- Definition of Terms
- Differences between the Two EAC Methods
- Formulas
- EAC Method: Calculate at the Project Level
- EAC Method: Roll Up from Tasks/Subtasks
Term |
Definition |
Actual Hours |
The hours recorded against the task (via Log Hours button). For parent tasks = children Actual Hours + Actual Hours on the parent task. For projects = Actual Hours logged on the project +Actual Hours logged on standalone or children tasks in the project. Example: If from the Updates tab for Task 1, you click ‘Log Time’ and enter 25 hours, the Actual Hours = 25. |
Actual Labor Cost |
The result of multiplying the actual hours by the rate. Example: If the task is set up such that the Cost Type = ‘User Hourly’ (Task Details>Finance) and the user’s cost/hr on their profile is $100.00/hr, then if you record 5 actual hours, the Actual Labor Cost = $500.00. |
IncurredActualExpenseCost |
The sum of the Actual Amount field for all expenses where the Actual Amount field > 0. Example: If you create an expense for Task 1 and enter $600.00 in the Actual Amount field, the Incurred Actual Expense Cost for this task is $600.00. ************ IMPORTANT ************* If the value in the Actual Amount field for an expense is negative, the system will ignore that expense record. For example, if the value in the Planned Amount field is $200.00 but the value in the Actual Amount field is -$300.00, the system will ignore this entire expense record which means you would not include the $200.00 planned value or the -$300.00 actual value in any calculations. |
IncurredPlannedExpenseCost |
The sum of the Planned Amount field for all expenses where the Actual Amount field > 0. Example: If you create an expense for Task 1 and enter $500.00 in the Planned Amount field and an amount > 0 in the Actual Amount field (i.e. $600.00), the Incurred Planned Expense Cost for this task is $500.00. |
NotIncurredPlannedExpense |
The sum of the Planned Amount field for all expenses where the Actual Amount field = 0. Example: If you create two expenses for Task 1 where for the first expense the value in the Planned Amount field is $500.00 and the value in the Actual Amount is $600.00 and for the second expense, the value in the Planned Amount field is $300.00 and the value of the Actual Amount field is $0.00, the value of the Not Incurred Planned Expense for this task is $300.00. |
Percent Complete |
The value entered into the % Complete field for a task. |
Planned Hours |
The value entered into the Pln Hrs field on the task (i.e. 10 Hours) |
Planned Labor Cost |
The result of multiplying the planned hours by the rate. Example: If the task is set up such that the Cost Type = ‘User Hourly’ (Task Details>Finance) and the user’s cost/hr on their profile is $100.00/hr, then if you record 10 planned hours, the Planned Labor Cost = $1,000.00. |
TotalBudgetedCostWorkPerformed |
The result of multiplying the budgeted cost of the work planned (budgeted cost) and the percent of the task that has been completed so far. For a non-parent task: |
Differences between the Two EAC Methods
EAC Method = Calculate at Project Level Method
- EAC for the parent task and project are determined by entering the actual hours/actual labor cost into the EAC Formulas
- Includes Actual Hours/costs and expenses added directly to the parent task or project
EAC Method = Roll Up From Tasks/Subtasks Method
- EAC for the parent task and project are determined by summing up the EAC for each direct child task
- Excludes Actual Hours and expenses added directly to the parent task or project
TotalBudgetedCostWorkPerformed
- For a non-parent task: TotalBudgetedCostWorkPerformed = Planned Hours * (Percent Complete/100)
- For a parent task: TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all single children tasks.
- For a project: TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all top-level tasks (This includes only first level parents, not secondary level parents, etc).
CPI
IF Actual Hours > 0 THEN CPI = TotalBudgetedCostWorkPerformed / Actual Hours
ELSE CPI = 1
EAC
IF CPI <> 0 THEN EAC = Planned Hours / CPI
ELSE EAC = Planned Hours + Actual Hours
TotalBudgetedCostWorkPerformed
For a non parent task: TotalBudgetedCostWorkPerformed = Planned Labor Cost * (Percent Complete/100)
For a parent task: TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all direct child tasks.
