Praizion Media PMP Student’s Cheat Sheet | DO NOT DISTRIBUTE

Web: www.praizion.com Email: info@praizion.com

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PRAIZION MEDIA PMP EXAM STUDENT’S CHEAT SHEET

(NOT TO BE REDISTRIBUTED.) FV = PV (1 + i)

n

PV = FV / (1 + i)n

Where: FV = Future Value or the net cash flow at time “n”, PV = Present Value

i = interest rate also called rate of return; n = number of time periods or time of the cash flow

Net Present Value (NPV): NPV = PVbenefits – PVcosts or NPV = PVCash Inflows – PVCashOutflows

NPV>0 accept the project, NPV<0 reject the project, NPV=0 (neutrality)

Benefit Cost Ratio: Compares benefits (or revenue) to costs in a project.

BCR > 1; benefits are greater than costs, BCR < 1; costs are greater than benefits

BCR = 1; costs and benefits are the same

Payback Period: Shorter Payback Period: select project, Longer Payback Period: reject project

Total Slack (or Float) = LS – ES or Slack (or Float) = LF – EF

Total Slack is the length of time that the start of an activity can be delayed without delaying the finish date of the

project. Total slack may be positive or negative.

Free Slack: The amount of time an activity can be delayed before delaying the start of a successor activity.

Free Slack = ES of successor - EF of predecessor

Project Slack: The amount of time a project can be delayed without affecting the required due date of the project.

Three Point Estimates:

TE = (TP + 4TM + TO)

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Expected duration of the activity equals the sum of (pessimistic time + 4 times

the most likely time + optimistic time) divided by 6.

CE = (CP + 4CM + CO)

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Expected cost of the activity equals the sum of (pessimistic cost + 4 times the

most likely cost + optimistic cost) divided by 6.

Standard Deviation and Variance Standard Deviation = (P – O) ÷ 6 , Variance = [(P – O) ÷ 6]

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Earned Value Management: Earned Value (EV) or BCWP = %complete x PV or %complete x BAC

Planned Value (PV) or BCWS

Actual Cost (AC) or ACWP

Formulas:

EV = PV x %Complete

Use when BAC is given

Use when the PV at the end of the project is given. Multiply

by the %Complete for the same time period; the resulting EV

will be for the same time period also

PV = Planned Value, BAC = Budget at Completion %Complete is the percentage of work complete as of the time

period in question. BAC = Total PV or BAC = Total BCWS

SV Formula: SV = EV – PV or SV = BCWP – BCWS

If SV is: This means:

Positive Work is on schedule or ahead of schedule

Negative Work is behind schedule

Equal to zero Project or activity is complete (even for late activities, SV will equal 0 when completed)

2 Praizion Media PMP Student’s Cheat Sheet | DO NOT DISTRIBUTE

Web: www.praizion.com Email: info@praizion.com

CV Formula: CV = EV – AC or CV = BCWP – ACWP

*Note: EV is also referred to as BCWP and AC is also referred to as ACWP

If CV is: This means:

Positive Cost is less than budget - work is under budget

Negative Cost is more than budget - work is over budget

Zero Cost and budget are equal. Work is on budget

SPI Formula: SPI = EV ÷ PV or SPI = BCWP ÷ BCWS

If SPI is: This means:

Greater than 1 Project is ahead of schedule - good performance.

Less than 1 Project is behind schedule - bad performance.

Equal to 1 Project is on target

CPI Formula: CPI = EV ÷ AC or CPI = BCWP ÷ ACWP

If CPI is: This means:

Greater than 1 Cost is lower than budget - good performance.

Less than 1 Cost is higher than budget - bad performance.

Equal to 1 Project is on target

Estimate to Complete Formula: ETC = EAC - AC

ETC = BAC – EV Use when current variances are atypical

ETC = EAC – AC Use when EAC and AC values are available

Estimate at Completion (EAC) – Note where cumulative values (CPIc and SPI

c are used)

EAC formula: Use when:

EAC = AC + ETC AC and ETC are available

EAC = AC + BAC – EV Current variances are not typical

EAC = AC + [ (BAC – EV) ÷ (CPI

x SPI )] Current variances are typical; considering both CPI

c and SPI

c factors.

EAC = BAC ÷ CPIc Current CPI

c is expected to remain the same in future

Variance at Completion (VAC) Formula: VAC = BAC – EAC

If VAC is This means:

Positive Project is under budget

Negative Project is over budget

To-Complete Performance Index (TCPI)

TCPI = Work Remaining = (BAC - EV) ÷ (BAC - AC) based on BAC or (BAC - EV) ÷ (EAC – AC) based on EAC

Funds Remaining

Communications Requirements Analysis : Number of communication channels = n (n-1)/2

Expected Monetary Value (EMV)

Formula: EMV = (P1 x I1) + (P2 x I2) + …. + (P n x I n)

Where: P = Probability (i.e., the probability that the risk will occur, P), I = Impact (i.e., the impact on the project if the risk occurs), (P1 x I1) = probability x impact of 1

st possible outcome for event

(P n x I n) = probability x impact of the nth

possible outcome for event

Process Groups Mnemonic

I PREFER EXTRA MONEY CASH

Project Management Knowledge Areas Mnemonic

IS TOTAL COST QUITE HIGH? CHECK REAL PRICE