Currently there is the Estimate AT Complete (EAC) formula field at the project and task level.
It would be great to have an Estimate TO Complete (ETC) field for either hours or dollars at the project level at a minimum (task would be nice too, but not a need to have).
To differential the two, Estimate at Complete (EAC) is the total cost of the project at the end, while the Estimate to Complete (ETC) is the cost required to complete the remaining work
Here's an example based on dollars, but the same could apply for hours:
You have a project with a budget of 100,000 USD and a duration of 12 months. 6 months have passed, and you have spent 60,000 USD. Upon closer view, you find that only 40% of the work has been completed. Your project is expected to perform with the same cost.
Here's how to find the Estimate to Complete (ETC) for this project.
Budget at Completion (BAC) = 100,000 USD
Actual Cost (AC) = 60,000 USD
Planned Value (PV) = 50% of 100,000 USD
= 50,000 USD
Earned Value (EV) = 40% of 100,000 USD
= 40,000 USD
To determine the ETC, you need the EAC.
And, EAC = Budget / CPI
Hence, Cost Performance Index (CPI) = EV / AC
= 40,000 / 60,000
= 0.67
Therefore, Cost Performance Index (CPI) = 0.67
Now, Estimate at Completion (EAC) = BAC / CPI
= 100,000 / 0.67
= 149,253
Estimate at Completion (EAC) = 149,253 USD
Now, Estimate to Complete (ETC) = EAC – AC
= 149,253 – 60,000
= 89,253 USD
Hence the Estimate to Complete (ETC) for this project is 89,253 USD.
Cheers.
Nick
