Knowledge Area Processes

Project Management Process Groups

Initiating Select project manager, consider enterprise environmental factors & organizational process assets, use project selection methods (benefit measurement & constrained optimization), consider contracts SOW (if applicable), determine lifecycle approach, identify key stakeholders, determine business needs (strategic objective/MBO), product description, complete high-level feasibility studies. Develop Project Charter (4.1) Project Charter Develop Preliminary Statement (4.2) Preliminary Stmt. Scope Scope Planning Executing Monitoring and Controlling Monitor, scope/schedule/cost/quality control, inspect, validate, integrated change control, risk monitoring and control, recommend corrective action/changes, quality control, performance reporting, manage project team/stakeholder communications, contract administration Closing Administrative closure strategy, contract closure/contract file, verify SOWs, product verification/handoff, formal product acceptance (point of total acceptance), final performance reporting, lessons learned, formal project acceptance, archive projectrelated documents, release resources

Develop Project Management Plan (4.3) Project Mgmt. Plan

Direct and Manage Project Execution (4.4) Deliverables Req. Changes Implemented Change Requests Corrective Action Preventive Actions Defect Repairs

Monitor and Control Project Work (4.5) Recommended corrective and preventative actions Forecasts Defect Repair Req. Changes Integrated Change Control (4.6) Approved & Rejected Change Requests Project Mgmt. Plan Updates Project Scope Stmt. Updates Approved Corrective & Preventive Actions

Close Project (4.7) Administrative & Contract Closure Procedure Final Product Service or Result Organizational Process Assets Updates

4. Project Integration Management

Work Performance Information

5. Project Scope Management Scope Planning (5.1) Scope Mgmt Plan Scope Definition (5.2) Scope Statement Req. Changes

Approve & Validated Defect Repair Deliverables

Scope Verification (5.4) Accepted Deliverables Requested Changes Recommend Corrective Actions Scope Control (5.5) Plan

Scope Mgmt. Updates

Create WBS (5.3) Scope Stmt. Updates WBS

Scope Stmt. Updates WBS Updates WBS Dictionary Updates Scope Baseline Updates Req. Changes Recommend Corrective Action

WBS Dictionary Scope Baseline

Scope Mgmt Updates Req. Changes

Plan

Organizational Assets Updates Project Updates Mgmt.

Process Plan

Knowledge Area Processes

Project Management Process Groups

Initiating Planning Activity Definition (6.1) Activity List & Attributes Milestone List Req. Changes Activity Sequencing (6.2) Network Diagram Activity List & Attributes Updates Req. Changes Activity Resource Estimating (6.3) Resource Requirements Activity Attributes Updates RBS Resource Calendar Updates Req. Changes Activity Duration Estimating (6.4) Activity Duration Estimates Activity Attributes Updates Schedule Development (6.5) Project Schedule Schedule Model Data Schedule Baseline Resource Requirements Updates Activity Attributes Updates Project Calendar Updates Req. Changes Project Mgmt. Plan Updates Schedule Mgmt. Plan Updates Executing Monitoring and Controlling Schedule Control (6.6) Closing

Schedule Updates

Model

Data

Schedule Baseline Updates Performance Measurement Req. Changes Recommend Corrective Action Organizational Assets Updates Activity List Updates Project Updates & Process Attribute Plan

6. Project Time Management

Mgmt.

7. Project Cost Management

Cost Estimating (7.1) Activity Cost Estimates & Supporting Detail Req. Changes Cost Mgmt. Plan Updates Cost Budgeting (7.2) Allocate & Aggregate

Cost Control (7.3)

Cost Baseline (includes contingency reserves but not Mgmt contingency reserves) Project Funding Requirements Cost Mgmt. Plan Updates Req. Changes

Cost Estimate & Baseline Updates Performance Measurement Forecasted Completion Req. Changes Recommend Corrective Action Organizational Process Assets Updates (Specifically lessons learned) Project Mgmt. Plan Updates

