PMP Exam_Cost Management Formulas

# PMP Exam_Cost Management Formulas - Formulas Expected Value...

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Formulas Expected Value Present Value Probability * Impact FV / (1 + r) t Cost Variance CV EV = BAC * (work completed/total work required) EV AC (BCWP ACWP) V ariance = planned actual Schedule Variance SV PV = BAC *(Total time passed /total schedule time) EV PV [BCWP BCWS] (if <0; work completed is less than what was planned) Cost Performance Index (CPI) EV/AC [BCWP / ACWP] I am getting ____ out of each dollar. (>1 good; <1 bad) Schedule Performance Index (SPI) EV/PV [BCWP / BCWS] I am progressing at ____% of the rate originally planned Estimate at Completion (EAC) BAC / CPI AC+ETC (when original estimates are considered flawed) AC+BAC-EV (when everything is OK and current variance will not occur in the future) AC+((BAC-EV)/CPI) (when everything is OK and current variance will occur in the future) Estimate to Completion (ETC) EAC AC or (BAC EV) / CPI Variance at Completion (VAC) BAC EAC % Spent AC/BAC Cost Variance in % CV/EV Schedule Variance in % SV/PV To Complete (BAC-EV)/(BAC

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Unformatted text preview: Formulas Performance Index (TCPI) BCWS (PV) How much should be done? This is the performance measurement baseline . BCWP (EV) How much work is done? (Progress) Budgeted cost of work performed. Value of the work completed in terms of what you budgeted (your baseline) ACWP (AC) How much did the “is done” work cost? BAC Budget at Completion – How much is budgeted for the total job? BAC would change every time there is a funded scope change approved for activity to be performed in the future. EAC Based on project performance and risk quantification ETC Estimate to Completion CPI Cumulative CPI does not change by more than 10% once a project is approximately 20% complete. The CPI provides a quick statistical forecast of final project costs. AD Work Quantity(scope of the activity) / Production rate Slope (crash cost – normal cost) / (crash time – normal time) ; if <0, as the time required for a project/task decrease, the cost increase...
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