Project Management Terms and Concepts

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ACWP

"As of today, what is the actual cost incurred for work accomplished?" Formula: *AC = cost of work-to-date* See also *Actual Cost of Work Performed, Actual Cost*

Actual Cost of Work Performed

"As of today, what is the actual cost incurred for work accomplished?" Formula: *AC = cost of work-to-date* See also *Actual Cost, ACWP*

Operations

"Normal" business functions. The ongoing, routine activities that are involved in an organization's primary business. (e.g. staffing management, payroll, product production, service delivery, etc.) Contrast with Project

*Actual Cost* The actual amount of monies that have been spent on a project to date; the realized cost incurred for the work performed on an activity during a specific time period. (total cost) "As of today, what is the actual cost incurred for work accomplished?" Formula: *AC = cost of work-to-date*

5 Approaches to Conflict Resolution

*Collaborate / Problem Solve* *•* ww utilize multiple viewpoints and perspectives to find a resolution *Smooth / Accommodate* *•* wl smooth out the conflict by minimizing the perceived size of the problem. Temporary solution *Force / Direct* *•* ll the person with the power makes the decision *Compromise / Reconcile* *•* ll both parties give up something *Withdraw / Avoid* *•* ll give in to one side of the conflict while leaving the other side to walk away in dissatisfaction and disgust

5 Powers of a Project Manager

*Expert* authority that comes from experience with the relevant technology and from expertise in managing projects *Reward* authority to reward the project team *Formal* authority that has been assigned by senior management. aka Positional Power *Coercive* authority to discipline the project team members. aka Penalty Power *Referent* authority comes from the team members' personal knowledge of the project manager. Also results from the project team volunteering to work on the project or with the project manager due to the high priority and impact of the project.

Strong Matrix

*PM Role - * Full-Time PM w/full-time supportive staff *Authority* moderate to high PM Resource Control - *Resource Availability* moderate to high *Project Budget I/C* Project Manager

Balanced Matrix

*PM Role - * Full-Time PM w/part-time supportive staff *Authority* low to moderate PM Resource Control - *Resource Availability* low to moderate *Project Budget I/C* Mixed Functional Manager w/PM

Weak Matrix

*PM Role - * Part-Time PM w/little to no supportive staff [part-time] *Authority* low PM Resource Control - *Resource Availability* low *Project Budget I/C* Functional Manager

Functional

*PM Role - * Part-Time PM, w/no supportive staff *Authority* none PM Resource Control - *Resource Availability* very low *Project Budget I/C* Functional Manager

Projectized

*PM Role -* Full-Time PM w/full-time supportive staff *Authority* high to total PM Resource Control - *Resource Availability* high to total *Project Budget I/C* Project Manager

Sigma

+/-1 = 68.27% +/-2 = 95.46% +/-3 = 99.73% +/-6 = 99.99% See also Standard Deviation

Differences Between Operations and Projects

1. Operations do not have any timelines. Projects are temporary and have finite time duration 2. Operation's objective is usually to sustain the business. Project's objective is to achieve the target and close the project

Similarities Between Operations and Projects

1. Performed by people 2. Constrained by limited resources 3. Planned, executed, monitored, and controlled 4. Ultimate goal is to achieve organizational objectives or strategic plans

WBS Dictionary

A WBS companion document that defines all of the characteristics of each element within the WBS. The WBS dictionary includes: • code of account identifier and charge number • work package description • statement of work • work package owner or responsible role • schedule milestones • contract information • quality requirements • technical references • associated activities and work packages • schedule • resources • cost

Text-Oriented Chart

A a team member's "shopping list" of project responsibilities.

Resource Histogram

A bar chart showing the amount of time that a resource is scheduled to work over a series of time periods. Resource availability may be depicted as a line for comparison purposes. Contrasting bars may show actual amounts of resources used as the project progresses.

Present Value

A benefit comparison model to determine the present value of a future amount of money. Formula: PV = FV / (1 + r) N > where FV is future value, r (or I) is the given interest rate, and N is the number of periods.

Affinity Diagram

A breakdown of ideas, solutions, causes, and project components grouped together with similar ideas and components. — Project Management Document

Project Management Office

A business unit that centralizes the operations and procedures of all projects within an organization. Supports the project manager through software, templates, and administrative support. See also PMO

CPAF

A category of contract that involves payments to the seller for all legitimate actual costs incurred for completed work, plus an award fee representing seller profit. Cost overruns equate to risk : buyer See also *Cost Plus Award Fee Contract*

Cost Plus Award Fee

A category of contract that involves payments to the seller for all legitimate actual costs incurred for completed work, plus an award fee representing seller profit. — Contrast with Cost Plus Fixed Fee, Cost Plus Incentive Fee, Cost Plus Percentage of Costs — Project Management Document See also *CPAF*

Grade

A category or rank used to distinguish items that have the same functional use (e.g. "hammer") but do not share the same requirements for quality (e.g. different hammers may need to withstand different amounts of force). Contrast with Quality

Approved Change Request

A change request that has been processed through the integrated change control process and approved.

Work Authorization System

A collection of formal procedures that define how project work is authorized to ensure that the work is done by the identified organization, at the right time, and in proper sequence.

Project Phase

A collection of logically related project activities that culminates in the completion of one or more deliverables. See also Phase.

CCB

A committee that evaluates the worthiness of a proposed change and either approves or rejects the proposed change. See also *Change Control Board*

Cost Management Plan

A component of a project or program management plan that details how the project costs will be planned for, estimated, budgeted, and then monitored and controlled. — Project Management Document

Human Resource Management Plan

A component of the project management plan that describes how the roles and responsibilities, reporting relationships, and staff management will be addressed and structured.

Schedule Management Plan

A component of the project management plan that establishes the criteria and the activities for developing, monitoring, and controlling the schedule including: • project schedule model development • project schedule model maintenance • level of accuracy • units of measure • organizational procedure links • control thresholds • rules of performance measurement • reporting formats • process descriptions

Scope Management Plan

A component of the project or program management plan that describes how the scope will be defined, developed, monitored, controlled, and verified.

Change Log

A comprehensive list of changes made during the project. This typically includes change characteristics such as the change dates and impacts in terms of time, cost, scope and risk. — Project Management Document

Requirement

A condition or capability that is required to be present in a product, service, or result to satisfy a contract or other formally imposed specification.

Quality Requirement

A condition or capability that will be used to assess conformance by validating the acceptability of an attribute for the quality of a result.

Constraint

A condition, rule or procedure that restricts a project manager's options. — Contrast with Assumption

CPFF

A contract that requires the buyer to pay for the cost of the goods and services procured plus a fixed fee for the contracted work. Cost overruns equate to risk : buyer See also *Cost Plus Fixed Fee Contract*

CPIF

A contract type that requires the buyer to pay a cost for the procured work, plus an incentive fee, or a bonus, for the work if terms and conditions are met. Cost overruns equate to risk : buyer See also *Cost Plus Incentive Fee*

Threshold

A cost, time, quality, technical, or resource value used as a parameter, and which may be included in product specifications. Crossing the threshold should trigger some action, such as generating an exception report.

