[Verse 1]
When you need to estimate the cost ahead
Four techniques will guide you instead
Analogous looks at projects from the past
Top-down approach that's reasonably fast
Parametric uses statistical relations
Bottom-up builds from detailed calculations
Three-point takes optimistic, most likely, pessimistic too
O plus four M plus P, divide by six, that's what you do
[Chorus]
Plan and manage, budget and resources
PV, EV, AC are your sources
Schedule variance is EV minus PV
Cost variance is EV minus AC, you see
SPI equals EV over PV for the rate
CPI equals EV over AC, don't be late
[Verse 2]
Cost baseline shows your approved budget plan
Funding requirements help you understand
When the money's needed throughout the project life
Earned Value Management cuts through the strife
BAC is your Budget at Completion
These formulas need your attention
[Chorus]
Plan and manage, budget and resources
PV, EV, AC are your sources
Schedule variance is EV minus PV
Cost variance is EV minus AC, you see
SPI equals EV over PV for the rate
CPI equals EV over AC, don't be late
[Bridge]
EAC is BAC divided by CPI typical way
Or AC plus BAC minus EV if atypical they say
EAC could be AC plus BAC minus EV
Over CPI times SPI for complexity
ETC is EAC minus AC to complete
VAC is BAC minus EAC, variance neat
TCPI is BAC minus EV over BAC minus AC
[Verse 3]
Resource leveling keeps within constraints
Smoothing optimizes without complaints
RBS breaks down resources by category
Make-or-buy decisions need your strategy
Should we build it or should we buy
Cost and capability, that's the why
[Chorus]
Plan and manage, budget and resources
PV, EV, AC are your sources
Schedule variance is EV minus PV
Cost variance is EV minus AC, you see
SPI equals EV over PV for the rate
CPI equals EV over AC, don't be late
[Outro]
From estimation to earned value tracking
Keep your project budget from lacking
These formulas and techniques combined
Will keep your resources well-defined