Formulas Flashcards
1
Q
Planned Value (PV)
A
- PV = Planned % complete * BAC.
- The authorized budget assigned to scheduled work.
- Amount of money worth of work we that should have been done on the project.
2
Q
Earned Value (EV)
A
- EV = % of work completed * BAC.
- The value of work actually performed.
- Amount of money worth of work you actually did on the project.
3
Q
Actual Cost (AC)
A
- AC = Total cost incurred for the actual work completed.
- Amount of money you already spent on the project
4
Q
Cost Variance (CV)
A
- CV = EV - AC.
- Positive CV means under budget, negative means over budget.
- The difference between the work done and money spent.
5
Q
Schedule Variance (SV)
A
- SV = EV - PV.
- Positive SV means ahead of schedule, negative means behind schedule.
- The difference between the amount of work we should have done vs. the amount actually done.
6
Q
Cost Performance Index (CPI)
A
- CPI = EV / AC.
- If CPI > 1, the project is under budget; < 1, it’s over budget.
- The rate of how we are spending to actually earning on the project.
7
Q
Estimate at Completion (EAC)
A
- EAC = BAC / CPI
(If current variances are expected to continue). - Forecasting the total cost of the project at the end based on the current spending rate of the project.
8
Q
Schedule Performance Index (SPI)
A
- SPI = EV / PV.
- If SPI > 1, the project is ahead of schedule; < 1, it’s behind schedule.
- The rate of how we are meeting the project schedule.
9
Q
Estimate to Complete (ETC)
A
- ETC = EAC - AC.
- The expected cost to finish all remaining work.
- Forecasting the amount that will be needed to complete the current project based on the current performance.
10
Q
Variance at Completion (VAC)
A
- VAC = BAC - EAC.
- Positive VAC means under budget, negative means over budget.
- The difference between the original budget and new forecasted budget.
11
Q
To-Complete Performance Index (TCPI)
A
- TCPI = (BAC - EV) / (BAC - AC)
- The performance that needs to be met to finish the project within the budget.
12
Q
Budget at Completion (BAC)
A
- BAC = Total planned value of the project.
13
Q
Critical Path Method (CPM)
A
- CPM is used to determine the longest path and the earliest completion of the project.
14
Q
Float (or Slack)
A
- Float = LS - ES or LF - EF.
- The amount of time an activity can be delayed without affecting the project end date.
15
Q
Expected Monetary Value (EMV)
A
- EMV = Probability * Impact.
- Used in risk management to calculate the expected risk outcome.
16
Q
Standard Deviation (SD)
A
- SD = (Pessimistic - Optimistic) / 6.
- Measures the range of uncertainty for estimates.
17
Q
Variance (σ²)
A
- Variance = SD^2.
- It measures the spread between numbers in a data set.
18
Q
Three-Point Estimate (Triangular)
A
- Triangular Estimate = (O + M + P) / 3.
- A simple average of three-point estimates.
19
Q
Three-Point Estimate (PERT)
A
- PERT Estimate = (O + 4M + P) / 6.
- A weighted average giving more weight to the most likely estimate.
20
Q
Present Value (PV)
A
- PV = FV / (1 + r)^n.
- The current value of future cash flows.
21
Q
Future Value (FV)
A
- FV = PV * (1 + r)^n.
- The future value of current cash flows.
22
Q
Communication Channels
A
- Communication Channels = n(n-1)/2
- n is the number of stakeholders.
23
Q
Risk Probability and Impact
A
- Risk = Probability * Impact.
- Used to quantify risks during risk management.
24
Q
Point of Total Assumption (PTA)
A
- PTA = (Ceiling Price - Target Price) / Buyer’s Share Ratio + Target Cost.
25
Q
Procurement - Cost Plus Fixed Fee (CPFF)
A
- CPFF = Total Cost + Fixed Fee.
- The contractor is reimbursed for costs and receives a fixed fee.
