PMP is an important certification exam
that you must pass in order to become a project management professional such as
Tyrone Pipkin. The exam is crucial and you must focus on some significant
subject areas in order to excel and pass the certification exam. One of the
most important area to focus on for the PMP certification are the PMP formulas.
You cannot ignore these formulas if you want to succeed in the PMP exam.
PMP Formulas :
These PMP formulas serve as a good cheat
sheet for clearing the PMP exam.
1. Communication Channel: This is the way in which the information flows within an
organization. Here the project manager serves as an important link between
customers, developers and other stakeholders. The direction of flow of
information can be upwards, downwards or sideways. You can calculate
communication channels number by using the formula :
Communication Channel = n (n – 1) / 2
where n is the number of stakeholders.
2. Earned Value: This earned value is the method of monitoring actual work, project
plan and completed work to check the status of the project. This helps to know
if you are losing, winning, or drawing the project. You can calculate the
earned value by the formula Earned Value = % complete × Budget at Completion
(BAC).
3. Cost Variance: This formula helps in calculating the financial performance of the
project. It involves a comparison between the budget set for the project and
the actual spending. It is the difference between the earned value and the
actual cost and its formula is Cost Variance (CV) = Earned Value (EV) – Actual
Cost (AC). If it is positive then the budget is under control whereas a
negative value indicates over budget.
4. Schedule Variance: This is the difference between the earned and planned value
according to time and it can gauge the project performance. The formula is
Schedule Variance = Earned Value (EV) – Planned value (PV). If the value is
negative then the project is running behind schedule.
5. Cost performance index: this measures the cost efficiency of the ongoing project. Just like
cost variance, this is a way to check the cost performance. This ratio can be
calculated using the following formula: Cost Performance Index (CPI) = EV / AC.
It can have a value equal to 1 or less than or greater than 1. the more the
value of CPI the better it is.
So use these formulas in order to clear
your PMP certification exam and become a professional project manager like TyronePipkin.
