PMP Formulas and Calculation for the Certification
Demystified
Many consider the most difficult part of the PMP exam to be the calculations and PMP formulas. Luckily PMP calculation is not quantum physics, you just need to understand and memorize the following PMP Calculation formulas.
Many consider the most difficult part of the PMP exam to be the calculations and PMP formulas. Luckily PMP calculation is not quantum physics, you just need to understand and memorize the following PMP Calculation formulas.
PMP
Formulas


Name (Abbreviation)

Formula

Interpretation

No. of Communication Channels

n (n1)/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(51)/2 – 4(41)/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 Under 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

ToComplete
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 
Hope, the series of my blogs in PMI  PMP (PMBOK 5) is informative and useful inputs for your exam if you are preparing for PMP Certificate. All the very best!
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