Below is a collection of the formula useful for PMP prepraration
Time Management
Pert
| 1. PERT | (P + 4M + O )/ 6 Pessimistic, Most Likely, Optimistic |
| 2. Standard Deviation | (P – O) / 6
One standard deviation = 66% Two standard deviations = 95% Three Standard deviations = 99% |
| 3. Variance | [(P – O)/6 ]squared
|
Scheduling
| 1. Float or Slack | LS-ES and LF-EF |
Cost management
| 1. Cost Variance | EV – AC |
| 2. Schedule Variance | EV – PV |
| 3. Cost Perf. Index | EV / AC |
| 4. Sched. Perf. Index | EV / PV |
| 5. Est. At Completion (EAC) | BAC / CPI,
AC + ETC — Initial Estimates are flawed AC + BAC – EV — Future variance are Atypical AC + (BAC – EV) / CPI — Future Variance would be typical |
| 6. Est. To Complete
Percentage complete |
EAC – AC
EV/ BAC |
| 7. Var. At Completion | BAC – EAC |
| 8. To Complete Performance IndexTCPI | 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 ) |
| 13. Net Present Value | Bigger is better (NPV) |
| 14. Present Value PV | FV / (1 + r)^n |
| 15. Internal Rate of Return | Bigger is better (IRR) |
| 16. Benefit Cost Ratio | Bigger is better ((BCR or Benefit / Cost) revenue or payback VS. cost)
Or PV or Revenue / PV of Cost |
| 17. Payback Period | Less is better
Net Investment / Avg. Annual cash flow. |
| 18. BCWS | PV |
| 19. BCWP | EV |
| 20. ACWP | AC |
Estimating Cost
| 1. Order of Magnitude Estimate | -25% – +75% (-50 to +100% PMBOK) |
| 2. Budget Estimate | -10% – +25% |
| 3. Definitive Estimate | -5% – +10% |
Communications Planning
| 1. Comm. Channels | N(N -1)/2 |
Risk Management
| 1. Expected Monetary Value | Probability * Impact |
Procurement and Accounting
| . Point of Total Assumption (PTA) | ((Ceiling Price – Target Price)/buyer’s Share Ratio) + Target Cost |
| Return on Sales ( ROS ) |
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 |
| Return on Investment ( ROI ) | NEBT / Total Investment OR
NEAT / Total Investment |
| Working Capital | Current Assets – Current Liabilities |
| Discounted Cash Flow | Cash Flow X Discount Factor |
| Contract related formulas | Savings = Target Cost – Actual Cost
Bonus = Savings x Percentage Contract Cost = Bonus + Fees Total Cost = Actual Cost + Contract Cost |
