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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 flow
Payment today is worth more than payment tomorrow
Cost today is worth more than cost tomorrow
PV = V
_{t}
/ (1 + i)
^{t}
V
_{t }
= 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
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
Author
cbass
ID
51158
Card Set
PMP Formulas
Description
PMP Formulas
Updated
2010-11-22T20:29:40Z
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