1st "E" in E4PO = Earned Value Analysis (EVA)
Mike C. Elliot, M.A., PMP
Senior Operations Manager | Program Management | Passionate Collaborator | Excellent Communicator | Team Focused | Navy Veteran
My apologies on the delay to following up on my August 10, 2019 'E4PO' article (link at the bottom of the page). This is the first of six short articles containing the PMP formulas that I memorized during my PMP studies.
The 1st ‘E’ in E4PO stands for Earned Value Analysis (EVA) because EVA has the most formulas of all the six groups of formulas, and the EVA formulas are arguably the most important (aka #1) group of PMP formulas. Below are the EVA formulas that I memorized for my exam, most are contained with the PMBOK, and a few are not.
AC = Actual Cost
BAC = Budget at Completion
EAC = Estimate at Completion
Present Value (PV) = BAC * % Planned Work
Earned Value (EV) = BAC * % Actual Work
Schedule Performance Index (SPI) = EV / PV or ES / AT
Note 1: If SPI < 1, than project will be behind schedule ( = BAD)
Note 2: If SPI > 1, than project will be ahead of schedule ( = GOOD)
Note 3: If SPI =1, than project will complete on schedule
Schedule Variance (SV) = EV - PV or ES - AT
Schedule Variance Percent (SV%) = (SV / PV) * 100 or (ES / AT) * 100
Cost Performance Index (CPI) = EV / AC
Note 1: If CPI < 1, than project will be over budget ( = BAD)
Note 2: If CPI > 1, than project will be under budget ( = GOOD)
Note 3: If SPI =1, than project will complete on budget
Cost Variance (CV) = EV - AC
Cost Variance Percent (CV%) = No Formula
Variance at Completion (VAC) = BAC - EAC
Variance at Completion Percent (VAC%) = (VAC - BAC) * 100
Estimate to Complete (ETC) = EAC - AC
Estimate at Completion (EAC) = AC + (BAC - EV) ... Note: Use formula to calculate EAC if future work will be accomplished at the planned rate
= AC + (BAC - EV) / (CPI * SPI) ... Note: Use formula to calculate EAC if CPI and SPI will influence future work
= AC + Bottom Up ETC ... Note: Use formula to calculate EAC if the initial project plan is no longer valid
= BAC / CPI ... Note: Use formula to calculate EAC if CPI is expected to be the same
To Complete Performance Index (TCPI) = (BAC - EV) / (BAC - AC) ... Note: Use this TCPI formula if the project will stay within BAC
= (BAC - EV) / (EAC - AC) ... Note: Use this TCPI formula if the project will stay within EAC
Note 1: If TCPI > 1, than project is easier to stay within budget ( = GOOD)
Note 2: If TCPI < 1, than project is more difficult to stay within budget ( = BAD)
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E4PO (Part 1): Aide for helping your PMP "Formula Brain Dump"
https://www.dhirubhai.net/pulse/e4po-part-1-aide-helping-your-pmp-formula-brain-dump-michael/
PMP Certification: 7 Lessons Learned
https://www.dhirubhai.net/pulse/pmp-certification-my-seven-key-lessons-michael/
Seasoned mentor and veteran looking for new opportunities
5 年Mike, Great information here!? And I completely agree with your assessment that these are the most important formulas to memorize.? I had numerous questions on the test covering these formulas (5 or 6 if I remember correctly).? So I definitely think that it is 100% true fact that test-takers will see these again on the exam.? The writing is on the wall future PMPs: know these like the back of your hand!