Main Formulas you have to memorize to pass PMP Exam - Version 6

Below are the main formulas that shall be memorized for PMP - Ver. 6 Exam:

1. Standard Deviation (SD)

SD is a way to measure how much is the variation from the mean. 

usually it is used to analyze data. Standard Deviation is represented by using the symbol sigma (σ).

Sigma is the difference of distribution values on any end and in middle.

σ = (Pessimistic – Optimistic) / 6

A low value of SD shows that the data points are close to mean or average and a high value of SD shows that data points are spread over a large range.

2. Earned Value

specific technique in which the actual values of the work related performance is calculated for any and all particular work components and of schedule activities

Earned Value = % complete × Budget at Completion (BAC)

For example, if the project team has completed 100 man-hours of work and project required 500 man-hours of work to complete the project, then

% Complete = 100/500 × 100 = 20%

Budget at Completion = Total budget assigned for the project (let it be $50,000 in this case)

Then, EV = 20 × $50,000 = $10,000

3. Schedule Variance (SV)

It is the difference between the earned value and the planned value. 

Schedule Variance = Earned Value (EV) – Planned value (PV)

For example, if EV for an app development project is $40,000 and PV is $50,000 then

Schedule Variance = $40,000 – $50,000 = – $10,000 (which shows that project is running behind the schedule by $10,000 schedule variance)

** Negative value of SV shows that the project is behind the Schedule 

** Positive value of SV shows that the project is ahead of the Schedule.

** Zero SV means that the project is exactly at the Schedule.

4. Schedule Performance Index (SPI)

It is a ratio of the earned value to the planned value. 

SPI = Earned Value (EV) / Planned Value (PV)

 As the same of CPI, it is also a ratio then it can have three values (=1, >1 or <1)

If SPI = 1, it indicates that project is going at the same rate as expected.

If SPI > 1, it indicates that project is going at a faster rate.

If SPI < 1, it indicates that project is going at a slower rate.

5. Cost Variance (CV)

It is the difference between earned value and actual cost.

Cost Variance (CV) = Earned Value (EV) – Actual Cost (AC)

For example, If Earned Value (EV) and Actual Cost (AC) for a project are $75,000 and $60,000 respectively then

Cost Variance = $75,000 – $60,000 = $15,000

The positive of Cost Variance shows the condition of under budget whereas the negative value of Cost Variance denotes the over budget.

The value of zero for the cost variance shows that the project is exactly at the budget.

6. Cost Performance Index (CPI)

It is the ratio of earned value to the actual cost.

CPI = EV / AC

CPI can have three values (=1, >1or <1)

If CPI = 1, then it means that the project is getting $1 for every $1 spent.

If CPI > 1, then it means that he project is getting more than $1 for every $1 spent.

If CPI < 1, then it means that he project is getting less than $1 for every $1 spent.

7. Estimate at Completion (EAC)

It is a forecasting technique to predict the future project performance. 

 There are four Equations to calculate EAC.

1st Equation of EAC

Estimate at Completion (EAC) = BAC / CPI

If CPI = 1 then EAC = BAC which means that the project manager are able to complete the project within the provided budget and without any forecasting analysis. Even at the starting of the project, estimate at Completion is same as that of the Budget at Completion.

2nd Equation of EAC

When the project cost estimation was flawed and the project manager wants to find the new cost estimate for the remaining works, you need to move to the activity level in order to find the cost of each activity, and then add individual costs to obtain the total cost value of the remaining works. In this case,  the following formula is used to calculate the EAC

Estimate at Completion (EAC) = AC + Bottom-up ETC

3rd Equation of EAC

If a deviation happened from the estimated budget but now the project manager can perform the remaining task as per plan. This may happen because of an unexpected condition or increased in cost. so, to calculate the value of EAC in this formula, money spent to date is added to the budgeted cost for remaining project works.

