PMP (Formulas)

Earned Value Analysis PV (Planned Value) = BCWS (Budgeted Cost of Work Schedule) EV (Earned Value) = BCWP (Budgeted Cost of Work Performed) AC (Actual Cost) = ACWP (Actual Cost of Work Performed) CV = EV AC SV = EV PV CPI = EV / AC SPI = EV / PV Atypical= ; Variances that have occurred are simply so unusal that they are not expected again. Typical= Variance that have occurred are going to be typical for the duration of the project. ETC = BAC EV ETC = (BAC EV) / CPI ETC=EAC-AC EAC = BAC / CPI EAC = AC + ETC EAC = AC + (BAC EV) EAC = AC + (BAC EV) / CPI [Future Variances are Atypical or Not Consistent or Di similar] [Future Variances are Typical or Consistent or similar] By using EAC [simplest formula: typical or no variances] [Initial Estimates are flawed; Based on new estimate] [Future variances are Atypical or Not Consistent or Di similar] [Future Variances are Typical or Consistent or similar]

To Complete Performance Index [TCPI] Values for the TCPI index of less then 1.0 is good because it indicates the efficiency to complete is less than planned. How efficient must the project team be to complete the remaining work with the remaining money? The formula for TCPI to meet the BAC is: TCPI=( BAC - EV ) / ( BAC - AC ) The formula for TCPI to meet the EAC is: (when Initial Estimates are flawed / New Estimate to complete) TCPI=( BAC - EV ) / ( EAC - AC ) TCPI=( BAC - EV ) / ETC VAC = BAC EAC % COMPLETE = EV / BAC x 100 % SPENT = AC / BAC x 100 CV% = CV / EV x 100 SV% = SV / PV x 100 EV=BAC * Actual % complete PV=BAC * Schedule %complete Float or Slack LS - ES and LF EF MEAN -> Average MODE -> The most found number RANGE -> Largest - Smallest Measure. MEDIUM -> No in the middle or avg. of 2 middle Nos PERT = O + 4ML + P / 6 STD. DEV. OF TASK = P O / 6 TASK VAR. = [(P - O)/6 ] squared = Std. Dev ^ 2 or

CP STD. DEV. = + + SIGMA 1 = 68.26 2 = 95.46 3 = 99.73 6 = 99.99 Channels of Communication (N x (N 1)) / 2 Project Selection PV = F V / (1+r) (or) FV = PV x (1+r) Cash Flow = Cash Inflow Cash Outflow Discounted Cash Flow = CF x Discount Factor ARR = S Cash Flow / No. of Years ROI = (ARR / Investment) * 100 % Bigger is better OR ROI = (Benefit Cost)/Cost BCR = Benefits / Cost Benefit Cost Ratio (BCR)Bigger is better ((BCR or Benefit / Cost) Revenue or Payback VS. cost) Or PV or Revenue / PV of Cost Net Present Value (NPV) = Net Present Value Bigger is better Internal Rate of Return (IRR) Bigger is better Payback Period Less is better Net Investment / Avg. Annual cash flow

Class of Estimates Definitive +5% Capital Cost +10-15% Appropriation +15-25% Feasibility +25-35% Order of Magnitude -50% to +50% .. (> +35% (-50 - 75%) Contract Incentives Savings = Target Cost Actual Cost Bonus = Savings x Percentage Contract Cost = Bonus + Fees Total Cost = Actual Cost + Contract Cost Incentive Fee Calculation formula, Actual fee (AF) = {(TC - AC) * SSR} + TF Where, TC=Target cost, AC=Actual Cost, SSR= Sharing ratio, TF=Target fee Expected Monetary Value Probability * Impact Point of Total Assumption (PTA) ((Ceiling Price - Target Price) / buyer's Share Ratio) + Target Cost

Cost of Quality (CoQ) = ( ( Review Efforts + Test Efforts + Training Efforts + Rework Efforts + Efforts of Prevention) / Total efforts) x 100 %

Straight-line Depreciation:
The straight-line depreciation takes the purchase value of the item, minus the salvage price of the item, divided by the number of time periods.

PMP Acronyms
Acronym AC ACWP AD ADM AE AF AOA AON AS BAC BCWP BCWS BOM CA CAP CCB COQ CPAF CPF CPFF CPI CPIF CPM CPPC CV CWBS DD DU DUR Definition Actual Cost Actual Cost of Work Performed Activity Description Arrow Diagramming Method Apportioned Effort Actual Finish date Activity On Arrow Activity On Node Actual Start date Budget At Completion Budgeted Cost of Work Performed Budgeted Cost of Work Scheduled Bill Of Materials Control Account Control Account Plan Change Control Board Cost of Quality Cost Plus Award Fee Cost Plus Fee Cost Plus Fixed Fee Cost Performance Index Cost Plus Incentive Fee Critical Path Method Cost Plus Percentage of Cost Cost Variance Contract Work Breakdown Structure Data Date Duration Duration

EAC EF EMV ES ETC EV EVM EVT FF FF FFP FMEA FPEFA FPIF FS IFB LF LOE LS OBS OD PC PCT PDM PF PM PM PMBOK PMIS PMO PMO PMP PS PSWBS PV

Estimate at Completion Early Finish Date Expected Monetary Value Early Start Date Estimate to Complete Earned Value Earned Value Management EVT Finish To Finish Free Float Firm Fixed Price Failure Mode and Effect Analysis Fixed Price with Economic Price Adjustment Fixed Price Incentive Fee Finish to Start Invitation For Bid Late Finish Date Level of Effort Late Start Date Organizational Breakdown Structure Original Duration Percent Complete Percent Complete Precedence Diagramming Method Planned Finish Date Project Management Project Manager Project Management Body of Knowledge Project Management Information System Program Management Office Project Management Office Project Management Professional Planned Start date Project Summary Work Breakdown Structure Planned Value

QA QC RACI RAM RBS RBS RD RFI RFP RFQ SF SF SOW SPI SS SS SV SWOT T&M TC TF TF TQM TS VE WBS

Quality Assurance Quality Control Responsibile, Accountable, Consult, and Inform Responsibility Assignment Matrix Resource Breakdown Structure Risk Breakdown Structure Remaining Duration Request for Information Request for Proposal Request for Quotation Scheduled Finish Date Start to Finish Statement of Work Schedule Performance Index Scheduled Start date Start to Start Schedule Variance Strengths, Weaknesses, Opportunities and Threats Time and Material Target Completion date Target Finish Date Total Float Total Quality Management Target Start Date Value Engineering Work Breakdown Structure