Module 4 Discussion
The Situation: You are the project manager for constructing
a custom house. Your company requires an evaluation of the estimate at
completion (EAC). Since the pool change order described in Week 1 has not been
executed, you don’t have to change your baseline budget. Everything is going
well; even the irrigation well and pump are in early. The EAC should be based
on the planned and earned values in WBS PV EV July 1 spreadsheet.
The Assignment: Calculate EAC using the four different
formulas. You know that Tropical Storm will impact your cost, so in the
“Bottom-up ETC” you add $5,000 to the estimated cost for storm cleanup in WBS
item 3.4; thus your Bottom-up ETC will be $5,000 higher than the ETC = EAC-AC
(i.e. ETC =EAC-AC +$5,000). Explain the differences between the four
forecasting formulas. Which one would you consider has the most validity?
Include at least three credible references in addition to the PMBOK® Guide with
at least one of these being a peer-reviewed journal article. Properly cite your
response.
