Estimate-to-complete (ETC)

Estimate-to-complete (ETC) means to forecast the remaining work. However, ETC is a time-consuming method of forecasting, because the remaining work decreases day by day. To calculate the variance-at-completion (VAC), at least one valid registered cost forecast is required for each item of budgeted work in the project scope.

  1. You can start with the control budget as base. Generate cost forecast with the Generate from Budget check box selected. At this point the estimate-to-complete has the same value as the budget, as work has not yet started, and no progress is booked yet.

    You can start with the control budget as base. Generate cost forecast with the Generate from Budget check box selected. At this point the estimate-to-complete has the same value as the budget, as work has not yet started, and no progress is booked yet.

  2. If progress is made, you must register the cost forecast in the Cost Forecast Overview (tpppc2816m000) session for that date. To reduce the effort of entering data, you can generate the cost forecast with the Generate from Previous Date check box selected. You now get a new forecast based on the following formula. Forecast new date = forecast previous date minus cost occurred between the previous and new date. To take any unit costs into account that occurred in the intervening period, you must use the leading forecast method estimate-to-complete (ETC).

    If progress is made, you must register the cost forecast in the Cost Forecast Overview (tpppc2816m000) session for that date. To reduce the effort of entering data, you can generate the cost forecast with the Generate from Previous Date check box selected. You now get a new forecast based on the following formula. Forecast new date = forecast previous date minus cost occurred between the previous and new date. To take any unit costs into account that occurred in the intervening period, you must use the leading forecast method estimate-to-complete (ETC).

  3. If the work is completed, the estimate-to-complete must be zero. Select the Generate Empty Forecast check box and generate cost forecast.

    If the work is completed, the estimate-to-complete must be zero. Select the Generate Empty Forecast check box and generate cost forecast.

    If you want to monitor the result of the ETC procedure:

    • The variance at completion (VAC) in the Control Inquiries (tpppc4850m000) session, the Performance Measurement (tpppc5840m000) session, and the Performance Measurement using EVM (tppss0702m000) session is: budget at completion (BAC) minus estimate to complete (ETC) minus actual costs.
    • In the Display Financial Analysis (tppss0701m000) session, the entered estimate to complete (ETC) forecast amount can be displayed as planned cost.