Commercial Database

A cost-estimating approach that uses a database, typically software driven, to create the cost estimate for a project

Forward Pass

A critical path method technique for calculating the early start and early finish dates by working forward through the schedule model from the project start date or a given point in time. Formula: EF (early finish) = ES + D

Backward Pass

A critical path method technique for calculating the late start and late finish dates by working backward through the schedule model form the project end date. Formula: *LS = LF - DUR* where *LS* is Late Start, *LF* is Late Finish, *DUR* is Activity Duration

Cause and Effect Diagram

A decomposition technique that helps trace an undesirable effect back to its root cause. — Project Management Document See also *Fishbone Diagram* or *Ishikawa Diagram*

Technique

A defined systematic procedure employed by a human resource to perform an activity to produce a product or result or deliver a service, and that may employ one or more tools.

Logical Relationship

A dependency between two activities, or between an activity and a milestone. See also Dependency

Successor Activity

A dependent activity that logically comes after another activity in a schedule.

Communication Model

A description, analogy or schematic used to represent how the communication process will be performed for the project.

Decision Tree Analysis

A diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty.

Activity

A distinct, scheduled portion of work performed during the course of a project. — Contrast with Work Package

Charter

A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities. See also *Project Charter*

Standard

A document that provides, for common and repeated use, rules, guidelines, or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context.

Specification

A document that specifies, in a complete, precise, verifiable manner, the requirement, design, behavior, or other characteristics of a system, component, product, result, or service and the procedures for determining whether these provisions have been satisfied. Examples are: requirement specification, design specification, product specification, and test specification.

Log

A document used to record and describe or denote selected items identified during execution of a process or activity. Usually used with a modifier, such as issue, quality control, action or defect.

Project Team Directory

A documented list of project team members, their project roles, and communication information.

Activity List

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.

Quality Function Deployment

A facilitated workshop technique that helps to determine critical characteristics for new product development.

Assumption

A factor in the planning process that is considered to be true, real, or certain, without proof or demonstration. — Contrast with Constraint

Cost-Benefit Ratio

A financial analysis tool used to determine the benefits provided by a project against its costs. Formula: *CBR = Cost / Benefits* <

Imposed Date

A fixed date imposed on a schedule activity or schedule milestone, usually in the form of a "start no later than" and "finish no later than" date.

Predictive Life Cycle

A form of project life cycle in which the project scope, and the time and cost required to deliver that scope, are determined as early in the life cycle as possible. See also Plan-Driven Approach or Waterfall Approach

Purchase Order

A form of unilateral contract that the buyer provides to the vendor showing that the purchase has been approved by the buyer's organization. See also PO

Contract

A formal agreement between a buyer and a seller. Necessary elements which must be included for validity: *•* offer *•* acceptance *•* consideration *•* legal purpose *•* capacity and authority of at least one person in both parties Two types: *•* oral *•* written (preferred) — Project Management Document

Interview

A formal or informal approach to elicit information from stakeholders by talking to them directly.

Change Request

A formal proposal to add, modify or remove any document, deliverable, or baseline in project scope. — Project Management Document

Change Control Board

A formally chartered group responsible for reviewing, evaluating, approving, delaying, or rejecting changes to a project, and for recording and communicating such decisions. See also *CCB*

Requested Change

A formally documented change request that is submitted for approval to the integrated change control process.

Compliance

A general concept of conforming to a rule, standard, law, or requirement such that the assessment of compliance results in a binomial result stated as "compliant" or "noncompliant."

Bar Chart

A graphic display of schedule-related information. In the typical bar chart, schedule activities or work breakdown structure components are listed down the left side of the chart, dates are shown across the top, and activity durations are shown as date-placed horizontal bars. — Project Management Document See also *Gantt Chart*

Network

A graphical representation of the logical relationships among the project schedule activities. See also Project Schedule Network Diagram.

Activity Network Diagram

A graphical representation of the logical relationships among the project schedule activities; diagram that shows the flow of the project work. See also *Project Schedule Network Diagram*

Dictatorship

A group decision-making technique in which one individual makes the decision for the group.

Risk Category

A group of potential causes of risk. Four: • technical, quality or performance risks • project management risks • organizational risks • external risks

Program

A group of related projects, subprograms, and program activities managed in a coordinated way to work in unison toward a common deliverable; to obtain benefits not available from managing them individually.

Summary Activity

A group of related schedule activities aggregated and displayed as a single activity.

Code of Accounts

A hierarchical numbering system used to uniquely identify each component of the Work Breakdown Structure (WBS).

Functional Organization

A hierarchical organization where each employee has one clear superior, and staff are grouped by areas of specialization and managed by a person with expertise in that area. Contrast with Projectized Organization

Risk Breakdown Structure

A hierarchical representation of risks according to their risk categories. — Project Management Document See also *RBS*

Backlog

A listing of product requirements and deliverables to be completed, written as stories, and prioritized by the business to manage and organize the project's work. — Project Management Document

Project Management Process Group

A logical grouping of project management inputs, tools, and techniques, and outputs. The Project Management Process Groups include initiating processes, planning processes, executing processes, monitoring and controlling processes, and closing processes. Project Management Process Groups are not project phases.

Finish-to-Finish

A logical relationship in which a successor activity cannot finish until a predecessor activity has finished. See also FF

Start-to-Finish

A logical relationship in which a successor activity cannot finish until a predecessor activity has started. See also SF

Finish-to-Start

A logical relationship in which a successor activity cannot start until a predecessor activity has finished. See also FS

Start-to-Start

A logical relationship in which a successor activity cannot start until a predecessor activity has started. See also SS

Control Account

A management control point where scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement for a deliverable within the WBS. See also *Planning Package*

Velocity

A measure of a team's productivity rate at which the deliverables are produced, validated, and accepted within a predefined interval. Velocity is a capacity planning approach frequently used to forecast future project work.

Schedule Variance

A measure of schedule performance expressed as the difference between the earned value and the planned value. Formula: SV = EV - PV ≥ 0 Where EV is earned value and PV is planned value Contrast with Schedule Performance Index

Cumulative Cost Performance Index

A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost. 'How much work has been completed (in dollars) for each $1 that has been spent?' Formula: *CPI = EV / AC* ≥ 1 where *EV* is earned value, *AC* is actual cost See also *Cost Performance Index*

Cost Performance Index

A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual costs. "How much work has been completed (in dollars) for each $1 that has been spent?" Formulas: *CPI = EV / AC* ≥ 1 Formulas: *CPI C = EV C / AC C* ≥ 1 where *EV* is earned value, *AC* is actual cost, *C* is cumulative — Contrast with Cost Variance See also *Cumulative Cost Performance Index*

To-Complete Performance Index

A measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the remaining budget. Formula divides the work remaining to be done by the money remaining to do it. "In order to stay within budget, what rate must we meet for the remaining work?" Formula for estimating ability to meet the budget at completion: TCPI = [(BAC - EV) / (BAC - AC)] ≤ 0 Formula for estimating ability to meet a newly created estimate at completion: TCPI = [(BAC - EV) / (EAC - AC)] ≤ 0 where BAC is budget at completion, EAC is estimate at completion, EV is earned value and AC is actual cost

Bidder Conference

A meeting of all the project's potential vendors to clarify the contract statement of work and the details of the contracted work. See also *Contractor Conference, Vendor Conference, Pre-Bid Conference*

Cost of Quality

A method of determining the costs incurred to ensure quality. Prevention and appraisal costs (cost of conformance) include costs for quality planning, quality control (QC), and quality assurance to ensure compliance to requirements (i.e. training, QC systems, etc.). Failure costs (cost of non-conformance) include costs to rework products, components, or processes that are non-compliant, costs of warranty work and waste, and loss of reputation. See also *COQ*

Bottom-Up Estimating

A method of estimating project duration or cost by aggregating the estimates of the lower-level components of the work breakdown structure (WBS).

