This document contains formulas for PERT estimation, task slack calculation in network diagrams, earned value management, present value calculation, expected monetary value, and point of total assumption. Formulas are provided for PERT standard deviation and variance, cost variance, schedule variance, cost performance index, schedule performance index, estimate to completion, variance at completion, estimate at completion, and to complete performance index. Present value is defined using future value, interest rate, and number of time periods. Expected monetary value is the probability times the impact. Point of total assumption uses ceiling price, target price, target cost, and buyer's share ratio.
This document contains formulas for PERT estimation, task slack calculation in network diagrams, earned value management, present value calculation, expected monetary value, and point of total assumption. Formulas are provided for PERT standard deviation and variance, cost variance, schedule variance, cost performance index, schedule performance index, estimate to completion, variance at completion, estimate at completion, and to complete performance index. Present value is defined using future value, interest rate, and number of time periods. Expected monetary value is the probability times the impact. Point of total assumption uses ceiling price, target price, target cost, and buyer's share ratio.
This document contains formulas for PERT estimation, task slack calculation in network diagrams, earned value management, present value calculation, expected monetary value, and point of total assumption. Formulas are provided for PERT standard deviation and variance, cost variance, schedule variance, cost performance index, schedule performance index, estimate to completion, variance at completion, estimate at completion, and to complete performance index. Present value is defined using future value, interest rate, and number of time periods. Expected monetary value is the probability times the impact. Point of total assumption uses ceiling price, target price, target cost, and buyer's share ratio.
P+4M+0 Where P = Pessimistic Estimate PERT Formula = 6 O = Optimistic Estimate PO M = Most Likely Estimate Standard Deviation = 6 [ P O ] Variance = 6
How to calculate a Task Slack in a Network Diagram
Slack = LS ES Where LS = Task Late Start
ES = Task Early Start Slack = LF EF LF = Task Late Finish EF = Task Early Finish
Earned Value Formulas
Cost Variance (CV) = EV AC Where EV = Earned Value
Schedule Variance (SV) = EV PV AC = Actual Cost Cost Performance Index (CPI) = EV / AC EAC = Estimate at Completion Schedule Performance Index (SPI) = EV / PV BAC = Budget at Completion Estimate to Completion (ETC) = EAC AC Variance at Completion (VAC) = BAC EAC Estimate at Completion (EAC) = BAC / CPI To Complete Performance Index (TCPI) = (BAC EV) (BAC AC)
Present Value Communication Channels
2 PV = FV (N N ) (1 + r ) n 2
Where FV = Future Value Where: N = Number of people
r = Interest Rate n = number of time periods
Expected Monetary Value
Expected Monetary Value = P x I Where P = Probability I = Impact