pmp formulas

pmp formulas

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

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.

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