This document provides a cheat sheet of formulas useful for project management. It lists 34 formulas across various project management domains including project selection methods, duration estimation, cost performance estimation, overall project cost estimation, procurement management, and communication management. The formulas cover topics such as net present value, internal rate of return, benefit-cost ratio, payback period, cost variance, schedule performance index, estimated cost at completion, and return on investment. The document was created by Ahmad Al-Musallami and last updated on January 28, 2015.
This document provides a cheat sheet of formulas useful for project management. It lists 34 formulas across various project management domains including project selection methods, duration estimation, cost performance estimation, overall project cost estimation, procurement management, and communication management. The formulas cover topics such as net present value, internal rate of return, benefit-cost ratio, payback period, cost variance, schedule performance index, estimated cost at completion, and return on investment. The document was created by Ahmad Al-Musallami and last updated on January 28, 2015.
Project Selection Methods 1. Net Present Value Bigger is better (NPV) 2. Present Value PV FV / (1 + r) n 3. Internal Rate of Return Bigger is better (IRR) Bigger is better ((BCR or Benefit / Cost) revenue or payback 4. Benefit Cost Ratio VS. cost) Or PV or Revenue / PV of Cost Less is better 5. Payback Period Net Investment / Avg. Annual cash flow. Duration Estimation Methods 6. Estimated Time (P + 4M + O )/ 6 Pessimistic, Most Likely, Optimistic Three points est. PERT 7. Standard Deviation (P - O) / 6 8. Variance [(P - O)/6 ]squared 9. Float or Slack LS-ES and LF-EF Cost Performance Estimation Methods 10. Cost Variance EV - AC 11. Schedule Variance EV - PV 12. Cost Perf. Index EV / AC 13. Sched. Perf. Index EV / PV BAC / CPI AC + ETC -- Initial Estimates are flawed 14. Est. At Completion (EAC) AC + BAC - EV -- Future variance are Atypical AC + (BAC - EV) / CPI -- Future Variance would be typical 15. Est. To Complete (ETC) EAC - AC 16. Percentage complete % EV/ BAC 17. Var. At Completion (VAC) BAC - EAC Values for the TCPI index of less than 1.0 is good because it 18. To Complete indicates the efficiency to complete is less than planned. Performance Index How efficient must the project team be to complete the TCPI remaining work with the remaining money? TCPI = ( BAC - EV ) / ( BAC - AC ) 19. BCWS PV Old EVA 20. BCWP EV names: 21. ACWP AC Overall Project Cost Estimation Methods 22. Order of Magnitude -25% - +75% (-50 to +100% PMBOK) Estimate 23. Budget Estimate -0.35 24. Definitive Estimate -0.15 Communication Management 25. Comm. Channels N(N -1)/2 Cost Management 26. Expected Monetary Value Probability * Impact 27. Point of Total Assumption ((Ceiling Price - Target Price)/buyer's Share Ratio) + Target (PTA) Cost · 1ó = 68.27% 28. Sigma · 2ó = 95.45% · 3ó = 99.73% Net Income Before Taxes (NEBT) / Total Sales OR 29. Return on Sales ( ROS ) Net Income After Taxes ( NEAT ) / Total Sales NEBT / Total Assets OR 30. Return on Assets( ROA ) NEAT / Total Assets 31. Return on Investment ( NEBT / Total Investment OR ROI ) NEAT / Total Investment 32. Working Capital Current Assets - Current Liabilities 33. Discounted Cash Flow Cash Flow X Discount Factor Procurement Management Savings = Target Cost – Actual Cost
Bonus = Savings x Percentage
34. Contract related formulas Contract Cost = Bonus + Fees
The Complete Project Management Exam Checklist: 500 Practical Questions & Answers for Exam Preparation and Professional Certification: 500 Practical Questions & Answers for Exam Preparation and Professional Certification