PMP - Formulas

Earned Value Calculations:

PV (Present Value or Budgeted Cost of Work Schedule)
EV (Earned Value or Budgeted Cost of Work Performed)
AC (Actual Cost or Actual Cost of Work Performed)

CV = EV – AC
CPI = EV / AC (Greater than or Equal to 1 is good, means Under Budget)

SV = EV – PV
SPI = EV / PV (Greater than or Equal to 1 is good, means Under Schedule)

ETC = BAC – EV [Future Variances are Atypical or Not Consistent or Di similar]
ETC = (BAC – EV) / CPI [Future Variances are Typical or Consistent or No variances or Similar thru the project]

EAC = BAC / CPI [Typical or Consistent or No variances or Similar thru the project]

EAC = AC + ETC [Original or Initial Estimates are flawed]
EAC = AC + BAC – EV [Future variances are Atypical or Not Consistent or Di similar]
EAC = AC + BAC – EV / CPI [Future Variances are Typical or Consistent or No variances or Similar thru the project]

VAC = BAC – EAC
CV% = CV / EV x 100
SV% = SV / PV x 100

Float/Slack:

LS - ES or LF – EF

PERT:

PERT = (O + 4M + P) / 6

Standard Deviation = (P – O) / 6

Task Variance = [(P - O)/6 ] squared OR Std. Dev ^ 2

SIGMA Levels:

1 Sigma = 68.26 %
2 Sigam = 95.46 %
3 Sigma = 99.73 % (2700 per Million)
6 Sigma = 99.99 % (1.5 per Million)

Channels of Communication

(N x (N – 1)) / 2

Project Selection

Cash Flow = Cash Inflow – Cash Outflow
Discounted Cash Flow = CF x Discount Factor
ARR = Cash Flow / No. of Years
ROI = (ARR / Investment) * 100 % --- Bigger is better

BCR = (Benefit Cost Ratio) = Benefits / Cost --- Bigger is better
(Where Benefit is Revenue or Payback )

NPV = (Net Present Value) -- Bigger is better
IRR = Internal Revenue Return -- Bigger is better
Payback Period -- Less is better