# PMP Formulas

 Variance Plan - Acutal Communication Channels [N X (N-1)]/2 where N = number of team members PERT e(t) (O + 4M + P) / 6 PERT sigma (P-O) / 6 Three Point e(t) (O + M + P) / 3 PV (Present Value) The value today of future cash flowPayment today is worth more than payment tomorrow Cost today is worth more than cost tomorrow PV = Vt / (1 + i)t Vt = the amount of cash flow "t" time periods from now i = interest rate t = time period ex: PV = 500 / (1 + .05)12PV = 500 / 1.796PV = 278.39 BCR Benefit Cost Ratio Revenues / Costs 1.0 = Break even> 1 = Profitable< 1 = Loss TC Total Cost Fixed Cost + Variable Cost EV Earned Value: Analysis of the project's schedule and financial progress as compared with the original plan. aka BCWS - Budgeted Cost of Work Performed cost analysis is performed by measuring Actuals v. Planned AC Actual Cost - aka ACWP - Actual Cost of Work Performed PV (Planned Value) The total cost of work packages planned to be completed at a given point on schedule. Used to measure schedule variances. CV Cost Variance EV-AC Negative Variance = cost overrun SV Schedule Variance EV-PV (negative variance is behind schedule) CPI Cost Performance Index EV / AC Less than one is a cost overrun SPI Schedule Performance Index EV / PV Less than one is behind schedule EAC Estimate at Completion BAC / CPI if variances are typical of future performance AC + (BAC-EV) if variances are not typical of future performance AC + [(BAC-EV) / (CPI x SPI) )]considers cost and schedule ETC Estimate to Complete EAC - AC if variances are typical BAC - EV if variances are atypical VAC Variance at completion BAC - EAC TCPI To Complete Performance Index (BAC - EV) / (BAC - AC) or (BAC-EV) / (EAC-AC) Percent Complete EV / BAC Percent Spent AC / BAC Percent Complete Rule EV = %complete x PV 50-50 rule EV = 50% x budget (take 50% remaining at completion) Percent Complete (total project) EV = % complete of entire budget x BAC Acronym - PV BCWS - Budgeted Cost of Work Scheduled Acronym EV BCWP - Budgeted Cost of Work Performed Acronym AC ACWP - Actual Cost of Work Performed Sigma Plus or Minus One Sigma = 68.3%Plus or Minus Two Sigma = 95.5%Plus or Minus Three Sigma = 99.7%Plus or Minus Six Sigma = 99.9997% EMV Expected Monetary Value Amount at Stake x Probability Decision Tree (probability of a path) Multiply probabilities along the path Probability of Event A not happening 1 - Probability of A happening Probability A & B Probability A x Probability B Point of Total Assumption (PTA) PTA = [(Ceiling Price - Target Price) / Buyer Share] + Target Cost Contract Fee Adjustment (Target cost - Actual Cost) x Seller's Share Contract Price Cost + Profit Authorcbass ID51158 Card SetPMP Formulas DescriptionPMP Formulas Updated2010-11-22T20:29:40Z Show Answers