FORMULAS

Question 1

EV

Answer 1

EV = % complete x BAC (or PV)

sum of the planned value of completed work

Question 2

PV

Answer 2

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.

Question 3

AC

Answer 3

The actual cost of all the work
completed to a point in time, usually
the data date.

Question 4

BAC

Answer 4

The value of total planned work, the
project cost baseline.

Question 5

CV

Answer 5

Cost Variance = EV - AC

Positive = Under planned cost
Neutral = On planned cost
Negative = Over planned cost

Question 6

SV

Answer 6

Schedule Variance = EV - PV

Positive = Ahead of Schedule
Neutral = On schedule
Negative = Behind Schedule

Question 7

VAC

Answer 7

Variance at Completion = BAC - EAC

Positive = Under planned cost
Neutral = On planned cost
Negative = Over planned cost

Question 8

CPI

Answer 8

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

Question 9

SPI

Answer 9

Schedule Performance Index = EV/PV

Greater than 1.0 = Ahead of schedule
Exactly 1.0 = On schedule
Less than 1.0 = Behind schedule

Question 10

EAC (CPI remains)

EAC (at planned rate)

EAC (plan no longer valid)

EAC (CPI, SPI)

Answer 10

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EAC (plan no longer valid) = AC + Bottom-up ETC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)

Question 11

ETC

Answer 11

Estimate to Completion = EAC - AC

or

reestimate

Question 12

TCPI (BAC)

TCPI (EAC)

Answer 12

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

Question 13

Total Float (formulas and definition)

Answer 13

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.

Question 14

Free Float (formula and definition)

Answer 14

FF = ES_Succesor - ES_Present - Dur_Present

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

Question 15

Communication Channels

Answer 15

Communication Channels = n x (n - 1) / 2

Question 16

Sigma values

Answer 16

1σ = 68.27%

2σ = 95.49%

3σ = 99.73%

4σ = 99.994%

5σ = 99.99994%

6σ = 99.999999%

Question 17

Expected Monetary Value

Answer 17

1. Cost of decision
2. Reward
3. Reward - Cost (total path) -> Net Path Value
4. EMV = Probability of Decisions x Net Path Value

Question 18

Distribution of Probabilities (Method)

Answer 18

Monte Calrlo Simulation

Question 19

Triangular Estimation

mean, beta (PERT, normal distribution)

σ (Standard Deviation short cut for normal distribution)

Range estimation

Answer 19

E = (O + P + M) / 3

E = (O + P + 4M) / 6

σ = (P - O) / 6

R = E +- (n x σ)

n:

σ² = Variance

Question 20

IRR

Answer 20

Internar Rate of Return, the higher the better

Question 21

ES

SPI

Answer 21

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.

Question 22

ROM

definitive

Answer 22

• 25% to + 75%
• 5% to +10%

Question 23

Project Selection (PV, FW, interest rate)

Answer 23

Present Value = Future Value / (1 + interest rate)^Periods

PV = FV * DF

Question 24

NPV

Answer 24

Summ of current benefits - current costs

Question 25

Used sigma ranges in control charts

Answer 25

+- 3σ