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Quick Reference Guide For Formulas

The document summarizes Master of Project Academy, an online training provider for project management certification. It offers affordable and flexible online courses to help professionals prepare for exams. Over 50,000 professionals in over 170 countries use its courses. Testimonials praise the clear instruction and real-world examples that help understand concepts. The courses also provide flexible self-paced learning at a fraction of the cost of other options.

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85 views

Quick Reference Guide For Formulas

The document summarizes Master of Project Academy, an online training provider for project management certification. It offers affordable and flexible online courses to help professionals prepare for exams. Over 50,000 professionals in over 170 countries use its courses. Testimonials praise the clear instruction and real-world examples that help understand concepts. The courses also provide flexible self-paced learning at a fraction of the cost of other options.

Uploaded by

spab123
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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PMP Quick Reference


Guide for Math Formulas

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“Master of Project Academy offers the best solution, with flexible online courses at a
fraction of the cost of other certification training courses

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these fine companies

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Activity & Project Duration Formulas


In order to calculate Estimated Activity Duration (EAD) of an activity, Optimistic (O), Most Likely
(M) and Pessimistic (P) estimates for an activity are determined first.

 PERT Triangular Distribution

𝑂+𝑀+𝑃
EAD =
3

 PERT Beta Distribution

𝑂 + 4𝑀 + 𝑃
EAD =
6

 Standard Deviation (SD) of an Activity

𝑃−𝑂
SD =
6

 Variance of an Activity

𝑃−𝑂 2
Variance = ( )
6

 Range of an Activity Duration

Range of an Activity Duration = EAD ± 𝑆𝐷

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Float (Slack) Formulas


Float (Slack) of an activity determines how long an activity can be delayed without affecting the
project end date. If an activity is on critical path, float (slack) of that activity will be zero.
In order to calculate Float (Slack) of an activity, Late Start (LS) and Early Start (ES) or Late Finish
(LF) and Early Finish (EF) values of the activity are determined first.

Total Float = Late Start (LS) – Early Start (ES)

Total Float = Late Finish (LF) – Early Finish (EF)

Earned Value Management Formulas


Abbreviations of Earned Value Terms:
 Earned Value = EV
 Planned Value = PV
 Actual Cost = AC
 Cost Variance = CV
 Schedule Variance = SV
 Cost Performance Index = CPI
 Schedule Performance Index = SPI
 Budget at Completion = BAC
 Estimate to Complete = ETC
 Estimate at Completion = EAC
 Variance at Completion = VAC
 To-Complete Performance Index = TCPI

 Cost Variance (CV)


CV = EV − AC

 Schedule Variance (SV)


SV = EV − PV

 Cost Performance Index (CPI)

𝐸𝑉
CPI =
𝐴𝐶

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 Schedule Performance Index (SPI)

𝐸𝑉
SPI =
𝑃𝑉

 Budget at Completion (BAC)

BAC is determined during cost management activities, in Determine Budget Process, in a


project. BAC includes contingency reserves for activities and defines how much money
will be spent during project in total.

 Estimate to Complete (ETC)

ETC can be determined by re-estimation of the remaining works in a project or earned


value (EV) of the accomplished activities can be subtracted from EAC to find ETC value.

ETC=Re-estimation of Remaining Works


ETC = EAC − AC

 Estimate at Completion (EAC)

EAC value can be found by 3 different approaches using EV, SPI and CPI values.
Approach #1: assumes that all future ETC work will be accomplished at the budgeted
rate.

EAC = AC + (BAC − EV)


Approach #2: assumes that cost performance achieved till now is expected to continue
in the future.

BAC
EAC =
CPI
Approach #3: assumes that ETC work will be performed at an efficiency rate that
considers both the cost and schedule performance indices.

BAC − EV
EAC = AC +
CPI x SPI

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 Variance at Completion (VAC)


VAC = BAC − EAC

 To-Complete Performance Index (TCPI)

TCPI can be calculated by two approaches. If there is not a new EAC value, 1st approach
is used. If there is an EAC value, then 2nd approach is used.
Approach #1:

𝐵𝐴𝐶 − EV
TCPI =
BAC − AC

Approach #2:

𝐵𝐴𝐶 − EV
TCPI =
EAC − AC

Present Value Formula


There is time value of money and value of a future cash flow is less today than its amount in
future. This is calculated by Present Value (PV) formula. Abbreviations of terms:
 Present Value = PV
 Future Value = FV
 Interest rate = r
 Number of periods = n

FV
PV =
(1 + r)n

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Number of Communication Channels Formula


If there are N stakeholders in an environment, following formula will give total number of
communication channels between stakeholders in this environment.

N(N − 1)
Number of Communication Channels =
2

Expected Monetary Value


Expected Monetary Value (EMV) of an opportunity or threat is calculated by following formula:

EMV = Probability x Impact

Point of Total Assumption


Point of Total Assumption (PTA) is applicable only in Fixed Price Incentive Fee (FPIF) Contracts.
Costs above PTA level are considered to be due to mismanagement. PTA is calculated by
following formula.

Ceiling Price − Target Price


PTA = + 𝑇𝑎𝑟𝑔𝑒𝑡 𝐶𝑜𝑠𝑡
Buyer ′ s Sharing Ratio

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What Our
Community Says

“Prior to signing up for the Online PMP Certification Training course from
Master of Project Academy, I was looking at other programs offering live
lectures (in-class or online), and after completing Master of Project
Academy's Online PMP Certification Training and writing the exam you
should not consider anyone else!
Andrew Di Piero, Business Operations Manager
Works at iOPW Inc, Canada

“Instructor teaches theoretical concepts of project management in an easier


and very understandable manner! He gives real-world project examples and
enables you to understand concepts clearly. Questions and solutions of the
questions at the end of each section completes the concepts covered in the
section.
Vasilisa Ivchenko, Project Engineer
Works at Gazprom, Russia

“Definitely I would recommend Master of Project Academy to friend &


colleagues. It is very good value for money compared to other online
training resources. You have flexibility to complete your course at your own
pace. Course material & tools help you to prepare yourself in very short
time span for the exam.
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Works at Pall Corporation, India
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