Exam Formula & Acronym Quick Reference
Quick-access formula cheat sheet for risk frameworks (PESTLE, TECOP, VUCA), budget reserve equations, and resource optimization rules.
Risk Frameworks (Prompt Lists)PMBOK p. 191
PESTLE Framework
Political, Economic, Sociocultural, Technological, Legal, Environmental Macro-environmental categories used during risk identification workshops to identify external risk sources.
Exam Takeaway:Frequently tested for global, cross-border, or highly regulated projects.
Risk Frameworks (Prompt Lists)PMBOK p. 191
TECOP Framework
Technical, Economic, Commercial, Operational, Political Project execution and commercial risk taxonomy framework.
Exam Takeaway:Focuses on technical feasibility and commercial viability risks.
Risk Frameworks (Prompt Lists)PMBOK p. 191
VUCA Framework
Volatility, Uncertainty, Complexity, Ambiguity Framework for evaluating high-turbulence, rapidly changing project environments.
Exam Takeaway:Essential for agile and hybrid project risk discussions.
Reserve Analysis FormulasPMBOK p. 192
Contingency Reserve (Known-Unknowns)
Contingency = Σ (Risk Probability × Financial/Schedule Impact) Sum of Expected Monetary Values (EMV) for identified residual risks.
Exam Takeaway:Included inside the Cost Baseline; managed directly by the Project Manager.
Reserve Analysis FormulasPMBOK p. 192
Management Reserve (Unknown-Unknowns)
Management Reserve = Cost Baseline × Policy Reserve % (e.g., 5-10%) Withheld for unforeseen work within project scope.
Exam Takeaway:NOT in Cost Baseline; requires formal Change Request approval before drawing.
Reserve Analysis FormulasPMBOK p. 192
Cost Baseline Equation
Cost Baseline = Scope Cost Estimate + Contingency Reserves The approved time-phased budget used to measure, monitor, and control overall cost performance.
Exam Takeaway:Earned Value metrics (EV, PV, AC) are calculated against Cost Baseline, NOT Total Budget.
Reserve Analysis FormulasPMBOK p. 192
Total Project Budget Equation
Total Project Budget = Cost Baseline + Management Reserve The total funds allocated to the project by the organization.
Exam Takeaway:Total funding requirement including executive reserves.
Earned Value Management (EVM)PMBOK p. 191
Schedule Performance Index (SPI)
Measures schedule efficiency. SPI > 1.0 means ahead of schedule; SPI < 1.0 means behind schedule.
Exam Takeaway:Found on PMIS progress dashboards (Figure 5-17 on Page 191).
Earned Value Management (EVM)PMBOK p. 191
Cost Performance Index (CPI)
Measures cost efficiency. CPI > 1.0 means under budget; CPI < 1.0 means over budget.
Exam Takeaway:Most critical EVM metric for predicting final project completion cost.
Resource OptimizationPMBOK p. 192
Resource Leveling Rule
Date Adjustments based on Resource Constraints -> May Alter Critical Path Adjusts start/finish activity dates to balance resource over-allocation.
Exam Takeaway:Can increase project completion duration.
Resource OptimizationPMBOK p. 192
Resource Smoothing Rule
Activity Float Adjustment -> Critical Path Unchanged Adjusts activities strictly within free/total float limits.
Exam Takeaway:Does NOT extend the project completion date.
Earned Value Management (EVM)PMBOK p. 207
Earned Value (EV)
EV = % Complete × Budget at Completion (BAC) The value of work performed expressed in terms of the approved budget for that work.
Exam Takeaway:Core EVM metric. Measured against the Cost Baseline, not total budget.
Earned Value Management (EVM)PMBOK p. 207
Schedule Variance (SV)
Difference between earned value and planned value. SV > 0 = ahead of schedule.
Exam Takeaway:Negative SV means behind schedule. Zero SV = on schedule.
Earned Value Management (EVM)PMBOK p. 207
Cost Variance (CV)
Difference between earned value and actual cost. CV > 0 = under budget.
Exam Takeaway:Negative CV means over budget. Most direct cost-performance indicator.
Earned Value Management (EVM)PMBOK p. 207
Estimate at Completion (EAC)
Forecasted total project cost at completion assuming current cost efficiency continues.
Exam Takeaway:Multiple EAC formulas exist; BAC/CPI assumes current CPI persists to completion.
Earned Value Management (EVM)PMBOK p. 206
To-Complete Performance Index (TCPI)
TCPI = (BAC − EV) / (BAC − AC) The cost performance that must be achieved on remaining work to meet the BAC.
Exam Takeaway:TCPI > 1 means harder work ahead. Compares remaining work to remaining funds.
Estimating TechniquesPMBOK p. 164
Expected Monetary Value (EMV)
EMV = Probability × Impact Used in decision tree analysis and contingency reserve calculation.
Exam Takeaway:Sum of all risk EMVs = Contingency Reserve. Used for known-unknowns.
Schedule CompressionPMBOK p. 171
Fast Tracking
Sequential activities performed in parallel -> shorter duration, higher risk Compresses schedule by overlapping phases/activities originally planned in sequence.
Exam Takeaway:No added cost but increases risk of rework. Requires discretionary dependencies.
Schedule CompressionPMBOK p. 196
Crashing
Add resources to critical path activities -> shorter duration, higher cost Compresses schedule by adding resources to critical path activities.
Exam Takeaway:Choose activities with the least cost per unit of time gained.
Critical PathPMBOK p. 161
Total Float
TF = LS − ES (or LF − EF) The amount of time an activity can be delayed without delaying the project end date.
Exam Takeaway:Critical path activities have zero total float. Free float ≤ total float.
Decision MakingPMBOK p. 211
Tuckman Ladder Stages
Forming → Storming → Norming → Performing → Adjourning Five stages of team development describing how teams mature and evolve.
Exam Takeaway:Storming = conflict. PM uses directive style early, facilitative later.
Stakeholder AnalysisPMBOK p. 204
Salience Model Attributes
Power + Urgency + Legitimacy Classifies stakeholders based on three attributes to prioritize engagement.
Exam Takeaway:Definitive stakeholders = high on all three. Require most attention.