Some Earned Value Formulas - From PMP Resource (for your PMP exam preparation)

The following are extracted from "PMP Resources":

The PMP exam is big on terminology. These are the basic Earned Value Terms you need to know. If you are studying to pass the PMP exam you should know these by heart and be able to derive them in case you are heartbroken. They really are fairly simple. In order from first to last:

BAC = Budget at Completion (Project budget)
AC = Actual Cost of the Work Performed
EV = Earned Value
EV = Budgeted Cost of the Work Performed
EV = % complete times BAC
PV = Planned Value
PV = Budgeted Cost of the Work Scheduled
CV = Cost Variance
CV = EV – AC
CPI = Cost Performance Index
CPI = EV/AC
SV = Schedule Variance
SV = EV – PV
SPI = Schedule Performance Index
SPI = EV/PV
EAC = Estimate at Completion
EAC = BAC/CPI
ETC = Estimate to Complete
ETC = EAC – AC
VAC = Variance at Completion
VAC = BAC – EAC

Note that the acronyms are slightly different from what was used a few years ago and is still widely used by old timers. PMI simplified the terms by dropping a letter here and there. The fundamentals are the same though.

You can also refer to http://groups.google.com/group/PMP-Preparation.

Introducing Scope Definition in PMP

Scope Definition is shaped by deliverables, assumptions and constraints that are documented during project initiation.

• What is Project Objective?
  Project Objective is the criteria used to measure whether a project is successful or not. Specific in terms of scope, Quantitative Approaches, Realistic and attainable, Consistent / compliant with plans.
  
  
• What is the difference between product and project scope?
  Product scope is requirements that related to the product of the project.
  Project scope is the work you need to do to deliver the product of the project.
  
  
• What is the scope baseline?
  Measurement of success on the project include whether the requirement have been met and whether the scope baseline has been met. It includes the project scope statement, WBS and WBS dictionary.

Scope Management Plan in PMP

A thorough scope management plan will prevent "Scope Creep" and the guidelines are:

• Identify a process that all deliverables will be accepted by the customer.
• Develop and maintain the project's WBS.
• Identify and control changes in project scope.

* Scope Creep refers to any uncontrolled change in a project.

Project Scope Management

In PMP, Project Scope Management includes the following aspects:

• Create a Scope Management Plan
  This includes documenting how the project scope should be defined, verified, controlled and how Work Breakdown Structure will be created and defined.
  
  
• Create a Scope Statement
  This includes developing a detailed project scope statement as the basis for future project decisions.
  
  
• Create a Work Breakdown Structure (WBS)
  This includes subdividing the major project deliverables and project work into smaller and more manageable components.
  
  
• Scope Verification
  This includes formalizing acceptance of the completed project deliverables.
  
  
• Control a Project Scope
  This includes controlling changes to the project scope.
  

Project Management Knowledge Areas Summary

I was reading the Project Management Knowledge Areas Summary by PMP Exam Resource and found that they have a very good summary on the Project Management Knowledge Area.

I have enclosed it below for your reference:

The PMBOK® Guide defines project management knowledge areas as:

• Project Integration Management,
  the processes required to ensure that the various elements of the project are properly coordinated. It consists of project plan development, project plan execution, and overall change control.
  
  
• Project Scope Management,
  the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. It consists of initiation, scope planning, scope definition, scope verification, and scope change control.
  
  
• Project Time Management,
  the processes required to ensure timely completion of the project. It consists of activity definition, activity sequencing, activity duration estimating, schedule development, and schedule control.
  
  
• Project Cost Management,
  the processes required to ensure that the project is completed within the approved budget. It consists of resource planning, cost estimating, cost budgeting, and cost control.
  
  
• Project Quality Management,
  the processes required to ensure that the project will satisfy the needs for which it was undertaken. It consists of quality planning, quality assurance, and quality control.
  
  
• Project Human Resource Management,
  the processes required to make the most effective use of the people involved with the project. It consists of organizational planning, staff acquisition, and team development.
  
  
• Project Communications Management,
  the processes required to ensure timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information. It consists of communications planning, information distribution, performance reporting, and administrative closure.
  
  
• Project Risk Management,
  the processes concerned with identifying, analyzing, and responding to project risk. It consists of risk identification, risk quantification, risk response development, and risk response control.
  
  
• Project Procurement Management,
  the processes required to acquire goods and services from outside the performing organization. It consists of procurement planning, solicitation planning, solicitation, source selection, contract administration, and contract close-out.
  
  
• Professional Responsibility,
  the tasks, knowledge, and skills required to ensure integrity, contribute to knowledge base, apply professional knowledge, balance stakeholder interest, and respect differences.

PMI Project Management 2007 Salary Survey

In the latest issue of PMI today (A Supplement to PM Network), there is an article on the recent PMI release of the PMI Project Management Salary Survey. I have summarized the main points below:

• Based on self-reported salary information from more than 5,500 project management practitioners.
• Based on compensation data in the 19 countries surveyed.
• 95% of the respondents total compensation increased over the past 12 months. Out of which 40% have at least 5% increase.
• 98% of the respondents expected the total compensation to increase in the next 12 months. Out of which 43% expecting an increase of at least 5%.

(For more information, please refer to the Oct issue of PMI today.)

How to Select a Project?

Selecting an project should be based on the Project Strategy Plan.

It should meet:

• A market demand
• An organisation need
• A customer request
• A technological advance
• A legal requirement

Project Portfolio Management

What is Project Portfolio Management:

• A collection of projects
• A line of business
• Based on strategies within an organisation
• A guidance of senior management