Critical Path Method Analysis - Formulas

Acronym Title Formula

PERT Program PERT = P + 4M + O / 6
Evaluation and P = Pessimistic Estimate
Review M = Most Likely Estimate
Technique O = Optimistic Estimate
Standard Deviation of P–O/6
Activity
Variance of an Activity [P-O/6]²
Total Float LS – ES or LF – EF
Communications [N(N-1)] / 2
Channels
CV Cost CV = EV – AC
Variance
SV Schedule SV = EV – PV
Variance
CPI Cost CPI = EV / AC
Performance Index
SPI Schedule SPI = EV / PV
Performance Index
EAC Estimate EAC = BAC / CPI
at Completion
EAC = AC + ETC

EAC = AC + (BAC – EV)

ETC Estimate ETC = EAC – AC
to Complete

VAC Variance VAC = BAC – EAC

at Completion
CPIc Cumulative CPIc = Σ EV / Σ AC
Cost Performance Index

GimKonsult | NPI Quarters, Gaduwa, Abuja, Nigeria

 PERT Formula

 PERT – Program Evaluation and Review Technique.

If you’re going to take the PMP exam, you MUST remember this formula. I’ve
used it countless times in the real world and it works with surprising accuracy.
 Formula: (P+4M+O)/6
 Optimistic time (O): the minimum possible time required to accomplish a task,
assuming everything proceeds better than is normally expected.
Pessimistic time (P): the maximum possible time required to accomplish a task,
assuming everything goes wrong (excluding major catastrophes).
Most likely time (M): the best estimate of the time required to accomplish a task,
assuming everything proceeds as normal.
 How does it work?
 Obtain three time estimates (optimistic, pessimistic, and most likely) for every
activity along the critical path. Plug your numbers into the formula and then
sum the totals. Though people will challenge you, you WILL have a more
accurate critical path estimate.
 I will speak to “Standard Deviation of an Activity” and “Variance of an Activity” at
a later time. They both leverage the same values but in different formulas.

GimKonsult | NPI Quarters, Gaduwa, Abuja, Nigeria