Project Manager Estimate at Completion (PMEAC)
There are times when the calculated estimate at completion (EAC) does not properly represent a project. The EAC value significantly skewed by the past performance on a project, which in some cases does not reflect future performances, or simply the historical performance does not exist. Additionally, project phases may be independent, not allowing the application of past performance to estimate future costs. The use of the project manager estimate at completion (PMEAC) addresses these issues.
Readers will be able to use PMEAC to reduce errors in estimates at completion, save time in communicating completion estimate variances, and reduce the confusion around multiple ways to calculate EAC. Our experience shows that managers look for a single value of EAC and become suspect of multiple answers. Using PMEAC, one should be able to reduce this frustration by providing a single value per project, which represents the project manager’s best calculation of the estimate at completion, the PMEAC.
The project management community has developed numerous quantifiable methods for determining a project’s estimate at completion (EAC). These methods include estimates based on historical costs of a project, the summation of individual estimates for distinct pieces of work, and numerous other ways of applying historical performance to
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