Schedule Performance Index (SPI) & Cost Performance Index (CPI)
In this blog I’m going to discuss Performance Indexes in Project Cost Management; i.e. Schedule Performance Index (SPI) and Cost Performance Index (CPI). Please note that, this is the fourth blog post...
View ArticleEstimate At Completion (EAC) – A Project Forecasting Tool
Estimate At Completion (EAC) is the project’s forecasted value when the project finishes. It is only an indicator that how much it may cost you to complete the project. As you know that the projects...
View ArticleEstimate To Complete (ETC) – An Another Project Forecasting Tool
Estimate To Complete (ETC) is an another Forecasting Tool in Project Cost Management. It is the expected amount of money that you will spend to complete the remaining work. For example, let us say that...
View ArticleTo-Complete Performance Index (TCPI) in Project Cost Management
To-Complete Performance Index (TCPI) is the estimate of cost performance required for the project to meet the project’s budget goal. There are two important points to be noted from this definition: If...
View ArticleFast Forward – Earned Value Management (EVM), Forecasting & TCPI
In previous seven blog posts I tried to cover several hard concepts in project cost management (e.g. Earned Value Management, Forecasting and TCPI ) that many PMP aspirants find difficult to...
View Article4 Tools to Estimate Costs in the Project Management
In Estimate Costs process, the cost of each project activity is estimated. Interesting thing about this process is that, it uses three tools used in Estimate Activity Duration process. In estimate...
View ArticleEstimate at Completion (EAC): Definition, Formula, Example & Calculations
Forecasting helps us predict future events, and it has been used in every part of the world since the dawn of time. People from different cultures use different methods to predict the future. Some...
View ArticleSchedule Performance Index (SPI) & Cost Performance Index (CPI)
Today we are going to discuss Schedule Performance Index (SPI) and Cost Performance Index (CPI). Like variances, indexes also let you analyze the health of the project. They help you analyze the...
View ArticleEstimate to Complete (ETC): Definition, Formula, Example & Calculation
You will often want to know how much more money you need to complete a remaining task. In your personal matters, you can go with a guess, but in your professional life you must adopt a professional...
View ArticleBudget at Completion (BAC): Definition, Formula, Example & Calculation
Budget at completion (BAC) is a key aspect of project management, as it provides the project budget. This is the metric that all project stakeholders are concerned about, and you must ensure that the...
View ArticleThree-Point Estimation Technique in Project Management
Three-point estimation is an important technique that improves cost or schedule forecasting accuracy. This method uses three scenarios: (1) optimistic, (2) pessimistic, and (3) most likely estimate to...
View ArticleProject Cost Estimation: How to Estimate Project Cost?
A project is successful if it is completed under budget and within the defined duration, and it fulfills the stakeholders’ requirements. To achieve these objectives, you must estimate the project cost...
View ArticleAnalogous Estimation Technique: Definition, Example, Pros & Cons
Analogous estimation techniques can help you estimate the project cost when no or limited project information is available. This is a useful method for providing a figure that management can use during...
View ArticleParametric Estimation Technique in Project Management: Definition & Example
Parametric estimation is a quantitative technique for estimating project costs, schedules, and resource requirements. The parametric estimation technique provides a reliable prediction. However, you...
View ArticleDirect Cost Vs Indirect Cost
To price your products or services competitively, it is important to understand the difference between direct and indirect costs. Direct costs are those expenses directly tied to producing or...
View Article