How to Use Jira to Calculate Estimated at Completion (EAC) in IT Projects

Introduction

In IT project management, maintaining control over both costs and schedules is essential for project success. One key metric that helps project managers monitor progress and predict the final cost is Estimated at Completion (EAC). This metric forecasts the total cost or time required to complete a project, based on the actual performance so far.

If your team uses Jira, you’re in luck! Jira is a powerful tool that can help you track project data and calculate EAC effectively. This article will guide you through setting up Jira to track the necessary data, calculating EAC, and using Jira's reporting features to monitor progress in real-time.

What is EAC?

Estimated at Completion (EAC) is a forecasting metric that helps project managers predict the total cost or time required to complete a project, considering the work completed and the remaining work. EAC is typically calculated using the formula:

EAC=Actual Cost (AC)+Estimate to Complete (ETC)EAC = \text{Actual Cost (AC)} + \text{Estimate to Complete (ETC)}EAC=Actual Cost (AC)+Estimate to Complete (ETC)

For time-based EAC, you can replace Actual Cost with Time Spent and Estimate to Complete with Remaining Estimate.

Why EAC is Critical in IT Projects

Accurately calculating EAC enables project managers to anticipate budget overruns, adjust resources, and communicate risks to stakeholders before they become critical issues. In IT projects, where scope creep and resource challenges are common, EAC is invaluable for keeping the project on track.

Common Methods to Calculate EAC

EAC can be calculated in various ways depending on your project management approach:

• Traditional Method: EAC = Actual Cost + Estimate to Complete. In Jira terms, this can be translated to: EAC = Σ Time Spent + Σ Remaining Estimate

• Agile Method: Use Burnup or Burndown charts to predict how much work is left and how quickly it will be completed.

Configuring Jira for Tracking Costs and Time

To effectively calculate EAC in Jira, you need to ensure accurate tracking of costs and time. Start by setting up Jira to capture key data points:

• Fields: Define and track fields such as Story Points, Original Estimate, Time Spent, and Remaining Estimate.

• Workflows: Customize Jira workflows to ensure that tasks move through the appropriate stages and that time tracking is accurate.

• Integrations: Consider integrating time-tracking plugins, such as Tempo Timesheets, to automate the collection of data on time spent by team members.

Using Jira Reports to Monitor Project Progress

Jira’s built-in reporting features can help you monitor actual progress and forecast completion. Utilize reports such as:

• Burndown Chart: Shows remaining work over time, which helps in understanding whether the project is on track.

• Burnup Chart: Shows progress toward the project goal, including scope changes.

• Velocity Chart: Tracks the amount of work completed in each sprint.

Step-by-Step Guide to Calculating EAC

1. Establish a Baseline: Set up initial project estimates and define the project scope in Jira. This will serve as your Budget at Completion (BAC).

2. Track Actual Time Spent: Use Jira’s time-tracking features to log the actual time spent on each task. Ensure team members regularly update their work logs.

3. Estimate Remaining Effort: Jira’s “Remaining Estimate” field can be used to capture the amount of work left to complete.

4. Calculate EAC: With the above data, you can calculate EAC using the following formula: EAC = Time Spent + Remaining Estimate. For cost-based EAC, replace Time Spent with Actual Cost. In Jira terms, this can be translated to: EAC = Σ Time Spent + Σ Remaining Estimate

5. Create Custom Fields and Reports: Set up custom fields in Jira to store EAC components. Develop dashboards to visualize EAC data.

6. Automate EAC Updates: Use Jira automation rules or ScriptRunner to create a scripted field that calculates EAC in real-time.

Using Jira Dashboards for EAC

Create custom Jira dashboards to visualize your EAC data in real-time. You can add gadgets such as:

• Pie Chart: Visualize how much work has been completed versus what remains.

• Cumulative Flow Diagram: Shows the overall progress and highlights potential bottlenecks.

• Custom EAC Gadgets: If your organization uses specific metrics, you can configure gadgets to display EAC or related metrics.

By setting up these dashboards, you can keep track of EAC continuously and make data-driven decisions.

Practical Tips and Best Practices

• Consistency: Ensure that all team members log their time consistently. This is critical for accurate EAC calculations.

• Regular Updates: Encourage the team to update remaining estimates regularly, especially after major project milestones or changes.

Leveraging Jira Plugins for Advanced EAC Calculation

Jira’s native capabilities can be extended through plugins that offer advanced project tracking features. Popular plugins include:

• BigPicture: Offers comprehensive project management tools, including portfolio management, roadmaps, and advanced reporting.

• Structure: Provides an easy way to organize and track large projects, with built-in metrics to calculate EAC and other key indicators.

• Script Runner: Jira add-on that allows administrators and developers to automate, customize, and extend Jira's functionality through scripting and advanced configurations.

These plugins can help you automate the calculation of EAC and integrate Jira with other financial or project management tools for a more seamless experience.

Regular EAC Review Meetings

Set up regular checkpoints with stakeholders to review EAC data and discuss any necessary course corrections. This proactive approach can help mitigate risks early.

Conclusion

Accurately calculating Estimated at Completion (EAC) is crucial for IT project success, and Jira can be an excellent tool to help with this. By setting up Jira correctly, tracking the right data, and utilizing dashboards and plugins, you can forecast your project's costs and timelines more effectively. Implement these practices in your Jira setup to ensure that your projects stay on track and within budget.

Further Reading

1. Jira Time Tracking Guide https://support.atlassian.com/jira-software-cloud/docs/logging-time-and-tracking-progress/

2. Jira Reports Overview https://support.atlassian.com/jira-software-cloud/docs/reports-overview/

3. BigPicture Plugin https://marketplace.atlassian.com/apps/1212780/bigpicture-project-portfolio-management

4. Structure Plugin https://marketplace.atlassian.com/apps/34717/structure-project-management-at-scale

5. Burnup and Burndown Charts in Agile https://www.atlassian.com/agile/project-management/burndown-charts

6. EAC Calculation Methods https://www.projectmanager.com/blog/eac-estimate-at-completion

7. ScriptRunner for Jira, https://www.scriptrunnerhq.com/atlassian-apps/jira/scriptrunner-for-jira