next level PMP Exam Preparation Formula Guide for the PMP Exam

Transcription

1 next Formula Guide for the PMP Exam January 2017

2 n e x t l e v e l Page 1 What s Included: 1. Earned Value Formulas 2. Formulas 3. Float Formulas 4. Project Selection Formulas 5. Additional Formulas to Know Expected Monetary Value (EMV) Point of Total Assumption (PTA) Communication Channels 6. Facts & Figures to Know 7. Tips for Using Formulas on the Exam 1 Earned Value Formulas CV (Cost Variance) EV - AC SV (Schedule Variance) EV - PV CPI (Cost Performance Index) EV / AC SPI (Schedule Performance Index) EV / PV < 1 below budget or schedule = 1 on budget or schedule > 1 exceeds budget or schedule

3 Page 2 1 Earned Value Formulas When project perfomance is expected to continue without deviation. When original estimate proves to be incorrect. The New ETC in this fomula is a bottom-up re-estimation of the work needing to be completed. When performance needs to be taken into account for remaining budget. BAC CPI AC + New ETC BAC - EV CPI x SPI When a one-time variance occurs. AC + (BAC - EV) ETC (Estimate to Completion) EAC - AC VAC (Variance at Completion) TCPI (To Complete Performance Index) (when you are under budget, using BAC) TCPI (To Complete Performance Index) (when you are over budget, using EAC) BAC - EAC (BAC - EV) (BAC - AC) (BAC - EV) (EAC - AC) < 1 below budget = 1 on budget > 1 exceeds budget < 1 below budget = 1 on budget > 1 exceeds budget < 1 below budget = 1 on budget > 1 exceeds budget EV (Earned Value) Percent complete x BAC

4 Page 3 2 (Program Evaluation & Review Technique) Formulas Weighted/beta distribution Signular/triangular distribution Standard deviation Variance P + 4M + O 6 P + M + O 3 P - O 6 (P - O) Float Formulas Total Float Note: This value will equal zero when an activity is on the critical path. Early Start (ES) = Earliest an activity can start given the constraints of the schedule. Early Finish (EF) = Earliest an activity can finish given the constraints of the schedule. Late Start (LS) - Early Start (ES) OR Late Finish (LF) - Early Finish (EF) Late Start (LS) = Latest an activity can start without effecting the early finish of the project. Late Finish (LF) = The latest an activity can finish without effecting the late finish of the project.

5 Page 4 4 Project Selection Formulas PV (Present Value) FV (Future Value) FV (1 + r) n PV (1 + r) n FV = future value r = interest rate n = number of time periods PV = present value r = interest rate n = number of time periods NPV (Net Present Value) Present value assets - Present value of costs IRR (Internal Rate of Return) Interest rate at which the net present value of all the cash flows (positive & negative) from a project equal zero Benfit Cost Ratio (BCR) Cost Benefit Ratio (CBR) Working Capital ROS (Return on Sales) Benfit / Cost Cost / Benefit Current assets - current liability Net income before tax Revenue

6 Page 5 5 Additional Formulas to Know EMV (Expected Monetary Value) Probability x Impact PTA (Point of Total Assumption) Ceiling Price (CP) - Targe Price (TP) Buyer s Share Ratio Target + Cost (TC) Communication Channels (N 2 - N) N = number of people 2 6 Facts & Figures to Know Estimates Rough Order of Magnitude (ROM) -25% to +75% Budget Estimate -10% to +25% Definitive Estimate -5% to +10% Standard Deviations 1 Sigma 68.27% 2 Sigma 95.45% 3 Sigma 99.73% 6 Sigma 99.99%

7 Page 6 7 Tips for Using Formulas on the Exam In addition to these s you may also need to perform basic calculations such as finding values for the mean (average), median (middle of a set of numbers) and mode (the most frequest of a set of numbers). Doing a brain-dump (writing out all s on a page) before the exam can help save time during the test. You ll be able to quickly refer to the set of s you need instead of racking your brain each time one is needed. Some question on the exam may require you to use multiple s or to solve for one value to plug into a different. As you read a question, it can help to write out the values that you are given in order to compare them with your brain-dump and identify which may be appropriate. Some exam question may also give extra information - watch out! Just because an exam question lists all of the values pertaining to a certain does not necessary mean that is the correct one to use. Beyond simply memorizing these s, refer to the PMBOK Guide for in-depth explanations to gain a greater understanding of how these s may be used on the exam. Be prepared for more than just the s. Visit for more tools to prepare for your PMP Exam. We make it easy to get the tools you need: PDF Study Guides Flashcards Books & more... Disclaimer PMI, PMP, and PMBOK are trademarks of the Project Management Institute, Inc. PMI has not participated in the the creation of this document nor does it endorse its content. The use of this document or any of Next Level Project Management s materials does not guarantee that the user will pass the PMP certification exam and no statements, direct or indirect, are expressed as such. Next Level Project Management disclaims any liability in connection with the use of this information. Copyright 2017 Next Level Project Management