Quick Reference for Earned Value Management Formulas If you are looking for a comprehensive list of all the Earned Value Management Formulas, then you are at the right place. If you are preparing for PMP® Exam, you will find all the Earned Value Formulas. This article would provide you with a step up in doing […]

# Cost Management

cost management knowledge area

## Estimate to Complete – 3 ETC Formulas For PMP Exam

Estimate To Complete Formulas Explained Estimate To Complete is a very important Earned Value Management (EVM) concept. In this post, I will define Estimate To Complete (ETC) and explain its utility in project management. Estimate To Complete Formulas and other Earned Value Formulas are important for the PMP exam. Most PMP Study Guides just list […]

## Three Point Estimate Formulas

Quick Reference on Three Point Estimate I have written a series of articles on Three Point Estimate and related concepts. Before reading this, you should look at my first article of the series. I have explained the basic concept of Three Point Estimate in my first article. I have also explained that PERT is not […]

## Earned Value Management System Explained in Easy Language

Do you find Earned Value Management System a difficult concept? I generally ask the above question in my class before I start explaining what is Earned Value Management System. Usually I find most of the students have not even heard about Earned Value Management System, let alone gauge its difficulty. On the other hand, a small […]

## Analogous and Parametric Estimation

Project Estimation Techniques Project Estimation is one of the most important part of project management. Good Project Estimation is cardinal for the success of a project. Project Estimation Techniques are covered under both Time Management and Cost Management Knowledge Areas of PMBOK® Guide. The Project Estimation Techniques described in PMBOK® Guide are universally applicable to […]

## What is the Use of Standard Deviation?

PERT Formula and Use of Standard Deviation What is the chance of getting a ‘Heads’ in a toss of a coin? You would say that’s easy. There is a 50% chance of getting a Heads. Or you would say Probability of getting ‘Heads’ is 50% or 1/2. What is the chance of getting a ‘Six’ […]

## 3-Point Estimate is Different From PERT…

What is PERT and 3-point Estimate? Estimation is one of the most basic concepts of Project Management. In fact poor and improper estimation is one of the main causes of challenged projects. There are many ways to Estimate. Some of these estimation techniques are specific to an industrial domain like software size estimation techniques. While […]

## To Complete Performance Index – TCPI Formula & Calculations Explained

To Complete Performance Index – Definition, Example, & Formulas To Complete Performance Index (TCPI) is an estimate of future cost efficiency of the project. I have written a series of articles on Earned Value Management. In this article, I will explain TCPI Formulas and their utility using an example. This post is written in continuation […]

## Estimate At Completion – 5 EAC Formulas for The PMP Exam

Generic Estimate At Completion Equation And Formulas Explained Which formula should be used for calculating Estimate At Completion (EAC) in the PMP Exam? This question is often asked by the exam aspirants. They are usually confused about different Estimate At Completion formulas. There are 4 different formulas explained in the PMBOK Guide 5th edition. In […]

## EVM – Is it useful?

How EVM can be implemented in Projects? In my previous post I explained EVM through an example – Building Tables. Was that a practical project or practical measurement? I would not say so. Does an impractical project gel with my blog philosophy?EVM – Here I come… One of the reader’s wrote following comment on the […]