Formulas

Question 1

What is the PERT estimate formula?

Answer 1

(O +4M + P)/6 Example: If Optimistic is 2, most likely is 4 and pessimistic is 12 days the formula would be [2+(4*4) +12]/6 = 30/6 = PERT estimate is 5 days

Question 2

What is the Free Float (FF) formula?

Answer 2

Free float is the Early Start (ES) of the successor activity minus the Early Finish (EF) of the activity you are calculating the Free Float (FF) for.

Question 3

What is the Total Float (TF) formula?

Answer 3

The total float (TF) formula is the Late Start (LS) - Early Start (ES) of the activity you are calculating the TF for.

Question 4

What is the Early Start (ES) formula?

Answer 4

Early Start formula is the maximum of all predecessor activities Early Finish (EF). Example: If Activity D is a successor of Activity B and Activity C, and Activity B has an EF of 12 Weeks and activity C has an EF of 6 weeks, the ES of Activity D would be 12. Since you can not start activity D until both B and C have finished.

Question 5

What is the Early Finish (EF) formula?

Answer 5

Early Finish (EF) = Early Start (ES) + T where T equals the time estimated to complete the activity. Example: Say Activity Zed has an early start date of 3 and an estimated time of 5, that would be 3 + 5 = 8, giving Activity Zed an EF of 8

Question 6

What is the Late Finish (LF) formula?

Answer 6

Late Finish (LF) = Is the minimum Late Start (LS) of all successor activities.

Question 7

What is the Late Start (LS) formula?

Answer 7

Late Start (LS) = Late Finish (LF) - T, where T equals the time estimated to complete the activity. Note that you start with the project’s LF which is the same as the projects EF which would be calculated in your forward pass through.

Question 8

What is the formula for Estimate at completion (EAC)?

Answer 8

Estimate At Completion(EAC) = Actual Cost (AC) + Estimate to Complete (ETC)

Question 9

What is Planned Value (PV)

Answer 9

Planned Value (PV) is the target cost and schedule

Question 10

What is Earned Value (EV)?

Answer 10

Earned Value (EV) is the actual schedule

Question 11

What is Actual Cost (AC)?

Answer 11

Actual Cost (AC) is the actual cost

Question 12

What are the Earned Value Management (EVM) metrics?

Answer 12

Planned Value (PV)
Earned Value (EV)
Actual Cost (AC)

Question 13

What is Budget at Completion (BAC)?

Answer 13

Budget at Completion (BAC) equals the project’s cost baseline. There is no formula for calculating it, thus it is not often listed as a EVM metric.

Question 14

What is Planned Value (PV)’s formula?

Answer 14

Planned Value (PV) = Planned%Complete x Budget at Completion (BAC)

Question 15

What is the Cost Variance (CV) formula?

Answer 15

Cost Variance (CV) = Earned Value (EV) - Actual Cost (AC)

Question 16

What is the Cost Performance Index (CPI) formula?

Answer 16

Cost Performance Index (CPI) = Earned Value (EV) / Actual Cost (AC)

Question 17

What is the Schedule Variance (SV) formula?

Answer 17

Schedule Variance (SV) = Earned Value (EV) - Planned Value (PV)

Question 18

What is the Schedule Performance Index (SPI) formula?

Answer 18

Scheduled Performance Index (SPI) = Earned Value (EV) / Planned Value (PV)

Question 19

What is the Bottom - Up formula for recalculating the estimate of the remaining work?

Answer 19

Estimate At Completion (EAC) = Actual Cost (AC) + Estimate to Complete (ETC) (Where ETC = the sum of all remaining activities)

Question 20

What is the budgeted rate formula?

Answer 20

Estimate At Completion (EAC) = Actual Cost (AC) + (Budget At Completion ((BAC)) - Earned Value ((EV))) Since Estimate to Complete (ETC) = Budget At Completion(BAC) - Earned Value (EV)

Question 21

What is the Cost Performance Index (CPI) formula?

Answer 21

Estimate at Completion (EAC) = Budget at Completion (BAC) / Cost Index Performance (CPI)

Question 22

What is the formula for Cost Performance Index (CPI) and Schedule Performance Index (SPI) to factor in Cost Variance (CV) and Schedule Variance (SV)?

Answer 22

Estimate at Completion (EAC) = Actual Cost (AC) + (Budget at Completion ((BAC)) - Earned Value ((EV))/ Cost Performance Index ((CPI)) x Schedule performance index ((SPI)))

Question 23

What is the Variance at Completion (VAC) formula?

Answer 23

Variance at Completion (VAC) = Budget at Completion (BAC) - Estimate At Completion (EAC) ((Using any of the formulas for calculating EAC is acceptable))