| Acronym |
Name or Formula |
Interpretation |
| EV |
Earned Value |
The estimated value of the work completed.
The completed portion of the originally estimated, total value. |
| PV |
Planned Value |
The value of the work planned to be be done by now |
| AC |
Actual Cost |
The current amount spent.
The total cost so far for the work completed. |
| BAC |
Budget At Completion |
The total project budget
How much did we originally expect the total project to cost?
BAC = PV of entire project |
| CV |
Cost Variance
EV – AC |
Value of work accomplished – cost incurred |
| SV |
Schedule Variance
EV – PV |
The value of work completed – The value of work planned to be completed.
Work completed – Expected work completed
Negative is behind schedule. Positive is ahead of schedule. |
| CPI |
Cost Performance Index
EV / AC |
We are getting X value out of each $ spent.
Also as: “Cumulative CPI” when figures used are costs to date. |
| SPI |
Schedule Performance Index
EV / PV |
We are progressing at X rate originally planned.
We are getting X value per original planned value. |
| EAC |
Estimate At Completion
AC + Bottom-up ETC
BAC / CPI
AC + (BAC – EV)
AC + [ (BAC - EV) / ( CPI + SPI) ] |
What we currently expect the total cost to be.
Current cost + Bottom up (redone) estimate of remaining cost. Used when original estimate was flawed.
Currently, the total cost estimate per (cumulative) performance.
Used when there is no variance from BAC. Most common on exam.
Current cost + Remaining work TBD.
What you’ve spent + What you need to spend.
Used when current variance is expected to change.
Current cost plus remaining budget per performance.
Used when variance is typical, CPI is poor, and completion date priority is high |
| TCPI |
To Complete Performance Index
(BAC – EV) / (BAC – AC) |
The remaining work TBD per the remaining money.
In order to stay on budget, what remaining performance is needed? |
| ETC |
Estimate To Complete
EAC – AC
Reestimate |
How much more will the project cost?
Updated total cost – current cost
Reestimating the work from the bottom up. |
| VAC |
Variance At Completion
BAC – EAC |
How much over/under budget will we be? |
| AWCS |
Actual Cost of Work Scheduled |
Not a real term!
Oxymoron
May be an incorrect test question choice. |
| EAD |
Expected Activity Duration
( P + 4M + O ) / 6 |
The most likely estimated is weighed 4 times the pessimistic or optimistic.This and all formulas below can be used for activity time and cost |
| AV |
Activity Variance
[ ( P - O ) / 6 ] ^2 |
A quantifiable deviation from an expected baseline or estimate. Also equal to standard deviation squared. |
| SD |
Standard Deviation
( P – O ) / 6 |
The square root of the variance. Used to calculate the activity range. EAD +/- SD |
| Activity Range |
EAD +/- SD |
The estimated scope from EAD – Standard Deviation to EAD + Standard Deviation. |
| Project Expected Duration |
EAD + EAD + EAD |
The sum of the EAD’s / PERT estimates |
| Project SD |
Standard deviation of the project
sqrt[AV + AV + AV ...] |
Each of the activity variances (AV) on the critical path are calculated individually. The square root of their sum is the project standard deviation. It is used to calculate the project range. |
| Project Range |
The project expected duration +/- Project SD |
The sum of the project EADs +/- the project standard deviation. |
| EMV |
Expected Monetary Value
EMV = P * I |
EMV = Probability times Impact |
| Communication Channels |
[ n (n-1) ] / 2 |
The number of channels between people. n is the number of people |
| PTA |
[(CP - TP) / BSR] + TC |
Point of total assumption.
The amount at which seller pays all additional costs. Used in FPIF contracts.
The margin between the maximum and target prices is divided by the buyer’s portion of the sharing ratio and added to the target cost |
| Final Fee |
FF = (TC – AC) x SSR + TF |
Sellers fee/profit is adjusted for cost performance.
The target fee is adjusted by adding: target cost – actual cost times the sellers portion of the sharing ratio |
| Final Price |
FP = AC + FF (or CP, whichever is lower) |
Final price equals actual cost plus final fee (or ceiling price) |
| Buy or Lease |
Purchase Cost + Owning Cost * Time = Leasing Cost * Time |
So if something costs $1,000 to buy and $10 / day to maintain but costs $50 / day to rent, how many days does it take to break even? 1,000 + 10 * t = 50 * t The break even point is 25 days. |
| Float |
Float = LF – LS or LS – ES |
Late Finish – Early Finish or Late Start – Early Start |
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