PMP Formulae

PMP FORMULAE

Please feel free to download the pdf file of PMP formulae at this link  

EARNED VALUE

SIGMA

CV=EV-AC

CPI=CV/AC

SV=EV-PV

SPI=EV/PV

1 sigma = 68.26%

EAC (no variances) = BAC/CPI

ETC=EAC-AC

2 sigma = 95.46%

EAC (fundamentally flawed)=AC+ETC

ETC(flawed)=new estimate

3 sigma = 99.73%

EAC (atypical) = AC+BAC-EV

ETC(atypical)=BAC-EV

6 sigma = 99.99%

EAC (typical)=AC+((BAC-EV)/CPI)

ETC(typical)= (BAC-EV)/CPI

PROCUREMENT

Percent complete=(EV/BAC)*100

% Spent=(AC/BAC)*100

PTA = ((Ceiling Price - Target Price) / Buyer's Share Ratio) + Target Cost

EV=%complete*BAC

VAC=BAC-EAC

CV%=(CV/EV)*100

SV%=(SV/PV)*100

Based on BAC: TCPI = (BAC - EV) / (BAC - AC)

Based on EAC: TCPI = (BAC - EV) / (EAC - AC)

PERT

CLASSES OF ESTIMATES

PERT 3-point estimate=(tP+4tML+tO)/6

PERT a-estimate=(tP-tO)/6

Order of magnitude estimate = -25% to +75%

PERT activity variance=[(tP-tO)/6]2

Triangular estimate = (tP+tML+tO)/3

PERT Variance all activities = Sum=[(tP-tO)/6]2

Preliminary estimate= -15% to +50%

PROJECT SELECTION

PV=FV/(1+r)n

FV=PV * (1+r)n

NPV=Select biggest number

Budget estimate= -10% to +25%

ROI=Select biggest number

IRR=Select biggest number

Final estimate = 0%

Payback period = Add projected cash inflows minus expenses until you reach the initial investment

BCR=Benefit/Cost. BCR < 1 is bad;   BCR > 1 is good. The project with the bigger BCR is the better one.

CBR = Cost/Benefit;  CBR > 1 is bad; CBR < 1 is good. The project with the smaller CBR is the better one.

Opportunity Cost = The value of the project not chosen

Exp. Value = Probability % * Consequence $

Communication checklist = [n (n-1)]/2

EMV = Probability * Impact in currency

DEPRECIATION

Straight-line Depreciation: Depr. Expense = Asset Cost / Useful Life Depr. Rate = 100% / Useful Life

Double Declining Balance Method: Depr. Rate = 2 * (100% / Useful Life) Depr. Expense = Depreciation Rate * Book Value at Beginning of Year Book Value = Book Value at beginning of year - Depreciation Expense

Sum-of-Years' Digits Method: Sum of digits = Useful Life + (Useful Life - 1) + (Useful Life - 2) + etc. Depr. rate = fraction of years left and sum of the digits (i.e. 4/15th)

IMPORTANT VALUES

Control Limits = 3 sigma from mean

Control Specifications = Defined by customer; less than the control limits

Float on the critical path = 0 days

Pareto Diagram = 80/20

Time a PM spends communicating = 90%

Crashing a project = Crash least expensive tasks on critical path. JIT inventory = 0% (or very close to 0%)

NETWORK DIAGRAM

Forward Pass ES = EF of the predecessor node EF = ES + Dur

ES       Dur     EF                     Node LS      Float    LF

Backward Pass LF = LS of the Successor LS = LF – Dur

Slack = LF – EF = LS – ES

Free Float = ES(Successor) - EF(Predecessor)

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