Rmadayal - PMP Simplified

Question 1

Budget At Completion (BAC)

Answer 1

No Formula, its the original budget

Question 2

Planned Value (PV) = ??

Answer 2

PV = (Planned % Complete) X (BAC)

Question 3

Earned Value (EV) = ??

Answer 3

EV = (Actual % Complete) X (BAC)

Question 4

Actual Cost (AC) = ??

Answer 4

None, total amount already spent

Question 5

Cost Variance (CV) = ??

Answer 5

CV = EV - AC

Question 6

Cost Performance Index (CPI) = ??

Answer 6

CPI = EV / AC

Question 7

Schedule Variance (SV) = ??

Answer 7

SV = EV - PV

Question 8

Schedule Performance Index (SPI) = ??

Answer 8

SPI = EV / PV

Question 9

Estimate at Completion (EAC) = ??

What is it?

Answer 9

EAC = BAC / CPI

FORECAST!!

Question 10

Estimate to Completion (ETC) = ??

What is it??

Answer 10

ETC = EAC - AC

How much money you need to finish the project (uses the latest forecast or EAC)

Question 11

Variance at Completion (VAC) = ??

Answer 11

VAC = BAC - EAC

Question 12

To-Complete Performance Index (TCPI) = ??

What is it??

Answer 12

TCPI = (BAC - EV) / (BAC - AC)

How hard you have to work to meet the budget (LESS THAN 1 is GOOD!)

i.e. TCPI of 0.8 means you only need to work 80% as hard to meet the budget or 20% less

i.e. TCPI of 1.2 means you have to work 20% harder to meet the budget

i.e. TCPI of 1 means teams needs to continue working at same pace (100%) to meet budget

Question 13

PERT - Beta (Three Point Estimate)

Answer 13

(Optimistic + 4*Realistic + Pessimistic) / 6

Question 14

PERT - Standard Deviation

Answer 14

(Pessimistic - Optimistic) / 6

Question 15

PERT - Triangular Distribution

Answer 15

(Optimistic + Realistic + Pessimistic) / 3

Question 16

Communication Channels

Answer 16

N(N-1) /2

Question 17

Expected Monetary Value (EMV) = ??

Answer 17

Risk Cost * Probability %

Question 18

Cost Baseline = ??

Answer 18

Project Cost + Contingency Reserves

Question 19

Project X = Yields benefit of $250,000
Project Y = Yields benefit of $200,00

What is opportunity cost of selecting X over Y?

Answer 19

$200,000

Question 20

How is SMART Defined??

Answer 20

Specific
Measurable
Attainable
Relevant
Time-Bound

Question 21

Definitive Estimate % Range

Answer 21

-5% to +10%

Question 22

Budget Estimate % Range

Answer 22

-10% to +25%

Question 23

Rough Order of Magnitude Estimate % Range

Answer 23

-25% to +75%

Question 24

Cost Baseline = ?

Answer 24

Project Work + Contingency Reserve

Question 25

Project Budget = ?

Answer 25

Cost Baseline + Management Reserves

Question 26

Cycle Time = ?

Answer 26

WIP / Throughput

Throughput is the amount of work that can be done in a time period (ratio or i.e. 5 tasks / day)

Question 27

what would the cycle time of feature A, if it requires 60 points of work and the team can complete 5 points per day?

Answer 27

60/5 points per day = 12 days

Question 28

Total Float or Float or Slack = ?

Answer 28

amount of time you can delay an activity without delaying the entire project

LF - EF or LS - ES

Question 29

Free Float = ?

Answer 29

amount of time you can delay an activity without delaying the next activity

ES of next Activity - EF of current Activity