What are the PMP® Formulas and Earned Value Formulas for PMP® exam?

Visit: https://blog.masterofproject.com/pmp-... for more details --- Do you know that around 10% of the PMP exam questions are related to math formulas? In order to pass the PMP exam in your first attempt, you must guarantee to answer PMP formula related questions correctly. “What Are the PMP Formulas and Earned Value Formulas for PMP Exam?” We use PMP formulas in various project planning activities. These include but are not limited to resource management, cost management and schedule estimation. We also use them in risk estimation activities like EMV (earned value management), in addition to monitor and control activities. The percentage of questions which are based on PMP formulas range from 5% to 10%. This means there are around 10 to 20 questions, so it seems like a pretty small portion, right?! Then you need to rethink your exam strategy! Although the number seems small, PMP formulas are quick wins, because PMP formulas-based questions vary from direct to complex. What are the 15 PMP Formulas You Must Know? We can categorize PMP formulas under two headings: A- ) Critical Path Method (CPM) Related PMP Formulas B- ) Earned Value Management (EVM) PMP Formulas Let’s go over them one-by-one and learn the details of each PMP formula. A- ) Critical Path Method (CPM) related PMP formulas The first set of PMP formulas we will provide are related to Critical path method. PMP Formula #1: PERT Distribution There are two types of this PERT distribution: triangular and beta. PERT Triangular Distribution It’s one of the most important PMP formulas and we use it to calculate duration, cost and resource estimates. To calculate Estimated Activity Duration (EAD), you need to determine the activity Optimistic (O), Most Likely (M) and Pessimistic (P) estimates first. Then you can use PERT Triangular Distribution to estimate the activity duration. Accordingly, the PMP formula for PERT Triangular Distribution is as follows: EAD = (𝑂 + 𝑀 + 𝑃)/3 PERT Beta Distribution It’s one of the most important PMP formulas and we use it to calculate duration, cost and resource estimates. Similar to the previous formula, to calculate (EAD), you need to determine activity (O), (M) and (P) estimates first. Then you can use PERT Beta Distribution estimate the activity duration. Accordingly, the formula for PERT Beta Distribution is as follows: EAD=(𝑂+4𝑀+𝑃)/6 Standard Deviation (SD) of an Activity Standard Deviation (SD) measures the Variation from Average. As a result, a low value of SD indicates that the data points are close to the Average. On the other hand, a high value of SD indicates the spread of data points over a large range. Accordingly, the formula for Standard Deviation is as follows: (SD)=(𝑃−𝑂)/6 The variance of an Activity We use this formula result as an indicator to activity risk level, which prompts the course of action to take. Activity variance calculation involves taking the square of activity standard deviation. Variance=((𝑃−𝑂)/6)^2 The range of an Activity Duration The range of an Activity Duration serves the same purpose of Standard Deviation (SD) and Variance. To calculate the end of the range you add the Standard Deviation to Estimated Activity Duration. On the other hand, to calculate the start of the range you subtract Duration Standard Deviation from Estimated Activity. Accordingly, the formula for Range of an Activity Duration is as follows: The range of an Activity Duration = EAD±𝑆𝐷 PMP Formulas #2: Float (Slack) Formulas Float (Slack) of an activity determines how long an activity can be delayed without affecting the project end date. Accordingly, if an activity is on the critical path, float (slack) of that activity will be zero. In order to calculate an activity Float, first, we determine Late Start (LS) and Early Start (ES) values of the activity. Alternatively, we may use Late Finish (LF) and Early Finish (EF) values. Accordingly, the formula for Total Float is as follows: Total Float = Late Start (LS) – Early Start (ES) Total Float = Late Finish (LF) – Early Finish (EF) B- )Earned Value Management (EVM) PMP Formulas To understand PMP formulas related to Earned Value Management you need to know the following abbreviations: ● Earned Value = EV ● Planned Value = PV ● Actual Cost = AC ● Cost Variance = CV ● Schedule Variance = SV ● Cost Performance Index = CPI ● Schedule Performance Index = SPI ● Budget at Completion = BAC ● Estimate to Complete = ETC ● Estimate at Completion = EAC ● Variance at Completion = VAC ● To-Complete Performance Index = TCPI PMP Formulas #3: Cost Variance (CV) Cost Variance represents the amount of budget deficit or surplus at a given point in time. Basically, we express it as the difference between earned value and the actual cost. Accordingly, its formula is as follows: CV=EV−AC