Project forecasting is a combination of three interrelated things for achieving proposed business objectives. Always proper scheduling proves beneficial in a project completion. Nowadays, measurement of different metrics plays the vital role to drive a project on the right track. It is a different phenomenon between conceiving and transforming a project plan. Most of all, expected execution is dependent on the forecasting of the project. Analyzing multiple factors related to a project becomes important when you turning a plan into reality. A feasibility study is the most noteworthy part of project management. Anyhow, realistic viewpoint proves beneficial for a better future prospect. An efficient project manager always predicts an improved viewpoint considering all the risk factors. Hence, project forecasting is an indispensable part for conducting every activity in a planned manner.
Most of the time, budget management becomes a big concern for every manager. Due to effective cost estimation, maximum profitability comes through minimum investment. Precisely one can opt for the ETC (Estimate to Complete) formulas for better future predictions of a project. These formulas are especially relevant for Earned Value Management (EVM).
The following techniques determine the necessity of ETC in project forecasting:
1. Current project performance:
Current project performance always depends on the Earned Value Analysis (EVA). First of all, you need to accumulate the result of all project metrics in a single place. Moreover, one can control proper scheduling and cost estimation with the help of EVA. As a whole, it signifies the present condition of the project and its future prospect.
2. Estimate at completion (EAC):
EAC depicts the proposed cost estimation for a final project completion. The formula of the EAC helps to determine the total cost required in a Project Management Profession (PMP). Furthermore, project costs may fluctuate with the future progression of the project.
3. To complete performance index:
It is a crucial part to estimate future cost efficiency of a particular project according to its present success.