Knowledge Area Processes

Project Management Process Groups

Initiating Planning Quality Planning (8.1) Continuous Improvement Quality Policy Quality Mgmt. Plan Quality Metrics Quality Checklists Process Improvement Plan Quality Baseline Project Mgmt. Plan Updates Executing Perform Quality Assurance (8.2) Req. Changes Recommend Corrective Actions Organization Process Assets Updates Project Mgmt. Plan Updates Monitoring and Controlling Perform Quality Control (8.3) Quality Control measurements Validated Defect Repair Recommended Corrective & Preventive Action Req. Changes Recommend Defect Repair Closing

8. Project Quality Management

Organizational Process Assets Updates Validated Deliverables Project Mgmt. Plan Updates

Human Resources Planning (9.1) Roles & Responsibilities Project Org. Charts Staffing Mgmt. Plan Acquire Project team (9.2) Project Staff Assignments Resource Availability Staffing Mgmt. Plan Updates Develop Project Team (9.3) Team Performance Assessment 10. Project Communications Management Communications Planning (10.1) Communications Mgmt. Plan Information Distribution (10.2) Organizational Process Assets Updates Req. Changes

9. Project Human Resource Management

Manage Project Team (9.4) Req. Changes Recommended Corrective & Preventive Actions Organizational Process Assets Updates Project Mgmt. Plan Updates Performance Reporting (10.3) Performance Reports Forecasts Req. Changes Recommended Corrective Actions

Organization Process Assets Updates

Manage Stakeholders (10.4) Resolved Issues Approved Change Request Approved Corrective Actions

Organizational Process Assets Updates Project Mgmt. Plan Updates

Knowledge Area Processes

Project Management Process Groups

Initiating Planning Risk Management Planning (11.1) Executing Monitoring and Controlling Risk Monitoring and Control (11.6) Closing

Risk Management Plan

Risk Identification (11.2) Risk Register Qualitative Risk Analysis (11.3) Risk Register Updates Quantitative Risk Analysis (11.4) Risk Register Updates Risk Response Planning (11.5) Risk Register Updates Project Mgmt. Plan Updates Risk-related Contractual Agreements Plan Purchases Acquisitions (12.1) Procurement Mgmt. Plan SOW Make-or-buy decisions Req. Changes 12. Project Procurement Management Plan Contracting (12.2) Procurement Document Evaluation Criteria SOW Updates Request Seller Responses (12.3) Qualified Sellers List Procurement Document Package Proposals Select Sellers (12.4) Selected Sellers Contract Contract Mgmt. Plan Resource Availability Procurement Mgmt. Plan Updates Req. Changes

Risk Register Updates Req. Changes Recommended Corrective & Preventive Action Organizational Process Assets Updates Project Mgmt. Plan Updates

11. Project Risk Management

Contract Administration (12.5) Contract Documentation Req. Changes Recommended Corrective Action

Contract Closure (12.6) Closed Contracts Organizational Process Assets Updates

Organizational Process Assets Updates Project Mgmt. Plan Updates (Procurement & Contract Mgmt. Plan)

INTEGRATION Process Inputs Initiating Contract (when applicable) Project SOW Enterprise environmental factors Organizational process assets Project charter Project SOW Enterprise environmental factors Organizational process assets Project selection methods Project management methodology Project management information system Expert judgment Project management methodology Project management information system Expert judgment Planning Preliminary project scope statement Project management processes Enterprise environmental factors Project management methodology Project management information system Expert judgment Project Management Plan Project charter Tools/Techniques Outputs

1. Develop Project Charter

2. Develop Preliminary Project Scope Statement

Preliminary Project Scope statement

3. Develop Project Management Plan

Organizational process assets (Which includes historical information and organizational policies) Executing Project Management Plan Approved corrective actions Approved preventive actions Approved change requests Approved defect repair Validated defect repair Administrative closure procedures Controlling Project Management Plan Work performance information Rejected change request Project management methodology Project management information system Earned value technique Expert judgment Recommended corrective actions Recommended preventive actions Forecasts Recommended defect repair Requested changes Approved change requests Rejected change requests Project Management Plan Updates Project Scope Statement Updates Approved corrective actions Approved preventive actions Approved defect repair Validated defect repair Deliverables Project management methodology Project management information system Deliverables Requested changes Implemented change requests Implemented corrective actions Implemented preventive actions Implemented defect repair Work performance information

