ACRONYMS, TERMS AND FORMULAS

Sabri C. PMP
A free video tutorial from Sabri C. PMP
CEO at casePM
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Lecture description

In this section, I will explain this concept as simple as possible so that you understand it easily. So, if you are ready, let’s start the lectures.

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PMP® Certification v6: 2 PMP Exams& Detailed PMP Math_13pdus

PMP Exam Prep: 2 Realistic PMP Project Management Certification Exams and PMP Math Prep in Detail- PMBOK® v6 compatible

12:45:09 of on-demand video • Updated June 2020

  • Pass the PMP® Exam!
  • Solve all of the math related questions in PMP® exam easily
  • Solve all of the math questions in PMP® exam easily
  • Learn Earned Value Management Concepts in Detail
  • Solve "Contract Type" related math questions
  • Learn how to do risk analysis
  • Learn critical path method for PMP® exam.
  • Solve schedule network analysis questions easily.
  • Learn Activity Duration and Cost Estimating Techniques
  • Learn "Project Selection Methods" in detail for PMP® Exam
  • Get a strong background for PMP® exam
  • Get incredible discounts for my other courses.
English [Auto] Hi there. One of the most important items you need to learn for the exam is the Earned Value analysis you will get lots of questions on earn value on the exam. Not all of them have required calculations. Some of them require you to understand the results. So if you want to pass the exam you'll definitely need to learn it. In this section I will explain this concept as simple as possible so that you understand it easily. So if you already let's stop the lectures before starting the lecture I would like to remind you that we use old value analysis to monitor and control the schedule and the cost of the project. Therefore it is used both for schedule management and cost management. Here is the syllabus for all value analysis as you see we will first list the acronyms and terms then we will see the formulas in the formulas lecture. These two lectures are just the introduction and we will only talk about the definitions of the terms and the formulas that we will learn. Although the Eevee M principles by going through an example with this example you will understand all of the concepts so that you can sell all kinds of old value related questions very easily. Here is the list of acronyms and terms you need to know. Again I would like to remind you that this is just an introduction and we will look through all of these concepts in detail in the event principles lecture. Therefore take a look at the terms and don't worry about their meanings. Right now Peavey is the abbreviation all plat value. This is the estimated value of the plant for as of today. He is the aberrational erm value. This is the work accomplished as of today AC is the aberrational actual cost. This is the cost of work accomplished. As of today B.A. C is the abbreviation of the budget at completion. This is the budget that we calculate at the very beginning of the Project E C is the abbreviation or estimate completion. This is the forecasted cost that we calculate by using some variables we get during the execution of the project. He can see is the abbreviation of the estimate to complete. This is the cost. We will span from now on until the project is complete. We aces the aberrational variance at completion. This is the expected difference between the budgeted cost and the forecasted cost. As of today let's discuss the IBM formulas that you should know for the exact you need to memorize all of these formulas before they accept therefore after calculating the value lectures I recommend you to turn back here and memorize all the formulas summary. After finishing the IBM principles lectures it will be easier to remember these formulas costs various CV equals evey minus AC. This is the Earned Value minus the actual cost schedule of Orioles is V equals evey minus Peavy. This is the art value minus the plant value cost performance index CPI equals easily divided by easy. This is the earned value divided by the actual cost schedule Performance Index CPI equals evey divided by Peavey. This is the earned value divided by the plat value. Please note that up to here all the formulas start with foreign value. This hint will help you to memorize this formless easier. There are four formulas for easy to estimate at completion. We need to choose the appropriate formula depending on the conditions in reality although the formulas may be calculated at the same time to make it comparison the first formula is easy equals b c divided by CPI. This is the budget at completion divided by cost performance index. We use this formula if we consider that we will have the same spending rate in the feature as it is now. The second formula is easy equals a C plus b c minus. Even this is actual cost plus budgeted completion minus opened up. We used this formula. If we consider we will hate the spending rate in the future as it was at the beginning of the project here we believe the variances that occurred up to now will remain the same. Up to the end of the project the third formula is he a C equals to a C plus b c minus evey divided by CPA types API. This is budget at completion minus r value divided by cost performance index times schedule performance index. We use this formula in fitting both cost and schedule variances will be the same in the feature and they will affect the project completion cost. For formula is not the actual Formula E C equals the actual cost plus the new cost estimation. We calculate the feature costs in a detailed manner. We can name this as bottom up estimate copied and add them to the actual cost of crude until now. We use this method if we think that the original estimate is somehow wrong or flawed. We have three more formulas to memorize for the exam. The first one is TI CPI which is the abbreviation all to complete performance index CPI equals b c minus evey divided by b c minus AC. This is budget at completion minus earned value divided by budget and completion minus actual cost. This is the CPI rate. We should meet to complete the project within the original budget. The next one is ATC which is the aberrational estimate cockpit ATC equals AC minus AC which is estimate it complete minus actual cost as we see from the equation. ATC is nothing but the money we will spend until we reach the forecasted budget at the end of the project here. If we think that the original estimate is somehow wrong or flow we cannot re estimate the remaining duration and this is another rail. Calculating the ATC the final formula. We need to know for the exam is the exit which is the abbreviation or variables at completion the C equals B a C minus the AC which is budget at completion minus estimate at complete. This formula tells us how much we will be under or over the budget at the end of the project so these are the formulas you need to know for the exam. Now let's learn how to do the calculations and how to analyze the results. We will do it in the following lecture so I will see you there. Thanks for watching.