Brain Dump

2
Formulas
Symbol / Formula Description Explanation
BAC Budget at complete Total cost planned or Total PV
PV = sum to date Planned value Value “should” have achieved to date
EV = PV or Total PV x % complete Earned value Value of work completed to date

AC Actual cost Costs incurred to date

CV = EV - AC Cost variance Over budget or negative is bad
Under budget positive is good
SV = EV - PV Schedule variance Behind schedule or negative is bad
Ahead of schedule or positive is good
CPI = EV / AC Cost performance index Getting $____ of every $1 spent

SPI = EV / PV Schedule performance index Progressing ____ % of planned

EAC = BAC / CPI Estimate at complete No Change –No change in Performance
EAC = AC + (BAC-EV) Atypical – deviated, complete per plan
EAC = AC + [(BAC-EV)/(CPIxSPI)] Typical variance and met orig. schedule

EAC = AC + Bottom-up ETC Flawed or invalid estimate.

ETC = EAC – AC Estimate to complete How much more $ ?

VAC = BAC – EAC Variance at complete Over/under budget at complete

TCPI = (BAC - EV) / (BAC - AC) To-complete performance index Efficiency needed to hit original budget
TCPI = (BAC - EV) / (EAC - AC) Efficiency needed to hit new budget

3
Formulas (cont.)
Symbol / Formula Description Explanation
(P + 4M + O) / 6 PERT estimate 3-points (pessimistic, most likely, optimistic)

SD = (P - O) / 6 Standard deviation % off mean

Var. = [ (P - O) / 6 ] 2 Variance Variance of an Activity

C = N (N-1) / 2 Communication channels N = number of channels/lines

EMV = P x I Expected monetary value Probability and impact

-25% to +75% Rough Order of Magnitude Accuracy range - high-level (initiating)

estimate (ROM)
- 5% to +10% Definitive estimate Accuracy range – detailed (planning)

+ / - 68.26% 1 sigma Percent of defect free product

+ / - 95.46% 2 sigma
+ / - 99.73% 3 sigma
+ / - 99.99% OR 99.99966% 6 sigma