Critical Path Method

A method used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule model. See also *CPM*

CPM

A method used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule model. See also *Critical Path Methodology*

Earned Value Management

A methodology that combines scope, schedule, and resource measurements to assess project performance and progress. See also EVM

Focus Group

A moderator-led requirements elicitation technique that brings together pre-qualified stakeholders and subject matter experts to learn about their expectations and attitudes about a proposed product, service, or result.

Statement of Work

A narrative description of products, services, or results to be delivered by the project. See also SOW

Return On Investment

A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. Formula: ROI = (Benefits - Costs) / Costs

Work Authorization

A permission and direction, typically written, to begin work on a specific schedule activity or work package or control account. It is a method for sanctioning project work to ensure that the work is done by the identified organization, at the right time, and in the proper sequence.

Practitioner

A person engaged in an activity that contributes to the management of a project, portfolio, or program, as part of the project management profession.

Sponsor

A person or group who provides resources and support for the project, program, or portfolio and is accountable for enabling success.

PMI Volunteer

A person who participates in PMI-sponsored activities, whether a member of the Project Management Institute or not.

Duty of Loyalty

A person's responsibility, legal or moral, to promote the best interest of an organization or other person with whom they are affiliated.

8/80 Rule

A planning heuristic for creating the WBS and the associated activity list. This rule states the work package in a WBS must take no fewer than 8 hours of labor and no more than 80 hours of labor to create.

Voice of the Customer

A planning technique used to provide products, services, and results that truly reflect customer requirements by translating those customer requirements into the appropriate technical requirements for each phase of project product development.

Finish Date

A point in time associated with a schedule activity's completion. Usually qualified by one of the following: actual, planned, estimated, scheduled, early, late, baseline, target, or current.

Start Date

A point in time associated with a schedule activity's start, usually qualified by one of the following actual, planned, estimated, scheduled, early, late, target, baseline, or current.

Data Date

A point in time when the status of the project is recorded.

Issue

A point or matter in question or in dispute, or a point or matter that is not settled and is under discussion or over which there are opposing views or disagreements.

Quality Policy

A policy specific to the Project Quality Management Knowledge Area; it establishes the basic principles that should govern the organization's actions as it implements its system for quality management.

Control Threshold

A predetermined range of acceptable variances, such as +/- 10% off schedule.

Template

A previous project or methodology, or a partially complete document in a predefined format that provides a defined structure for collecting, organizing, and presenting information and data that can be used in the current project.

Process Analysis

A process analysis follows the steps outlined in the process improvement plan to identify needed improvements.

Stakeholder Analysis

A process for consideration and ranking of project stakeholders based on their influence, interests, and expectations of a project. Uses a systematic approach to identifying all project stakeholders, ranking them by varying factors and then addressing their needs, requirements and expectations.

*Should Cost* Estimate

A process of using a third party to obtain and analyze information to support prediction of cost, schedule, or other items. See also *Independent Estimate*

Product Process

A process that is unique to the type of work that goes into creating the product of the project.

Inspections and Audits

A process to observe performance of contracted work or a promised product against agreed-upon requirements.

Change Control

A process whereby modifications to documents, deliverables, or baselines associated with the project are identified, documented, approved, or rejected.

Output

A product, result, or service generated by a process. May be an input to a successor process.

Issue Log

A project document used to record and monitor elements under discussion or in dispute between project stakeholders.

Adaptive Life Cycle

A project life cycle that is intended to facilitate change and require a high degree of ongoing stakeholder involvement. Is also iterative and incremental, but differs in that iterations are very rapid (usually 2-4 weeks in length) and are fixed in time and resources. See also *Agile Project Management Methodology, Change-Driven Method, Agile Method*

Incremental Life Cycle

A project life cycle where the project scope is generally determined early in the project life cycle, but time and cost estimates are routinely modified as the project team's understanding of the product increases. Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product.

Iterative Life Cycle

Cultural and Social Environment

A project's effects on people and the people's effect on the project. Could include economic, educational, ethical, religious, demographic, or ethnic composition of the people affected by the project.

Client

A project's intended customer. Can be either internal to the organization, or external

Central Tendency

A property of the central limit theorem predicting that the data observations in a distribution will tend to group around a central location. The three typical measures of central tendency are the mean, median, and mode.

Seller

A provider or supplier of products, services, or results to an organization.

Contingency Allowance

A provision in the project management plan to mitigate cost and/or schedule risk. Often used with a modifier (e.g., management reserve, contingency reserve) to provide further detail on what types of risk are meant to be mitigated. See also *Buffer, Reserve*

Reserve

Buffer

A provision in the project management plan to mitigate cost and/or schedule risk. Often used with a modifier to provide further detail on what types of risk are meant to be mitigated. See also *Reserve*, *Contingency Allowance*

Quality Audit

A quality audit is a structured, independent process to determine if project activities comply with organizational and project policies, processes, and procedures.

Control Chart

A quality control tool used to map the performance of project work over time. Used to determine whether or not a process is stable or has predictable performance. Typically has three types of lines: *1.* Upper and lower specification limits *2.* Upper and lower control limits *3.* Planned or goal value — Project Management Document — Contrast with Run Chart

Matrix Diagram

A quality management and control tool used to show the strength of relationships between factors, causes, and objectives that exist between the rows and columns that form the matrix.

Activity Duration Estimate

A quantitative assessment of the likely amount or outcome for the duration of an activity. Formulas: *DUR = EF - ES + 1* *DUR = LF - LS + 1* where *EF* is early finish, *ES* is early start, *LF* is late finish and *LS* is late start See also *Activity Duration, Duration*

Estimate

A quantitative assessment of the likely amount or outcome. Usually applied to project costs, resources, effort, and durations and is usually preceded by a modifier (i.e. preliminary, conceptual, feasibility, order-of-magnitude, definitive). It should always include some indication of accuracy (e.g. ± × percent). See also Budget or Cost.

Cardinal Scale

A ranking approach that identifies risk probability and impact using a numerical value, from 0.01 (very low) to 1.0 (certain)

Analogous Estimate

A rather unreliable estimating approach that uses information garnered from previous projects to predict durations for current activities. *•* ranges between *-10% and +25% * *•* less time, cost, & accuracy *•* based on previous projects — Project Management Document See also *Budget Estimate, Rough Order of Magnitude, Top-Down Estimate*

External Dependency

A relationship between project activities and non-project activities. These dependencies are outside the project management team's control.

Path Convergence

A relationship in which a schedule activity has more than one predecessor.

Mandatory Dependency

A relationship that is contractually required or inherent in the nature of the work. Often involves physical limitations. See also Hard Logic

Hard Logic

A relationship that is contractually required or inherent in the nature of the work. Often involves physical limitations. See also Mandatory Dependency.

Discretionary Dependency

A relationship that is established based on knowledge of best practices within a particular application area or an aspect of the project where a specific sequence is desired. See also Preferential Logic

Dependency

A reliance between two activities, or between an activity and a milestone. See also Logical Relationship.