For a project: TotalBudgetedCostWorkPerformed = the sum of the TotalBudgetedCostWorkPerformed field for all top-level tasks.
CPI
IF Actual Labor Cost + IncurredActualExpenseCost <> 0 THEN CPI = (TotalBudgetedCostWorkPerformed + IncurredPlannedExpenseCost) / (ActualLaborCost + IncurredActualExpenseCost)
ELSE CPI = CPI_Labor
EAC
EAC = EAC Labor + EAC Expense
For EAC Labor, we first need to determine CPI_Labor.
CPI_Labor = IF Actual Labor Cost <> 0 THEN CPI_Labor = TotalBudgetedCostWorkPerformed / Actual Labor Cost
ELSE CPI_Labor = 1
EAC Labor = IF CPI_Labor <> 0 THEN EAC Labor = Planned Labor Cost / CPI_Labor
ELSE EAC Labor = Planned Labor Cost + Actual Labor Cost
EAC Expense = IncurredActualExpenseCost + NotIncurredPlannedExpense
EAC Method: Calculate at the Project Level
Simple example: Project has no child tasks
PIM = Hour-Based
EAC Method = Calculate at project level
- Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.
- 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%
- Recalculate Finance
- 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 - 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 - CPI / EAC for Tasks 2 and 3 are:
Task 2 = .12 / 83.33 hrs
Task 3 = .24 / 62.5 hrs - 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 - 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 child tasks
PIM = Hour-Based
EAC Method = Calculate at project level
- 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 - Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.
- 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% |
- Add 50 hours directly to the project (More>Hours>Log Hours).
- 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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 - 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
Simple Example: Project has no child tasks
PIM = Cost-Based
EAC Method = Calculate at project level
- Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.
- 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% |
- 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 |
- 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 |
- 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 |
- From Project Actions, run Recalculate Finance
- CPI for Task 1 = .14
- 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 - 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 - Here are the CPI / EAC values for Task 2 and Task 3:
Task 2 = .19 / $8,433.33
Task 3 = .44 / $6,950.00 - 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 - 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 child tasks
PIM = Cost-Based
EAC Method = Calculate at project level
- 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 - Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.
- 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% |
- 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.
- 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 |
- 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 |
- 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 |
- From Project Actions, run Recalculate Finance
- 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 - 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 = $5,000.00
EAC Expense Task 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 - 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 - 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 = .31
EAC 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 - 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 - 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 - 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 - 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
EAC Method: Roll Up from Tasks/Subtasks
Simple Example: Project has no child tasks
PIM = Hour-Based
EAC Method = Roll up from tasks/subtasks
- Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.
- 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% |
- Recalculate Finance
- 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 - 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 - CPI / EAC for Tasks 2 and 3 are:
Task 2 = .12 / 83.33 hrs
Task 3 = .24 / 62.5 hrs - 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 - 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 child tasks
PIM = Hour-Based
EAC Method = Roll up from tasks/subtasks
- 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 - Assign Tasks 2, 4, 5, and 6 to User 1 whose cost/hr rate is $100.00.
- 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% |
- 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.
- Run Recalculate Finance
- 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 - 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 - 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 - 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 - EAC for Task 3 = EAC Task 4 + EAC Task 5
EAC for Task 3 = 25 + 20
EAC for Task 3 = 45 hrs - 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 - EAC for Task 1 = EAC Task 2 + EAC Task 3
EAC for Task 1 = 50 + 45
EAC for Task 1 = 95 hrs - 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 - EAC for project = EAC Task 1 + EAC Task 6
EAC for project = 95 + 16.67
EAC for project = 111.67 hrs
Simple Example: Project has no child tasks
PIM = Cost-Based
EAC Method = Roll up from tasks/subtasks
- Create Project A with three tasks (no child tasks) all assigned to User 1 whose cost/hr is $100.00.
- 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% |
- 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 |
- 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 |
- 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 |
- From Project Actions, run Recalculate Finance
- 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 - 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 - Here are the CPI / EAC values for Task 2 and Task 3:
Task 2 = .19 / $8,433.33
Task 3 = .44 / $6,950.00 - 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 - 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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