =  1650 / 5400
    CPI****Task 3  = .31EAC for Task 3 = $9,521.74 calculated as follows:
    **CPI Labor    Task 3** = IF Actual Labor Cost <> 0 THEN

    CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost

       ELSE CPI_Labor = 1
    CPI Labor****Task 3 = 1150/3000
    CPI Labor****Task 3 = .383333
    CPI Labor****Task 3 = .38

    EAC Labor****Task 3 = IF CPI_Labor <> 0 THEN

    EAC Labor = Planned Labor Cost / CPI_Labor

       ELSE EAC  Labor = Planned Labor Cost + Actual Labor Cost
    EAC Labor****Task 3 = $2,500.00 / .383333
    EAC Labor****Task 3 = $6,521.74

    EAC Expense****Task 3 = IncurredActualExpenseCost + NotIncurredPlannedExpense
    EAC Expense****Task 3 = $2,400.00 + $600.00
    EAC Expense****Task 3 = $3,000.00

    EAC****Task 3 = EAC Labor + EAC Expense
    EAC****Task 3  = $6,521.74 + $3,000.00
    EAC****Task 3  = $9,521.74

  6. CPI for Task 1 = .16 calculated as follows:
    CPI****Task 1 = IF Actual Labor Cost + IncurredActualExpenseCost  <> 0 THEN

    CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)

       ELSE CPI = CPI_Labor
    CPI****Task 1  = (1250 + 300) / (5000 + 4500)
    CPI****Task 1  =  1550 / 9500=
    CPI****Task 1  = .16

  7. EAC for Task 1 is $17,100.00 calculated as follows:
    CPI Labor****Task 1 = IF Actual Labor Cost <> 0 THEN

    CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost

       ELSE CPI_Labor = 1
    CPI Labor****Task 1 = 1250 / 5000
    CPI Labor****Task 1 = .25

    EAC Labor****Task 1 = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
       ELSE EAC  Labor = Planned Labor Cost + Actual Labor Cost
    EAC Labor****Task 1 = $3,000.00 / .25
    EAC Labor****Task 1 = $12,000.00

    EAC Expense****Task 1 = IncurredActualExpenseCost + NotIncurredPlannedExpense
    EAC Expense****Task 1 = $4500 + 600
    EAC Expense****Task 1 = $5,100.00

    EAC****Task 1 = EAC Labor + EAC Expense
    EAC****Task 1  = $12,000.00 + 5,100.00
    EAC****Task 1  = $17,100.00

  8. CPI for Project is .25
    CPI****for Project = IF Actual Labor Cost + IncurredActualExpenseCost  <> 0 THEN

    CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost)/(ActualLaborCost + IncurredActualExpenseCost)

       ELSE CPI = CPI_Labor

    CPI****for Project = (2450 + 1900) / (11000 + 6700)
    CPI****for Project =   4350 / 17700
    CPI****for Project = .25

  9. EAC for Project = $32,248.98 calculated as follows:
    CPI Labor****for Project = IF Actual Labor Cost <> 0 THEN

    CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost

       ELSE CPI_Labor = 1
    CPI Labor****for Project = 2450 / 11000
    CPI Labor****for Project = .22272
    CPI Labor****for Project = .22

    EAC Labor****for Project = IF CPI_Labor <> 0 THEN

    EAC Labor = Planned Labor Cost / CPI_Labor

       ELSE EAC  Labor = Planned Labor Cost + Actual Labor Cost
    EAC Labor****for Project = $5,000.00 / .22272
    EAC Labor****for Project = $22,448.97959
    EAC Labor****for Project = $22,448.98

    EAC Expense****Project = IncurredActualExpenseCost + NotIncurredPlannedExpense
    EAC Expense****Project = $3,100.00 + $6,700.00
    EAC Expense****Project = $9,800.00

    EAC****Project = EAC Labor + EAC Expense
    EAC****Project  = $22,448.98 + 9,800.00
    EAC****Project  = $32,248.98

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