Subnet

A representation of a project network diagram that is often used for outsourced portions of a project, repetitive work within a project, or a subproject. See also Fragnet

Fragnet

A representation of a project network diagram that is often used for outsourced portions of a project, repetitive work within a project, or a subproject. See also Subnet

Schedule

A representation of the plan for executing the project's activities including durations, dependencies, and other planning information, used to produce a project schedule along with other scheduling artifacts. See also Project Schedule or Schedule Model

Schedule Model

Appeal

A request, demand, or assertion of rights by a seller against a buyer, or vice versa, for consideration, compensation, or payment under the terms of a legally binding contract, such as for a disputed change. See also *Claim, Dispute*

Claim

Dispute

Workaround

A response to a threat that has occurred, for which a prior response had not been planned or was not effective.

Approved Change Requests Review

A review of the change requests to verify that they were implemented as approved.

Acceptance

A risk response appropriate for both positive and negative risks, but often used for smaller risks within a project

Enhance

A risk response in which conditions are enhanced to increase the likelihood that a positive risk event will happen or increasing the benefit of the opportunity should it occur. Contrast with Exploit or Share

Risk Avoidance

A risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact.

Risk Mitigation

A risk response strategy whereby the project team acts to reduce the probability of occurrence or impact of a risk.

Risk Acceptance

A risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs.

Risk Transference

A risk response strategy whereby the project team shifts the impact of a threat to a third party, together with ownership of the response.

Sharing

A risk response that shares the advantages of positive risks by partnering with another company or organization to enable achievement of the benefits of the opportunity. Contrast with Enhance or Exploit

Secondary Risk

A risk that arises as a direct result of implementing a risk response. Contrast with Residual Risk

Residual Risk

A risk that remains after risk responses have been implemented. Contrast with Secondary Risk

Threat

A risk that would have a negative effect on one or more project objectives.

Opportunity

A risk that would have a positive effect on one or more project objectives.

Preventive Action

A risk-related action that avoids risk within the project. Proactive action taken when a project is trending away from the planned scope, schedule, cost or quality requirements. Contrast with Corrective Action or Defect Repair

Near-Critical Activity

A schedule activity that has low total float. The concept of near-critical is equally applicable to a schedule activity or schedule network path. The limit below which float is considered near critical is subject to expert judgment and varies from project to project.

Crashing

A schedule compression approach that adds more resources to activities on the critical path to complete the project earlier. Will only work for those activities on the critical path where additional resources will reduce the activity's duration. Crashing does not always produce a viable alternative. Adds increase project risk and/or cost — Contrast with Fast Tracking

Fast Tracking

A schedule compression technique in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration. Fast tracking often results in rework and increased risk. It works only if activities overlap Contrast with Crashing

Systems Analysis

A scope definition approach that studies and analyzes a system, its components, and the relationship of the components within the system. See also Product Analysis

Alternative Identification

A scope definition process of finding alternative solutions for the project customer while considering the customer's satisfaction, the cost of the solution, and how the customer may use the product in operations.

Product Breakdown

A scope definition technique that breaks down a product into a hierarchical structure, much like a WBS breaks down a project scope. See also Product Analysis

Source Selection Criteria

A set of attributes desired by the buyer which a seller is required to meet or exceed to be selected for a contract.

Acceptance Criteria

A set of conditions that is required to be met before deliverables are accepted.

Incentive Fee

A set of financial incentives related to cost, schedule, or technical performance of the seller.

Project Team

A set of individuals who support the project manager in performing the work of the project to achieve its objectives.

Process

A set of integrated activities to create a product, result or service.

Change Control System

A set of procedures that describes how modifications to the project deliverables and documentation are managed and controlled. See also *CCS*

CCS

A set of procedures that describes how modifications to the project deliverables and documentation are managed and controlled. See also *Change Control System*

Additional Quality Planning Tools

A set of tools used to define the quality requirements and to plan effective quality management activities. They include, but are not limited to: brainstorming, force field analysis, nominal group techniques and quality management and control tools.

Activity Identifier

A short, unique numeric or text identification assigned to each schedule activity to differentiate that project activity from other activities. Typically unique within any one project schedule network diagram.

Milestone

A significant point or event in a project, program, or portfolio that represents accomplishment.

Simulation

A simulation uses a project model that translates the uncertainties specified at a detailed level into their potential impact on objectives that are expressed at the level of the total project. Project simulations use computer models and estimates of risk, usually expressed as a probability distribution of possible costs or durations at a detailed work level and are typically performed using Monte Carlo analysis.

Conflict of Interest

A situation that arises when a practitioner of project management is faced with making a decision or doing some act that will benefit the practitioner or another person or organization to which the practitioner owes a duty of loyalty and at the same time will harm another person or organization to which the practitioner owes a similar duty of loyalty. The only way practitioners can resolve conflicting duties is to disclose the conflict to those affected and allow them to make the decision about how the practitioner should proceed.

Subproject

A smaller project managed within a larger, parent project.

Budget Estimate

A somewhat broad estimate that is used early in the planning processes and also in top-down estimates. *•* ranges between *-10% and +25%* *•* less time, less cost, less accuracy *•* based on previous projects See also *Analogous Estimate, Top-Down Estimate*

Top-Down Estimate

A somewhat broad estimate that is used early in the planning processes and also in top-down estimates. Ranges between -10% and +25% less time, less cost, less accuracy - based on previous projects see also Analogous Estimate or Budget Estimate

Tornado Diagram

A special type of bar chart used in sensitivity analysis for comparing the relative importance of the variables.

Records Management System

A specific set of processes, related control functions, and tools that are consolidated and combined to record and retain information about the project.

Practice

A specific type of professional or management activity that contributes to the execution of a process and that may employ one or more techniques and tools.

Seven Basic Quality Tools

A standard toolkit used by quality management professionals who are responsible for planning, monitoring, and controlling the issues related to quality in an organization. 1. Control (Run) Chart 2. Cause & Effect (Fishbone or Ishikawa) Diagram 3. Checklist 4. Pareto Diagram 5. Histogram 6. Scatter Diagram 7. Flowchart

Design of Experiments

A statistical method for identifying which factors may influence specific variables of a product or process under development or in production. See also *DoE*

Expected Monetary Value Analysis

A statistical technique that calculates the average outcome when the future includes scenarios that may or may not happen. A common use of this technique is within decision tree analysis.

Lessons Learned Knowledge Base

A store of historical information and lessons learned about both the outcomes of previous project selection decisions and previous project performance.

Policy

A structured pattern of actions adopted by an organization such that the organization's policy can be explained as a set of basic principles that govern the organization's conduct.

Cost-Benefit Analysis

A study of the trade-offs between costs and the benefits realized from those costs.

Sub Network

A subdivision (fragment) of a project schedule network diagram, usually representing a subproject or a work package. Often used to illustrate or study some potential or proposed schedule condition, such as changes in preferential schedule logic or project scope. See also Fragment Network

Fragment Network

Configuration Management System

A subsystem of the overall project management system. It is a collection of formal documented procedures used to apply technical and administrative direction and surveillance to: identify and document the functional and physical characteristics of a product, result, service, or component; control any changes to such characteristics; record and report each change and its implementation status; and support the audit of the products, results, services or components to verify conformance to requirements. It includes the documentation, tracking systems, and defined approval levels necessary for authorizing and controlling changes.

