Attend our 100% Online & Self-Paced One-Hour Free PMP Training. Your PMP ® Exam Formula Study Guide consists of three documents: The Formula Guide, The Formula Pocket Guide, and The 105 Sample Questions. are for user reference and site content recognition as this site In the above scenario, the situation is that the contractor found marks and dents in the plywood to be used and need to change the entire plywood. Scenario: Supposedly, you are allocated a website project management work with the budget at $200,000. It covers activity duration,CV,SV,NPV,FV,PV,CPI,SPI,ETC,EAC,VAC,TCPI,activity float,sigma etc. It’s unlikely that you’ll have questions about this in the PMP exam. Another PMP formula you need to understand is that the number of communication channels can be calculated if we have the number of stakeholders. ROI formula = utile /capitale investito X 100 . The situation is that you found out that technical staff that is being used are much more expensive than you originally estimated. This is the planned cost required to complete the entire work or total project work. It is a project management technique for estimating how a project is doing in terms of its budget and schedule. This earned value formula calculates actual costs to date plus remaining budget. Forecasting: It is another tool and technique in Project Cost Management. BAC. - No Credit Card Required. www.PMP-Certification-Exam.com and TestTaker are not affiliated with or endorsed by PMI in any way. In other words, it is used to determine whether you are on target. Accordingly, its formula is as follows: CV=EV−AC. As mentioned above, Earned Value management helps the project manager to answer the 3 following questions related to the project: In Earned Value Management, there are three data sources related to the project: Earned Value takes these three data sources. Earn 60 PDUs Easily & Renew Your PMP, Don't Risk Your PMP Success - Enroll in PMP Exam Simulator, Earned Value Management & 12 Earned Value Formula for PMP, Attend our 100% Online & Self-Paced One-Hour, Best PMP Exam Prep – Clear the PMP® Exam in 1st Attempt, Project Management Professional (PMP) exam, https://www.youtube.com/watch?v=AHJ6KpqdOmU, https://www.youtube.com/watch?v=xEQKpzrlDqs, Always remember that EV comes first in each of the formulas of CV, SV, CPI, and SPI, If it is a variance then the formula is EV minus AC or PV, In case, it is a ratio then the formula is EV divided by PV or AC, And if formula relates to schedule, then use PV, For interpretation of variances: Positive is Good and Negative is Bad. Hence the project is delivering more value than its cost. Cost Performance Index (CPI): It is used to determine whether you are over or under the budget. PERT (P + 4M + O )/ 6 Pessimistic, Most Likely, Optimistic. Here you will ask your team to go to activity level, find the cost of each activity and sum them to get a new estimate to complete the remaining work i.e. The formula for calculating Return on Investment for a project is (note that the PMP® Exam does not require candidates to calculate ROI): Return on Investment = Net profit / Capital Invested Or the team is behind schedule though the cost is less spent on the project. In the above scenario, the situation is that you found out that technical staff that is being used is much more expensive than you originally estimated. www.PMP-Certification-Exam.com and TestTaker are not affiliated Here you could use atypical earned value formula i.e. To improve your experience, our website uses cookies. It is the revised estimated budget for the entire work. To learn more please. CPI is 0.67 which indicates that you are running over budget, SPI is 0.66 which means you are running behind schedule and AC is $9,000. Estimate to Complete defines how much more money you will probably spend on your project. This formula is used to calculate actual to date plus the remaining budget changed based on performance—used when we believe the current ratio is typical as planned. If CPI >1, that means EV > AC so you are under budget. In other words, once you know the PMP formulas, you can play with the formula to calculate the undefined value within the formula. With TestTaker, you will pass your PMP certification exam and IRR for Mutually Exclusive Projects. You have remained in right site to begin getting this info. Because your actual costs are less than the earned value. Another way to find ETC is to re-estimate the remaining work from bottom up. However, this technique doesn’t tell about the health of the project. In other words, earned value is about how much work you have been able to accomplish with the money you have been given. Generally, customer or senior