19 Jan The Situation: You are the
PRM520 Monitoring, Controlling, and Closing Projects
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.
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