Estimate at Completion = Money spent to date + Budgeted cost for the remaining work

Estimate at Completion (EAC) = AC + (BAC – EV)

4th Equation for the EAC

In this equation, both the schedule and cost are required to be taken into consideration,  this formula is applied to find the value of EAC. It is given as:

Estimate at Completion (EAC) = AC + [(BAC – EV) / (CPI × SPI)]

Estimate at Completion = Money spent up to date + (Budgeted cost for the remaining works – Earned Value) / (Cost Performance Index × Schedule Performance Index)

8. Variance at Completion (VAC)

It is the difference of Budget at Completion and Estimate at Completion.

Variance at Completion (VAC) = BAC – EAC

Remember that a $0.0 value for VAC indicates that the project will hit the budget. A value less than $0.0 indicate that the project will be over budget and a value more than $0.0 shows that the project will be under/lower than the budget.

9. Estimate to Complete (ETC)

It is a way demonstrates which value that shall be spent on the remaining works for the project to get the project completed. 

ETC = EAC – AC

10. To Complete Performance Index

It is a measurement for the cost performance that is required to be achieved with the remaining resources in order to meet a specified management target.

There are two ways to calculate the TCPI as stated below:

TCPI = (BAC – EV) / (EAC – AC)

TCPI = (BAC – EV) / (BAC – AC)

11. Communication Channels (CN)

The number of ways by which information flows within the organization or Company.

 communication channels = n (n – 1) / 2

Where ‘n’ stands for the number of stakeholders

If there are 7 stakeholders,  then the number of communication channel is = 7 (7-1) / 2 = 21 channels 

(Remember that a stakeholder may be an individual, a group or an organization that is affected by the decision, activity or result of the project)

** Remember that usually there is 1 direct question about this formula in PMP exam.

How Many People in the World are PMP Certified & How many in other Certifications

Project Management Institute (PMI) Certifications became so popular and accredited around the world, each year the number of the certified people is increasing due to the reputation and the well-recognition of PMI, below are a statistical data for the main PMI certifications' holders up to 1st January 2018:

PMP® – There are 825,413 (Project Management Professional Certified around the World)

** Top countries that have PMP holders are:
1. United States .. more than 250,000 Holder
2. China .. more than 100,000 Holder
3. India .. more than 50,000 Holder
4. Japan .. more than 40,000 Holder
5. Canada .. more than 30,000 Holder


CAPM® –  Around 35,000 (Certified Associate in Project Management)

PMI-ACP® – Around 18,000 (PMI® Agile Certified Practitioner)

PMI-RMP® – Around 5,000 (PMI® Risk Management Professional)

PMI-SP® – Around  2,000 (PMI® Scheduling Professional)

PgMP® – Around 2,000 (Program Management Professional)

PMI-PBA® – Around 2,000 (PMI® Professional in Business Analysis)

PfMP® – Around 500 (Portfolio Management Professional)

Critical Path Method in PMP Exam

Critical Path Method (CPM)

Critical Path is the LONGEST duration path through a network diagram and determines the shortest or earliest time to complete the project.

The Critical path is calculated by Adding up the duration's of activities of each path in a network diagram. The longest path is the critical path (The longest path duration = The shortest time

a project takes to finish all its activities).

This technique calculates theoretical EARLY start & Finish dates( ES & EF ) and LATE Start & Finish ( LS & LF) dates ,for all activities Regardless for any resource limitations.

Calculations of ES,EF : performing a forward pass analysis through the schedule network [from the beginning of the project to the task and following the dependencies in the network diagram].

Calculations of LS, LF: performing a backward pass analysis through the schedule network. [from the end of the project to the task and following the dependencies in the network diagram].

Most Project Management software's calculate ES EF LS LF for you, but you must be able to calculate

them manually on PMP exam.

The resulting dates ( ES,EF,LS,LF) are not necessarily the schedule

network; rather, they indicate the followings:

- TIME PERIODS within which the schedule activities could be scheduled.

-  Given activity duration

- Logical relationships.

- LEAD & LAG and other known constraints.

- Calculating ES,EF,LS,LF may be affected by the activity Total Float.

Total Float (slack): The amount of time that a schedule activity may be delayed from its early start date without delaying the project completion date or violating a schedule constraint.

Total Float is termed as schedule flexibility and is measured by the

positive difference between Early and Late dates (LF-EF or LS-ES).

