Term

Explanation

IRR

Internal rate of return, higher is better

Payback period

Lower is better

BCR

Benefit/cost ratio, higher is better

CBR

Cost/benefit ratio (switched), lower is better

Number of communication channels n(n-1)/2

Expected Monetary Probability * impact or value Value

Program Evaluation and Review Technique is equal to (Pessimistic +(4*Most PERT Likely)+(Optimistic))/6

PV

Planned Value = BCWS (budgeted cost of work scheduled)

AC

Actual Cost = ACWP (actual cost of work performed)

EV

Earned Value = BCWP (budgeted cost of work performed)

CV

Cost Variance = EV - AC

SV

Schedule Variance = EV - PV

CPI

EV/AC

SPI

EV/PV

EAC (assume AC + BAC - EV budgeted rate)

EAC (using past BAC/cumulative CPI performance)

VAC

BAC - EAC

TCPI (to complete present index)

(BAC-EV)/(BAC-AC) Less than 1 is good as it means you can perform at lower efficiency

Cash flow

Cash inflow - Cash outflow

PV

Present value = FV/(1+r)^n

Sigma values

1 = 68.26 2 = 95.46 3 = 99.73 6 = 99.99

Precedence diagramming method

Activities are nodes and in boxes linked to one another. Has 4 relationships: Finish-start, S-S, F-F, S-F

Arrow diagramming Activity on arrow, only have one relationship, Finish to start. method

1. Achievement 2. Recognition 3. Challenge of the work itself 4. Herzberg's Motivators Responsibility 5. Growth and advancement

Maslow's Needs (lowest first)

1. Physical needs 2. Safety and Security 3. Social 4. Self-esteem 5. Selfactualization

1. Expert: Best, you earn it 2. Reward: Ability to reward. Based on your Powers of PMP position 3. Formal: Power given to your position 4. Referent: Referring to others 5. Penalty: Worst, based off ability to punish