Master Schedule

A summary-level project schedule that identifies the major deliverables and work breakdown structure components and key schedule milestones. See also Milestone Schedule.

Milestone Schedule

A summary-level schedule that identifies the major schedule milestones. See also Master Schedule.

Methodology

A system of practices, techniques, procedures, and rules used by those who work in a discipline.

Cost Reporting System

A system used to record the actual costs of project activities

Communication Method

A systematic procedure, technique, or process used to transfer information among project stakeholders.

Prioritization Matrix

A table used to identify key issues and to rank and score project decisions and alternatives to determine the best solution for the project.

Checksheet

A tally sheet that can be used as a checklist when gathering data. — Project Management Document See also *Checklist*

Checklist

A tally sheet that can be used to ensure that work is completed according to policy. See also *Check Sheet*

PERT

A technique for estimating that applies a weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates. Formula: EAD = (P + 4M + O) / 6 where EAD is expected activity distribution, P is pessimistic, M is most likely and O is optimistic See also Program Evaluation and Review Technique or Weighted Distribution

Weighted Distribution

A technique for estimating that applies a weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates. Formula: EAD = (P + 4M + O) / 6 where EAD is expected activity distribution, P is pessimistic, M is most likely and O is optimistic See also Beta Distribution or PERT or Program Evaluation and Review Technique

Program Evaluation and Review Technique

Top-Down Estimating

A technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project. Frequently used to estimate a parameter when there is a limited amount of detailed information about the project.

Analogous Estimating

Checklist Analysis

A technique for systematically reviewing materials using a list for accuracy and completeness.

Resource Leveling

A technique in which start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resources with the available supply. See also Leveling

Leveling

A technique in which start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resources with the available supply. See also Resource Leveling

Nominal Group Technique

A technique that enhances brainstorming with a voting process used to rank the most useful ideas for further brainstorming or for prioritization. Contrast with Brainstorming

Assumptions Analysis

A technique that explores the accuracy of assumptions and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions.

Applying Leads and Lags

A technique that is used to adjust the amount of time between predecessor and successor activities.

Performance Review

A technique that is used to measure, compare, and analyze actual performance of work in progress on the project against the baseline.

Observation

A technique that provides a direct way of viewing individuals in their environment performing their jobs or tasks and carrying out processes.

AON

A technique used for constructing a schedule model in which activities are represented by nodes and are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed. Diagramming method that includes four types of dependencies or relationships between activities. *FS* Finish-to-Start *SF* Start-to-Finish *FF* Finish-to-Finish *SS* Start-to-Start See also *Activity-*On-Node, Precedence Diagramming Method, PDM*

Activity-On-Node

A technique used for constructing a schedule model in which activities are represented by nodes and are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed. Diagramming method that includes four types of dependencies or relationships between activities. *FS* Finish-to-Start *SF* Start-to-Finish *SS* Start-to-Start *FF* Finish-to-Finish See also *AON, Precedence Diagramming Method, PDM*

Precedence Diagramming Method

A technique used for constructing a schedule model in which activities are represented by nodes and are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed. Precedence Diagramming Method includes four types of dependencies or relationships between activities: 1. Finish-to-Start 2. Finish-to-Finish 3. Start-to-Finish 4. Start-to-Start See also Activity-On-Node (AON) or PDM

Decomposition

A technique used for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts.

Alternatives Generation

A technique used to develop as many potential options as possible in order to identify different approaches to execute and perform the work of a project.

Single Average

A technique used to estimate cost or duration by applying an average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates. Formula: Triangular Distribution = (P + M + O) / 3 where P is pessimistic, M is most likely and O is optimistic See also Three-Point Estimate

Triangular Distribution

Alternative Analysis

A technique used to evaluate identified options in order to select which options or approaches to use to execute and perform the work of a project.

Adjusting Leads and Lags

A technique used to find ways to bring project activities that are behind into alignment with plan during project execution.

Dependency Determination

A technique used to identify the type of dependency that is used to create the logical relationship between predecessor and successor activities.

Resource Smoothing

A technique which adjusts activities of a schedule model such that the requirement for resources on the project do not exceed certain predefined resource limits.

Resource Optimization Technique

A technique which adjusts the activities of a schedule model such that the requirement for resources on the project do not exceed certain predefined resource limits.

Project

A temporary endeavor undertaken to create a unique product, service, or result. Elements: 1. complex, one-time process 2. limited by budget, schedule and resources 3. developed to resolve a clear goal or set of goals 4. customer focused Contrast with Operations

Parkinson's Law

A theory that states: "Work expands so as to fill the time available for its completion."

Scheduling Tool

A tool that provides schedule component names, definitions, structural relationships, and formats that support the application of a scheduling method.

Cost-Reimbursable Contract

A type of contract involving payment to the seller for the seller's actual costs, plus a fee typically representing seller's profit. Cost-reimbursable contracts often include incentive clauses where, if the seller meets or exceeds selected project objectives, such as schedule targets or total cost, then the seller receives from the buyer an incentive or bonus payment. Four kinds: *1.* cost plus fixed fee *2.* cost plus percentage of costs *3.* cost plus incentive fee *4.* cost plus award fee Cost overruns equate to risk : the buyer See also *Cost Plus Contract*

Unit Price Contract

A type of contract that is a hybrid contractual arrangement containing aspects of both cost-reimbursable and fixed-price contracts. Time and material contracts resemble cost-reimbursable type arrangements in that they have no definitive end, because the full value of the arrangement is not defined at the time of award. Thus, time and material contracts can grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, time and material arrangements can also resemble fixed-price arrangements. For example, the unit rates are preset by the buyer and seller, when both parties agree on the rates for the category of senior engineers. See also Time & Material Contract

Firm-Fixed-Price Contract

A type of fixed price contract where the buyer pays the seller a set amount (as defined by the contract), regardless of the seller's costs. Cost overruns equate to  risk : seller See also FFP or Fixed-Price Contract

Quality Management and Control Tool

A type of quality planning tool used to link and sequence the activities identified.

Context Diagram

A visual depiction of the product scope showing a business system (process, equipment, computer system, etc.), and how people and other systems (actors) interact with it.

Quality

According to ASQ, the degree to which a set of inherent characteristics fulfills requirements. Contrast with Grade

Rework

Action taken to bring a defective or nonconforming component into compliance with requirements or requirements.

Stakeholder Engagement

Activities involved in keeping project stakeholders interested, involved and supportive of a project to ensure that decisions, approvals, and communications are maintained as defined in the stakeholder management plan and the stakeholder management strategy. Five levels of stakeholder engagement: • unaware -stakeholder is oblivious to the project or its effect on them • resistant -stakeholder is aware of the project but unsupportive of it or its expected outcome • neutral -stakeholder is aware of the project but is not supportive or adverse to it • supportive -stakeholer is aware of the project and is in favor of it and its expected outcome • leading -stakeholder is aware of the project, supportive of it, and actively working to make it successful

Coding Structure

Activities should have a coding structure to allow sorting and/or extractions based on different attributes assigned to the activities.

PMI-Sponsored Activities

Activities that include, but are not limited to, participation on a PMI Member Advisory Group, PMI standard development team, or another PMI working group or committee. This also includes activities engaged in under the auspices of a chartered PMI component organization -whether it is in a leadership role in the component or another type of component educational activity or event.

Risk Management Planning

Agreed-upon approach to the management of project risk processes.

