Formulas / Math for PMP

1. PERT
2. Standard Deviation
3. Variance
4. Float or Slack
5. Cost Variance
6. Schedule Variance
7. Cost Perf. Index
8. Sched. Perf. Index
9. Est. At Completion (EAC)

(P + 4M + O )/ 6 Pessimistic, Most Likely, Optimistic

(P - O) / 6
[(P - O)/6 ]squared
LS-ES and LF-EF
EV - AC
EV - PV
EV / AC
EV / PV
BAC / CPI,
AC + ETC -- Initial Estimates are flawed
AC + BAC - EV -- Future variance are Atypical

10. Est. To Complete

Percentage complete
11. Var. At Completion
12. To Complete Performance Index
TCPI

13. Net Present Value

14. Present Value PV
15. Internal Rate of Return
16. Benefit Cost Ratio

AC + (BAC - EV) / CPI -- Future Variance would be typical

EAC - AC
EV/ BAC
BAC - EAC
Values for the TCPI index of less then 1.0 is good because it
indicates the efficiency to complete is less than planned. How
efficient must the project team be to complete the remaining
work with the remaining money?
( BAC - EV ) / ( BAC - AC )
Bigger is better (NPV)
FV / (1 + r)^n
Bigger is better (IRR)
Bigger is better ((BCR or Benefit / Cost) revenue or payback
VS. cost)

17. Payback Period

Or PV or Revenue / PV of Cost
Less is better

18. BCWS
19. BCWP
20. ACWP
21. Order of Magnitude Estimate
22. Budget Estimate
23. Definitive Estimate
24. Comm. Channels

Net Investment / Avg. Annual cash flow.

PV
EV
AC
-25% - +75% (-50 to +100% PMBOK)
-10% - +25%
-5% - +10%
N(N -1)/2

25. Expected Monetary Value

Probability * Impact

26. Point of Total Assumption (PTA)

((Ceiling Price - Target Price)/buyer's Share Ratio) + Target

Cost

Sigma

Return on Sales ( ROS )

1 = 68.27%
2 = 95.45%
3 = 99.73%
6 = 99.99985%

Net Income Before Taxes (NEBT) / Total Sales OR

Net Income After Taxes ( NEAT ) / Total Sales

Return on Assets( ROA )

NEBT / Total Assets OR

NEAT / Total Assets
NEBT / Total Investment OR

Return on Investment ( ROI )

NEAT / Total Investment
Working Capital
Discounted Cash Flow

Current Assets - Current Liabilities

Cash Flow X Discount Factor
Savings = Target Cost Actual Cost
Bonus = Savings x Percentage

Contract related formulas

Contract Cost = Bonus + Fees
Total Cost = Actual Cost + Contract Cost

Critical Path formulas

Forward Pass: (Add 1 day to Early Start)
Backward Pass: (Minus 1 day to Late Finish)
LS = (LF - Duration + 1)
ES = Early Start; EF = Early Finish;
LS = Late Start; LF = Late Finish

EF = (ES + Duration - 1)

EVA = Net Operating Profit After Tax - Cost of Capital (Revenue - Op. Exp - Taxes)
- (Investment Capital X % Cost of Capital) EVA - Economic Value Add Benefit
Measurement - Bigger is better

Source Selection = (Weightage X Price) + (Weightage X Quality)

Best Regards

Eng Karim Ragab

0100 83 83 10 3
E-mail : karimrgb@hotmail.com