FORMULAS Flashcards
EV
EV = % complete x BAC (or PV)
sum of the planned value of completed work
PV
Planned Value: The value of the work to be completed to a point in time.
The value of the work planned to be
completed to a point in time, usually
the data date, or project completion.
AC
The actual cost of all the work
completed to a point in time, usually
the data date.
BAC
The value of total planned work, the
project cost baseline.
CV
Cost Variance = EV - AC
Positive = Under planned cost Neutral = On planned cost Negative = Over planned cost
SV
Schedule Variance = EV - PV
Positive = Ahead of Schedule Neutral = On schedule Negative = Behind Schedule
VAC
Variance at Completion = BAC - EAC
Positive = Under planned cost Neutral = On planned cost Negative = Over planned cost
CPI
Cost Performance Index = EV/AC
Greater than 1.0 = Under planned cost
Exactly 1.0 = On planned cost
Less than 1.0 = Over planned cost
SPI
Schedule Performance Index = EV/PV
Greater than 1.0 = Ahead of schedule
Exactly 1.0 = On schedule
Less than 1.0 = Behind schedule
EAC (CPI remains)
EAC (at planned rate)
EAC (plan no longer valid)
EAC (CPI, SPI)
Estimate at Completion
EAC (CPI) = BAC/CPI
EAC(at planned rate) = AC + (BAC - EV)
EAC (plan no longer valid) = AC + Bottom-up ETC
EAC (CPI, SPI) = AC + (BAC - EV) / (CPI x SPI)
ETC
Estimate to Completion = EAC - AC
or
reestimate
TCPI (BAC)
TCPI (EAC)
To Complete Performance Index
TCPI (BAC) = (BAC - EV) / (BAC - AC)
Greater than 1.0 = Harder to complete
Exactly 1.0 = Same to complete
Less than 1.0 = Easier to complete
TCPI (EAC) = (BAC - EV) / (EAC - AC)
Greater than 1.0 = Harder to complete
Exactly 1.0 = Same to complete
Less than 1.0 = Easier to complete
Total Float (formulas and definition)
TF = LS - ES
or
TF = LF - EF
Late Start - Early Start
Late Finish - Early Finish
the total float or schedule flexibility is measured by the amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint. A critical path is normally characterized by zero total float on the critical path.
Free Float (formula and definition)
FF = ESSuccesor - ESPresent - DurPresent
free float is the amount of time that a schedule
activity can be delayed without delaying the early start date of any successor or violating a schedule constraint
Communication Channels
Communication Channels = n x (n - 1) / 2
Sigma values
1σ = 68.27%
2σ = 95.49%
3σ = 99.73%
4σ = 99.994%
5σ = 99.99994%
6σ = 99.999999%
Expected Monetary Value
- Cost of decision
- Reward
- Reward - Cost (total path) -> Net Path Value
- EMV = Probability of Decisions x Net Path Value
Distribution of Probabilities (Method)
Monte Calrlo Simulation
Triangular Estimation
mean, beta (PERT, normal distribution)
σ (Standard Deviation short cut for normal distribution)
Range estimation
E = (O + P + M) / 3
E = (O + P + 4M) / 6
σ = (P - O) / 6
R = E +- (n x σ)
n:
σ2 = Variance
IRR
Internar Rate of Return, the higher the better
ES
SPI
Earned Schedule
SV (EV - PV) = ES - AT (actual time)
SPI = ES/AT
if the amount of earned schedule is greater than 0, then the project is considered ahead of schedule. In other words, the project earned more than planned at a given point in time. The schedule performance index (SPI) using earned schedule metrics is ES/AT.
ROM
definitive
- 25% to + 75%
- 5% to +10%
Project Selection (PV, FW, interest rate)
Present Value = Future Value / (1 + interest rate)Periods
PV = FV * DF
NPV
Summ of current benefits - current costs
Used sigma ranges in control charts
+- 3σ
