PMI PMP® Exam-Day Cheat Sheet & Formula Guide
High-yield Earned Value Management formulas, conflict resolution strategies, agile ceremonies, risk matrices, and contract calculation tables for the PMI PMP® certification examination. Review these essential tables before entering the test center.
📌 Quick Summary / Core Test Principles:PMP Quick Rules: EVM: CV = EV - AC, SV = EV - PV, CPI = EV / AC, SPI = EV / PV; EAC = BAC / CPI (typical); TCPI = (BAC - EV) / (BAC - AC); Conflict: Collaborating (Win-Win, root cause) preferred; Compromising (lose-lose); Forcing only for crises/safety; Risks: Threats (Escalate, Avoid, Transfer, Mitigate, Accept); Opportunities (Escalate, Exploit, Share, Enhance, Accept); Contracts: FFP (buyer risk minimum), CPFF/CPIF (buyer risk maximum), PTA = ((Ceiling Price - Target Price) / Buyer Share Ratio) + Target Cost; Change Control: Submit -> Evaluate impact -> CR -> CCB review -> Update plan/baselines -> Inform.
Mathematical Calculations
Earned Value Management (EVM) Master Formula Sheet
| Metric / Acronym | Mathematical Formula | Interpretation Benchmark | PMP Exam Trap / Rule |
|---|---|---|---|
| Cost Variance (CV) | CV = EV - AC | > 0: Under budget (favorable) = 0: Exactly on budget < 0: Over budget (unfavorable) | Always subtract AC from EV. Negative is bad (over budget). |
| Schedule Variance (SV) | SV = EV - PV | > 0: Ahead of schedule (favorable) = 0: On schedule < 0: Behind schedule (unfavorable) | Always subtract PV from EV. Negative is bad (behind schedule). |
| Cost Performance Index (CPI) | CPI = EV / AC | > 1.0: Earning more value than cost = 1.0: Target baseline < 1.0: Cost overrun (e.g. 0.80 = $0.80 value per $1 spent) | CPI is the single most reliable predictor of final project cost performance. |
| Schedule Performance Index (SPI) | SPI = EV / PV | > 1.0: Progressing faster than planned = 1.0: On schedule < 1.0: Progressing slower than planned | SPI converges toward 1.0 at project completion even if the project is late. |
| Estimate at Completion (EAC) - Typical | EAC = BAC / CPI | Used when current cost performance is expected to continue indefinitely. | Default formula when question states 'variances are expected to continue'. |
| Estimate at Completion (EAC) - Atypical | EAC = AC + (BAC - EV) | Used when past anomalies are not expected to recur in future work. | Assumes remaining work will be completed at the originally planned budget rate. |
| Estimate to Complete (ETC) | ETC = EAC - AC | How much additional money is required to finish the project. | Does not include money already spent (AC). |
| Variance at Completion (VAC) | VAC = BAC - EAC | > 0: Under original budget < 0: Over original budget | Negative VAC indicates projected cost overrun at completion. |
| To-Complete Performance Index (TCPI) - BAC | TCPI = (BAC - EV) / (BAC - AC) | > 1.0: Harder to achieve (need higher efficiency) < 1.0: Easier to achieve | TCPI > 1.10 is generally considered unfeasible; negotiate an updated EAC. |
💡 Pro Tip:Memory Rule: Every variance formula starts with EV (EV - AC, EV - PV). Every index formula starts with EV on top (EV / AC, EV / PV). Above 1.0 or positive is good; below 1.0 or negative is bad!
