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Term Formula DescriptionBCWP Budgeted of cost of work performed = Earned valueBCWS Budgeted of cost of work scheduled = Planned valueACWP Actual cost of work performed = Actual cost

n(n -1) /2 n = number of stakeholders

PERT (O + 4ML + P)/6 ML - Most likely

P - O / 6 Pessimistic - Optimistic

(O + ML + P) /3

CV + AC, SV + PVActual cost Earned value - cost variance

EV - PV Negative - Behind / Positive - AheadEV - AC Negative - Over / Positive - Under

SPI EV / PV < 1 = less work completed than planned, > 1 = more work comp.CPI EV / AC < 1 = cost underrun, > 1 = cost overrunCPI BAC / EACTCPI BAC - EV/BAC- AC To complete perf indx - in terms of BAC

TCPI BAC - EV/ EAC - AC

VAC BAC - EAC variance at completionETC EAC- AC estimate to completeBAC EAC*CPI Budget at completionEAC AC + ETC Original estimating assumptions no longer valid

AC+BAC-EV

AC + (BAC- EV) / (CPI*SPI) EAC taking into account SPI and CPI

EV/BAC x 100

FV = future value, n = time, r = disc rate

PV income - PV costs

Benefit/cost

PV income /PV costs

Probability x impact

work quantity/prod rate

Project Float Target days - Critical path Critical path is always the longest path: you cant have float on critical path.Cost performance baseline is also known as performance measurement baseline

Planned value is also referred to as performance measurement baselineTotal Planned value also known as BAC

Total cost variance at the end of a project can also be reflected as BAC - AC

Comm channels

Standard deviation

3 point estimates

Earned Value

Cost variance + Actual Cost, Schedule variance + Planned value/ EV cannot be greater than PV

Schedule varianceCost variance

Cost perf indx - in terms of BAC and EAC

To complete perf indx - in terms of EAC. Used when its obvious that BAC is no longer viable.

Current variances are atypical - similar wont occur in the future - you are going to make it!

AC + (BAC- EV/CPI) or BAC/CPI

Estimates are typical of what has been seen and will continue.continue with the same type of variance that you’ve experienced to date

Percentage CompletePresent value of money FV/ (n + r/100)ⁿ

Net present value

Benefit to cost ratio

Opportunity cost

cost of passing up the next best option. Ignore sunk costs if using opp cost as proj selection.

Benefit to cost ratioExpected monetary value

Activity duration

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1+2 + 3 + 4 + 5 + 6 + 7 + 8 + 9+10 = 55First year use 10/55; second year use 9/55, and so on.

NPV and IRR will generally bring you to the same accept/reject decision

When it is used

EAC

EAC = AC + BAC - EV

SPI

investment. Project A’s original investment equals the present value of its cash inflows at a discount rate of eight percent. Therefore, Project A has the highest IRR and should be chosen above the other twoSum of the years' digits is an accelerated depreciation method. Each year of the useful life of the asset is given a sequential number; the numbers are summed and used as the denominator for a fraction of the asset's book value to be taken each year as depreciation. The numerator of the fraction for each year is the reverse of the years' sequence numbers.

PV= Present Value, FV= Full/Original Value, I=Interest(not in %), n = Number of years.. FORMULAE PV = FV / (1 + i)n

Cost Baseline = Project Cost estimates + Contingency ReserveCost Budget = Cost Baseline + Management Reserve

project budget = mgmt reserve + Cost baseline = control accounts = work package estimate + contingency reserve = activity cost estimate + activity contingency reserve

Formula                                                                                

EAC = AC + bottom-up ETC

When you want to forecast EAC based on the project manager's bottom-up ETC.

When variances are not expected to occur for the remainder of the project, so the costs of future work are estimated to be the same as the budgeted costs.

EAC = BAC ÷ cumulative CPI

When you want to take the cost performance of a project into account and assume its current cost performance level won't change for the remainder of the project.

EAC = AC + [(BAC – EV) ÷ (cumulative CPI × cumulative SPI)]

When you want to take both the schedule and cost performance of the project into account, and the project schedule is a factor likely to impact the ETC.

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current project cost benefits$255,000 2,880,000 352,000

130,000 1,827,300 124,00084,000 106,750 68,000

780,000 600,000 44,000$1,249,000 5,414,050 2940000

400000 900000100000 400000200000 240000100000 800000300000134400

1234400 2460000