PMP Terms & Formulas Flashcards
Budget at Completion (BAC)
Original budget of the project.
No formula
Planned Value (PV)
Amount of money worth of work that should have been done on the project
PV=Planned % Complete x BAC
Earned Value (EV)
Amount of money worth of work you actually did on the project.
EV= Actual % Complete x BAC
Actual Cost (AC)
Amount of money you already spent on the project
No formula
Cost Variance (CV)
The difference between the work done and money spent This Value should be positive for under budget. (Negative values indicate over budget)
CV = EV-AC
Cost Performance Index (CPI)
The rate of how we are spending to earnings on the project. (This value should be 1 or < for projects under budget)
CPI = EV / AC
Schedule Variance (SV)
The difference between the amount of work we should have done vs. amount done. This value should be positive for ahead of schedule. (Negative values indicate behind schedule)
SV = EV - PV
Schedule Performance Index (SPI)
The rate of how we are meeting the project schedule (value of 1 and < is ahead of schedule)
SPI = EV/PV
Estimate at Completion (EAC)
Forecasting the total cost of the project at the end based on the current spending rate of the project.
EAC= BAC / CPI
Estimate to Completion (ETC)
Forecasting the amount needed to complete the current project based on performance.
ETC = EAC - AC
Variance at Completion (VAC)
The difference between the original budget and the new forecasted budget. This value should be positive for projects ending at or under budget.
VAC = BAC - EAC
To-Complete Performance Index (TCPI)
The performance that needs to be met to finish the project within the budget.
TCPI = (BAC-EV) / (BAC-AC)
PERT - Beta
(Optimistic + 4*Realistic + Pessimistic) / 6
PERT - Standard Deviation
(Pessimistic - Optimistic) / 6
PERT - Triangular Distribution
(Optimistic + Realistic + Pessimistic) / 3
