Project Performance Metrics Memorization Guide

Project Performance Metrics Memorization Guide

1. Understanding Key Metrics

• BAC (Budget at Completion): The total budget of the project. No calculation required.
• AC (Actual Cost): The total money spent so far on the project. No calculation required.

2. Planned Value (PV) & Earned Value (EV)

• Planned Value (PV): Planned % completion multiplied by BAC.
• Earned Value (EV): Actual % completion multiplied by BAC.
• Tip: PV relates to the planned progress, EV relates to the actual work done.

3. Cost & Schedule Variance

• Cost Variance (CV) = EV - AC
• Schedule Variance (SV) = EV - PV
• Tip: Variance (V) means subtraction.

4. Cost & Schedule Performance Index

• Cost Performance Index (CPI) = EV / AC
• Schedule Performance Index (SPI) = EV / PV
• Tip: Index (I) means division.

5. Forecasting Metrics

• Estimate at Completion (EAC) = BAC / CPI
• Estimate to Complete (ETC) = EAC - AC
• Variance at Completion (VAC) = BAC - EAC
• To-Complete Performance Index (TCPI) = (BAC - EV) / (BAC - AC)
• Tip: EAC is a forecasted budget based on project efficiency.

6. Memorization Tips

• Remember: If the formula contains V, it’s a subtraction (variance).
• If the formula contains I, it’s a division (index).
• CV and CPI deal with costs, using AC.
• SV and SPI deal with schedule, using PV.
• Write down all 12 formulas multiple times to memorize them.

7. Summary

These formulas help track project progress efficiently. The key is understanding the relationships between planned, actual, and earned values. By practicing and memorizing these formulas, project managers can better forecast and control budgets.