ISM 4314 Key terms
cost baseline
A time-lapse exposure of when the project monies are to be spent in relation to cumulative values of the work completed in the project.
fixed costs
Costs that remain constant throughout the life of the project (such as the cost of rented equipment for the project, the cost of a consultant brought on to the project, and so on).
project float
The total time the project can be delayed without passing the customer expected completion date
RACI chart
A matrix chart that includes the activities of responsible, accountable, consult, and inform
work package
The work defined at the lowest level of the work breakdown structure for which cost and duration can be estimated and managed.
responsibility
The work that a role performs
WBS Dictionary
A WBS companion document that defines all of the characteristics of each element within the WBS.
responsibility assignment matrix(RAM)
A chart that shows the correlation between project team members and the work they've been assigned to complete.
Project Constraints
A constraint is anything that limits the project manager's options. Consider a predetermined budget, deadline, resources, or materials the project manager must use within the project—these are all examples of project constraints.
contingency reserve
A cost-estimating approach that uses a database, typically software-driven, to create the cost estimate for a project.
Work Breakdown Structure
A deliverables-oriented breakdown of the project scope.
project network diagram
A diagram that visualizes the flow of the project activities and their relationships to other project activities.
Dictatorship
A government controlled by one person or a small group of people
resource breakdown structure
A hierarchical breakdown of the project resources by category and resource type. For example, you could have a category of equipment, a category of human resources, and a category of materials. Within each category, you could identify the types of equipment your project will use, the types of human resources, and the types of materials.
issue log
A logbook of the issues the project team has identified and dates as to when the issues must be resolved by. The issue log may also include team members or stakeholders who are responsible for finding a solution to the identified issues.
Oligopoly
A market condition in which the market is so tight that the actions of one vendor affect the actions of all the others.
precedence diagramming method
A network diagram that shows activities in nodes and the relationship between each activity. Predecessors come before the current activity, and successors come after the current activity.
management reserve
A percentage of the project duration to combat Parkinson's Law. When project activities become late, their lateness is subtracted from the management reserve.
cost management plan
A plan that dictates how cost variances will be managed.
8/80 Rule
A planning heuristic for creating the WBS. This rule states that the work package in a WBS must take no more than 80 hours of labor to create and no fewer than 8 hours of labor to create.
Control thresholds
A predetermined range of acceptable variances, such as +/-10 percent off schedule. Should the variance exceed the threshold, project control processes and corrected actions will be enacted.
WBS template
A prepopulated WBS for repetitive projects. Previous projects' WBSs are often used as templates for current similar projects.
template
A previous project that can be adapted for the current project and forms that are pre-populated with organizational-specific information
Project boundaries
A project boundary clearly states what is included with the project and what's excluded from the project. This helps to eliminate assumptions between the project management team and the project customer.
monte carlo analysis
A project simulation approach named after the world-famous gambling district in Monaco. It predicts how scenarios may work out, given any number of variables. The process doesn't actually churn out a specific answer, but a range of possible answers. When Monte Carlo analysis is applied to a schedule, it can examine, for example, the optimistic completion date, the pessimistic completion date, and the most likely completion date for each activity in the project and then predict a mean for the project schedule.
parametric estimate
A quantitatively based duration estimate that uses mathematical formulas to predict how long an activity will take based on the quantities of work to be completed.
rough order of magnitude
A rough estimate used during the initiating processes and in top-down estimates. The range of variance for the estimate can be from -25 percent to +75 percent.
crashing
A schedule compression approach that adds more resources to activities on the critical path to complete the project earlier. When crashing a project, costs are added because the associated labor and sometimes resources (such as faster equipment) cause costs to increase.
fast tracking
A schedule compression method that changes the relationship of activities. With fast tracking, activities that would normally be done in sequence are allowed to be done in parallel or with some overlap. Fast tracking can be accomplished by changing the relation of activities from FS to SS or even FF or by adding lead time to downstream activities. However, fast tracking does add risk to the project
Stakeholder Analysis
A scope definition process in which the project management team interviews the stakeholders and categorizes, prioritizes, and documents what the project customer wants and needs. The analysis determines, quantifies, and prioritizes the interests of the stakeholders. Stakeholder analysis demands quantification of stakeholder objectives; goals such as "good," "satisfactory," and "speedy" aren't quantifiable.
