Reference

Formula vault & glossary

Formulas

Earned value

Cost variance

CV = EV − AC

Negative means over budget.

Schedule variance

SV = EV − PV

Negative means behind schedule.

Cost performance index

CPI = EV / AC

Below 1.0 means over budget.

Schedule performance index

SPI = EV / PV

Below 1.0 means behind schedule.

Forecasting

EAC (typical variance)

EAC = BAC / CPI

Use when current performance will continue.

EAC (atypical variance)

EAC = AC + (BAC − EV)

Use when the overrun was one-off.

Estimate to complete

ETC = EAC − AC

Remaining forecast spend.

Variance at completion

VAC = BAC − EAC

Negative means forecast overrun.

To-complete performance index

TCPI = (BAC − EV) / (BAC − AC)

Efficiency needed to finish on budget.

Estimating

Beta / PERT

(O + 4M + P) / 6

Weighted toward most likely.

Triangular

(O + M + P) / 3

Simple average of three points.

Standard deviation

(P − O) / 6

One sigma of an activity estimate.

Schedule

Total float

LS − ES or LF − EF

Zero on the critical path.

Risk

Expected monetary value

EMV = probability × impact

Negative for threats, positive for opportunities.

Communication

Communication channels

n(n − 1) / 2

n is the number of stakeholders.

Finance

Benefit cost ratio

BCR = benefits / costs

Above 1.0 creates value.

Glossary

Assumption log
Record of assumptions and constraints identified throughout the project.
Backlog
Ordered list of everything that might be needed in the product, owned by the product owner.
Change control board
Group that reviews, approves or rejects change requests.
Contingency reserve
Budget for identified risks, inside the cost baseline, controlled by the PM.
Cumulative flow diagram
Chart of work items per state over time; widening bands reveal bottlenecks.
Fast tracking
Overlapping sequential activities to compress schedule; increases risk.
Information radiator
Highly visible display of project information for anyone to read.
Issue log
Record of problems that have already occurred, with owner and resolution date.
Kanban
Flow-based method: visualize work, limit WIP, manage flow.
Lead and lag
Lead accelerates a successor; lag delays it.
Management reserve
Funds for unknown-unknowns, outside the cost baseline, released by management.
MoSCoW
Prioritization: must have, should have, could have, won't have this time.
MVP
Minimum viable product — the smallest release that delivers and validates value.
Product owner
Person accountable for maximizing product value and ordering the backlog.
RACI
Responsibility matrix: responsible, accountable, consulted, informed.
Retrospective
Team event to inspect the process and commit to improvement actions.
Rolling wave planning
Progressive elaboration: near work planned in detail, far work at a high level.
Spike
A timeboxed research task to reduce technical or functional uncertainty.
Stakeholder register
Record of stakeholders, their interest, influence and engagement strategy.
Velocity
Story points completed per iteration; a planning input, never a performance target.
WBS dictionary
Detailed description of each work package: scope, owner, criteria, resources.
Work performance data
Raw observations, which become information, then reports for decisions.