I have described Program Evaluation & Review Technique (PERT), Critical Path Method (CPM) and Standard Deviation in complete detail this post. I have talked about how they are related to each other and how they can be used together. What is Critical Path Method (CPM)? Critical Path is the Longest Path in the Project Network. … Read more The Ultimate Guide To Use PERT, CPM & Standard Deviation Together
You might be looking to understand the usage of standard deviation in PERT estimation formula. PERT is an acronym for Program Evaluation and Review technique. This technique is used to determine duration and cost estimates of a task. In this technique, a weighted average (mean) of three different estimates is used to determine the final … Read more How To Use Standard Deviation In PERT Estimation Formula?
Three point estimating can be done in two ways – one is by applying Beta Distribution technique, which uses PERT (Program Evaluation and Review Technique) formula and other is by applying Triangular Distribution technique, which calculates simple average. Just like any other estimation technique, 3-point estimation can be used for estimating duration or cost of … Read more How To Use PERT Formula In Three Point Estimating?
Project Charter Definition, Meaning and Purpose A few years ago, I got an assignment to setup PMO for a small software services company. After understanding their business and organization structure, I advised them to start creating Project Charter (PC) for every project. I provided a brief overview of PC to the main stakeholders and gave … Read more 5 Differences Between Project Charter and Contract
There are three different types of contacts for managing procurement viz. Fixed Price, Time & Material, and Cost Plus. These are also called Fixed Fee or Lump Sum, Unit Price or Rate Contract, and Cost Reimbursable respectively. I have written this article to explain these three contract types. After reading this article you will be … Read more Different Types of Contracts In Procurement: Definition & Examples
To Complete Performance Index (TCPI) is a forecasting technique of Project Management (PM). It is the cost efficiency required to complete a project within a defined budget. I have written this post to provide detailed explanation of To Complete Performance Index. After reading this post, you will understand TCPI definition and meaning. learn about TCPI … Read more How To Use To Complete Performance Index (TCPI) Formulas In PMP?
In my previous post I gave a brief on Procurement and Risk. I deliberated upon who (buyer or the seller) has more/less risk in contract types. The post was written to help PMP aspirants answer some tricky questions reared to Risk and Procurement in the exam. The post can be read by following the below … Read more Procurement – Some practical aspects
Types of Contracts and Risk A Question You are working for a Defense Contractor. Your company is bidding for a Government’s secret project called Project “Hush-Hush”. The Government has decided to outsource this project as a Fixed Price Contract. Who has more Risk for this Project? Defense Contractor Government All Projects are risky. Both Defense … Read more Which “Type of Contract” is More Risky?
Do you know there is a difference between Accuracy and Precision? Hmm…Really? But why bother? On the face of it, these terms look to be the same. Well! You should bother if you are a Quality professional or a Project Manager. And if you are a PMP® aspirant then it definitely warrants a clear understanding. … Read more Accuracy vs Precision: Definition, Diagram, & Example
You might be thinking why there are so many Estimate At Completion (EAC) formulas in project management and how are they used for Earned Value Management (EVM) calculations. EVM full of confusing terms and formulas. Estimate At Completion seems like a misnomer. Well! How can you estimate anything when it is already complete? I have … Read more Estimate At Completion (EAC) Formulas In Project Management