Compromise

Agreement in which both parties agree to relinquish some of their demands

Lump Sum Contract

Agreement that defines a total price for the product the seller is to provide. Cost overruns equate to increased risk : seller See also Firm Fixed-Price Contract

PDPC

Aid used to help a project team define all of the steps to get from the current state to a desired goal. See also Process Decision Program Chart

Iron Triangle of Project Management

All projects are constrained by time, cost and scope; if any one of the three is out of balance with the others, the project will suffer. See also Triple Constraints of Project Management

Conditional Diagramming Method

Allows for non-sequential activities (e.g. Loops or Conditional Branches); e.g. GERT (Graphical Evaluation and Review Technique) and System Dynamics

Graphical Evaluation and Review Technique (GERT)

Allows for probabilistic treatment of both network logic and activity duration estimates.

Slack

Amount of time an activity can be delayed without postponing the project's completion. Three kinds: Free Float, Project Float, Total Float See also Float

Float

Amount of time an activity can be delayed without postponing the project's completion. Three kinds: Free Float, Project Float, Total Float See also Slack

Force Majeure

An "act of God" that may have a negative impact on a project (e.g. fire, hurricanes, tornadoes, and earthquakes, civil unrest, etc.)

Discrete Effort

An activity that can be planned and measured and that yields a specific output. [Note: Discrete effort is one of three Earned Value Management (EVM) types of activities used to measure work performance.]

Level of Effort

An activity that does not produce definitive end products and is measured by the passage of time. [Note: Level of effort is one of three earned value management (EVM) types of activities used to measure work performance.] See also LOE

Predecessor Activity

An activity that logically comes before a dependent activity in a schedule.

Apportioned Effort

An activity where effort is allotted proportionately across certain discrete efforts and not divisible into discrete efforts. [Note: Apportioned effort is one of three Earned Value Management (EVM) types of activities used to measure work performance.

Management Reserve

An amount of the project budget withheld for management control purposes. These are budgets reserved for unforeseen work that is within scope of the project. The management reserve is not included in the performance measurement baseline (PMB).

Failure Mode and Effect Analysis

An analytical procedure in which each potential failure mode in every component of a product is analyzed to determine its effect on the reliability of that component and, by itself or in combination with other possible failure modes, on the reliability of the product or system and on the required function of the component; or the examination of a product (at the system and/or lower levels) for all ways that a failure may occur. For each potential failure, an estimate is made of its effect of the total system and of its impact. In addition, a review is undertaken of the action planned to minimize the probability of failure and to minimize its effects.

Trend Analysis

An analytical technique that uses mathematical models to forecast future outcomes based on historical results. It is a method of determining the variance from a baseline of a budget, cost, schedule, or scope parameter by using prior progress reporting periods' data and projecting how much that parameter's variance from baseline might be at some future point in the project if no changes are made in executing the project.

Reserve Analysis

An analytical technique to determine the essential features and relationships of components in the project management plan to establish a reserve for the schedule duration, budget, estimated cost, or funds for a project.

Communication Requirements Analysis

An analytical technique to determine the information needs of the project stakeholders through interviews, workshops, study of lessons learned from previous projects, etc.

Root Cause Analysis

An analytical technique used to determine the basic underlying reason that causes a variance or a defect or a risk. A root cause may underlie more than one variance or defect or risk.

Delphi Technique

An anonymous method of querying experts about various factors, such as requirements, estimates and risks within a project, phase, or component of a project. The results of the survey are analyzed by a third party, organized, and then circulated to the experts for further comment. Helps reduce bias in the data and keeps any one person from having undue influence on the outcome.

Value Engineering

An approach used to optimize project life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more effectively. See also Product Analysis

Performance Measurement Baseline

An approved, integrated scope-schedule-cost plan for the project work against which project execution is compared to measure and manage performance. The PMB includes contingency reserve, but excludes management reserve.

Product

An artifact that is produced, is quantifiable, and can be either an end item in itself or a component item. Additional words for products are materials or goods. See also Deliverable. Contract with Result.

Fixed Formula Method

An earned value method for assigning a specified percentage of budget value for a work package to the start milestone of the work package with the remaining budget value percentage assigned when the work package is complete.

Weighted Milestone Method

An earned value method that divides a work package into measurable segments, each ending with an observable milestone, and then assigns a weighted value to the achievement of each milestone.

Document Analysis

An elicitation technique that analyzes existing documentation and identifies information relevant to the requirements.

Facilitated Workshop

An elicitation technique using focused sessions that bring key cross-functional stakeholders together to define product requirements.

Performing Organization

An enterprise whose personnel are most directly involved in doing the work of the project or program.

Procedure

An established method of accomplishing a consistent performance or result, a procedure typically can be described as the sequence of steps that will be used to execute a process.

Percent Complete

An estimate expressed as a percent of the amount of work that has been completed on an activity or a work breakdown structure component.

Most Likely Duration

An estimate of the most probable activity duration that takes into account all of the known variables that could affect performance.

Optimistic Duration

An estimate of the shortest activity duration that takes into account all of the known variables that could affect performance.

Forecast

An estimate or prediction of conditions and events in the project's future based on information and knowledge available at the time of the forecast. The information is based on the project's past performance and expected future performance, and includes information that could impact the project in the future, such as estimate at completion and estimate to complete.

Bottom-Up Estimate

An estimating approach that starts from zero, accounts for each component of the WBS, and arrives at a sum for the project. -one of the most time-consuming and most reliable methods for predicting project costs. *•* ranges between *-5% and +10%* *•* ^^ accuracy *•* determined thru detailed work package analysis See also *Definitive Estimate*

Parametric Estimating

An estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters. Contrast to Analogous Estimating

Contingency

An event or occurrence that could affect the execution of the project that may be accounted for with a reserve.

Trigger Condition

An event or situation that indicates that a risk is about to occur. See also Trigger

Known Unknown

An event that is expected to happen within a project without knowing when or to what degree it will happen. -typically risk-related

Project Management Knowledge Area

An identified area of project management defined by its knowledge requirements and described in terms of its component processes, practices, inputs, outputs, tools, and techniques.

Work-Around

An immediate, unplanned response to a negative risk within a project.

Defect

An imperfection or deficiency in a project component where that component does not meet its requirements or specifications and needs to be either repaired or replaced.

Project Management Body of Knowledge

An inclusive term that describes the sum of knowledge within the profession of project management. As with other professions, such as law, medicine, and accounting, the body of knowledge rests with the practitioners and academics that apply and advance it. The complete project management body of knowledge includes proven traditional practices that are widely applied and innovative practices that are emerging in the profession. The body of knowledge includes both published and unpublished materials. This body of knowledge is constantly evolving. PMI's PMBOK Guide identifies a subset of the project management body of knowledge that is generally recognized as good practice. See also PMBOK

Ethnocentrism

An individual's measurement and comparison of a foreigner's actions against their own local culture.

Project Stakeholder

An individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of the project.

Project Management Information System

An information system consisting of the tools and techniques used to gather, integrate, and disseminate the outputs of project management processes. It is used to support all aspects of the project from initiating through closing, and can include both manual and automated systems. See also PMIS

Corrective Action

An intentional activity that realigns the performance of the project work with the project management plan after the project has deviated from the planned scope, schedule, cost or quality requirements. [Reactive] — Contrast with Defect Repair or Preventive Action

Guideline

An official recommendation or advice that indicates policies, standards, or procedures for how something should be accomplished.

