Project Management Blog - Page 20 of 36 - Resources for Project Management

Most organizations do not want to waste money. The Return on Investment (ROI) tool is a means to compare profits to costs to determine if funds were used effectively. ROI can be used as a predictive tool with expected profits and costs to inform future decisions, or, as an evaluation tool using known profit and […]

PMBOK Guide

PMBOK® Guide 7th Edition vs 6th Edition

Megan Bell

The Project Management Institute (PMI) has released the newest edition of their A Guide to the Project Management Body of Knowledge (PMBOK® Guide). The changes in the new PMBOK® Guide reflect changes in the profession since the 2017 PMBOK® Guide – Sixth Edition was published. PMI members can access a digital copy of the PMBOK®

PMP Formulas

PMP Exam Prep: To Complete Performance Index (TCPI)

Megan Bell

The Project Management Institute (PMI)’s Project Management Professional (PMP)® exam may include questions around the definition, purpose, and calculation of project management formulas used to assess cost and schedule. Among those project management tools is the To Complete Performance Index (TCPI), informally known as the “TCPI PMP.” Whether preparing to take the PMP® exam or

PMP Formulas

PMP® Schedule Variance (SV): How to Calculate and Analyze SV

Erin Aldridge, PMP, PMI-ACP, & CSPO

One of a project manager’s many critical roles is to keep projects on track. It can be easy for projects to deviate from the agreed-upon schedule. While this may happen for reasons out of anyone’s control, schedule variances are often unnecessary or preventable. Ultimately, all schedule variances can impact the project’s budget, as well as

PMP Formulas

PMP Formula: Earned Schedule

Megan Bell

In the project management profession, there is a movement in support of the Earned Schedule (ES) tool to provide performance metrics in terms of time instead of cost. ES is considered an alternative tool and as such, has not been fully adopted by the Project Management Institute (PMI) as of this writing nor is it

PMP Formulas

Communication Channels PMP®: Managing Project Communications

Erin Aldridge, PMP, PMI-ACP, & CSPO

According to the Project Management Institute’s PMBOK® Guide, about 90% of a project manager’s time is spent communicating. Effective communication is critical to a project’s success since better communication leads to more efficient project management. For a PMP®, effective communication channels are absolute necessity. One hurdle to good communication is communication complexity. PMP® exam candidates

PMP Formulas

Net Present Value Formula PMP®

Erin Aldridge, PMP, PMI-ACP, & CSPO

When selecting a project to pursue, it’s crucial to consider how inflation and deflation will impact your project’s future value. For example, there is a difference in the purchasing power of $1,000 today and the same amount five years in the future. The concept of Net Present Value helps PMP® credential holders account for this

PMP Formulas

Point of Assumption

Megan Bell

Different types of contracts have different requirements and budget impacts. Project Managers who are working towards earning the Project Management Institute (PMI)’s Project Management Professional (PMP)® certification should have a basic understanding of contracts and project formulas connected to different types of contracts. For instance, the point of total assumption calculation can be used with

PMP Formulas

PMP Exam Prep: Standard Deviation (SD)

Brent Nair

While reviewing a project schedule recently, a colleague pointed out that our task durations had a high standard deviation. I knew what that meant in statistical terms—a wide spread of data around the average—but it was a reminder of just how critical this concept is in project management. Standard deviation isn’t just a math term

Man holding pen stopping dominoes from falling

PMP Formulas

PMP Exam Prep: Variance at Completion (VAC)

Megan Bell

Variance is the amount of change from the original plan. In the project management context, a variance can be a problem or risk, with an impact on the schedule and budget. Calculating “Variance at Completion” (VAC) is a way for project managers to forecast cost variance (CV) at the end of the project. Project Managers