Forecasting Future Performance Trends

The Schedule Performance and Cost Performance Indices not only monitor current project performance, they can also be used to predict future performance trends.

To-Complete Performance Index (TCPI) = (BAC-EV) / (BAC-AC). Indicates the CPI required throughout the remainder of the project to stay within the stated budget.

Estimate at Completion (EAC) = AC + ((BAC-EV)/CPI). A forecast of total costs that will be accrued by project completion based on past cost performance trends.

Variance at Completion (VAC) = EAC – BAC. The difference between the new Estimate at Completion and the original Budget at Completion.

For further reading, try this free Earned Value Management eBook:

Successfully Presenting Earned Value is a free e-book which will help you learn to implement and present Earned Value schedules. It offers both an explanation of Earned Value Management principles, and step-by-step instructions. This e-book is offered at no charge. After reviewing it, you may be interested in downloading our Milestones Professional software. Milestones Professional was used to produce the presentation-ready Earned Value reports shown in the e-book and can be used to make schedules in many formats, including Gantt charts, Milestone charts, Summary charts, Resource Charts and more.

All example schedules on this website were made with Milestones Professional Project Management Software.

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