4. Direct and Manage Project Execution

5. Monitor and Control Project Work

6. Integrated Change Control

Project Management Plan Requested Changes Work performance information Recommended corrective actions Recommended preventive actions Recommended defect repair Deliverables

Project management methodology Project management information system Expert judgment

INTEGRATION Process Inputs Closing Project Management Plan Contract documentation Enterprise environmental factors Organizational process assets Work performance information Deliverables Project management methodology Project management information system Expert judgment Administrative closure procedure Contract closure procedure Final product, service, or result Organizational process assets updates Tools/Techniques Outputs

7. Close Project

SCOPE Process Inputs Planning Enterprise environmental factors Organizational process assets Project Charter Preliminary project scope statement Project Management Plan Organizational process assets Project Charter Preliminary project scope statement Project Scope Management Plan Approved change requests Organizational process assets Project Scope Statement Project Scope Management Plan Approved change requests Expert Judgment Templates, forms, standards Project Scope Management Plan Tools/Techniques Outputs

1. Scope Planning

2. Scope Definition

Product analysis Alternatives identification Expert judgment Stakeholder analysis

Project Scope Statement Requested changes Project Scope Management Plan Updates

WBS templates Decomposition

3. Create WBS

Project scope statement updates WBS WBS dictionary Scope baseline Project Scope Management Plan Updates Requested changes

Controlling 4. Scope Verification (Assures ACCEPTANCE) Project Scope Statement WBS Dictionary Project Scope Management Plan Deliverables Project Scope Statement WBS WBS dictionary Project Scope Management Plan Workaround plans to risk Performance Reports Approved change requests Work performance information Inspections Accepted deliverables Requested changes Recommended corrective actions

5. Scope Control

Change Control System Variance analysis Replanning Configuration management system

Project scope statement updates WBS updates WBS dictionary updates Scope baseline updates Requested changes Recommended corrective action Organizational process assets updates Project Management Plan Updates

TIME Process Inputs Planning Enterprise environmental factors Organizational process assets Project Scope Statement WBS WBS Dictionary Project Management Plan Project Scope Statement Activity List Activity attributes Milestone list Approved change requests Enterprise environmental factors Organizational process assets Activity list Activity attributes Resource availability Project Management Plan Enterprise environmental factors Organizational process assets Project Scope Statement Activity List Activity attributes Activity resource requirements Resource calendars Project Management Plan - Risk register - Activity cost estimates Organizational process assets Project Scope Statement Activity List Activity attributes Project schedule network diagrams Activity resource requirements Resource calendars Activity Duration Estimates Project Management Plan Risk register Decomposition Templates Rolling Wave planning (Progressively) Expert judgment Planning component Precedence Diagramming Method (PDM) Arrow Diagramming Method (ADM) Schedule network templates Dependency determination Applying leads and lags Expert judgment Alternatives analysis Published estimating data Project management software Bottom-up estimating Activity List Activity attributes Milestone list Requested changes Tools/Techniques Outputs

1. Activity Definition

2. Activity Sequencing

Project Network Diagrams Activity List Updates Activity attributes updates Requested changes

3. Activity Resource Estimating

Activity resource requirements Activity attributes updates Resource breakdown structure Resource calendars updates Requested changes

4. Activity Duration Estimating

Expert Judgment Analogous Estimating Parametric Estimating Three point estimates Reserve analysis

Activity duration estimates Activity attributes updates

5. Schedule Development

Schedule network analysis Critical path method Schedule Compression What if scenario analysis (Monte Carlo) Resource Leveling Critical chain method Project management software Applying calendars Adjusting leads and lags Schedule model Controlling

Project Schedule Schedule model data Schedule baseline Resource Requirement Updates Activity attributes updates Project calendar updates Requested changes Project Management Plan Updates Schedule Management Plan Updates