•  Total float may be Positive(we can wait), Negative(We need to speed up the Work on this activity) or Zero(No any delay).
•   The “critical path” has either Zero or Negative total float. But critical path is normally characterized by Zero total float on the critical path.
•   Adjustments to activity duration, logical relationships, leads and lags or other schedule constraints may be necessary to produce network paths with a zero or positive total float.

􀂉 The activities in the critical path are called “Critical Activities” and almost always have no slack (Slack=0)
􀂉 The total float provides schedule flexibility.

Once the total float for a network path has been calculated then the Free float can also be determined.

􀂃􀂃 Free Float (Slack): The amount of time that an activity can be delayed without delaying the early start date of any immediate successor activity within the network path.
􀂃􀂃 Project Float (Slack): The amount of time a project can be delayed without delaying the externally imposed project completion required by the customer, sponsor or management.
􀂃􀂃 Near Critical Path: a Path with low float. A network diagram can have

multiple near critical paths.

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Float is extremely useful for:

– The project manager: Better allocation of rescourses among other areas of the project.

– Team members: To juggle multiple projects  
􀂃􀂃 The critical Path Method technique has the following benefits:
􀀹􀀹 It proves the project time estimate.
􀀹􀀹 It helps project compression.
􀀹􀀹 It indicates where to focus and what to monitor.
􀀹􀀹 It indicates what could be delayed.
􀀹􀀹 It Shows what requires immediate action.

􀀹􀀹 PM should monitor & control the Near–Critical Path as well.

Example I:

- In order to solve such questions which appear always in PMP exam, first you have to determine the possible paths exist in the chart.

(Start) - A-B-C-D-E-K - (End)

(Start) - A-B-F-G-H-J-K - (End)

(Start) - A-B-I-J-K - (End)

- Second step is to determine the length of each path based on the duration gived in the chart for each activity:

(Start) - A-B-C-D-E-K - (End)  *31 Days*

(Start) - A-B-F-G-H-J-K - (End) *43 Days*

(Start) - A-B-I-J-K - (End) *33 Days*

- So based on the definition of the Critical Path which is the LONGEST duration path through a network diagram, the critical path will be the second path : (Start) - A-B-F-G-H-J-K - (End) 


Example II:

- First Step: draw the network diagram :

- Second Step: determine the Critical path:

                        

- Third Step: determine the ES, EF, LS & LF for each activity:

- Now it is easily to calculate the float for each activity as the ES, EF and LS, LF are known for all activities.

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Six Sigma Green Belt - Most Frequent Questions in Exams

Test-Questions

Q:1-Process variation is a natural phenomenon in business as no two products or

service experiences offered to customers can be identical. What two components

make up process variation?

Mark one answer:

common cause & inherent cause

common cause & special cause

common cause & production cause

common cause & training cause

Q:2-A Decision Tree is a is a visual decision making tool that can prove useful

across a number of business settings. Decision trees provide all of the following

EXCEPT:

Mark one answer:

present competing alternatives

display potential outcomes

provide comprehensive risk analysis

compare probabilities

Q:3-The following is a multiple regression model. What do the regression

coefficients b1 and b2 represent?

Yi = b0 + b1X1i + b2X2i +ei

Mark one answer:

slopes of independent variables

slopes of dependent variables

random error term

graph intercept

Q:4-A process is a:

Mark one answer:

value-added transformation from input to output

value-added transformation from data to knowledge

manufacturing transformation of raw materials

business transformation of data to process maps

Q:5-The ability of an electronic scale to measure substances consistently every

time the measurement is made is referred to as _____.

Mark one answer:

repeatability

1/3

precision

accuracy

reproducibility

Q:6-_____ is a tool that is used in the define phase of Six Sigma DMAIC, and can

be used in developing high level process maps in a process improvement project.

Mark one answer:

SIPOC

CPOQ

CTU

DPU

Q:7-Real estate agents at a national agency meet on a weekly basis to discuss

property pricing. With repossessed homes, the proper procedure for pricing is for

three real estate agents to agree on a selling price. This is an example of _____.

