Abbott Project Management Playbook

Calculation of performance indices and variances metrics used in forecasting and trend analysis • Cost Variance (CV) = EV – AC o CV measures project performance by determining how much the work is over or under the budget at a given time. • Cost Performance Index (CPI) = EV ÷ AC o The CPI is a measure of expended cost to budgeted o CPI > 1.0 is good • Schedule Performance Index (SPI) = EV ÷ PV o The SPI is a measure of planned productivity to actual o SPI > 1.0 is good • Reference “Key Formulae for Analysis & Forecasting” under the Useful Links tab for more info and equations Calculating a Cost Forecast • Estimated Cost at Completion (EAC) = Budget (BAC) ÷ CPI o The EAC is the estimated total cost to complete all the work, including the actual cost incurred for the work already performed. • Estimated Cost to Complete (ETC) = EAC – AC o The estimated cost to complete the activity from a certain point in time to completion. Calculating a Schedule Forecast • Estimated Project Duration = Original Duration ÷ SPI

• EVM Overview Training • EVM Formula, Definitions, and Basic Template

10 P ROJECT C LOSURE DEFINITION: What is Project Closure?

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