6. Schedule Control

Schedule Management Plan Schedule baseline Performance Reports Approved change requests

Progress reporting Schedule Change Control System Performance Measurement Project management software Variance Analysis Schedule comparison bar charts

Schedule model data updates Schedule baseline updates Performance measurements Requested changes Recommended corrective actions Organizational process assets updates Activity list updates

Activity attributes updates Project Management Plan Updates

COST Process Inputs Planning Enterprise environmental factors Organizational process assets Project Scope Statement Work Breakdown Structure WBS Dictionary Project Management Plan - Schedule Management Plan - Staffing Management Plan - Risk register Project Scope statement WBS WBS dictionary Activity Cost Estimates Activity Cost Estimate Supporting Detail Project Schedule Resource calendars Contract Cost Management Plan Analogous Estimating Determine resource cost rates Bottom-Up Estimating Parametric Estimating Project Management software Vendor bid analysis Reserve analysis Cost of quality Cost Aggregation Reserve Analysis Parametric Estimating Funding limit reconciliation Activity Cost Estimates Activity Cost Estimate Supporting Detail Requested changes Cost Management Plan updates Tools/Techniques Outputs

1. Cost Estimating

2. Cost Budgeting

Cost Baseline (Same as budget) Project funding requirements Cost Management Plan updates Requested changes

Controlling Cost Baseline Project funding requirements Performance Reports Work performance information Approved change requests Project Management Plan Cost Change Control System Cost Estimate Updates Cost baseline updates Performance measurements Forecasted completion Requested changes Recommended corrective actions Organizational process assets updates Project Management Plan updates

3. Cost Control

Performance Measurement Analysis (Helps to assess the magnitude of any variation that occurs on the project) Forecasting Project Performance Reviews Project Management software Variance management

QUALITY Process Inputs Planning Enterprise environmental factors Organizational process assets Project Scope Statement Project Management Plan Cost-Benefit Analysis Benchmarking Design Of Experiments Cost Of Quality Additional Quality Planning tools Executing Quality Management Plan Quality metrics Process Improvement Plan Work performance information Approved change requests Quality control measurements Implemented change requests Implemented corrective actions Implemented defect repair Implemented preventive actions Quality Planning Tools & Techniques Requested changes Recommended corrective actions Organizational process assets updates Project Management Plan updates Quality Management Plan Quality metrics Quality checklists Process Improvement Plan Quality baseline Project Management Plan updates Tools/Techniques Outputs

1. Quality Planning

Cost-benefits analysis Benchmarking Design of experiments

Quality Audits (Review of project activities with regard to quality) Process analysis Quality control tools and techniques

2. Perform Quality Assurance (Aimed for Processes)

Cause and effect diagrams Control, Pareto and Run charts, Flowcharting Histograms Scatter diagrams Statistical sampling Inspection Defect repair review

Quality Management Plan Quality metrics Quality Checklists Organizational process assets Work performance information Approved change requests Deliverables

Controlling Cause and effect diagram Control Charts Flowcharting Histogram Pareto chart Run chart Scatter diagram Statistical sampling Inspections Defect repair review Quality control measurements Validated defect repair Quality baseline updated Recommended corrective actions Recommended preventive actions Requested changes Recommended defect repair Organizational process assets updates Validated deliverables Project Management Plan updates

3. Perform Quality Control (Aimed for Deliverables. Assures CORRECTNESS)

HUMAN RESOURCES Process Inputs Planning Enterprise environmental factors Organizational process assets Project Management Plan Activity resource requirements Organization charts and position descriptions Networking Organizational Theory Executing Enterprise environmental factors Organizational process assets Roles and responsibilities Project Organization Charts Staffing Management Plan Project Staff Assignments Staffing Management Plan Resource availability Pre-assignment Negotiations Acquisition Virtual teams Project Staff Assignments Resource availability Staffing Management Plan updates Roles and responsibilities Project Organization Charts Staffing Management Plan Tools/Techniques Outputs

