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PMP Formulas

  1. Variance
    Plan - Acutal
  2. Communication Channels
    [N X (N-1)]/2 where N = number of team members
  3. PERT e(t)
    (O + 4M + P) / 6
  4. PERT sigma
    (P-O) / 6
  5. Three Point e(t)
    (O + M + P) / 3
  6. PV (Present Value)
    • The value today of future cash flow
    • Payment 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)12
    • PV = 500 / 1.796
    • PV = 278.39
  7. BCR
    • Benefit
    • Cost
    • Ratio

    Revenues / Costs

    • 1.0 = Break even
    • > 1 = Profitable
    • < 1 = Loss
  8. TC
    Total Cost

    Fixed Cost + Variable Cost
  9. 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
  10. AC
    Actual Cost - aka ACWP - Actual Cost of Work Performed
  11. PV (Planned Value)
    The total cost of work packages planned to be completed at a given point on schedule. Used to measure schedule variances.
  12. CV
    Cost Variance

    EV-AC

    Negative Variance = cost overrun
  13. SV
    Schedule Variance

    EV-PV (negative variance is behind schedule)
  14. CPI
    Cost Performance Index

    EV / AC

    Less than one is a cost overrun
  15. SPI
    Schedule Performance Index

    EV / PV

    Less than one is behind schedule
  16. 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
  17. ETC
    Estimate to Complete

    • EAC - AC
    • if variances are typical

    • BAC - EV
    • if variances are atypical
  18. VAC
    Variance at completion

    BAC - EAC
  19. TCPI
    To Complete Performance Index

    • (BAC - EV) / (BAC - AC)
    • or
    • (BAC-EV) / (EAC-AC)
  20. Percent Complete
    EV / BAC
  21. Percent Spent
    AC / BAC
  22. Percent Complete Rule
    EV = %complete x PV
  23. 50-50 rule
    EV = 50% x budget (take 50% remaining at completion)
  24. Percent Complete (total project)
    EV = % complete of entire budget x BAC
  25. Acronym - PV
    BCWS - Budgeted Cost of Work Scheduled
  26. Acronym EV
    BCWP - Budgeted Cost of Work Performed
  27. Acronym AC
    ACWP - Actual Cost of Work Performed
  28. 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%
  29. EMV
    Expected Monetary Value

    Amount at Stake x Probability
  30. Decision Tree (probability of a path)
    Multiply probabilities along the path
  31. Probability of Event A not happening
    1 - Probability of A happening
  32. Probability A & B
    Probability A x Probability B
  33. Point of Total Assumption (PTA)
    PTA = [(Ceiling Price - Target Price) / Buyer Share] + Target Cost
  34. Contract Fee Adjustment
    (Target cost - Actual Cost) x Seller's Share
  35. Contract Price
    Cost + Profit
Author
cbass
ID
51158
Card Set
PMP Formulas
Description
PMP Formulas
Updated

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