People & Interpersonal
Conflict Management Strategies (Thomas-Kilmann Model)
| Technique | Approach & Dynamics | Outcome & Trade-off | Appropriate Exam Context |
|---|---|---|---|
| Collaborating / Problem Solving | Incorporate multiple viewpoints; explore objective data to find an optimal solution. | Win-Win; produces lasting consensus and high commitment. | Preferred PMI approach for technical and architectural disagreements when time permits. |
| Compromising / Reconciling | Search for solutions that bring some degree of satisfaction to all parties; split the difference. | Lose-Lose (partial win/loss); neither party gets everything. | Used when time is constrained or parties have equal power with mutually exclusive goals. |
| Forcing / Directing | Push one's viewpoint at the expense of others; exercise positional authority. | Win-Lose; damages team morale and psychological safety. | Strictly appropriate during emergencies, safety hazards, life-critical issues, or mandatory compliance. |
| Smoothing / Accommodating | Emphasize areas of agreement rather than areas of difference; maintain harmony. | Temporary fix; root cause remains unaddressed. | Used to calm emotions temporarily so pressing immediate work can proceed. |
| Withdrawing / Avoiding | Retreat from an actual or potential conflict situation; postpone issue to be better prepared. | No resolution; problem inevitably resurfaces. | Appropriate only when issue is trivial, emotions are explosive, or to cool down temporarily. |
💡 Pro Tip:On the PMP exam, Collaborating / Problem Solving is the correct answer ~80% of the time. Forcing is correct ONLY when safety, ethics, or legal non-compliance is at stake.
Risk Management
Risk Response Strategies: Threats vs. Opportunities
| Strategy Type | Threat Strategy (Negative) | Opportunity Strategy (Positive) | Key PMP Distinction |
|---|---|---|---|
| Eliminate / Guarantee | Avoid: Change project management plan to eliminate threat entirely (e.g. cancel feature, change tech). | Exploit: Eliminate uncertainty to ensure the opportunity 100% definitely happens (e.g. assign top talent). | Avoidance eliminates 100% of the threat; Exploit guarantees 100% of the opportunity. |
| Shift / Partner | Transfer: Shift ownership/financial impact to a third party (e.g. insurance, warranties, fixed-price subcontracts). | Share: Allocate ownership to a third party best able to capture the benefit (e.g. joint venture, revenue share). | Transfer shifts liability/threat; Share divides mutual reward/upside with partners. |
| Adjust Prob / Impact | Mitigate: Take early action to reduce probability and/or impact (e.g. prototypes, redundancies, testing). | Enhance: Take action to increase probability and/or positive impact (e.g. add extra marketing, fast compute). | Mitigation reduces negative downside; Enhancement magnifies positive upside. |
| Acknowledge | Accept (Passive or Active): Acknowledge risk; take no action except establishing a contingency reserve if active. | Accept: Acknowledge opportunity; take advantage if it occurs naturally without active investment. | Passive acceptance requires no action; Active acceptance establishes contingency reserves. |
| Boundary Threshold | Escalate: Threat exceeds project manager authority or affects program/portfolio; pass to sponsor/PMO. | Escalate: Opportunity exceeds project boundary or benefits multiple enterprise units; pass to executive sponsor. | Once escalated, the risk is no longer managed in the project risk register by the PM. |
💡 Pro Tip:If you hire a contractor under Fixed Price to handle a risky module, that is Risk Transfer. If you write automated unit tests to catch defects early, that is Risk Mitigation.
Procurement Management
Contract Types & Risk Allocation Matrix
| Contract Type | Cost Risk Bearer | Scope Definition Requirement | Ideal Project Context |
|---|---|---|---|
| Firm Fixed Price (FFP) | Seller (Highest seller risk, lowest buyer risk) | Scope must be 100% completely defined, detailed, and unambiguous. | Standard commercial off-the-shelf purchases or well-understood construction. |
| Fixed Price Incentive Fee (FPIF) | Shared up to Ceiling; Seller assumes 100% above Point of Total Assumption (PTA). | Well-defined with specific quantitative performance/cost incentives. | Manufacturing or aerospace where cost control incentives align buyer and seller. |
| Cost Plus Fixed Fee (CPFF) | Buyer (Buyer reimburses all legitimate costs + set fee) | Scope is uncertain, exploratory, or involves significant R&D. | Cutting-edge research, novel software engineering, or emergency disaster response. |
| Cost Plus Incentive Fee (CPIF) | Shared (Cost overruns/underruns shared according to predetermined ratio, e.g. 80/20). | Uncertain scope where target costs and sharing ratios motivate efficiency. | Complex enterprise transformation programs spanning multiple years. |
| Time and Materials (T&M) | Buyer (Buyer pays set hourly rate for all time spent) | Scope is undefined, emergent, or staff augmentation is needed quickly. | Emergency expert troubleshooting or temporary contractor augmentation; ALWAYS require a Not-to-Exceed (NTE) cap. |
💡 Pro Tip:Formula to know: Point of Total Assumption (PTA) = ((Ceiling Price - Target Price) / Buyer Share Ratio) + Target Cost. Beyond PTA, the seller absorbs every dollar of cost overrun.