1. Human Resource Planning

2. Acquire Project Team (Carries out the Staffing Management Plan)

3. Develop Project Team

General Management Skills Training Team-Building Activities Ground rules Co-location Recognition and rewards Controlling

Team performance assessment

4. Manage Project Team (Checks whether the Staffing Management Plan is working fine and evaluate team performance problems)

Organizational process assets Project Staff Assignments Roles and responsibilities Project Organization Charts Staffing Management Plan Team performance assessment Work performance information Performance reports

Observation and conversation Project performance appraisals Conflict management Issues log

Requested changes Recommended corrective actions Recommended preventive actions Organizational process assets updates Input to organization performance appraisals Lessons learned documentation Project Management Plan updates

COMUNICATIONS Process Inputs Planning 1. Communication Planning (Involves determining and documenting the information and communication needs of the stakeholders) Enterprise environmental factors Organizational process assets Project Scope Statement Project Management Plan - Constraints, - Assumptions Communications requirements analysis Communication technology Communications Management Plan Tools/Techniques Outputs

Executing 2 . Information Distribution (Focuses on any kind of information related to project) Communications Management Plan Communications Skills Information Gathering and Retrieval Systems Information Distribution Methods Lessons learned process Organizational process assets updates - Lessons learned documentation - Project Records - Project Reports - Project Presentations - Feedback from stakeholders - Stakeholder notifications Requested changes

Controlling Work performance information Performance measurements Forecasted completion Quality control measurements Project Management Plan Performance measurement baseline Approved change requests Deliverables Communications Management Plan Organizational process assets Information presentation tools Performance information gathering and compilation Status review meetings Time reporting systems Cost reporting systems

3. Performance Reporting (Focuses solely on project performance)

Performance Reports Forecasts Requested changes Recommended corrective actions Organizational process assets updates

4. Manage Stakeholders (Ensures that stakeholders needs are addressed)

Communications methods Issue logs

Resolved issues Approved change requests Approved corrective actions Organizational process assets updates Project Management Plan updates

RISK Process Inputs Planning Enterprise environmental factors Organizational process assets Project Scope Statement Project Management Plan Enterprise environmental factors Organizational process assets Project Scope Statement Risk Management Plan Project Management Plan Planning Meetings and analysis Risk Management Plan Tools/Techniques Outputs

1. Risk Management Planning

Documentation Reviews

Risk register

2. Risk Identification

Information-Gathering Techniques (Interviewing, Delphi Technique and Brainstorming) Checklist analysis Assumptions Analysis Diagramming Techniques Risk Probability & Impact Assessment Probability and Impact Matrix Risk Data Quality Assessment Risk categorization Risk urgency assessment Data gathering and representation techniques Qualitative risk analysis and modeling techniques Decision tree analysis Risk Register updates

3. Qualitative Risk Analysis

Organizational process assets Project Scope Statement Risk Management Plan Risk register

4. Quantitative Risk Analysis

Organizational process assets Project Scope Statement Risk Management Plan Risk register Project Management Plan - Project Schedule Management Plan - Project Cost Management Plan Risk Management Plan Risk register

Risk Register updates

5. Risk Response Planning (Plans how each risk will be handled)

Strategies for negative risk or threats Strategies for positive risks or opportunities Strategy for both threats and opportunities Contingent response strategy Controlling

Risk Register updates Project Management Plan updates Risk-related contractual agreements

6. Risk Monitoring & Control (Carries out the Risk Response Plan)

Risk Management Plan Risk Register Approved change requests Work performance information Performance reports

Risk reassessment Risk audits (Concerned with overall risk management instead of individual risks) Variance and trend analysis Technical performance measurement Reserve analysis Status meetings

Risk register updates Requested changes Recommended corrective actions - May include workaround plans which may arise scope changes Recommended preventive actions Organizational process assets updates Project Management Plan updates