Analogous Estimating
A somewhat unreliable estimating approach that relies on historical information to predict what current activity durations should be. Analogous estimating is more reliable, however, than team-member recollections. Analogous estimating is also known as top-down estimating and is a form of expert judgment.
schedule management plan
A subsidiary plan in the project management plan. It defines how the project schedule will be created, estimated, controlled, and managed.
requirements management plan
A subsidiary plan that defines how changes to the project requirements will be permitted, how requirements will be tracked, and how changes to the requirements will be approved.
McClelland's Theory of Needs
A theory developed by David McClelland that states that our needs are acquired and developed by our experiences over time. All people are, according to this theory, driven by one of three needs: achievement, affiliation, or power.
Vroom's Expectancy Theory
A theory that states that people will behave based on what they expect as a result of their behavior. In other words, people will work in relation to the expected reward.
Parkinson's law
A theory that work expands so as to fill the time available for its completion. It is considered with time estimating, because bloated or padded activity estimates will fill the amount of time allotted to the activity.
Maslow's Hierarchy of Needs
Abraham Maslow's theory of the five needs all humans have and work toward- physiological, safety, social, esteem, self-actualization
start to finish
An activity relationship that requires an activity to start so that its successor can finish. This is the most unusual of all the activity relationship types.
finish to finish
An activity relationship type that requires the current activity to be finished before its successor can finish.
start to start
An activity relationship type that requires the current activity to start before its successor can start.
analogous estimating
An approach that relies on historical information to predict the cost of the current project. It is also known as top-down estimating and is the least reliable of all the cost-estimating approaches.
parametric estimating
An approach using a parametric model to extrapolate what costs will be needed for a project (for example, cost per hour and cost per unit). It can include variables and points based on conditions.
budget estimate
An estimate that is somewhat broad and is used early in the planning processes as well as in top-down estimates. The range of variance for the estimate can be from -10 percent to +25 percent
bottom-up estimating
An estimating approach that starts from zero, accounts for each component of the WBS, and arrives at a sum for the project. It is completed with the project team and can be one of the most time-consuming and most reliable methods to predict project costs.
three point estimate
An estimating technique for each activity that requires optimistic, most likely, and pessimistic estimates to be created. Based on these three estimates, an average can be created to predict how long the activity should take.
indirect costs
Costs that are representative of more than one project (for example, utilities for the performing organization, access to a training room, project management software license, and so on).
resource-levelling heuristic
Calendars that identify when project resources are available for the project work.
project calendars
Calendars that identify when the project work will occur
variable costs
Costs that change based on the conditions applied in the project (the number of meeting participants, the supply of and demand for materials, and so on).
Herzberg's Theory of Motivation
Frederick Herzberg's theory of the motivating agents and hygiene agents that affect a person's willingness to excel in his career.
reserve analysis
Cost reserves are for unknown unknowns within a project. The management reserve is not part of the project cost baseline, but it is included as part of the project budget
direct costs
Costs are attributed directly to the project work and cannot be shared among projects (for example, airfare, hotels, long-distance phone charges, and so on).
cost aggregation
Costs are parallel to each WBS work package. The costs of each work package are aggregated to their corresponding control accounts. Each control account then is aggregated to the sum of the project costs.
Project Scope
Defines all of the work, and only the required work, to complete the project objectives.
Product Scope
Defines the product or service that will come about as a result of completing the project. It defines the features and functions that characterize the product.
role
Denotes what a person is specifically responsible for in a project. Roles are usually tied to job titles, such as network engineer, mechanical engineer, and electrician.
external dependencies
Dependencies outside of the project's control. Examples include the delivery of equipment from a vendor, the deliverable of another project, or the decision of a committee, a lawsuit, or an expected new law.
Requirements Documentation
Documentation of what the stakeholders expected in the project defines all of the requirements that must be present for the work to be accepted by the stakeholders.
McGregor's theory of x and y
Douglas McGregor's theory that states management views workers in the Y category as competent and self-led and workers in the X category as incompetent and needing to be micromanaged.
