Formulas and Calculations Flashcards
Communication Channel
N(N-1)/2 N=Number of Stakeholders
Project Payback Period
Cost of Project or Investment / Annual Cash Inflows
Planned Value (PV)
What the project should be worth
Earned Value (EV)
What the project is worth
Formula: % Complete x BAC
Actual Cost (AC)
What the project has spent so far
Budget at Completion (BAC)
What the project budget is
Cost Variance (CV)
The different between the earned value (EV) and the actual value (AV) cost
Formula: EV-AC
(Positive = under budget, Negative = over budget)
Schedule Variance (SV)
The difference between the earned value (EV) and planned value (PV)
Formula: EV-PV
(Positive = ahead of schedule, Negative = behind schedule)
Variance at Completion (VAC)
Project of being over or under budget based on current performance
Formula: BAC-EAC
(Positive = under budget, Negative = over budget)
Cost Performance Index (CPI)
Shows overall cost efficiency on the project
Formula: EV/AC
(Greater than 1 = under budget, Less than 1 = over budget)
Schedule Performance Index (SPI)
Shows overall schedule adherence
Formula: EV/PV
(Greater than 1 = ahead of schedule, Less than 1 = behind schedule)
Estimate at Completion (EAC)
Forecasts final project costs based on current performance
Standard Formula: BAC/CPI
Future Work at Planned Cost Formula: AC + BAC - EV
Initial Costs Estimate Flawed: AC + Estimate for remainer of project
CPI and SPI affect reamainder of project formula: AC + [BAC-EV/CPIxSPI)]
Estimate to Complete
Predict how much more the remainder of the project will cost
Formula: EAC-AC
TCPI (Utilizing BAC)
Predicts likelihood of reaching BAC
Formula: (BAC-EV)/(BAC-AC)
Greater than 1 – harder to complete and meet BAC
Less than 1 – easier to complete and meet BAC
TCPI (Utilizing EAC)
Predicts likelihood of reaching EAC
Formula: (BAC-EV)/(EAC-AC)
Greater than 1 – harder to complete and meet EAC
Less than 1 – easier to complete and meet EAC
