Saturday, April 7, 2012

PMP Formulas Cheat Sheet

Recently, I took PMP certification. I'm posting the formulas that I had gathered during preparation in my personal cheat sheet, so that others preparing can benefit from it.

Three point estimate (PERT) = (to + 4tm + tp) / 6 (This applies for both cost and time) (to is optimistic estimate, tm is median estimate and tp is pessimistic estimate)
Standard deviation = (p-o)/6 (p is pessimistic and o is optimistic)
Total standard deviation (given other std deviations) is sqrt of the sum of the individual variances (variance is square of deviation)

Schedule variance: SV = EV - PV (EV is Earned Value, PV is Planned Value)
(Note that SV is always 0 at the end of the project (if the project is completed))
Cost variance: CV = EV - AC (AC is Actual Cost)
(CV at the end of the project is AC - BAC) (BAC is Budget At Completion)
(Both SV and CV should be positive. Negative schedule and cost variance means project is behind schedule and over budget respectively)
Schedule Performance Index: SPI = EV/PV
Cost Performance Index: CPI= EV/AC
(Both SPI and CPI should be greater than 1. Schedule and cost performance index less than 1 means project is behind schedule and over budget respectively)
Burn rate = AC / EV = 1/CPI

Forecasting: (Estimate at completion - EAC)
EAC = AC + bottom up ETC (ETC is Estimate To Complete)
EAC = AC + (BAC - EV) - This is applicable if remaining work is estimate to continue at budgeted rate
EAC = BAC / CPI - This is applicable if remaining work continues at current cost
EAC = AC + ((BAC - EV)/ (CPI x SPI)) - This is considering both SPI and CPI

Variance at completion: VAC = BAC - EAC 

Total Cost to Performance Index (TCPI):
TCPI based on BAC = (BAC - EV)/(BAC - AC)
TCPI based on EAC = (BAC - EV)/(EAC - AC) (Ratio of remaining work to funds remaining)

Expected Monetary Value: EMV = Probability X Impact (Cost)
Present Value: PV = FV / ((1+r) to the power of n) (FV is future value)

47 comments:

Vikram said...

THanks Raja. This is very useful..

Arash said...

Raja, you are the man, thank you!

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Unknown said...

Hi raja, I am doing my exam next week and I want to know if it is allowed to have you above notes with me during the exam? Thank you for your reply.

Raja said...

@Fares - I don't think you can take any materials or notes with you to the exam.

KK said...

Hi Raja, am planning to write the PMP exam in 1st half of April. I have completed the PMBOK reading and now working on the RITA 7th edition. Do you have any specific tips or cheat sheets which can help me? Can you drop me a note at krishnak.goli@gmail.com with any info you have which can help me?

Unknown said...

Thanks Raja, I had my own but like yours MUCH better!!!

Niikay said...

you are simply awesome...!!!! Thank you. Niikay

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This is a great set of cheat sheets

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This is informative. Thank you.

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sava2trade.edu20.org said...

This is quite nice. you can add more
1. Communication channels = n(n-1) /2

2. PERT = (p + 4ml + o) / 6

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Praveen Malik, PMP said...

Hi,

Short & concise formula guides are useful. The readers can look at PMP Formulas Pocket Guide with 43 important formulas and 53 abbreviations.

BR
Praveen.

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