Professional Documents
Culture Documents
Learning PMP Formulas The Easy Way: A Step by Step Process To Learn The Formulas Needed To Pass The PMP Examination
Learning PMP Formulas The Easy Way: A Step by Step Process To Learn The Formulas Needed To Pass The PMP Examination
TransAct Technologies
Starwood Hotels
Affinion Group
Hewitt Associates
Wachovia Bank
Bayer Pharmaceuticals
Readers Digest
Agenda
2.
3.
Standard
Deviation
FV C
(R + 1) n
P -O
6
Activity
Variance
P -O
6
PERT
(3 Point Est.)
Communication
Channels
P + (4M) + O
6
N (N 1)
2
Where:
Where:
Where:
Where:
Where:
FV = Future Value
P = Pessimistic Time
P = Pessimistic Time
P = Pessimistic Time
N = Number of People
R = Interest Rate
O = Optimistic Time
O = Optimistic Time
n = # of time periods
O = Optimistic Time
FV
n
(R + 1)
FV = Future Value
R = Interest Rate
n = Number of periods
P - O
6
P -O
6
P + (4M) + O
6
N (N 1)
2
AC = Actual Cost As of today what is the actual cost incurred for the
work accomplished
BAC = Budget at Completion How much did we budget for the total
project??
SV
CPI
SPI
Cost
Variance
Schedule
Variance
Cost
Performance
Index
Schedule
Performance
Index
EV / AC
EV / PV
EV AC
EV PV
Where:
Where:
Where:
Where:
EV = Earned Value
EV = Earned Value
EV = Earned Value
EV = Earned Value
AC = Actual Cost
PV = Planned Value
AC = Actual Cost
PV = Planned Value
EV AC
EV = Earned Value
AC = Actual Costs
EV PV
EV = Earned Value
PV = Planned Value
EV / AC
EV = Earned Value
AC = Actual Costs
EV / PV
EV = Earned Value
PV = Planned Value
ETC
TCPI
VAC
Estimate at
Completion
Estimate to
Complete
To Complete
Performance
Index
Variance at
Completion
EAC AC
BAC / CPI
Where:
Where:
BAC = Budget at
Completion
EAC = Estimate at
Completion
AC = Actual Cost
BAC - EV
BAC - AC
Where:
BAC = Budget at Completion
EV = Earned Value
AC = Actual Cost
BAC - EAC
Where:
BAC = Budget at
Completion
EAC = Estimate at
Completion
BAC / CPI
EAC - AC
TOTAL
FLOAT
ES
EF
PxI
I = Impact
Point of Total
Assumption
[(CP TP) / BSR] + TC
Where:
Where:
P = Probability
PTA
LS
LF
CP = Ceiling Price
TP = Target Price
LS ES
or
LF - EF
TC = Target Cost
PxI
P = Probability
I = Impact
ES
Amount of Float
LS
EF
LF
LS = Late Start
ES = Early Start
LF = Late Finish EF = Early Finish
Refers to the amount above which the seller bears all the loss
of a cost overrun
Costs that go above the PTA are assumed to be due to
management
CP = Ceiling Price
TP = Target Price
BSR = Buys Share Ratio TC = Target Cost
SD
SDV
Future
Value
Standard
Deviation
Standard
Deviation
PERT
Expected
Activity
Duration
CC
Communication
Channels
But these are standard formulas, so write SD twice and take the V from
the first formula PV and put it at the end of your second SD to make SDV.
SD
FV
(R + 1) n
P - O
6
SDV
PERT
CC
P - O
6
P - O
6
N (N 1)
2
For the first formula just know that for the Present we must know the Future divided by its Rate +1.
Dont forget that the Rate + 1 result must always be taken to the n power where n = number of time
periods. Ex) if the rate was 0.1 and the number of time periods were 3 years then the result would be:
(1 + 0.1) 3 = 1.331
Notice I wrote all the SD, SDV and PERT formulas the same for now because basically they
are.
SD
P - O
6
SDV
PERT
P - O
6
P + (4M) + O
6
CC
N (N 1)
2
For the next three formulas just know that always start out the same P O / 6.
For SDV just square it.
For PERT remember that P-E-R-T is 4 letters, so you must have 4 pieces to the formula the P
(Pessimistic) and O (Optimistic), but have to drop the M (Most Likely) x 4 in the middle.
The name Communication Channels has 4 Ns in it and is the only formula with an N in
it N standing for number of people always divided by 2.
SD
P - O
6
SDV
P - O
6
PERT
CC
P + (4M) + O
6
N (N 1)
2
EV
AC
PV
Remember:
EV = Earned Value
AC = Actual Cost
PV = Planned Value
BAC = Budget at Completion
BAC
VAC
= EV = EV = EV /
= EV /
VAC
=
=
=
=
EV - AC
EV - PV
EV / AC
EV / PV
Notice that the Cost formulas are the same the only
difference is the minus or divide signs
Notice that the Schedule formulas are the same the
only difference is the minus or divide signs
For COST, A is closer to C so put in AC
For SCHEDULE, P is closer to S so put in SV
VAC
=
=
=
=
=
=
EV - AC
EV - PV
EV / AC
EV / PV
BAC / CPI
EAC - AC
VAC
=
=
=
=
=
=
=
EV - AC
EV - PV
EV / AC
EV / PV
BAC / CPI
EAC - AC
BAC - EV
BAC - AC
= BAC - EAC
EMV = P x I
FLOAT = LS - ES or LF - EF
ES
EF
FLOAT
LS
LF
What to do - Pre-Exam
When you feel confident with knowing the formulas:
Write down the formulas as fast as you can start off with
15 minutes maximum.
Initially, see how long it took you for this first attempt.
Your ready!
On the day of the exam you will be given 3 sheets of blank paper to use
for math problems.
Before the actual exam starts on the computer you will have 15 minutes to
view a computer tutorial to become familiar with the computer commands
for the test.
Use part of this this time to write down the formulas on one side of a
blank piece of paper
Use this paper as your guide throughout the exam for questions
concerning formulas it is perfectly OK to do this!!!!!
Remember: if you need more paper you will have to turn in used sheets
dont worry youll never need more paper.
QUESTIONS
Tell me what you think
mtroncone73@yahoo.com