Mark one answer:

percent agreement

pricing agreement

estate agreement

systematic agreement

Q:8-Workers in the overnight shift at an assembly line, on average, require 8.5

minutes to complete once production cycle. Production managers have

contributed this to biological differences in overnight reaction times. What type of

variation is this an example of:

Mark one answer:

wear-and-tear

inherent

special cause

deliberate

Q:9-The following are examples of statistical process control charts EXCEPT:

Mark one answer:

p-charts

c-charts

Xbar charts

Y charts

Q:10-Project specification limits are set by managers in response to customers’

expectations. The largest specification value that can be obtained and still be

acceptable to customer expectations is referred to as:

Mark one answer:

2/3

LSL

USL

LSL

UCL

3/3

PMI-PBA Exam Questions Area 1: Need Assessment PMI-PBA Questions and Answers

PMI-PBA Exam Questions Area 1: Need Assessment PMI-PBA Questions and Answers

 1.

Determine examples considered as internal factors for strength and weakness in needs assessment in an organization. 
A Staff Strength 
B Branding image 
C Quality of the project 
D All the above

 2.

______ is the technique used to identify basic reason that cause variation, defect and risk and eliminate the common problem A Opportunity analysis 
B Threats 
C Root cause analysis 
D None of these

 3.

_______ is the major factor of potential opportunity to identify the feasibility for successful new product launch 
A Root cause analysis 
B Opportunity analysis 
C Cost analysis 
D None of these 

 4. _______ are used to understand the cause of a problem as not distracted by its symptoms 
A Gap analysis 
B Root cause analysis 
C Cause-and-effect diagrams 
D None of these

 5. ____ and _____ are important factor used by business analysts to begin the documenting the business requirements. 
A Document and plan 
B Program and project 
C Goal and objectives 
D Document and objective 

 6. ________ are used to translate identified goals into actionable plans and objectives by business analysts 
A Corporate project 
B Corporate structure 
C Corporate strategies 
D None of these

 7.

______ are assembled one of the final tasks in need assessment which is done by business analyst 
A Project goals 
B Project objectives 
C Business cases 
D None of these

 8.

______ helps to assess organizational strategy, goals and objective used to facilitates the discussion with stakeholders. 
A Trend analysis 
B SWOT analysis 
C Need analysis 
D None of these

 9.

_____ is widely used to determining high-level views in a business need and used to create structures framework for cutting down into root causes or contributors. 
A Gap analysis 
B SWOT analysis 
C Pareto chart 
D None of these

 10.

______ type of SWOT analysis is used for organization current strengths to help solve the problem or opportunity. 
A External 
B Central 
C Internal 
D None of these

 11.

_____ type of SWOT analysis, creates possible external environment to seize an opportunity and these threats includes increase market share by competition, new product offered by competitors, mergers and acquisitions maximize competitor’s size A External 
B Internal 
C Central 
D None of these

 12.

Goal and objectives are used to generate revenue for the organization whereas programs and projects are key features used to _____ 
A Maximize customer value 
B Minimize decision making 
C Expand market or add new products 
D None of these 

 13. Determine the key objective for decision making for defining goals and objective 
A To reduce cost

B Process improvement 
C To eliminate cost 
D All the above 

 14. Once the business analyst identifies current situation of the organization, BA breaks into _____ for appropriate solution 

A To reduce cost 
B To eliminate cost 
C Root cause 
D None of these 

 15. Business analysts focus on problem or opportunity to understand the situation rather complete requirements are analyzed in this stage. Identify the stage 
A Planning 
B Analysis 
C Need assessment 
D None of these

 16.

______ is the technique used to define the difference between the current state and proposed state of any business and its functionalities 
A Business rule 
B Gap analysis 
C Data analysis 
D None of these

 17.

________ is used to determine the variation in the future processes or techniques and comparing with current process AData analysis BBusiness rule CGap analysis DNone of these

 18.

