Project Calculations Flashcards
What are the four steps to calculating project performance?
Calculate earned value (1), cost performance index (2), schedule performance index (3), and interpret the results
How is EV (earned value) calculated?
EV= total budget * % project complete
How is CPI (cost performance index) calculated?
CPI=EV/Actual cost
How is SPI (schedule performance index) calculated?
SPI= EV/PV
What does the CPI indicate, and what is the ideal number of this metric?
CPI indicates project budget health/how efficiently the budget is being used. A value greater than one is ideal. It indicates the project is doing better than planned
What does the SPI indicate, and what is the ideal number of this metric?
SPI indicates project health/how efficient the schedule is. A value greater than one is ideal. It indicates the project is doing better than planned
What are the uses of the Performance Evaluation and Review Technique (PERT)?
Estimating durations
Defining accurate times lines
Managing risks
What are the 3 different types of estimates used for calculations?
Optimistic (O)
Pessimistic (P)
Most likely (M)
Calculate TE (expected duration)
TE=(O+4M+P)/6
Calculate EMV (Expected Monetary Value) for cost & for time
EMV (for cost)= Probability * C
EMV (for time)= Probability * T
What does EMV indicate?
EMV quantifies how the project is impacted if the risk occurs
What are the benefits of EMV?
Assess risk mitigation
Prioritize and allocate resources
Define the critical path.
Identifying the time sensitive activities that would delay the project timeline if they’re not done on time. These tasks have zero slack/float
What at the benefits of doing a “forward” or “backward”
Identify the latest start & finish times for activities
Identify tasks with slack/float
Calculate the number of communication channels.
N=n(n-1)/2
