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Showing posts with label Tricky formulas. Show all posts
Showing posts with label Tricky formulas. Show all posts

Mind Square Brackets in one of the Estimate at Completion (EAC) formulas!

When calculating Estimate at Completion or in short 'EAC', in a scenario when things are not quite going to plan but you still DO need to stick to a deadline, you need to consider both CPI and SPI. In this case take note of the square brackets (or [...]) in the formula. This is the only instance (among the 50 or so other formulas you will need to know for the exam) where you officially need to apply square brackets.

The Art of Prioritization - telling "maximizing" from "minimizing" is of crucial importance

Price (when you're a buyer) is a typical example of the "Minimizing" rule. If you buy, you want the price to be as low as possible. Interest, on the other hand, typically represents the "Maximizing" rule. That's when you put your money in a bank and search for the highest rate. It would be the exact opposite if you were the borrower.
That seems easy. So far so good. But in what category would you place some more complex indicators such as CPI, IRR, ROI etc.?