One of the functions of business analysts is to gather data to understand the magnitude of the problem or opportunity. Identify other name. ABenchmarking BMetrics CSizing up DNone of these  19. _______ is the standard method to compare internal organization units or processes against each other in similar industries ASizing up BMetrics CBenchmarking DNone of these  20. Determine benchmarking examples AWebsite visitors, website conversions, sales enquiries and new accounts BMarket size, potential new market share, current composition and pricing strategy CPotential increase in sales, market share, customer base and new contracts DAll the above  21. _______ step is foremost performed by business analyst to ensure the understanding of the problem or opportunity the organization plan to address and time-consuming process. ABenchmarking BBusiness analysis CDrafting DNone of these

 22.

_______ plays an important role to ensure the situation statement correctly defines the solution else it leads to failure to refine situation statement with the business ASenior business analyst BProject Owner CBusiness stakeholders DNone of these

 23.

_________ initiates and facilitates approval process which can be formal or informal depends on organization ABusiness shareholders BBusiness stakeholders CBusiness analyst DNone of these

 24.

Depending on organization, business strategy _______ vary organization to organization to acquire the understanding of industry and its market ARequirement BDevelopment CDocument and plan DNone of these  25. _________ states about needs of stakeholder or its group when is reflect role of anyone with a material interest in outcome of an initiative and could include customers, suppliers and partners as well as business roles. ASolution requirements BStakeholder requirement CBusiness requirements DNone of these

 26. _________ describes features, functions and characteristics of a product, service or results meet the business and stakeholder requirements. It can be categorized into functional and non-functional requirements. AFunctional requirements BSolution requirements CNon-functional requirements DNone of these  27. _________ describes capabilities such as data conversion and training requirements and operational changes to transition from current state to future state. ACross functional requirements BTrans functional requirements CTransition requirements DNone of these  28. ________ are the actions, process or other specification needs to be seen also it focus on aspects of project execution. AStakeholder requirements BSolution requirements CProject requirements DNone of these  29. _______ contains business analysis work is conducted to analyze a current business problem or opportunity to assess current internal and external environment. ASolution evaluation BTraceability and monitoring CNeed Assessment DNone of these

 30. Define program as given in PMI ANeed assessment are performed to examine the business environment and address either current business problem or opportunity BIt involves the completion of a gap analysis which is a technique described and used to analyze, compare the actual performance CA group of related projects, subprograms and program activities managed in a coordinated way to obtain benefits which is not available from managing them individually. DConduct a need assessment to help the organization understand business problem or opportunity in details.

 31.

In business analysis plan, __________ are sometimes referred as quality of service requirements where these requirements are not quality requirement. AFunctional requirements BStakeholder requirements CNon-functional requirements DNone of these

 32.

Stakeholders for need assessment are categorized into four categories using responsibility assignment matrix .Determine the matrix type ACollaboration point BRACI model CPlanning DNone of these

 33.

In Need assessment planning, BA adopts RACI model,_______ is the term to perform need assessment AAccountable BResponsible CInform DNone of these

 34. In RACI model,______ is the term used for person who approves need assessment including business case, warranted AInform BAccountable CConsult DNone of these  35. In need assessment, RACI model are adopted by project manager and business analysts has interest in stakeholder identification and RACI analysis. Identify the term AResponsible BCollaboration point CConsult DInform  36. In giant filter, business analyst’s job is to receive requests for changes from company to company includes management and IT where it performs few activities. Identify the activities followed in giant activities AEvaluating change request and defect report for validity and completeness BTo eliminate specious/spurious requests CDetermine problems in business community need addressing DAll the above o 37. Determine the legitimate request where the requests are not actionable for certain reasons. Determine the rquest. ALack of understanding of a system/technology BDuplicate request of something it has already done or in progress CRequest is unable to align with organizational missions, goals and strategies DAll the above o 38.

_______ tries to minimize than solving real problem for the organization by judging size of its backlog than number of successful solutions finished. AProject Manager BProject lead CBusiness Analyst DNone of these o 39. Kate works as business analyst for a manufacturing company. The company doesn’t have PMO, therefore kate has to resolve the issues inside the organization. Determine what type of role does kate has to be performed. ASettling disputes between departments BConflict requirements CDiffering approaches between IT and business to resolve specific problem DAll the above

 40.

