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# Term

BCWP
BCWS
ACWP
Comm

Formula

channels

n(n -1) /2

PERT

(O + 4ML + P)/6

Standard
deviation

P-O/6

3 point
estimates

(O + ML + P) /3

## Earned Value CV + AC, SV + PV

Actual cost Earned value - cost variance
Schedule
variance
Cost
variance
SPI
CPI
CPI
TCPI

EV - PV
EV - AC
EV / PV
EV / AC
BAC / EAC
BAC - EV/BAC- AC

TCPI

## BAC - EV/ EAC - AC

VAC
ETC
BAC
EAC

BAC - EAC
EAC- AC
EAC*CPI
AC + ETC
AC+BAC-EV
AC + (BAC- EV/CPI) or
BAC/CPI
AC + (BAC- EV) / (CPI*SPI)

Percentage
Complete
Present
value of
money

EV/BAC x 100
FV/ (n + r/100)

Net present
value
PV income - PV costs
Benefit to
cost ratio

Benefit/cost

Opportunity
cost
Benefit to
cost ratio
Expected
monetary
value
Activity
duration

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## PV income /PV costs

Probability x impact
work quantity/prod rate

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## Project Float Target days - Critical path

Cost performance baseline is also known as performance measurement baselin
Planned value is also referred to as performance measurement baseline
Total Planned value also known as BAC
cost investment
variance at equals
the endthe
of present
a projectvalue
can also
reflected
asatBAC
- AC
investment. Project AsTotal
original
of itsbecash
inflows
a discoun
percent. Therefore, Project A has the highest IRR and should be chosen above the other two
Sum of the years' digits is an accelerated depreciation method. Each year of the useful life of the a
sequential number; the numbers are summed and used as the denominator for a fraction of the as
be taken each year as depreciation. The numerator of the fraction for each year is the reverse of th
numbers.
1+2 + 3 + 4 + 5 + 6 + 7 + 8 + 9+10 = 55
First
useValue,
10/55;FV=
second
year useValue,
9/55, I=Interest(not
and so on.
PV= year
Present
Full/Original
in %), n = Number of years.. FORMULAE
NPV and IRR will generally bring you to the same accept/reject decision

## Cost Baseline = Project Cost estimates + Contingency Reserve

Cost Budget = Cost Baseline + Management Reserve

project budget = mgmt reserve + Cost baseline = control accounts = work package estimate + co
activity cost estimate + activity contingency reserve
Formula

## EAC = AC + bottom-up ETC

EAC = AC + BAC - EV

## EAC = AC + [(BAC EV)

(cumulative CPI cumulative
SPI)]

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Description
Budgeted of cost of work performed = Earned value
Budgeted of cost of work scheduled = Planned value
Actual cost of work performed = Actual cost
n = number of stakeholders
ML - Most likely
Pessimistic - Optimistic

## Cost variance + Actual Cost, Schedule variance + Planned value/ EV cannot

be greater than PV

## Negative - Behind / Positive - Ahead

Negative - Over / Positive - Under
< 1 = less work completed than planned, > 1 = more work comp.
< 1 = cost underrun, > 1 = cost overrun
Cost perf indx - in terms of BAC and EAC
To complete perf indx - in terms of BAC
To complete perf indx - in terms of EAC. Used when its obvious that BAC is
no longer viable.
variance at completion
estimate to complete
Budget at completion
Original estimating assumptions no longer valid
Current variances are atypical - similar wont occur in the future - you are
going to make it!
Estimates are typical of what has been seen and will continue.continue with
the same type of variance that youve experienced to date
EAC taking into account SPI and CPI

## FV = future value, n = time, r = disc rate

cost of passing up the next best option. Ignore sunk costs if using opp cost
as proj selection.

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Critical path is always the longest path: you cant have float on critical path.
ance baseline is also known as performance measurement baseline
value is also referred to as performance measurement baseline
Total Planned value also known as BAC
ariance at equals
the endthe
of present
a projectvalue
can also
reflected
asatBAC
- AC
nvestment
of itsbecash
inflows
a discount
rate of eight
the highest IRR and should be chosen above the other two
elerated depreciation method. Each year of the useful life of the asset is given a
are summed and used as the denominator for a fraction of the asset's book value to
on. The numerator of the fraction for each year is the reverse of the years' sequence

9+10 = 55
useValue,
9/55, I=Interest(not
and so on.
nal
in %), n = Number of years.. FORMULAE PV = FV / (1 + i) n

## mates + Contingency Reserve

anagement Reserve

## + Cost baseline = control accounts = work package estimate + contingency reserve =

activity cost estimate + activity contingency reserve
Whenitisused

EAC
When you want to forecast EAC based on the project manager's bottom-up ETC.
When variances are not expected to occur for the remainder of the project, so the
costs of future work are estimated to be the same as the budgeted costs.
SPI
When you want to take the cost performance of a project into account and assume its
current cost performance level won't change for the remainder of the project.
When you want to take both the schedule and cost performance of the project into
account, and the project schedule is a factor likely to impact the ETC.

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current
project cost
benefits
\$255,000
2,880,000
352,000
130,000
1,827,300
124,000
84,000
106,750
68,000
780,000
600,000
44,000
\$1,249,000
5,414,050
2940000

400000
100000
200000
100000
300000
134400
1234400

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900000
400000
240000
800000

2460000

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