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SridharPeddisetty'sSpace
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SridharPeddisetty

MyNotesonPMP(Formulas)
FollowingaretheFormulasIconsolidatedforPMPpreparation
EarnedValueAnalysis
PV(PlannedValue)=BCWS(BudgetedCostofWorkSchedule)
EV(EarnedValue)=BCWP(BudgetedCostofWorkPerformed)
AC(ActualCost)=ACWP(ActualCostofWorkPerformed)
CV=EVAC
SV=EVPV
CPI=EV/AC
SPI=EV/PV
ETC=BACEV[FutureVariancesareAtypicalorNotConsistentorDisimilar]
ETC=(BACEV)/CPI[FutureVariancesareTypicalorConsistentorsimilar]
EAC=BAC/CPI[simplestformula:typicalornovariances]
EAC=AC+ETC[InitialEstimatesareflawed]
EAC=AC+BACEV[FuturevariancesareAtypicalorNotConsistentorDisimilar]
EAC=AC+BACEV/CPI[FutureVariancesareTypicalorConsistentorsimilar]
VAC=BACEAC

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%COMPLETE=EV/BACx100
%SPENT=AC/BACx100
CV%=CV/EVx100
SV%=SV/PVx100
FloatorSlack
LSESandLFEF
MEAN>Average
MODE>Themostfoundnumber
RANGE>LargestSmallestMeasure.
MEDIUM>Nointhemiddleoravg.of2middleNos
PERT=O+4ML+P/6
STD.DEV.OFTASK=PO/6
TASKVAR.=[(PO)/6]squared=Std.Dev^2
CPSTD.DEV.=++

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SIGMA
1=68.26
2=95.46
3=99.73
6=99.99

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ImplementingAgileinanyOrgrequires

ChannelsofCommunication(Nx(N1))/2
ProjectSelection
PV=FV/(1+r)(or)FV=PVx(1+r)
CashFlow=CashInflowCashOutflow
DiscountedCashFlow=CFxDiscountFactor
ARR=SCashFlow/No.ofYears
ROI=(ARR/Investment)*100%Biggerisbetter
BCR=Benefits/Cost

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BenefitCostRatio(BCR)Biggerisbetter
((BCRorBenefit/Cost)
RevenueorPaybackVS.cost)OrPVorRevenue/PVofCost
NetPresentValue(NPV)=NetPresentValueBiggerisbetter
InternalRateofReturn(IRR)Biggerisbetter
PaybackPeriodLessisbetterNetInvestment/Avg.Annualcashflow

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Exp.Value=Probability%xConsequence$
ClassofEstimates
Definitive+5%
CapitalCost+1015%
Appropriation+1525%
Feasibility+2535%
OrderofMagnitude>+35%(5075%)

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ContractIncentives
Savings=TargetCostActualCost
Bonus=SavingsxPercentage
ContractCost=Bonus+Fees
TotalCost=ActualCost+ContractCost
ExpectedMonetaryValueProbability*Impact
PointofTotalAssumption(PTA)((CeilingPriceTargetPrice)/buyer'sShareRatio)+
TargetCost
ToCompletePerformanceIndex[TCPI]
ValuesfortheTCPIindexoflessthen1.0isgoodbecauseitindicatestheefficiencyto
completeislessthanplanned.Howefficientmusttheprojectteambetocompletethe
remainingworkwiththeremainingmoney?
(BACEV)/(BACAC)
CostofQuality(CoQ)=
((ReviewEfforts+TestEfforts+TrainingEfforts+ReworkEfforts+Effortsof
Prevention)/Totalefforts)x100%
PostedbySridharPeddisettyat9:53PM
Labels:EarnedValueAnalysis,PMBOK,PMI,PMP,PMPCertification,PMPFormulas,
Project,ProjectManagement,ProjectManagementProfessional,ProjectManager

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Yasmeen sheikh 2 months ago - Shared publicly

Excellent
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3 years ago

better clarication I would put the following formula as below: PERT = (O + 4ML
For
+ P) / 6 STD. DEV. OF TASK = (P O) / 6

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Vidya Rajamani 3 years ago

Sridhar, a friend of mine told me about your website..Are the formulas mentioned
Hi
here holds good for the new PMP format too or has something changed in the new
format..I have just started my preparation for my PMP and plan to take it in 8 to 10
weeks..Any help you can provide on this is appreciated.. Vidya

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Sridhar Peddisetty 3 years ago

Vidya, Formulas still hold good as this is how various EVM's are calculated and
would remain the same no matter which version of PMBOK comes. All the very
best for your PMP

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Sridhar Peddisetty 4 years ago

You are welcome Shakeel and all the very best for your exam.

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4 years ago

Thanks
for sharing..I have exam tomorrow, and your list of formula is great for last
minute quick look. / Shakeel

SanFrancisco,California
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Sridhar Peddisetty 4 years ago

I would say its correct. I have shared the same under
http://sridharpeddisetty.blogspot.com/2008/05/my-notes-on-pmp.html Refer points
# 33 & also refer my comment to one of the queries. For your perusal the response
was ------------ agree that ROM estimate is mentioned differently at PMBOK and other
places.
ROM
estimates
Read
more
(13
lines) are between -50% to +100% of actual; later estimates are

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4 years ago

Sridhar:
could you please clarify what are the right % range for different estimates:
As per PMBOK Order of Magnitude would be -50 to +50% and other estimates are
not given in PMBOK but PMP exam does ask about other estimates. As per one of
the sources I have got below: Order of Magnitude estimate -25% to +75%
Preliminary estimate -15% to + 50% Budget estimate -10% to +25% Denitive
estimate -5% to +10% Final estimate 0% Is it correct ?

4 years ago

you have indicated that bonus = savings * % . what % is it seller's or buyers. Also
Hi
how to determine the nal price of the contract.I have seen some questions like how
much will the seller make for the contract. Do you have any examples on how to
solve such type of quetsions.Your help will be very much appreciated. Thanks,
Lalitha

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4 years ago

Thanks for providing feedback on PMP Exam formulas. My exam is scheduled in

Hi,
the next few days. I am sure, this will help me in preparing for formula questions -Bhupinder Singh

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