PMP® Formula Pocket Guide
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Earned Value Mathematical Basics
CV = EV - AC Average (Mean) = Sum of all members divided by the number of items.
CPI = EV / AC Median = Arrange values from lowest value to highest. Pick the middle
SV = EV - PV one. If there is an even number of values, calculate the mean of the
SPI = EV / PV two middle values.
EAC ‘typical’ = BAC / CPI Mode = Find the value in a data set that occurs most often.
EAC ‘fundamentally flawed’ = AC + ETC
EAC ‘atypical’ = AC + BAC - EV Values
EAC ‘over budget + deadline’ = AC + ((BAC - EV) / (CPI * SPI)) 1 sigma = 68.26%
ETC = EAC - AC 2 sigma = 95.46%
ETC ‘atypical’ = BAC - EV 3 sigma = 99.73%
ETC ‘typical’ = (BAC - EV) / CPI Six sigma = 99.99%
ETC ‘flawed’ = new estimate Control Limits = +/- Three sigma from mean.
Percent Complete = EV / BAC * 100 Control Specifications = Defined by customer; looser than the control
VAC = BAC - EAC limits.
EV = % complete * BAC Rough Order of Magnitude estimate = -50% to +50% (PMBOK®)
TCPI ‘based on BAC’ = (BAC – EV) / (BAC – AC) Preliminary estimate = -15% to + 50%
TCPI ‘based on EAC’ = (BAC – EV) / (EAC – AC) Budget estimate = -10% to +25%
Definitive estimate = -5% to +10%
PERT Final estimate = 0%
PERT 3-point = (Pessimistic+(4*Most Likely)+Optimistic)/6 Float on the critical path = 0 days
PERT σ = (Pessimistic - Optimistic) / 6 Pareto Diagram = 80/20
PERT Activity Variance = ((Pessimistic - Optimistic) / 6)^2 Time a PM spends communicating = 90%
PERT Deviation all activities = √sum((Pessimistic - Optimistic) / 6)^2 Crashing a project = Crash least expensive tasks on critical path.
JIT inventory = 0% (or very close to 0%.)
Communications Minus 100 = (100) or -100
Communication Channels = n * (n-1) / 2
Procurement
PTA = ((Ceiling Price - Target Price) / Buyer's Share Ratio) + Target
Cost
Probability Acronyms
EMV = Probability * Impact in currency AC Actual Cost
BAC Budget at Completion
Network Diagram BCR Benefit Cost Ratio
Activity Duration = EF - ES + 1 or Activity Duration = LF - LS + 1 CBR Cost Benefit Ratio
Total Float = LS - ES or Total Float = LF – EF CPI Cost Performance Index
Free Float = ES of Following - ES of Present - DUR of Present CV Cost Variance
EF = ES + duration - 1 DUR Duration
ES = EF of predecessor + 1 EAC Estimate at Completion
LF = LS of successor - 1 EF Early Finish
LS = LF - duration + 1 EMV Expected Monetary Value
ES Early Start
Project Selection ETC Estimate to Complete
PV = FV / (1+r)^n EV Earned Value
FV = PV * (1+r)^n FV Future Value
NPV = Formula not required. Select biggest number. IRR Internal Rate of Return
ROI = Formula not required. Select biggest number. JIT Just-in-Time
IRR = Formula not required. Select biggest number. LF Late Finish
Payback Period = Add up the projected cash inflow minus expenses LS Late Start
until you reach the initial investment. NPV Net Present Value
BCR = Benefit / Cost PERT Program Evaluation and Review Technique
CBR = Cost / Benefit PTA Point of Total Assumption
Opportunity Cost = The value of the project not chosen. PV Planned Value
PV Present Value
Depreciation ROI Return on Investment
Straight-line Depreciation: SPI Schedule Performance Index
Depr. Expense = Asset Cost (– Scrap Value) / Useful Life SV Schedule Variance
Depr. Rate = 100% / Useful Life TCPI To-Complete Performance Index
Double Declining Balance Method: VAC Variance at Completion
Depr. Rate = 2 * (100% / Useful Life) σ Sigma / Standard Deviation
Depr. Expense = Depreciation Rate * Book Value at Beginning of Year ^ “To the power of” (2^3 = 2*2*2 = 8)
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)
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Copyright © 2009 by OSP International LLC. All rights reserved. Version 2.1 - Use with PMBOK® Guide 4 Edition
