Category Archives for "Cost Management"

cost management knowledge area

Estimate to Complete – 3 ETC Formulas For The PMP Exam

estimate to complte

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 these formulas without really explaining […]

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Earned Value Management System Explained in Easy Language

Earned Value Management

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 […]

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Analogous and Parametric Estimation

project 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 […]

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What Is The Use Of Standard Deviation In PERT Estimation?

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’ in a throw of a dice? You […]

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3-Point Estimate is Different From PERT…

three point pert 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 other techniques can be applied to […]

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To Complete Performance Index – TCPI Formula & Calculations Explained

tcpi formula calculations (to complete performance index)

I have written this post to explain an important Earned Value Analysis concept viz. To Complete Performance Index (TCPI). In this post, you will find the definitions, formulas, calculation, and example of TCPI. You will also find about different TCPI formulas viz. BAC & EAC formulas, utility of TCPI in Project Management, difference between Cost […]

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Estimate At Completion – 5 EAC Formulas for The PMP Exam

estimate at completion eac formula

I have written this post to provide a detailed explanation of Estimate At Completion (EAC). In this post you will find definition, example, formulas, and calculations related to EAC. The PMBOK Guide describes 4 different Estimate At Completion formulas. In this post, I have extended the concept further to describe a generic equation and 5 […]

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