1. Earned Value Management (EVM)

Definitions and Concept

• EV = Earned Value Management
• SV = Schedule Variance
• PV = Planned Value
• AC= ” Actual Cost
• CPI = Cost Performance Index : Behind/Over Budget > 1 > Ahead/Under of Budget
• SPI = Schedule Performance Index : Behind Schedule > 1 > Ahead of Schedule
• ETC = Estimate to Complete
• EAC = Estimate at completion (Forecasted Value based on performance)
• VAC = Variance at Completion (forecasted)

Formulas

• SV = EV – PV
• CV = EV – AC
• SPI = EV / PV
• CPI = EV / AC
• ETC = (BAC – EV) / CPI
• EAC = AC + ETC
• EAC = AC + (BAC – EV) : If future work will be completed at the planned rate
• EAC = BAC / CPI : If the CPI is expected to be the same for the remainder of the project
• VAC = BAC – EAC
• TCPI = (BAC – EV) / (BAC – AC)

2. Network Diagrams

• Activity Duration = EF-ES +1
• Total Float (TF) = LS – ES
• TF = LF – EF
• Free Float (FF) = ES_(Successor) – ES_(Present) – Dur_(Present)

3. Project Estimation

• E (PERT Analysis/BETA Distribution) = (O + P + 4*M) / 6
• PERT Standrd Diviation σ = (P – O) / 6
• E (3-Point Estimate) = (O + P + M) / 3
• Var = σ⁽²⁾

4. Project Selection Methods

• Present Value PV = FV / (1 + r)ⁿ
• Future Value FV = PV * (1+ r )ⁿ
• NPV = ∑PV (This is sum of all PV)
• ROI = Return / Investment
• BCR = Benefits / Costs
• Payback Period = Initial Investment / Periodic CashFlow

5. Expect Monetary Value (EMV)

• EMV_(R) = P*I
• EMV_(P) = ∑EMV_(R)
• Net Benefit = EMV_(P) – Cost

6. Communication Channels

• C = n*(n – 1)/2

7. Procurement Management (Point of Total Assumption)

• Pt. of Total Assumption (PTA) = CP-TP/Buyer’s Share Ratio + TC

8. Risk Probability

• Expected Monetary Value (EMV) = Probability * Impact : always <1

9. Values

1 Sigma = 68.26%

2 Sigme = 95.46%

3 Sigma = 99.73%

6 Sigma = 99.99% (3.4 defects in one million)

Control Limits = 3 Sigma from Mean

Rough Order of Magnitude (ROM) = -25% to +75%

Preliminary Estimate = -15% to 25%

Budget Estimate = -10% to +25%

Definitive Estimate = -5% to +10%

Preto Chart = 80/20

–> Download the PMP Formula File