Formulas for PMP Exam Flashcards
# of Communication Channels
of Communication Channels =
n (n-1) / 2
- n = number of members in the team
- n should include the project manager
Schedule Performance Index (SPI)
Shows overall schedule adherance.
Schedule Performance Index
SPI = EV / PV
- EV = Earned Value
-
PV = Planned Value
- SPI < 1 behind schedule
- *SPI = 1** on schedule
- *SPI > 1** ahead of schedule
Cost Performance Index (CPI)
Shows overall cost efficiency on the project.
Cost Performance Index
CPI = EV / AC
- EV = Earned Value
-
AC = Actual Cost
- CPI < 1 Over budget
- *CPI = 1** On budget
- *CPI > 1** Under budget
Project Management Process Groups
Initiating Planning Executing Monitor & Control Closing
( 2 ) ( 24 ) ( 10 ) ( 12 ) ( 1 )
Project Management Knowledge Areas
ISS CQR CRPS (766) 436-3734
Integration Resource
Scope Communications
Schedule Risk
Cost Procurement
Quality Stakeholder
Schedule Variance (SV)
The difference between Earned Value, and Planned Value
Schedule Variance
SV = EV – PV
- EV = Earned Value
-
PV = Planned Value
- SV < 0 Behind schedule
- *SV = 0** On schedule
- *SV > 0** Ahead of schedule
Cost Variance (CV)
The difference between earned value and the actual costs
Cost Variance
CV = EV – AC
- EV = Earned Value
-
AC = Actual Cost
- CV < 0 Over budget
- *CV = 0** On budget
- *CV > 0** Within budget
Estimate at Completion (EAC)
if original is flawed
1 of 4 EAC Formulas
Forecasts final project costs based on work performed & new estimate
Estimate at Completion
EAC = AC + New ETC
- AC = Actual Costs
- New ETC = New Estimate to Completion
- If the original estimate is:
- Based on wrong data/assumptions, or
- Circumstances have changed
Estimate at Completion (EAC)
if BAC remains the same
2 of 4 EAC Formulas
Forecasts final project costs based on current performance
Estimate at Completion
EAC = AC + BAC – EV
- AC = Actual Cost
- BAC = Budget at completion
- EV = Earned Value
- If the variance is:
- Caused by a one-time event, and
- Is not likely to happen again
Estimate at Completion (EAC)
if CPI remains the same
3 of 4 EAC Formulas
Forecasts final project costs based on current performance
Estimate at Completion
EAC = BAC/CPI
- BAC = Budget at completion
- CPI = Cost performance index
- if the CPI would remain the same till end of project, i.e. the original estimation is not accurate
Estimate at Completion (EAC)
if substandard performance continues
4 of 4 EAC Formulas
Forecasts final project costs based on current performance
AC = AC + [(BAC -EV) / (CPI*SPI)]
- AC = Actual Cost
- BAC = Budget at completion
- EV = Earned Value
- CPI = Cost Performance Index
- SPI = Schedule Performance Index
To-Complete Performance Index (TCPI)
- Utilizing BAC*
- 1 of 2 TCPI Formulas*
Predicts liklihood of reaching Budget at Completion
To-Complete Performance Index
TCPI = (BAC – EV) / (BAC – AC)
- BAC = Budget at completion
- EV = Earned value
- AC = Actual Cost
To-Complete Performance Index (TCPI)
Utilizing EAC
2 of 2 TCPI Formulas
Predicts liklihood of reaching Estimate at Completion
To-Complete Performance Index
TCPI = (BAC - EV) / (EAC - AC)
- BAC = Budget at completion
- EAC = Estimate as completion
- EV = Earned value
- AC = Actual cost
- < 1 Under budget
= 1 On budget
> 1 Over budget
Estimate to Completion
Predicts how much more the remainder of the project will cost
Estimate to Completion
ETC = EAC - AC
- EAC = Estimate at Completion
- AC = Actual Cost
Variance at Completion
Projection of being over/under budget based on current performance
Variance at Completion
VAC = BAC – EAC
- BAC = Budget at completion
- EAC = Estimate at Completion
- < 0 Over budget
- = 0 On budget
- > 0 Under budget
Integration Management Processes
