# pmp formulas

pmp formulas

### Here is list for pmp formulas.

 PERT = (P+4M+O)/6 P = Pessimistic M= Most Likely O= Optimistic Standard deviation = (P-O)/6 Variance = {(P-O)}/6 Project PERT = Sum of PERT value of each task Project Variance = Sum of variance of each task Normal distribution (sigma) 6 sigma = 99.99% 3 sigma = 99.73% 2 sigma = 95.46% 1 sigma = 68.26% No of communication channel = N*(N-1)/2 Here N is number of member in project team If team have 10 member then =10 *(10-1)/2 =>10*9/2=>45 Communication channel Float = LF – EF = LS- ES LF = Late finish EF = Early finish LS = Late start ES = Early start Float value is 0(zero) on critical path. Schedule variance (SV) = EV-PV     (Positive variance is good) EV = Earned value     PV=Planned value Cost Variance (CV) = EV- AC    (Positive variance is good EV = Earned value     AC= Actual cost Cost performance index (CPI) = EV/AC (>1 are good) Schedule performance index (SPI) = EV/PV (>1 are good) Estimate at complication  (EAC) = 1.       Estimating assumptions are not  valid = AC+ETC 2.       Current variance are atypical = AC+BAC-EV 3.       Current variance are Typical =AC+(BAC-EV)/CPI 4.       Variance to continue at current rate = BAC/CPI 5.       EAC = AC + [(BAC -EV)/(CPI*SPI)] Estimate to complete (ETC)  = EAC-AC Variance at complete (VAC) = BAC-EAC TCPI = 1.       TO Complete performance index based on BAC= (BAC-EV)/(BAC-AC) 2.       To complete performance index based on EAC= (BAC-EV)/(EAC-AC) Percentage complete of budget=(EV/BAC)* 100 Benefit Cost Ratio (BCR) = Payback/project cost Bigger is better Net present value (NPV) bigger is better Internal Rate of Return (IRR) bigger is better Present Value PV=  FV / ((1 + r)^term) Expected Monetary Value = Probability * Impact Procurement related Actual cost (AF) ={(TC-AC)*SSR}+TF TC = target cost AC = actual cost SSR= Sellers share ration TF= target fee

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Author: Gulab Chand Tejwani

Gulab has done his MBA in Information Technology. He is PMI's PMP certified and Microsoft certified Trainer. He loves to read technical and management books surfing internet and learn new technologies.