Pmp formulas pmbok6
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This document lists and explains 17 important formulas used in project management and mentioned in the PMBOK Guide 6th edition. The formulas calculate things like number of communication channels on a team, schedule performance index, cost performance index, schedule variance, cost variance, estimates at completion, to-complete performance index, estimate to completion, variance at completion, PERT estimation, standard deviation, and float/slack. Mastering these formulas is essential for passing the PMP certification exam. Additional guided learning on applying the formulas is recommended.
Pmp formulas pmbok6
- 1. by Edward Chung, PMP (http://edward-designer.com/web/pmp/) PMP Formulas mentioned in the PMBOK Guide 6th Edition Name (Abbreviation) Formula Interpretation No. of Communication Channels n (n-1)/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(5-1)/2 – 4(4-1)/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 Within 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 one- time event and is not likely to happen again
- 2. by Edward Chung, PMP (http://edward-designer.com/web/pmp/) Name (Abbreviation) Formula Interpretation 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 To-Complete 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
- 3. by Edward Chung, PMP (http://edward-designer.com/web/pmp/) Name (Abbreviation) Formula Interpretation Variance at Completion VAC = BAC – EAC BAC = Budget at completion EAC = Estimate at Completion < 0 Over budget = 0 On budget > 0 Under 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 schedule The above 17 PMP formulas are all that you’ll need for the PMP Exam. Learn them and understand their application. You will be able to solve the calculation questions in the certification exam. However, if you are still struggling with PMP® formulas or you want some more guided descriptions on how to apply them with PMP® practice questions, you are advised to explore the PM Exam Formulas Study Guide authored by Cornelius Fitchner (the same author of the acclaimed online PMP® Exam Prep course which I used to clear my PMP® exam – the PM PrepCast™).