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Pmp formulas

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Pmp formulas

  1. 1. www.pmlead.netPMP FormulasEarned ValueCV = EV - ACCPI = EV / ACSV = EV - PVSPI = EV / PVEAC ‘no variances’ = BAC / CPIEAC ‘fundamentally flawed’ = AC + ETCEAC ‘atypical’ = AC + BAC - EVEAC ‘typical’ = AC + ((BAC - EV) / CPI)ETC = EAC - ACETC ‘atypical’ = BAC - EVETC ‘typical’ = (BAC - EV) / CPIETC ‘flawed’ = new estimatePercent Complete = EV / BAC * 100VAC = BAC - EACEV = % complete * BAC% COMPLETE = EV / BAC x 100% SPENT = AC / BAC x 100CV% = CV / EV x 100SV% = SV / PV x 100PERTPERT 3-point = (Pessimistic+(4*Most Likely)+Optimistic)/6PERT α = (Pessimistic - Optimistic) / 6PERT Activity Variance = ((Pessimistic - Optimistic) / 6)^2PERT Variance all activities = _sum((Pessimistic - Optimistic) / 6)^2Classes of EstimatesOrder of Magnitude estimate = -25% to +75%Preliminary estimate = -15% to + 50%Budget estimate = -10% to +25%Definitive estimate = -5% to +10%Final estimate = 0%
  2. 2. www.pmlead.netProject SelectionPV = FV / (1+r)^nFV = PV * (1+r)^nNPV = Select biggest number.ROI = Select biggest number.IRR = Select biggest number.Payback Period = Add up the projected cash inflow minus expenses until you reach the initialinvestment.BCR = Benefit / CostCBR = Cost / BenefitOpportunity Cost = The value of the project not chosen.Exp. Value = Probability % x Consequence $CommunicationsCommunication Channels = n * (n-1) / 2ProbabilityEMV = Probability * Impact in currencyProcurementPTA = ((Ceiling Price - Target Price) / Buyers Share Ratio) + Target CostDepreciationStraight-line Depreciation:Depr. Expense = Asset Cost / Useful LifeDepr. Rate = 100% / Useful LifeDouble Declining Balance Method:Depr. Rate = 2 * (100% / Useful Life)Depr. Expense = Depreciation Rate * Book Value at Beginning of YearBook Value = Book Value at beginning of year - Depreciation ExpenseSum-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)
  3. 3. www.pmlead.netSIGMA1 sigma = 68.26%2 sigma = 95.46%3 sigma = 99.73%6 sigma = 99.99%Important ValuesControl Limits = 3 sigma from meanControl Specifications = Defined by customer; less than the control limitsFloat on the critical path = 0 daysPareto Diagram = 80/20Time a PM spends communicating = 90%Crashing a project = Crash least expensive tasks on critical path.JIT inventory = 0% (or very close to 0%.)Network DiagramForward PassES = EF of the predecessor nodeEF = ES + DurBackward PassLF = LS of the SuccessorLS = LF – DurSlack = LF – EF = LS – ESFree Float = ES(Successor) - EF(Predecessor)You need to understand the formulas not only memorize themRefer to the PMBoK 4thEdition for more detailsPMI®, PMP®, CAPM® and PMBOK® Guide are trademarks of the Project Management Institute, Inc.PMI® has not endorsed and did not participate in the development of this product.ES Dur EFNodeLS Float LFES Du EFPrepared by:Amr Miqdadi,PMP,MCSEamiqdadi@pmlead.net

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