PROCUREMENT Process Inputs Planning Enterprise environmental factors Organizational process assets Project Scope Statement WBS WBS dictionary Project Management Plan - Risk register - Risk-related contractual agreements - Resource requirements - Project Schedule - Activity cost estimates - Cost baseline Procurement Management Plan Contract Statement Of Work Make-or-buy decisions Project Management Plan - Risk register - Risk-related contractual agreements - Resource requirements - Project Schedule - Activity cost estimates - Cost baseline Executing Organizational process assets Procurement Management Plan Procurement documents Organizational process assets Procurement Management Plan Evaluation Criteria Procurement document package Proposals Qualified Sellers list Project Management Plan - Risk register - Risk-related contractual agreements Make-Or-Buy Analysis Expert Judgment Contract Types Procurement Management Plan Contract Statement of Work Make-or-buy decisions Requested changes Tools/Techniques Outputs

1. Plan Purchases and Acquisitions

2. Plan Contracting (Prepares documents for solicitation)

Standard Forms Expert Judgment

Procurement Documents Evaluation Criteria Contract Statement of Work Updates

3. Request Seller Responses

Bidder/Vendor/Contractor Conferences Advertising Develop qualified sellers list Weighting System Independent Estimates Screening system Contract negotiation Seller rating systems Expert judgment Proposal evaluation techniques

Qualified sellers list Procurement document package Proposals Selected sellers Contract Contract Management Plan Resource availability Procurement Management Plan updates Requested changes

4. Select Sellers (Involves negotiation and selection)

PROCUREMENT Process Inputs Controlling Contract Contract Management Plan Selected sellers Performance reports Approved change requests Work performance information Contract Change Control System Buyer-conducted performance review Inspections and audits Performance Reporting Payment System Claims administration Records management system Information technology Tools/Techniques Outputs

Contract documentation (Contains requested, but unapproved contract changes) Requested changes Recommended corrective actions Organizational process assets updates Correspondence Contract Changes Payment Requests Project Management Plan Updates - Procurement Management Plan - Contract Management Plan

5. Contract Administration

Closing Procurement Management Plan Contract Management Plan Contract documentation Contract closure procedure Procurement audits (Capture lessons learned from a contract perspective) Records management system

6. Contract Closure

Closed contracts Organization process assets updates

Components of the Project Management Plan: Project Scope Management Plan Schedule Management Plan Cost Management Plan Quality Management Plan Process Improvement Plan Staffing Management Plan Communication Management Plan Risk Management Plan Procurement Management Plan Milestone List Resource Calendar Schedule Baseline Cost Baseline (Same as budget) Quality Baseline Risk Register (which includes risk owners, risk thresholds and common risk causes) Constraints and Planning Assumptions For the exam the bottom line is : All management plans become part of the Project Management Plan

Components of the Enterprise Environmental Factors: Culture and Structure of the organization Governmental and Industry standards Infrastructure Human Resources Personnel Administration and Documentation Marketplace conditions Risk Tolerance Commercial Databases Academic Studies Project Management Information Systems (Which is composed by Configuration Management System including Change Management System)

Project Quality Management DOES emphasize:

Customers Specifications (That also implies in Customers Satisfaction because if customers specifications are met, the customer should be satisfied with the product) Quality Standards Team Responsibility (The entire team has a responsibility towards quality) Prevention over inspection (It costs less to fix a problem than it does to fix one)

Types of diagrams/charts:

Project Network diagrams (Show activities sequences and dependences)

Precedence Diagramming Method (PDM) => Activities on nodes (Also known as AON Activity On Node) Arrow Diagramming Method (ADM) => Activities on arrows (Also known as AOA Activity On Arrow) Graphical Evaluate Review Technique (GERT) => Can show conditional branches and loops whereas other representations cannot.