Agile Frameworks
Agile Ceremonies, Roles & Artifacts Quick-Reference
| Ceremony / Role / Artifact | Primary Owner | Core Purpose & Timebox | Key Exam Insight |
|---|---|---|---|
| Product Owner (PO) | Individual (Single voice of customer) | Owns product vision, manages and prioritizes the Product Backlog, accepts/rejects user stories. | Only the Product Owner can cancel a sprint or accept completed user stories. |
| Scrum Master / Agile Coach | Servant Leader | Removes impediments, facilitates ceremonies, shields team from distractions, coaches agile mindset. | The Scrum Master NEVER directs work, assigns tasks, or makes technical choices for the team. |
| Development Team | Cross-Functional, Self-Organizing | Estimates stories, decomposes tasks, creates the increment, owns the 'How', maintains quality. | The team collectively decides how many story points to pull into a sprint based on velocity. |
| Sprint Planning | Entire Scrum Team | Timebox: 8h for 4-week sprint (2h/week). Selects Product Backlog items, crafts Sprint Goal, creates Sprint Backlog. | The Sprint Goal must not be modified once sprint planning concludes. |
| Daily Standup | Development Team | Timebox: 15 minutes. Daily synchronization: What did I do? What will I do? What impediments block me? | Not a management status report meeting; it is a peer synchronization for developers. |
| Sprint Review | Scrum Team + Stakeholders | Timebox: 4h for 4-week sprint (1h/week). Live demonstration of working software increment; gathers feedback. | Focuses on product increment inspection; not a PowerPoint slide presentation. |
| Sprint Retrospective | Scrum Team only | Timebox: 3h for 4-week sprint (45m/week). Inspect and adapt the team process, tooling, relationships, and Definition of Done. | Top improvement action items must be prioritized and added directly into the next sprint backlog. |
💡 Pro Tip:Do not confuse Definition of Ready (DoR: criteria a story must meet before entering sprint) with Definition of Done (DoD: quality criteria a story must satisfy to be deemed shippable).
Process Governance
Integrated Change Control & Decision Sequence
| Step Number | Governance Action | Responsible Role | PMI Mindset Rationale |
|---|---|---|---|
| Step 1: Prevent & Educate | Influence factors that circumvent change control; educate stakeholders on project governance. | Project Manager | Proactively prevent unauthorized scope creep before it starts. |
| Step 2: Formal Request | Ensure the change is formally submitted and documented in the Change Log. | Requester / Project Manager | Verbal change requests are never implemented without formal documentation. |
| Step 3: Comprehensive Impact Assessment | Analyze impact across ALL project constraints: scope, schedule, cost, quality, risk, resources, customer satisfaction. | Project Manager & Team | Never say 'yes' or 'no' before thoroughly analyzing the full cross-functional impact. |
| Step 4: Explore Alternatives | Identify trade-offs, options, or cost-neutral adjustments to satisfy the stakeholder's underlying business need. | Project Manager | Demonstrate problem-solving value rather than rigid bureaucratic refusal. |
| Step 5: CCB Submission | Present the change request, comprehensive impact analysis, and alternatives to the Change Control Board (CCB). | Project Manager | Baseline changes exceed PM authority; the CCB approves, defers, or rejects. |
| Step 6: Baseline & Plan Updates | If approved, update the Project Management Plan, scope/schedule/cost baselines, and communication registers. | Project Manager | Never begin physical execution until management plans and baselines are officially updated. |
| Step 7: Communication & Execution | Notify all affected stakeholders of the CCB decision and execute the approved change through the team. | Project Manager & Team | Ensure transparency across governance bodies and delivery teams. |
💡 Pro Tip:The classic PMI sequence: When a stakeholder requests a change -> 1) Document it -> 2) Assess the impact across all constraints -> 3) Submit to CCB -> 4) Update the plan upon approval -> 5) Execute!