Your project forecasts should not be a static tool and should, instead, be adjusted as the project progresses. In this case, we can use the EAC = AC + (BAC - EV) formula because we expect that the remaining budget is accurate but must account for the previous performance issues.Įssentially, the EAC increases by the amount the actual cost exceeded the initial budget.įorecasting is an integral part of the project management process and it does not cease to be important once the project has commenced. At 50% project completion, the AC was $8,500 instead of the projected $7,750. In our previous example, the BAC was $15,500 but some obstacles drove up costs. Introduction to BAC or Blood Alcohol Concentration/content/level As per the BAC definition, the Blood Alcohol concentration is a medical term. Alcohol concentration (BAC) determines the impact of alcohol on the human body, either positive or negative. When it is necessary to account for cost and schedule in order to arrive at an updated budget forecast, use this formula: EAC = AC + (BAC - EV)/SPI * CPI(Estimate at Completion equals Actual Costs plus Budget at Completion minus Earned Value divided by Schedule Performance Index times Cost Performance Index) The answer is, BAC stands for Blood Alcohol concentration or Blood Alcohol Content.When there were some performance issues or one time obstacles in the project, but the rest of the original budget is expected to remain accurate use the following formula: EAC = AC + (BAC - EV)(Estimate at completion equals Actual Cost plus Budget at Completion minus Earned Value).When performance is steady and has not deviated too sharply from the original estimate, use the following formula: EAC = BAC/CPI(Estimate at Completion equals Budget at Completion divided by Cost Performance Index).When the initial estimates were wrong, are now obsolete, or cannot be used as an accurate forecast, use the following formula: EAC = AC + ETC(Estimate at Completion equals Actual Cost plus Estimate to Complete).Four formulae can be used to calculate EAC. The appropriate EAC project management formula can vary, depending on the situation. What is the Estimate at Completion formula and how do you know which EAC formula to use?
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