Earned Value Management Formulas

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 […]

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

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

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

Variance analysis is a helpful tool for analyzing your project’s health, monitoring deviations from your budget or schedule, and identifying corrective actions promptly. Cost variance analysis is specifically intended to help you complete your project within the approved budget. This guide by your experts at Project Management Academy will help you understand how to apply

Making decisions can be a bit complicated when you have many variables to consider, especially with important ones that could impact your project and stakeholders. It is crucial to consider your options carefully, including risks, alternatives, and possible outcomes. Expected monetary value (EMV) analysis is an essential PMP exam tool for quantifying the impact of

Budget at Completion formula PMP® Exam Topic One of the critical concepts within the Earned Value area of formal project management is Budget at Completion (BAC). The Project Management Institute (PMI)’s Project Management Professional (PMP)® certification exam may include questions about, or driven by, the earned value (EV) performance calculations, including BAC. The great news

The Project Management Institute (PMI)’s Project Management Professional (PMP)® certification exam may include questions about, or be driven by, the Estimate at Completion (EAC) formula. Often referred to informally as “EAC Formula PMP,” in fact the tool is more than just a reference point for PMP® exam questions. It is a calculation that incorporates actual

Project Management Value and Earned Value No matter what type of work is in a project or in what industry project work is performed, the question that always matters is: “is it on track?” To answer that question, Project Managers use Earned Value (EV) and Earned Value Management (EVM) tools to tell the story of

Time is money. For project managers, clients, leaders, business owners, stakeholders, and well, anyone in a professional role working collaboratively on a project, “will it be done on time?” is a question packed with meaning. Project managers use proven formulas to provide data-based predictions for schedule and cost, such as the Schedule Performance Index (SPI).