Calculation example - Calculate EAC as a roll up from tasks

EAC method: roll up from tasks or subtasks

PIM= Hour-Based

Simple example: project has no children tasks

PIM = Hour-Based

EAC Method = Roll up from tasks/ subtasks

  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


Act Hrs

% Complete

Task 1

5 hrs

25 hrs

20%

Task 2

10 hrs

25 hrs

30%

Task 3

15 hrs

25 hrs

40%

  1. Recalculate Finance

  2. 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

  3. 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

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

  5. 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

  6. EAC for Project = 270.83 hrs calculated as follows
    EAC for Project = EAC Task 1 + EAC Task 2 + EAC Task 3
    EAC for Project = 125 + 83.33 + 62.5
    EAC for Project = 270.83 hrs

Complicated example: project has children tasks

PIM = Hour-Based

EAC Method = Roll up from tasks/ subtasks

  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) so that there is $5,000.00 of actual labor cost recorded directly to the project.

  2. Run Recalculate Finance

  3. 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

  4. 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

  5. CPI / EAC for Task 4, Task 5, and Task 6:
    Task 4 = .4 / 25 hrs
    Task 5 = .75 / 20 hrs
    Task 6 = 1.2 / 16.67 hrs

  6. CPI for Task 3 = .38
    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

  7. EAC for Task 3 = EAC Task 4 + EAC Task 5
    EAC for Task 3 = 25 + 20
    EAC for Task 3 = 45 hrs

  8. 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

  9. EAC for Task 1 = EAC Task 2 + EAC Task 3
    EAC for Task 1 = 50 + 45
    EAC for Task 1 = 95 hrs

  10. 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

  11. EAC for project = EAC Task 1 + EAC Task 6
    EAC for project = 95 + 16.67
    EAC for project = 111.67 hrs

PIM= Cost-Based

Simple example: project has no children tasks

PIM = Cost-Based

EAC Method = Roll up from tasks/ subtasks

  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 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

  3. 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 = .04

    EAC Labor****for 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

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

  5. The CPI for the project = .32
    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

  6. EAC for the project is $28,783.33
    EAC****for Project = EAC Task 1 + EAC Task 2 + EAC Task 3
    EAC****for Project = $13,400.00 + $8,433.33 + $6,950.00
    EAC****for Project = $28,783.33

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