Essential PMP Formulas

Gurus,

If you are looking for PMP stuff, here it is. The following are some important formula  that will be helpful to prepare for PMP test.

Pert: P+4M+O / 6

Standard deviation of an activity: P - O / 6

Variance of an activity: [P-O / 2] Squared

Total float: LS – ES or LF-EF

Cost Variance (CV): EV-AC

·   Negative is over budget

·   Positive is under budget

Schedule Variance (SV): EV-PV

· Negative is behind schedule

· Positive is ahead of schedule

Cost Performance Index (CPI): EV/AC

We are getting $____ worth of work out of every $1 spent.  Funds are or are not being used efficiently

·  A value equal to or greater than one indicates a favorable condition

·  A value less than one indicates an unfavorable condition.

Schedule Performance Index (SPI): EV/PV

We are (only) progressing at ____ percent of the rate originally planned.

· A value equal to or greater than one indicates a favorable condition

· A value less than one indicates an unfavorable condition.

Estimate at Completion (EAC): BAC /CPI

Note: There are many ways to calculate EAC depending on the assumptions made.

As of now, how much do we expect the total project to cost? $_____

· Used if no variances from the BAC have occurred or you will continue at the same rate of spending.

Estimate at Completion (EAC): AC + ETC

 As of now, how much do we expect the total project to cost? $_____

· Actual plus a new estimate for remaining work.  Used when original estimate was fundamentally flawed.

Estimate at Completion (EAC): AC + (BAC – EV)

 As of now, how much do we expect the total project to cost? $_____

· Actual to date plus remaining budget.  Used when current variances are thought to be atypical of the future.  AC plus the remaining value of work to perform

Estimate at Completion (EAC): AC + [(BAC-EV) / CPI]

As of now, how much do we expect the total project to cost? $_____

· Actual to date plus remaining budget modified by performance.  Used when current variances are thought to be typical of the future.

Estimate to Complete (ETC): EAC – AC

How much more will the project cost?

Variance at Completion (VAC): BAC – EAC

How much over or under budget will we be at the end of the project?

Cumulative CPI: EVC – ACC

Where second C is interpreted as raise to cumulative total.

CPI calculated for a period of time rather than all the time to date: CPI = EV – AC

Present Value PV = [FV/ (1+r) raised to n]

Communication Channels: [N(N-1)] /2

Catch you later!!!

CHEERS!!!