Earned Value
CV = EV -
AC
CPI = EV /
AC
SV = EV -
PV
SPI = EV /
PV
EAC ‘no
variances’ = BAC / CPI
EAC
‘fundamentally flawed’ = AC + ETC
EAC
‘atypical’ = AC + BAC - EV
EAC
‘typical’ = AC + ((BAC - EV) / CPI)
ETC = EAC -
AC
ETC
‘atypical’ = BAC - EV
ETC
‘typical’ = (BAC - EV) / CPI
ETC
‘flawed’ = new estimate
Percent
Complete = EV / BAC * 100
VAC = BAC -
EAC
EV = %
complete * BAC
PERT
PERT
3-point = (Pessimistic+(4*Most Likely)+Optimistic)/6
PERT σ =
(Pessimistic - Optimistic) / 6
PERT Activity
Variance = ((Pessimistic - Optimistic) / 6)^2
PERT
Variance all activities = √sum((Pessimistic - Optimistic) / 6)^2
Network Diagram
Activity
Duration = EF - ES + 1 or Activity Duration = LF - LS + 1
Total Float
= LS - ES or Total Float = LF – EF
Free Float
= ES of Following - ES of Present - DUR of Present
EF = ES +
duration - 1
ES = EF of
predecessor + 1
LF = LS of
successor - 1
LS = LF -
duration + 1
Project Selection
PV = FV /
(1+r)^n
FV = PV *
(1+r)^n
NPV =
Formula not required. Select biggest number.
ROI =
Formula not required. Select biggest number.
IRR =
Formula not required. Select biggest number.
Payback
Period = Add up the projected cash inflow minus expenses until you reach the
initial investment.
BCR =
Benefit / Cost
CBR = Cost
/ Benefit
Opportunity
Cost = The value of the project not chosen.
Communications
Communication
Channels = n * (n-1) / 2
Probability
EMV =
Probability * Impact in currency
Procurement
PTA =
((Ceiling Price - Target Price) / Buyer's Share Ratio) + Target Cost
Depreciation
Straight-line
Depreciation:
Depr.
Expense = Asset Cost / Useful Life
Depr. Rate
= 100% / Useful Life
Double
Declining Balance Method:
Depr. Rate
= 2 * (100% / Useful Life)
Depr.
Expense = Depreciation Rate * Book Value at Beginning of Year
Book Value
= Book Value at beginning of year - Depreciation Expense
Sum-of-Years'
Digits Method:
Sum of
digits = Useful Life + (Useful Life - 1) + (Useful Life - 2) + etc.
Depr. rate
= fraction of years left and sum of the digits (i.e. 4/15th)
Mathematical Basics
Average
(Mean) = Sum of all members divided by the number of items.
Median =
Arrange values from lowest value to highest. Pick the middle one. If there is
an even number of values, calculate the mean of the two middle values.
Mode = Find
the value in a data set that occurs most often.
Values
1 sigma =
68.26%
2 sigma =
95.46%
3 sigma =
99.73%
6 sigma =
99.99%
Control
Limits = 3 sigma from mean
Control
Specifications = Defined by customer; looser than the control limits
Order of
Magnitude estimate = -25% to +75%
Preliminary
estimate = -15% to + 50%
Budget
estimate = -10% to +25%
Definitive
estimate = -5% to +10%
Final
estimate = 0%
Float on
the critical path = 0 days
Pareto
Diagram = 80/20
Time a PM
spends communicating = 90%
Crashing a
project = Crash least expensive tasks on critical path.
JIT
inventory = 0% (or very close to 0%.)
Minus 100 =
(100) or -100
Acronyms
AC = Actual
Cost
BAC = Budget
at Completion
BCR = Benefit
Cost Ratio
CBR = Cost
Benefit Ratio
CPI = Cost
Performance Index
CV = Cost
Variance
DUR = Duration
EAC = Estimate at Completion
EF = Early
Finish
EMV = Expected Monetary Value
ES = Early
Start
ETC = Estimate to Complete
EV = Earned
Value
FV
= Future
Value
IRR = Internal Rate of Return
LF = Late
Finish
LS = Late
Start
NPV = Net
Present Value
PERT = Program Evaluation and Review Technique
PTA = Point
of Total Assumption
PV = Planned
Value
PV = Present
Value
ROI = Return
on Investment
SPI = Schedule Performance Index
SV = Schedule
Variance
VAC = Variance at Completion
σ = Sigma /
Standard Deviation
^ = “To the
power of” (2^3 = 2*2*2 = 8)
