PMP FORMULAE
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 |
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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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