Project Management Institute

An organization of project management professionals from around the world, supporting and promoting the careers, values and concerns of project managers. See also PMI

Balanced Matrix Structure

An organization where organizational resources are pooled into the one project team, but the functional managers and the project managers share the project power.

Colocation

An organizational placement strategy where the project team members are physically located close to one another in order to improve communication, working relationships, and productivity.

Result

An output from performing project management processes and activities. Results include outcomes (e.g. integrated systems, revised process, restructured organization, tests, trained personnel, etc.) and documents (e.g. policies, plans, studies, procedures, specifications, reports, etc.). Contrast with product. See also Deliverable.

Project Schedule

An output of a schedule model that presents linked activities with planned dates, durations, milestones, and resources. Includes planned start and finish dates for the project's activities, milestones, work packages, and control accounts. See also Schedule or Schedule Model.

Risk

An uncertain event or condition that, if it occurs, can have a positive or negative effect on one or more project objectives.

SWOT Analysis

Analysis of strengths, weaknesses, opportunities, and threats of an organization, project, or option.

Critical Path Activity

Any activity on the critical path in a project schedule.

Scope Change

Any change to the project scope. A scope change almost always requires an adjustment to the project cost or schedule.

Marketplace Condition

Any condition that affects the price of anything that needs to be purchased for a project: Three types: 1. Sole Source 2. Single Source 3. Oligopoly

Network Path

Any continuous series of schedule activities connected with logical relationships in a project schedule network diagram.

Agreement

Any document or communication that defines the initial intentions of a project. This can take the form of a contract, Memorandum Of Understanding (MOU), letters of agreement, verbal agreements, email, etc.

Input

Any item, whether internal or external to the project that is required by a process before that process proceeds. May be an output from a predecessor process.

Project Plan Update

Any modification to the contents of the project plan or the supporting details.

Projectized Organization

Any organizational structure in which the project manager has full authority to assign priorities, apply resources, and direct the work of persons assigned to the project. See also Projectized Structure Contrast with Functional Organization

Matrix Organization

Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of persons assigned to the project.

Time-Scaled Schedule Network Diagram

Any project schedule network diagram in such a way that the positioning and length of the schedule activity represents its duration. Essentially, it is a bar chart that includes schedule network logic.

Deliverable

Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project. See also Project Deliverable

PMI Member

Anyone, certified as a project manager or not, who has joined the Project Management Institute as a member.

Communication Assumption

Anything (with regard to communications) that is believed, but not proven, to be true

Noise

Anything that interferes with or disrupts a message.

Project Assumption

Anything that is held to be true about a project, but not proven to be true.

Communication Constraint

Anything that limits project options with regard to communications. (e.g. geographical locales, incompatible software, limited technology, etc.)

Project Constraint

Anything that limits the project manager's options in completing a project. (e.g. predetermined budget, deadline, resources, material specificity, etc.)

Communication Barrier

Anything that prohibits communication from occurring

Learning Curve

Approach that assumes the cost per unit decreases as workers complete more work units since workers learn as they complete the required work.

Push Communications

Approach to communications that transfers information from the sender to the receiver without any real acknowledgment that the information was really I or understood. (e.g. letter, fax, voice mail message, broadcast text messages) Contrast with Interactive Communication or Pull Communication

Mind Mapping

Approach to idea mapping that shows the relationships among requirements and the differences between requirements. See also Idea Mapping.

Diagramming Technique

Approach to presenting information with logical linkages that aid in understanding.

Schedule Update

Approved modification to the project schedule that is used to manage the project.

Internal QA

Assurance provided to management and the project team

External QA

Assurance provided to the external customers of a project.

Kill Point

At the review, the progress of the project is evaluated and a decision is made whether to continue or cancel the project. See also *Stage gate, Phase Review*

Competency

Attribute that defines what talents, skills, and capacities are needed to complete project work

Risk Response Audit

Audit to test the validity of the established risk responses.

Basis of Estimate

Basis of Estimate Supporting documentation outlining the details used in establishing project estimates such as assumptions, constraints, level of detail, ranges, and confidence levels. Includes: *•* description of the work to be completed in consideration of the cost estimate *•* explanation of how the estimate was created *•* the assumptions that were used in during the estimate creation *•* the constraints that the project mgmt team had to consider when creating the cost estimate

80/20 Principle

Belief, proposed by Vilfredo Pareto, that 80% of all problems are due to 20% of root causes. See also *Pareto Principle*

Pareto Principle

Belief, proposed by Vilfredo Pareto, that 80% of all problems are due to 20% of root causes. See also 80/20 Principle

Future Value

Benefit comparison model to determine the future value of money. Formula: FV = PV (1 + I) N > where PV is present value, I is the given interest rate, and N is the number of periods.

Inappropriate Compensation

Bribe

Life Cycle Costing

Broader view of Project Cost Management -a method of economic analysis for all costs related to building, operating, and maintaining a project over a defined period of time.

Contingency Reserve

Budget within the cost baseline or performance measurement baseline that is allocated for identified risks that are accepted and for which contingent or mitigating responses are developed. Allowance to allow for cost overruns.

General Management Skills

Business management skills including the application of accounting, procurement, sales and marketing, contracting, manufacturing, logistics, strategic planning, human resource management, standards and regulations, and information technology.

Communication Channels

Calculation of the number of conversations that any one project stakeholder can conduct simultaneously. Formula: *N(N-1) / 2* where *N* represents the number of identified stakeholders

Assignable Cause of Variance

Cause of variance that is not predictable or inherent in a system, process or tested result. Typically related to a defect. On a control chart, represented by points beyond the control limits or as non-random point within the control limits. — Contrast with Special Cause of Variance

Special Cause of Variance

Avoid

Change of plans in an effort to completely eliminate the probability of risk occurrence or effects. — Contrast with Mitigate or Transfer

Value-Added Change

Change to a project that reduces costs

Stakeholder Classification Model

Chart or diagram that ranks stakeholders' influence in relation to their interest in a project. (e.g. power/interest grid, power/influence grid, influence/impact grid, salience model)

Hierarchical Organizational Chart

Chart which shows the relationship between superior and subordinate employees, groups, disciplines, and even departments

Project Boundary

Clarifying statement of what is included with and excluded from a project.

