Formulas

Question 1

Budget at Completion (BAC)

Answer 1

Original budget of the project. (no formula)

Question 2

Planned Value (PV)

Answer 2

PV= Planned % Complete x BAC

Amount of money worth of work we that should have been done on the project.

Question 3

Earned Value (EV)

Answer 3

EV= Actual % Complete x BAC

Amount of money worth of work you actually did on the project.

Question 4

Actual Cost (AC)

Answer 4

Amount of money you already spent on the project (no formula)

Question 5

Cost Variance (CV)

Answer 5

CV = EV - AC

-The difference between the work done and money spent.
-This value should be positive for under
budget. Negative values indicate over budget

Question 6

Cost Performance Index (CPI)

Answer 6

CPI = EV / AC

-The rate of how we are spending to actually earning on the project.
-This value should be 1 and over for projects under budget.

Question 7

Schedule Variance (SV)

Answer 7

SV = EV - PV

-The difference between the amount of work we should have done vs. the amount actually done.
-Positive = ahead of schedule. Negative = behind schedule

Question 8

Schedule Performance Index (SPI)

Answer 8

SPI = EV / PV

-The rate of how we are meeting the project
schedule.
-This value should be 1 and over for a project to be ahead of the schedule.

Question 9

Estimate at Completion (EAC)

Answer 9

EAC = BAC / CPI
-Forecasting the total cost of the project at the end based on the current spending rate of the project.

Question 10

Estimate to Completion (ETC)

Answer 10

ETC = EAC - AC

Forecasting the amount that will be needed to complete the current project based on the current performance.

Question 11

Variance at Completion (VAC)

Answer 11

VAC = BAC - EAC

-The difference between the original budget and new forecasted budget.
-This value should be positive for projects that may end at or under budget

Question 12

To-Complete Performance Index
(TCPI)

Answer 12

TCPI = (BAC – EV) / (BAC – AC)

The performance that needs to be met to finish the project within the budget.

Question 13

Early Finish (EF)

Answer 13

ES + Duration - 1

part of critical path method

Question 14

Late Start (LS)

Answer 14

LF - Duration + 1

part of critical path method

Question 15

Total Float

Answer 15

LS - ES
LF - EF

subtracts shortest from longest time on the critical path. also called slack. if an activity has float/slack it is NOT on the critical path

Question 16

Standard Deviation of an Activity (SD)

Answer 16

(P-O)/6

gives range of an estimate

Question 17

Activity Variance

Answer 17

SD^2

Question 18

Triangular Expected Activity Duration/Cost

Answer 18

(O + M + P) / 3

non weighted avg

Question 19

PERT/Beta Expected Activity Duration/Cost

Answer 19

(O + 4M + P) / 6

weighted avg formula to predict length of activities and the project
O=optimistic
R/M=realistic, most likely
P= pessimistic

Question 20

Present Value

Answer 20

FV / (1 + i)^n

Question 21

Critical Path Method

Answer 21

-Longest path = critical path
-Contains no float or slack
-Any delays on critical path will delay the whole project

Question 22

Free Float

Answer 22

FF= ES of Next Activity - EF of current Activity - 1

the amount you can delay an activity, without delaying the project

Question 23

Communication Channels Formula

Answer 23

N(N - 1) / 2

n= # of stakeholders