Project assumptions
Factors that are considered to be true, real, or certain without proof or demonstration
internal dependencies
Internal relationships to the project or the organization. For example, the project team must create the software as part of the project's deliverable before the software can be tested for quality control.
hard logic
Logic that describes activities that must happen in a particular order. For example, the site must be excavated before the foundation can be built. The foundation must be in place before the framing can begin. Also known as a mandatory dependency.
lead time
Negative time that allows two or more activities to overlap where ordinarily these activities would be sequential
norming
One of the five stages of the Tuckman ladder, in which project team members go about getting the project work, begin to rely on one another, and generally complete their project assignments.
storming
One of the five stages of the Tuckman ladder, in which the project team struggles for project positions, leadership, and project direction. The project team can become hostile toward the project leader, challenge ideas, and try to establish and claim positions about the project work. The amount of debate and fury can vary depending on whether the project team is willing to work together, the nature of the project, and the control of the project manager.
performing
One of the five stages of the Tuckman ladder. If a project team can reach the performing stage of team development, they trust one another and work well together, and issues and problems get resolved quickly and effectively.
definitive estimate
One of the most accurate estimate types. It's used late in the planning processes and is associated with bottom-up estimating. You need the WBS to create the definitive estimate. The range of variance for the estimate can be from -5 percent to +10 percent.
lag time
Positive time that moves two or more activities further apart.
authority power
Project management team members may have authority over other project team members, the ability to make decisions, and the authority to sign approvals for project work and purchases.
free float
The total time a single activity can be delayed without affecting the early start of its immediately following successor activities.
mandatory dependencies
Relationships that establish the natural order of activities. For example, you can't begin building your house until your foundation is in place. These relationships are called hard logic.
Schedule milestones
Specific dates established by the customer that set when phases of the project should be completed. Milestones are often treated as project constraints.
Delphi Technique
The Delphi Technique is an anonymous method used to query experts about foreseeable risks within a project, phase, or component of a project
soft logic
The activities don't necessarily have to happen in a specific order. For example, you could install the light fixtures first, then the carpet, and then paint the room. The project manager could use soft logic to change the order of the activities if so desired.
total float
The total time an activity can be delayed without delaying project completion.
cost budgeting
The cost aggregation achieved by assigning specific dollar amounts for each of the scheduled activities or, more likely, for each of the work packages in the WBS. Cost budgeting applies the cost estimates over time.
variance
The difference between what was expected and what was experienced.
early start
The earliest a project activity can begin. Used in the forward pass procedure to discover the critical path and the project float.
early finish
The earliest a project activity can finish. Used in the forward pass procedure to discover the critical path and the project float.
forming
The first of the five stages of the Tuckman ladder, in which the project team meets and learns about their roles and responsibilities on the project. Little interaction among the project team happens in this stage as the team is learning about the project and project manager.
rolling wave planning
The imminent work is planned in detail, while the work in the future is planned at a high level. This is a form of progressive elaboration.
adjourning
The last of the five stages of the Tuckman ladder. Once the project is done, either the team moves on to other assignments as a unit or the project team is disbanded and individual team members go on to other work.
late start
The latest a project activity can begin. Used in the backward pass procedure to discover the critical path and the project float.
late finish
The latest a project activity can finish. Used in the backward pass procedure to discover the critical path and the project float
Bottom-Up Estimating
The most accurate time-and-cost estimating approach a project manager can use. This estimating approach starts at "the bottom" of the project and considers every activity, its predecessor and successor activities, and the exact amount of resources needed to complete each activity.
forcing power
The person with the power makes the decision.
Activity List
The primary output of breaking down the WBS work packages- A documented tabulation of schedule activities that shows the activity description, activity identifier, and a sufficiently detailed scope of work description so project team members understand what work is to be performed.
formal power
The project manager has been assigned the role of project manager by senior management and is in charge of the project.
coercive power
The project manager has the authority to discipline the project team members. This is also known as penalty power.
expert power
The project manager's authority comes both from experience with the technology the project focuses on and from expertise in managing projects
Work Package
The smallest item in the WBS.
Project objectives
These are the measurable goals that determine a project's acceptability to the project customer and the overall success of the project. Objectives often include the cost, schedule, technical requirements, and quality demands.
discretionary depencencies
These dependencies are the preferred order of activities. Project managers should use these relationships at their discretion and document the logic behind the decision. Discretionary dependencies enable activities to happen in a preferred order because of best practices, conditions unique to the project work, or external events. Also known as preferential or soft logic.
Collaborate/Problem solving
This approach confronts the problem head-on and is the preferred method of conflict resolution. Multiple viewpoints and perspectives contribute to the solution.
compromising
This approach requires that both parties give up something.
withdrawal
This conflict resolution method sees one side of the argument walking away from the problem, usually in disgust.
Project scope management plan
This project management subsidiary plan controls how the scope will be defined, how the project scope statement will be created, how the WBS will be created, how scope validation will proceed, and how the project scope will be controlled throughout the project.