PMP Formulas
Home > Flashcards > Print Preview
The flashcards below were created by user
cbass
on
FreezingBlue Flashcards. What would you like to do?


Communication Channels
[N X (N1)]/2 where N = number of team members

PERT e(t)
(O + 4M + P) / 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
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
EVAC
Negative Variance = cost overrun

SV
Schedule Variance
EVPV (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 + (BACEV)
 if variances are not typical of future performance
 AC + [(BACEV) / (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
 (BACEV) / (EACAC)

Percent Complete
EV / BAC


Percent Complete Rule
EV = %complete x PV

5050 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