VC4U's PMP®:CAPM®:PMI-ACP®:Certification Exam Prep Blog

PMP®:PMI-ACP®:CAPM® - EVM formula - Worked out with Wall example

Cost Variance

CV= EV-AC= 2000-2500 =-$500

(Negative Cost Variance means the project is over budget)

Schedule Variance

SV = EV-PV=2000-3000 = -$1000

(Negative Schedule Variance means the project is behind schedule)

Cost Performance Index

CPI = EV/AC = 2000/2500 = 0.8

(CPI < 1 means the cost performance of the project is not good.

For every $ we spend we are getting the value of $0.8)

Schedule Performance Index

SPI = EV/PV = 2000/3000 = 0.66

(SPI < 1 means the schedule performance of the project is not good.

For every $ we plan , we are completing value of $.66)

EAC formula

A)When original estimate is flawed.

EAC=AC+ETC = 2500+3000 = $5500 (pending work estimate is $3000)

B)When the current variance will continue in future also.

EAC = BAC/CPI = 4000/0.8 = $5000

(For the 1st 2 feet wall it costed $2500, it would cost the same for the next 2 feet also)

C)When the current variance won't be there in future and pending work will go as per plan.

EAC = AC + (BAC-EV) = 2500+(4000-2000) = $4500

(For the 1st 2 feet wall it costed $2500, but it would cost $2000 for the next 2 feet wall i.e. $1000 per feet as per original budget.)

D)When both Cost and Schedule constraint influence the pending work.

EAC = AC + [(BAC-EV)/(CPI*SPI)] = 2500+[(4000-2000)/(.8*.66)]=$6287

(Typical Cost variance in future will cost $5000. The schedule will go for 6 days, 3 days for the 1st 2 feet of the wall and 3 more days for the 2nd 2 feet of the wall. What if the schedule constraint of 4 days is insisted? We need to crash the schedule by using additional man power. Hence the additional cost)

Variance At Completion:

VAC=BAC-EAC = 4000-5000=-$1000.

(EAC calculated as per formula B above.)

To Complete Performance Index:

When BAC was valid

TCPI = Work remaining/funds remaining=(BAC-EV)/(BAC-AC)=(4000-2000)/(4000-2500)=1.33

When BAC is invalid

TCPI = (BAC-EV)/(EAC-AC)=(4000-2000)/(5000-2500)=0.8

(TCPI < 1 means there is not enough fund to complete the pending work)

Read next:
EVM formula animated
EVM in MS Project 2013

PMP®:PMI-ACP®:CAPM® - EVM formula animated

PV - Planned Value. Budget of Planned work
EV - Earned Value. Budget of Completed work.
AC - Actual Cost. Cost spent for Completed work.
BAC - Budget At Completion. Project Budget.

Variances:
Variance means difference. Think of EVM, which means EV is the first value.
In Cost Variance, the first letter and the last letter matches. i.e. Starting and ending with C.

In Schedule Variance, the second and the last letter matches. i.e. Second letter and last letter is V.

Indices:
Remember the variances formula and divide instead of subtracting.

At Completion formulae:
EAC - Estimate At Completion. Revised Project Budget.

When original estimate is flawed.
EAC = Cost Spent + estimate for pending work

When the current variance will continue in future also.
EAC=Project Budget divided by Cost Performance Index

When the current variance won't be there in future and pending work will go as per plan.
EAC=Cost Spent+ (Project budget - Earned Value)

When both Cost and Schedule constraint influence the pending work.
Remember the above formula and divide the right side value with CPI*SPI

Variance At Completion: Subtract the other 2 At Completion values in alphabetical order

To Complete Performance Index:
TCPI= Work remaining / Funds remaining

PMP®:CAPM® - Project Constraints

The limitations of human life are limitations of project also. There are limits to what work (scope) we do, what money (cost) we spend and what time (schedule) we have.

