Earned Value Analysis

CV = EV – AC (Negative is over-budget, positive is under-budget)

SV = EV - PV (Negative is behind schedule, Positive is ahead of schedule)
CPI = EV / AC (We are getting $..worth of work out of every $1 spent ( 0 to 1 )
SPI = EV / PV (We are progressing at …percent of the rate originally
planned( 0 to 1 )
CV% = CV / EV x 100
SV% = SV / PV x 100

Estimate to complete - How much more the project would cost from this
point onwards?

ETC = BAC – EV [Future Variances are Atypical or Not Consistent or Di similar]

ETC = (BAC – EV) / CPI [Future Variances are Typical or Consistent or similar]

Estimate at Completion -How much more do we expect the project to cost

EAC = BAC / CPI [simplest formula: typical or no variances]

EAC = AC + ETC [Initial Estimates are flawed]
EAC = AC + BAC – EV [Future variances are Atypical or Not Consistent or Di similar]
EAC = AC + BAC – EV / CPI [Future Variances are Typical or Consistent or similar]

Variance at Completion- How much over or under budget we expect to at

the end of the project
VAC = BAC – EAC

To Complete Performance Index [TCPI]

Values for the TCPI index of less then 1.0 is good because it indicates the efficiency to
complete is less than planned. How efficient must the project team be to complete the
remaining work with the remaining money?
( BAC - EV ) / ( BAC - AC )

% COMPLETE = EV / BAC x 100

% SPENT = AC / BAC x 100

Float or Slack=LS - ES and LF – EF

PERT = (O + 4ML + P) / 6
STD. DEV. OF TASK = P – O / 6
TASK VAR. = [(P - O)/6 ] squared = Std. Dev ^ 2
CP STD. DEV. = √ σ² + σ² + σ²

SIGMA
1 = 68.26
2 = 95.46
3 = 99.73
6 = 99.99
Channels of Communication =(n (n – 1)) / 2

Project Selection

PV = F V / (1+r)ⁿ (or) FV = PV x (1+r)ⁿ

Cash Flow = Cash Inflow – Cash Outflow

Discounted Cash Flow = CF x Discount Factor
ARR = S Cash Flow / No. of Years
ROI = (ARR / Investment) * 100 % Bigger is better
BCR = Benefits / Cost

Benefit Cost Ratio (BCR) Bigger is better

((BCR or Benefit / Cost)
Revenue or Payback VS. cost) Or PV or Revenue / PV of Cost

Net Present Value (NPV) = Net Present Value Bigger is better

Internal Rate of Return (IRR) Bigger is better

Payback Period Less is better Net Investment / Avg. Annual cash flow

Exp. Value = Probability % x Consequence $

Class of Estimates
Definitive +10-10%
Order of Magnitude > + 50/-50%)

Contract Incentives
Savings = Target Cost – Actual Cost
Bonus = Savings x Percentage
Contract Cost = Bonus + Fees
Total Cost = Actual Cost + Contract Cost

EMV = Expected Monetary Value Probability * Impact (plus additions of all )

Point of Total Assumption (PTA) ((Ceiling Price - Target Price) / buyer's Share
Ratio)+ Target Cost

Cost of Quality (CoQ) =

( ( Review Efforts + Test Efforts + Training Efforts + Rework Efforts + Efforts of
Prevention) / Total efforts) x 100 %