CAPM - Formulas Flashcards

Budget at Completion (BAC) represents the total planned budget at the end of a project, calculated as the sum of all present values (Σ(PV)).
Earned Value (EV) quantifies project performance by multiplying the percentage of completed work by the BAC.

Cost Variance (CV) measures financial performance and is determined by subtracting Actual Cost (AC) from Earned Value (EV). A CV greater than zero indicates under-budget performance.
Schedule Variance (SV) assesses time performance by calculating the difference between Earned Value (EV) and Planned Value (PV). A positive SV signifies ahead of schedule.

Cost Performance Index (CPI) indicates cost efficiency by dividing Earned Value (EV) by Actual Cost (AC). A CPI greater than one denotes effective cost management.
Schedule Performance Index (SPI) measures schedule efficiency by dividing Earned Value (EV) by Planned Value (PV). An SPI exceeding one suggests efficient time management.

Estimate at Completion (EAC) forecasts the total cost at project completion, calculated by dividing Actual Cost (AC) by the percentage complete.
Estimate to Completion (ETC) is the remaining budget needed to finish the project, derived from subtracting Actual Cost (AC) from Estimate at Completion (EAC).
Variance at Completion (VAC) provides insight into projected financial performance by calculating the difference between Budget at Completion (BAC) and Estimate at Completion (EAC).

To Complete Performance Index (TCPI) evaluates the efficiency required to complete the remaining work. It can be calculated using different formulas:
- Remaining work over remaining budget
- (BAC - EV) / (BAC - AC)
- (BAC - EV) / (EAC - AC).
Expected Monetary Value (EMV) is used in risk management, calculated by multiplying the impact by the probability of risks.

Communication Channels in a project context are calculated using the formula N(N-1) / 2, where N is the number of stakeholders involved.
Normal Distribution is a statistical concept where 1 standard deviation (σ) represents approximately 68.26% of data, 2σ denotes 95.46%, 3σ accounts for 99.73%, and 4σ covers 99.999%.

Program Evaluation and Review Technique (PERT) estimates project duration using a weighted average formula: (Optimistic + 4*Most Likely + Pessimistic) / 6.
Standard Deviation of Activity (σ) reflects variability in project duration, calculated as (Pessimistic - Optimistic) / 6.
Variance of Activity is expressed as the square of the standard deviation (σ^2).
Float refers to the permissible delay in project scheduling, calculated via the formula LS - ES or LF - EF, representing Late Start, Early Start, Late Finish, and Early Finish.