Typical and Atypical in EV calculations ...

[Paul]

Hello Group:

Please clarify the difference between TYPICAL and ATYPICAL in the earned value management calculations.

EAC=BAC/CPI if the variances are ATYPICAL and EAC=AC+(BAC-EV) if the variances are TYPICAL. But,

ETC=BAC-EV if the variances are ATYPICAL and ETC=EAC-AC if the variances are TYPICAL. 

How do we explain??? Please help!

Thanks,
Paul Mallela
(+91) 850-070-5570

[Manickavel A, PMP]

Typical: you expect the project to perform similarly till end of the project. That means, your CPI or cost performance is expected to continue at the same rate as of now. So, accordingly your new estimate becomes BAC/CPI; you are adjusting the BAC based on your cost performance index. Say, for example, your BAC is $10,000 and CPI is 0.80. CPI value of 0.80 means that you are spending $1 for each $0.80 planned (1.25 times more than planned). Assuming the performance will continue throughout the project, your new estimate (EAC) will be 10000/0.8 = $12500 (that is 1.25 times more than the original estimate)

Atypical; Whatever happened is happened; but, you expect the project to perform to original expectation from now on. So, the remaining work (BAC-EV) will cost the same as original cost. Add this to the cost you have already spent (AC) so far in the project. This will give you the new estimate, EAC = AC + (BAC-EV).

For further clarifications, refer to http://www.justgetpmp.com/2013/04/doubt-in-estimate-at-completion-eac.html. Thanks.

Regards,

Manick

[Rajnikant Thakur]

Hi Paul,

 

ATYPICAL - When your project will progress with the current rate in future also.

 

TYPICAL - When the project has revised Cost & Schedule in for remaining work.

 

 

Regards,

Rajni Kant

 

 

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[Sukhdev Singh]

hi, just have look this would serve your needs,

EAC=BAC/CPI is when the future cost performance is considered similar/typical as the past performance.

EAC=AC+ETC is when the  future cost performance is considered  non- similar/atypical (improve or deteriorate)as compared to the past performances.

ETC=BAC-EV is when future cost variances 'll be atypical.

ETC=BAC-EV/CPI is when future cost variances 'll be typical.

 thnx& rgds

On Tue, Jul 16, 2013 at 3:39 PM, Paul <dajp...@gmail.com> wrote:

[Deeksha Rastogi]

Watch Sir Ganttalott's videos on the topic on Youtube, its made it very easy.

[Sukhdev Singh]

Hi,

    I'm very happy to announce that,on 18JUL13 @1706hrs I cleared the PMP exam. I would like to extend a very big thanks to those who supported me directly/indirectly over and the all mighty GOD to make happen. very soon,I'll be back with LL.

Thnx&Rgds 

On Tue, Jul 16, 2013 at 3:39 PM, Paul <dajp...@gmail.com> wrote:

[Deeksha Rastogi]

Congrats...

[M. S. Qidwai]

Congratulations Sukhdev !!!

-----Original message-----
From: Sukhdev Singh
Sent: 21/07/2013, 7:37 am
To: pmp-cert-onli...@googlegroups.com
Subject: Re: Typical and Atypical in EV calculations ...


Hi,
I'm very happy to announce that,on 18JUL13 @1706hrs I cleared the PMP
exam. I would like to extend a very big thanks to those who supported me
directly/indirectly over and the all mighty GOD to make happen. very
soon,I'll be back with LL.
Thnx&Rgds


On Tue, Jul 16, 2013 at 3:39 PM, Paul <dajp...@gmail.com> wrote:

> Hello Group:
>
> Please clarify the difference between TYPICAL and ATYPICAL in the earned
> value management calculations.
>
> EAC=BAC/CPI if the variances are ATYPICAL and EAC=AC+(BAC-EV) if the
> variances are TYPICAL. But,
>
> ETC=BAC-EV if the variances are ATYPICAL and ETC=EAC-AC if the variances
> are TYPICAL.
>
> How do we explain??? Please help!
>
> Thanks,
> Paul Mallela

> *(+91) 850-070-5570*

[Jawed Khan]

Hi Paul,

These formulas are derived with two set of thinking for using EVM technique to forcaste your project budget:

1st set of thinking says that your original budgeted rate was correct, however the current performance is not in line and hence you must proceed with your originally budgeted rate only which is known as 'Typical'. and the formula used is:

EAC = AC + (BAC - EV)        &        ETC = EAC - AC

while 2nd set of thinking says that time has changed and cost of raw materials and resources have changed and hence originally planned budget will not work and hence we must work with current rate only and that is known as 'Atypical'.

And for current rate or current CPI, formula used is:  

EAC = BAC / CPI      &        ETC = BAC - EV

Therefore to conclude:

Typical = Originally Budgeted Rate

Atypical = Current Performance (CPI)

Hope I could answer your query to enable you get rid of confusion in Typical and Atypical:)

Should you need any other clarification in PMP, RMP, CAPM, ITIL, MSP, C2F, do contact me on my below coordinates.

Thanks and regards,

 

Jawed Khan, ITIL®,PMP® & C2F®

Vice President Certification Training

Qaizen Management & Consulting Services

TEAM:Together Everyone Achieves More..

Mob:+91-99874 83440 / 93242 06752

Skype: jawed.khan87/ Gtalk: jawed....@gmail.com

Web Profile: http://in.linkedin.com/in/jawedkhan

 

On Tue, Jul 16, 2013 at 3:39 PM, Paul <dajp...@gmail.com> wrote:

[Jawed Khan]

Hi Paul,

These formulas are derived with two set of thinking for using EVM technique to forcaste your project budget:

1st set of thinking says that your original budgeted rate was correct, however the current performance is not in line and hence you must proceed with your originally budgeted rate only which is known as 'Typical'. and the formula used is:

EAC = AC + (BAC - EV)        &        ETC = EAC - AC

while 2nd set of thinking says that time has changed and cost of raw materials and resources have changed and hence originally planned budget will not work and hence we must work with current rate only and that is known as 'Atypical'.

And for current rate or current CPI, formula used is:  

EAC = BAC / CPI      &        ETC = BAC - EV

Therefore to conclude:

Typical = Originally Budgeted Rate

Atypical = Current Performance (CPI)

Hope I could answer your query to enable you get rid of confusion in Typical and Atypical:)

Should you need any other clarification in PMP, RMP, CAPM, ITIL, MSP, C2F, do contact me on my below coordinates.

Thanks and regards,

 

Jawed Khan, ITIL®,PMP® & C2F®

Vice President Certification Training

Qaizen Management & Consulting Services

TEAM:Together Everyone Achieves More..

Mob:+91-99874 83440 / 93242 06752

Skype: jawed.khan87/ Gtalk: jawed....@gmail.com

Web Profile: http://in.linkedin.com/in/jawedkhan

 

On Tue, Jul 16, 2013 at 3:39 PM, Paul <dajp...@gmail.com> wrote: