What is the best way to make an accurate forecast of ETC?2 MarksEAC - ACBAC EVManual forecasting of cost of the remaining work.(BAC EV)/CPI

The best way to make an accurate forecast of Estimate to Complete (ETC) involves several steps:

1. Understand the Key Terms:

   • ETC: Estimate to Complete, the expected cost to finish the project.
   • EAC: Estimate at Completion, the total cost of the project at completion.
   • AC: Actual Cost, the actual cost that has been spent on the project so far.
   • BAC: Budget at Completion, the total budget of the project.
   • EV: Earned Value, the value of the work actually performed.
   • CPI: Cost Performance Index, a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost.

2. Calculate EAC:

   • EAC can be calculated using the formula: EAC = AC + ETC.

3. Calculate ETC:

   • ETC can be calculated using the formula: ETC = EAC - AC.

4. Manual Forecasting:

   • This involves using your judgement and experience to estimate the cost of the remaining work. This can be based on past performance or other relevant factors.

5. Use the (BAC - EV)/CPI formula:

   • This formula is used to calculate ETC when the original estimation is no longer valid. It assumes that the remaining work will proceed at the same rate as the work done so far.

Remember, the accuracy of your ETC will depend on the accuracy of your EAC, AC, and CPI calculations, as well as your ability to accurately forecast the cost of the remaining work.