management asks a very common question. Hence EAC =$9,000+ ($15,000-$6,000)/ (0.67*0.66) =$9000+ 20362=$29362. It is defined as the total budget you have been allocated for the project. invested. But in a large project with dozen of activities, some activities are on track, some activities are ahead of schedule and some of them are behind schedule. Here Typical of future means you have encountered a variance that is expected to recur and continue to affect the project. For interpretation of index of TCPI: Greater than 1 is Bad and Less than 1 is Good. Hence it will have schedule constraint and will impact CPI as well. If the variance is –ve, it tells you how many dollars you are behind the schedule. Then you need to factor the variance in the initial budget by adjusting budget based on variance from the remaining duration. That means how much you plan to spend on your project. ROI: la formula di calcolo. This formula is used in the above-described condition. certification exams, PMP practice exams, and PMP practice EV is calculated by multiplying the budget for an activity or work package by the percentage progress: The formula is Earned Value (EV) = Actual % Complete x Budget at completion (BAC). This contains 15 earned value formulas with the description which will help you for the best PMP exam prep. It is very crucial to understand in order to appear for the Project Management Professional (PMP) exam. Enroll in our Free Courses and access to valuable materials for FREE! company name are trademarks of the Project Management Institute. The reason is that a lot of numerical questions are based on the earned value formula in the PMP exam. Original Budget (BAC) is $15,000 and you have completed 40% of the work. Always remember for sponsor’s benefit, it is measured in dollars or any currency. You can also download the formulas by clicking this link: PMP formulas. You should have received an email from us already. Planned Value (PV) is defined as budgeted cost for work planned to be done. Earned value analysis is a critical tool and technique of Project Cost Management. You can easily calculate the Payback Period using Formula in the template provided. The graph describes the planned cost against the actual cost incurred. NEAT / Total Investment. Earned value management is a project management technique for measuring project performance and progress. TestTaker's PMP Certification exam content. (As calculated in cumulative CPI or based on trends that have led to current CPI). Variance ... ( ROI ) NEBT / Total Investment OR. Order Now The PMP ® Exam Formula Study Guide is a complete kit for learning the formulas that are tested during the Project Management Professional (PMP) ® Exam. Rather it is the value of work completed as per the original budget. The PMI logos displayed here are for user reference and site content recognition as this site pertains to exam preparation materials for the PMP Certification Exam which is a proctored exam offered by PMI. The idea behind the forecasting is that you can use earned value to come up with a pretty accurate prediction of what your project will look like at completion. any currency like dollars. Infatti l’impostazione della formula per il calcolo del ROI in Excel è abbordabile. PMP formula for Early Finish (EF) if the convention that project starts on day one is adopted. Let us send you links for our Free PMP Pack. In order to stay within budget, what rate must we meet for the remaining work? Schedule Performance Index (SPI): It is used to determine whether you are ahead of or behind the schedule. It is not the cost of work completed. When a project is ongoing, you must monitor the health of the project whether the project is on budget, on time and quality requirements are met. Hence EAC =BAC/CPI =$15,000/0.67 =$22,388. Exam which is a proctored exam offered by PMI. This PMP earned value formula divides the work remaining to be done by the money remaining to do it. PMP Formulas #5: Cost Performance Index (CPI) One of the most regarded of these tools is Earned Value Analysis. Read this PMP study plan and create your own best PMP exam prep plan accordingly. Generally, in a small project, figuring out if you are on track is easy. This is also known as BCWS. Related Processes To Complete Performance Index (TCPI) provides a forecast of the required performance level which must be achieved on the remaining work in order to meet the project financial goal. PMP Formulas #13: Number of Communication Channels Formula. You can attend our 99.6% first-attempt pass rate PMP training and learn all PMP exam content to clear the PMP exam in your 1st attempt. 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