Project  Management Guidance - PMP    

PMP Important formulas which required to remember

1. PV (Planned Value) = BAC * (% of planned work), Where BAC is Budget at completion

2. EV (Earned Value) = BAC*(% of Completed work)

3. Schedule variance(SV) = EV-PV

4. Cost Variance(CV) = EV- AC Where AC is Actual Cost, Incurred to perform completed work

5. Schedule Performance Index (SPI) = EV/PV

6. Cost Performance Index (CPI) = EV/AC

7.Since Changes in the projects are inevitable, BAC may become vary during project execution. To forcast the budget at the time of completion,

ie, EAC (Estimate at Completion), EAC = AC+(BAC-EV), provided, Work performed at the budgeted rate.

It means, Estimate to complete the remaining work, performed at the budgeted rate. Assumption is current performance is not upto the level or favorable, it does not mater, but future performance will be improved and performed at the budgeted rate..

8. EAC= BAC/ CPI -> If Cost performance is same as in future

  Bala Manick