The Wright Blog

Project Management Formulas Made Easy! 🧮

September 15, 2024 The Wright Portfolio

Let’s Talk Numbers! 🔢

Hey there, project managers! You know that moment when your project feels like it's going smoothly, and then *bam*, you realize you need to calculate some fancy formulas? 😅 Don't worry, I’ve got you covered! Here are some of the most common project management formulas you’ll need to track your project’s success. Ready? Let’s dive in! 🚀

Earned Value (EV) 🏆

Earned Value helps you figure out how much of your project’s value you’ve completed so far. Think of it like a progress tracker 🎯.

Formula: EV = % of work completed × Budget at Completion (BAC)

Example: If you’ve completed 50% of a project with a total budget of $100,000, then EV = 0.5 × 100,000 = $50,000!

Planned Value (PV) 📅

This is what you should have completed by now, according to your project plan 📈. It's like looking at your progress map.

Formula: PV = % of planned work completed × BAC

Example: If by month 3 you planned to complete 60% of your project, and the BAC is $100,000, then PV = 0.6 × 100,000 = $60,000.

Cost Performance Index (CPI) 💸

Ever wonder if you’re getting bang for your buck? The CPI shows you how efficiently you’re spending money.

Formula: CPI = EV / Actual Cost (AC)

Example: If your Earned Value is $50,000, but you've only spent $45,000 so far, then CPI = 50,000 / 45,000 = 1.11. (You're doing great! 🎉)

Schedule Performance Index (SPI) 🕒

The SPI tells you how well you're sticking to the schedule ⏰. It’s like the GPS of your project timeline!

Formula: SPI = EV / PV

Example: If your EV is $50,000 but your PV is $60,000, SPI = 50,000 / 60,000 = 0.83 (which means you're behind schedule 😬).

Drag the Formula and Match it to the Right Definition!

Drag the formulas below and drop them into the correct definition box. It’s like a puzzle, but for your brain! 🧠✨