Calculation example - Calculate EAC as a roll up from tasks

PIM= Hour-Based pim-hour-based

PIM = Hour-Based

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:
Pln Hrs
Act Hrs
% Complete
5 hrs
25 hrs
20%
10 hrs
25 hrs
30%
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

code language-none
``````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

code language-none
``````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 = 125 + 83.33 + 62.5
EAC for Project = 270.83 hrs

PIM = Hour-Based

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:

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 note
NOTE
Pln Hrs
Act Hrs
% Complete
10 hrs
5 hrs
10 hrs
20%
10 Hrs
10 hrs
10 hrs
40%
15 hrs
10 hrs
50%
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

code language-none
``````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

code language-none
``````EAC = Planned Hours / CPI
``````

ELSE EAC = Planned  Hours + Actual  Hours
EAC for Task 2 = 5 / .1
EAC for Task 2 = 50 hrs

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

code language-none
``````CPI = TotalBudgetedCostWorkPerformed/Actual Hours
``````

ELSE CPI = 1
CPI for Task 3 = 11.5 / 30
CPI for Task 3 = .38

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

code language-none
``````CPI = TotalBudgetedCostWorkPerformed/Actual Hours
``````

ELSE CPI = 1
CPI for Task 1 = 12.5 / 50
CPI for Task 1 = .25

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

code language-none
``````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 pim-cost-based

PIM = Cost-Based

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:
Pln Hrs
Pln Lbr Cost
Act Hrs
Act Lbr Cost
% Complete
5 hrs
\$500.00
25 hrs
\$2,500.00
20%
10 hrs
\$1,000.00
25 hrs
\$2,500.00
30%
15 hrs
\$1,500.00
25 hrs
\$2,500.00
40%
Expense
Planned Amount
Actual Amount
\$300.00
\$400.00
\$500.00
\$0.00
\$200.00
\$100.00
\$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
\$2,500.00
\$0.00
1. Based on the above values, the Incurred/ Not Incurred Costs are determined as follows:
Not Incurred Planned Expense
Incurred Planned Expense
Incurred Actual Expense
\$500.00
\$300.00
\$400.00
\$0.00
\$200.00
\$100.00
\$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

code language-none
``````CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
``````

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

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

code language-none
``````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

code language-none
``````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

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

code language-none
``````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