Constraints are defined as the "A limiting factor that affects the execution of a project,program,portfolio or a process", as per PMBOK5.The constraints restrict the actions of the project team. Constraints are documented at high level in the Project Charter and later elaborated in detail in the Scope Statement.

The following are the project constraints.

Cost – It is limited to the Sponsor imposed funding limits.

Scope – It is limited to the work as defined in Contract. What is in scope and out of scope is clearly defined.

Schedule – It is limited to the client given milestone dates and other milestones defined by the project team.

Quality – It is limited to conformance to a Quality Standard/Model such as ISO, 6 Sigma or CMMi.

Resources – It is limited to the available skilled Human Resources

Risks – threats due to natural calamities. Scope may be reduced to avoid a risk or budget may increase when reserve is added to deal with risks.

The 3 most important project constraints schedule, cost and scope are called as triple constraints. They were thought of as the only project constraints. The quality, resources and risks were added at later.

A change in any of these constraints will lead to change in other constraints. So it is important that these constraints are documented and managed effectively.

PMP®:CAPM® - Activity Dependencies - FS/SS/SF/FF

Activity Dependencies:

There are 4 activity dependencies Finish to Start (FS), Start to Start (SS), Finish to Finish (FF), Start to Finish (SF). Refer the above picture to understand the below explanations.

FS:

If there is FS dependency between 2 activities A and B, then B will start after A is finished.

e.g. Foundation and then walls.

You finished reading the previous line and start reading this line.

SS:

If there is SS dependency between 2 activities A and B, then B will start after A has started.

e.g. Cleaning the wall and Painting the wall. You start cleaning the wall and start painting at the same time. These are parallel activities.
When you started reading this dependency, you started visualizing it in your mind.

FF:

If there is FF dependency between 2 activities A and B,then B will finish after A has finished.

e.g.Cleaning the wall and Painting the wall. You can't finish painting till you finish cleaning.

You finished visualizing this dependency once you finished reading about it.

SF:

If there is SF dependency between 2 activities A and B,then B will finish after A has started.

e.g.You will finish reading this post, only when you start getting the whole picture.

This is a rare dependency in projects.

Read next:
Activity Network Diagram
Leads and Lags

MS Project - Task types Fixed Unit/Duration/Work simplified

There are 3 Task types in MS Project regardless of its different versions. They are Fixed Unit,Fixed Duration and Fixed Work.

Before discussing them lets discuss a basic formula :

Work = Duration * Units

Scenario 1: If 1 person is doing a task for 2 days, then Work as per the above formula is

Work = 2 * 8 = 16 hours.

1 Unit 100% equals to 1 person doing 8 hours of work. 1 Unit 50% means 1 person doing 4 hours of work.

Work: The effort for the task

Duration: The time period the task is done

Units: The number of people doing the task

Task types:

Fixed Unit:

When Unit is fixed, if you change Duration or Work the other will change. In Scenario 1, you change the Duration to 3 days, Work = 3*8 = 24 hours OR change the Work to 24 hours,

Duration = 24/8 = 3 days.

Fixed here doesn't mean fixed once and for all. You may change the unit.

You may set a Fixed Unit task as either Effort driven or Non Effort driven. Effort driven means fixing the Work also.

In Scenario 1, with Effort driven,

If you change the units to 2 (which means 2*8=16 hours ), the duration will be changed to 1 day. Duration = Work / Unit= 16/16)

In Scenario 1, with Non Effort driven,

If you change the units to 2 (which means 2*8=16 hours ), the Work will be changed to 32.

Fixed Duration:

When Duration is fixed, if you change Unit or Work the other will change. In Scenario 1, you change the Work to 24 hours, Work = 3*8 = 24 hours OR change the Work to 24 hours,

Duration = 24/8 = 3 days.

In Scenario 1, with Effort driven,

If you change the units to 2 , the Unit will be changed to 50% to maintain the Work at 16 hours. 16=2*8. 2 Units at 50% means 4 hours of work by one resource.For 2 Units 4+$=8.