Bar Charts (a.k.a. Gantt Charts) (Show activities represented as horizontal bars and typically have calendar and percentage complete associated with them) Milestone Chart (Only represent key events for the project) Cause and Effect Diagrams (a.k.a. Fishbone Diagram or Ishikawa Diagram) (Are used in Quality Control process to show how different factors can lead to problems) Control Charts

Show whether or not a process is in control. Containing. Customer Specification Limits, Control Limits Defined as three standard deviations above or below the mean Mean of all data points Rule of Seven where if seven or more consecutive points are on the same side of the mean, they should be investigated

Pareto Chart (A kind of a histogram that shows on columns defects ranked from greatest to least. Paretos law states that 80% of problems come from 20% of the causes 80/20) Run Chart (Quality measure snapshots compiled over time showing trends ) Scatter Diagram (Best for spotting trends in data. May be No Relation, Negative Linear Correlation, and Positive Linear Correlation) Project Organizational Charts (Show project roles hierarchy or package associations)

Hierarchical Charts (Shows project roles hierarchically) RACI Charts (R Responsible, A Accountable, C Consultant, I Input => Show project roles associated with work packages) Text (States the position description and responsibilities)

Resource Histogram (Its part of the Staffing Management Plan and shows the resource usage for a given period of time) Tornado Diagrams (Evaluates projects sensitivity to cost or other factors) Decision Tree Diagrams (Used to quantify which risks have the most impact on the project)

Key Formulas: Term Abbreviation Description Used to estimate activity duration based on known Pessimistic, Realistic and Optimistic estimates. Its also used to predict the most likely, best-case and worst-case scenarios for a given cost estimate. Shows how diverse our estimates are. Shows how different communication channels exist for a given project BAC How much was originally planned for this project to cost. How much work should have been completed at a point in time based on the plan. (Derived by measuring where you had planned to be in terms of work completed at a point in the schedule). How much work was actually completed during a given period of time. Derived by measuring where you actually are in terms of work completed during a given period of time in the schedule. The money spent during a given period of time. The difference between what we expected to spend and what was actually spent. The difference between where we planned to be in the schedule and where we are in the schedule. The rate at which the project performance is meeting cost expectations during a given period of time. Formula

Three Point Estimate

PERT

(Pessimist + 4xRealistic + Optimistic) / 6

Standard Deviation Communication Channels

(Pessimistic Optimistic) / 6 N * (N 1) / 2 Where N is the number of people in your team. No one formula exists. BAC is derived by looking at the total budgeted cost for the project.

Budgeted at Completion

Planned Value (a.k.a. Budgeted Cost of Work Scheduled)

PV (or BCWS)

PN = Planned % Complete X BAC

Earned Value (a.k.a. Budgeted Cost of Work Performed)

EV (or BCWP)

EV = Actual % Complete X BAC

Actual Cost (a.k.a. Actual Cost of Work Performed) Cost Variance

AC (orACWP) CV

Sum of the costs for the given period of time. CV = EV-AC

Schedule Variance

SV

SV=EV-PV

Cost Performance Index

CPI

CPI = EV / AC

Term

Abbreviation

Description The rate at which the project performance is meeting schedule expectations up to a point in time. The rate at which the project performance is meeting cost expectations from the beginning up to a point in time. CPIC is also used to forecast project costs at completion. Projecting the total cost at completion based on project performance up to a point in time. Projecting how much will be spent on the project, based on past performance. The difference between what was budgeted and what will actually be spent.

Formula

Schedule Performance Index

SPI

SPI = EV / PV

Cumulative CPI

CPIC

CPIC = EVC / ACC

Estimate at Completion

EAC

EAC = BAC / CPIC

Estimate to Completion

ETC

ETC = EAC - AC

Variance at Completion

VAC

VAC = BAC - EAC

Tips for calculating EAC on different scenarios When current variances are viewed as typical of future variances : EAC is calculated by adding the remaining budget (BAC EV) modified by a performance factor (CPI), to the actuals date. When current variances are viewed as typical : EAC is calculated by adding the remaining budget to the actuals to date (BAC EV).In this case, the project management team expects that similar variances will no occur in the future. When original estimating assumptions are considered to be fundamentally flawed: EAC is calculated by adding an all-together new estimate (ETC) to the actuals to date. When original estimating assumptions are no longer reliable because conditions have changed: EAC is calculated by adding an all-together new estimate (ETC) to the actuals to date.