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Calculation example - Calculate EAC as a roll up from tasks

Last update: Thu Aug 11 2022 00:00:00 GMT+0000 (Coordinated Universal Time)

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EAC method: roll up from tasks or subtasks

PIM= Hour-Based pim-hour-based

Simple example: project has no children tasks 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

    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 = 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 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 note
    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

    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

  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

    code language-none 
    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

    code language-none 
    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

    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

Simple example: project has no children tasks simple-example-project-has-no-children-tasks-1

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

    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
    CPI****for Task 1  = .14

  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
    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

    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
    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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