In Scenario 1, with Non Effort driven,

If you change the units to 2 (which means 2*8=16 hours ), the Work will be changed to 32.

Fixed Work:

Fixed Work is basically Effort driven.

In Scenario 1, if you add more resources, the duration will be reduced i.e. Work will not be changed.

How to change Task type: Double click on the task to see the Task information. Change the Task Type.

Default Task type is Fixed Unit, Non Effort driven.

Project management - Interesting videos

These are few interesting videos on Project management.
Integration Management

Introduction to Integration Management

Time Management
Critical Chain method

Human Resources Management

Team work pays off

Communication Management

Non verbal communication and body language

Risk Management

Montecarlo simulation of schedule risk

Procurement management
Point Of Total assumption

If you like to share any videos other interesting video which is different in the presentation, creative and easy to understand, please feel free to post the link in the comments.

Personality Type

Personality Type - A collection of personality traits which are thought to occur together consistently, especially as determined by a certain pattern of responses to a personality inventory.

"individuals in the study would commonly produce patterned responses which could be ascribed to particular personality types"

Personality Types A, B & C:

Type A individuals tend to be very competitive and self-critical. They strive toward goals without feeling a sense of joy in their efforts or accomplishments.

Type A personalities experience a constant sense of urgency: Type A people seem to be in a constant struggle against the clock.

People with Type B personality tend to be more tolerant of others, are more relaxed than Type A individuals, more reflective, experience lower levels of anxiety and display higher level of imagination and creativity.

The Type C personality has difficulty expressing emotion and tends to suppress emotions, particularly negative ones such as anger. This means such individual also display 'pathological niceness', conflict avoidance, high social desirability, over compliance and over patience.

MBTI (Myers Briggs Type Indicator):

The test is scored by evaluating each answer in terms of what it reveals about the taker. Each question is relevant to one of the following cognitive learning styles. Each is not a polar opposite, but a gradual continuum.

Extraversion/Introversion

The extraverted types learn best by talking and interacting with others. By interacting with the physical world, extraverts can process and make sense of new information. The introverted types prefer quiet reflection and privacy. Information processing occurs for introverts as they explore ideas and concepts internally.

Sensing/Intuition

The second continuum reflects what a person focuses their attentions on. Sensing types enjoy a learning environment in which the material is presented in a detailed and sequential manner. Sensing types often attend to what is occurring in the present, and can move to the abstract after they have established a concrete experience. Intuitive types prefer a learning atmosphere in which an emphasis is placed on meaning and associations. Insight is valued higher than careful observation, and pattern recognition occurs naturally for Intuitive types.

Thinking/Feeling

The third continuum reflects the person’s decision preferences. Thinking types desire objective truth and logical principles and are natural at deductive reasoning. Feeling types place an emphasis on issues and causes that can be personalized while they consider other people's motives.

Judging/Perceiving

The fourth continuum reflects how the person regards complexity. Judging types will thrive when information is organized and structured, and they will be motivated to complete assignments in order to gain closure. Perceiving types will flourish in a flexible learning environment in which they are stimulated by new and exciting ideas. Judging types like to be on time, while perceiving types may be late and/or procrastinate.

Which type you are in the 16 Myers Briggs Personality Types? Check out in the below link!

http://www.personalitypathways.com/type_inventory.html

Enneagram:

The Enneagram of Personality, or simply the Enneagram, is a model of human personality which is principally understood and taught as a typology of nine interconnected personality types such as Reformer,Helper,Achiever,Individualist,Investigator,Loyalist,Enthusiast,Challenger and Peace maker.

Check out your Enneagram personality type!

http://www.eclecticenergies.com/enneagram/test.php

Know your personality type:

http://peacebenwilliams.com/lets-play-what-is-your-true-personality/

Know your personality type based on your finger nail:

http://www.sun-gazing.com/look-nails-way-shaped-may-indicate-something-personality-2/