Business analysts act as mediator for the organization. Identify what type of role has to focused by analyst to act as mediator AProvides alternative solutions BAsk questions for better understanding CSlows down conversation DAll the above

 41.

What are the collaborative tools used by business analyst, where BA becomes central point of collaboration around the globe. Determine the tools used by BA. ADiscussion areas BMeeting scheduling CProject or team workspaces DAll the above

 42.

According to Business analyst, the term ______ is the condition/capability required to be present in product/service result to satisfy a contract or other imposed specification AResponsibility BRequirement

CAnalysis DAll the above  43. _______ is the major responsibility for the requirement assigned to resource has sufficient business subject matter for decision-making AProduct owner BProject manager CProcess owner DBusiness Analyst  44. ______ is the responsible to ensure requirement –related work accounted for project management plan and requirement-related activities performed on time and within budget and deliver value. AProject coordinator BProcess manager CProject manager DNone of these  45. _______ is the higher-level needs of the organization as a whole where business issues or opportunities ASolution requirements BStakeholder requirements CBusiness requirements DNone of these  46. Determine the attributes for business analyst in writing business analysis plan AAbility to analyze information which is required to be done to solve the problem BAbility to communicate in oral as well as written CAbility to facilitate and moderate meetings or workshops DAll the above

 47. Identify the skills required for business analysis role ADecision making BFacilitation CNegotiation skills DAll the above  48. ____________ are the typical technician makes to become a business analyst which is acquired by training, reading and practice. ACommunication skills BLeadership skills CAdaptable skills DInfluencing skill  49. ___________ is the most common role by the business analyst functioning go-between in business,IT and top level management AFacilitator BDiplomat CInvestigator DIntermediary  50. Business analyst also plays ______ role while receiving and evaluating change requests from business for fixing bug prior or new system. AInvestigator BFilter CDiplomat DNone of these  51. ___________ plays eliciting information to identify problem and solution as business analyst AInvestigator BFilter CDiplomat

DNone of these  52. ________ is one of the business analyst role in assisting resolution of conflict among parties and negotiates collaborative solutions AFacilitator BQuality assurance CDiploma DChange agent  53. ________ is also an important role to ensure the solution where the problem is solved completely and effectively. AQuality Assurance BDiplomat CChange agent DNone of these  54. ______ is considered as an important role to ensure the solution is accepted by stakeholders for whole development process and effectively stored into production and used to generate value for organization. AFacilitator BChange agent CDiplomat DNone of these 55. ________ is the set of activities performed to determine business needs and recommend relevant solution and to elicit, document and manage requirements ABusiness requirements BBusiness analysis CBusiness trends DNone of these

Answers

1. D

2. C

3. B

4. C

5. C

6. C

7. C

8. B

9. B

10. C

11. A

12. C

13. D

14. C

15. C

16. B

17. C

18. C

19. C

20. D

21. C

22. C

23. C

24. C

25. B

26. B

27. C

28. C

29. C

30. C

31. C

32. B

33. B

34. B

35. B

36. D

37. D

38. C

39. D

40. D

41. D

42. B

43. D

44. C

45. C

46. D

47. D

48. A

49. D

50. B

51. A

52. C

53. A

54. B

55. B

LEED Certifications (PART 01) - Certified Building Design + Construction

LEED Certifications

(LEED AP BC +C)

LEED or Leadership in Energy & Environmental Design Certifications are one of most effective certifications around the world in Designing and considering the environmental conditions and to achieve the green construction considering the sustainable development and avoiding pollution and bad whether conditions in affecting the construction and maintainance works.

A LEED professional credential shows that you are a leader and accredited in the field of the green buildings,  With jobs that are specifying the need for green building experience, a LEED certified shows a clear commitment to professional growth, while emphasizing your value to LEED project teams

LEED Certifications Categories

There are many types or categories of LEED Certifications, this Part will illustrate LEED Certificate of Building Design & Construction LEED AP BC+C.

LEED AP BC +C is suitable for Civil Engineers Generally whom designations and experience is related to design and construction buildings, the certificate will merge the green Buildings philosophy to their knowledge and experience in order to implement this new methodology in their works and education.

  

•