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PMP Formulas

Terms in this set (15)

No. of Communication Channels​
​n (n-1)/2

n = number of members in the team

​n = should include the project manager

e.g. if the no. of team members increase from 4 to 5, the increase in communication channels: 5(5-1)/2 - 4(4-1)/2 = 4
​Schedule Performance Index (SPI)
​SPI = EV/PV

EV = Earned Value
PV = Planned Value

​< 1 behind schedule
= 1 on schedule
> 1 ahead of schedule
​Cost Performance Index (CPI)
​CPI = EV/AC

EV = Earned Value
AC = Actual Cost

​< 1 Over budget
= 1 On budget
> 1 Under budget

sometimes the term 'cumulative CPI' would be shown, which actually is the CPI up to that moment
​Schedule Variance (SV)
​SV = EV - PV

EV = Earned Value
PV = Planned Value

​< 0 Behind schedule
= 0 On schedule
> 0 Ahead of schedule
​Cost Variance (CV)
​CV = EV - AC

EV = Earned Value
AC = Actual Cost

​< 0 Over budget
= 0 On budget
> 0 Within budget
​Estimate at Completion (EAC) if original is flawed
"​EAC = AC + New ETC

AC = Actual Cost
New ETC = New Estimate to Completion

​if the original estimate is based on wrong data/assumptions or circumstances have changed
​Estimate at Completion (EAC) if BAC remains the same
​EAC = AC + BAC - EV

AC = Actual Cost
BAC = Budget at completion
EV = Earned Value

​the variance is caused by a onetime event and is not likely to happen again
​Estimate at Completion (EAC) if CPI remains the same
EAC = BAC/CPI

BAC = Budget at completion
CPI = Cost performance index

​if the CPI would remain the same till end of project, i.e. the original estimation is not accurate
​Estimate at Completion (EAC) if substandard performance continues
​EAC = AC + (BAC - EV)/(CPI*SPI)

AC = Actual Cost
BAC = Budget at completion
EV = Earned Value
CPI = Cost Performance Index
SPI = Schedule Performance Index

use when the question gives all the values (AC, BAC, EV, CPI and SPI), otherwise, this formula is not likely to be used
​To-Complete Performance Index (TCPI)
TCPI = (BAC - EV) / (BAC - AC)

BAC = Budget at completion
EV = Earned value
AC = Actual Cost
TCPI = Remaining Work /Remaining Funds
BAC = Budget at completion
EV = Earned value
CPI = Cost performance index

​< 1 Under budget
= 1 On budget
> 1 Over budget
​Estimate to Completion
ETC = EAC -AC

EAC = Estimate at Completion
AC = Actual Cost
​Variance at Completion
​VAC = BAC - EAC

BAC = Budget at completion
EAC = Estimate at Completion

​< 0 Under budget
= 0 On budget
> 0 Over budget
​PERT Estimation
​​(O + 4M + P)/6

O= Optimistic estimate
M= Most Likely estimate
P= Pessimistic estimate
​Standard Deviation
​(P - O)/6

O= Optimistic estimate
P= Pessimistic estimate

​this is a rough estimate for the standard deviation
​Float/Slack
​LS - ES

LS = Late start
ES = Early start

LF - EF

LF = Late finish
EF = Early finish

​= 0 On critical path
< 0 Behind schedule
THIS SET IS OFTEN IN FOLDERS WITH...