Respect Value

Code of Ethics Aspirations: • be aware of the norms and customs of others and avoid behavior that others may find disrespectful • listen to others and seek to understand their points of view and opinions • don't avoid people with whom you have conflicts or disagreements • conduct yourself professionally, even when others fail to do so Mandatory Standards: • negotiate in good faith • don't influence decisions for personal gain at the expense of others • do not abuse others • respect the property rights of others

Responsibility Expectations

Code of Ethics Aspirations: • decisions should not adversely affect the best interests of society, public safety or the environment • keep promises • take ownership and accountability for errors and omissions and make quick and accurate corrections • protect proprietary and confidential information • uphold the Code of Ethics and Professional Conduct Mandatory Standards: • adhere to regulatory requirements and laws • report unethical or illegal conduct to management and any affected parties • bring valid, fact-driven violations of the Code of Ethics and Professional conduct to PMI for resolution • commence disciplinary action for PMs who seek to retaliate against a person raising ethics violations concerns

Fairness

Code of Ethics Aspirations: • demonstrate transparency in decision making • remain impartial and objective and take corrective actions when appropriate • provide equal acces to information to those who are authorized to have that information • make opportunities equally available to all qualified candidates Mandatory Standards: • Fully disclose any real or potential conflict of interest • refrain from participating in any decision where real or potential conflict of interest exists until the situation has been disclosed, a mitigation plan has been approved and project stakeholders have given their consent to proceed • do not hire or fire, reward or punish, award or deny contracts based on personal considerations such as favoritism, nepotism or bribery • do not discriminate against others on the basis of race, gender, age, religion, disability, nationality, or sexual orientation • always apply organizational rules without favoritism or prejudice

Honesty

Code of Ethics Aspirations: • seek the truth • be truthful in communications and conduct • provide accurate and timely information • provide commitments and promises in good faith • strive to create an environment where others feel safe to tell the truth Mandatory Standards: • do not engage in or condone behavior that is designed to mislead others • do not engage in dishonest behavior with the intention of personal gain at the expense of others

Monitor

Collect project performance data with respect to a plan, produce performance measures, and report and disseminate performance information.

Activitiy Cost Supporting Detail

Collection of documents that detail how the project's cost estimate was created. Includes: *•* the scope of work on which the estimate is based *•* the basis for the estimate *•* documentation of the assumptions and constraints used in the estimate creation *•* the range of possible estimates, such as the +/- percentage of dollar amount — Project Management Document

Activity List

Collection of schedule activities — Project Management Document See also *Schedule Activities*

Murder Board

Committee that asks every conceivable negative question about a proposed project in an effort to expose the project's strengths and weaknesses and to kill the project if it's deemed unworthy for commitment. See also Project Steering Committee or Project Selection Committee

Project Steering Committee

Committees that ask every conceivable negative question about a proposed project in an effort to expose the project's strengths and weaknesses and to kill the project if it's deemed unworthy for commitment. See also Murder Board or Project Selection Committee

Project Selection Committee

Quantitative Risk Analysis and Modeling Technique

Commonly used technique for both event-oriented and project-oriented analysis approaches. Goals: • to quantify the cost and impact of risk exposure • to ascertain the likelihood of reaching project success • to ascertain the likelihood of reaching a particular project objective • to determine the risk exposure for the project • to determine the likely amount of the contingency reserve needed for the project • to determine the risks with the largest impact on the project • to determine realistic time, cost and scope targets

Interactive Communication

Communication approach in which two or more people actively exchange information. (e.g. ad-hoc conversation, forum) Contrast with Pull Communication or Push Communication

Pull Communications

Communication approach that allows recipients to pull information from a central repository at their own discretion. (e.g. web site, message board) Contrast with Interactive Communication or Push Communication

Communications Assumption

Communications-related belief that may or may not be true with regard to a project, but that has not been proven to be true

Control

Comparing actual performance with planned performance, analyzing variances, assessing trends to affect process improvements, evaluating possible alternatives, and recommending appropriate corrective action as needed.

Benchmarking

Comparison of actual or planned practices, such as processes and operations, to those of comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measuring performance.

Verified Deliverables

Completed project deliverables that have been checked and confirmed for correctness through the Control Quality process.

Rule of Seven

Component of a control chart that illustrates the results of seven measurements on one side of the mean, which is considered "out of control" in a project.

Product Acceptance Criteria

Component of a project scope statement that work with the project requirements, focusing specifically on the project and the conditions and processes for formal product acceptance,

Monte Carlo Simulation

Computerized simulation that generates hundreds or thousands of probable performance outcomes based on probability distributions for cost and schedule on individual tasks. The outcomes are then used to generate a probability distribution for the project as a whole. See also Monte Carlo Analysis

Enterprise Environmental Factor

Condition, not under the immediate control of the team, that influences, constrains, or directs the project, program, or portfolio. See also EEF Contrast with Organizational Process Asset

Abusive Manner

Conduct that results in physical harm or creates intense feelings of fear, humiliation, manipulation, or exploitation in another person

Collaborate

Conflict resolution method that involves confronting a problem head-on. See also *Problem Solving*

Problem Solving

Conflict resolution method that involves confronting a problem head-on. See also Collaborate or Confronting

Withdrawal

Conflict resolution method that results in one side of the argument walking away from the problem, usually in disgust.

International and Political Environment

Consideration of any local and international laws, languages, communication challenges, time zone differences and other non-collocated issues that may affect a project's ability to progress

Weighting System

Contract decision making that is devoid of the personal preference of the decision maker to ensure that the best offer is awarded the contract.

Contract Statement of Work

Contract element containing a full explanation of the work that is to be completed by the buyer and/or the product to be supplied. — Project Management Document See also *Statement of Work, Project Statement of Work*

Cost Plus Fixed Fee

Contract in which the buyer agrees to pay for the cost of the procured goods and services plus a set price for the contracted work. The buyer assumes the risk for cost overruns. — Project Management Document See also *CPFF*

Cost Contract

Contract in which the seller receives no fee (profit). Appropriate for wk perf by non-profit orgs

CPPC

Contract that requires the buyer to pay for the costs of the goods and services procured, plus a percentage of the costs. The buyer assumes ALL of the risks for cost overruns. See also *Cost Plus Percentage of Costs *

Cost Plus Percentage of Costs

Contract that requires the buyer to pay for the costs of the goods and services procured, plus a percentage of the costs. The buyer assumes ALL of the risks for cost overruns. — Project Management Document See also *CPPC*

Cost Plus Incentive Fee

Contract type in which the buyer agrees to pay a cost for the procured work, plus an incentive fee, or a bonus, for the work if certain terms and conditions are met. — Project Management Document — Contrast with Cost Plus Award Fee, Cost Plus Incentive Fee or Cost Plus Percentage of Costs See also *CPIF*

Collective Bargaining Agreement Constraints

Contracts or agreements with unions or other employee groups which may serve as constraints on a project

Risk-Related Contractual Agreement

Contractual agreement that is created between a buyer and seller when the project management team decides to use transference to respond to a risk.

Variable Cost

Cost that changes based on the conditions applied in the project (the number of meeting participants, the supply of and demand for materials, etc.)

Direct Cost

Cost that is attributed directly to the project work and cannot be shared among projects.

Indirect Cost

Cost that is attributed to the price of doing business (e.g. utilities, office space, other overhead costs)

Fixed Cost

Cost that remains constant throughout the project life cycle

SMART Objectives

Criteria for setting goals and objectives, namely that these goals are: *S*pecific, *M*easurable, *A*ttainable, *R*elevant, and *T*ime-bound. The idea is that every project goal must adhere to the SMART criteria to be effective.

Cultural Dimensions Theory

Cultural Dimensions Theory Geert Hofstede Describes the effects of a society's culture on the values of its members, and how these values relate to behavior, using a structure derived from factor analysis Includes 6 Dimentions — *1.* Power distance index (PDI) *2.* Individualism vs. collectivism (IDV) *3.* Uncertainty avoidance index (UAI) *4.* Masculinity vs. femininity (MAS) *5.* Long-term orientation vs. short-term orientation (LTO) *6.* Indulgence vs. restraint (IND)

High-Context Culture

Culture that communicates in ways that are implicit and rely heavily on context. Is collectivist, values interpersonal relationships, and has members that form stable, close relationships. — Contrast with Low-Context Culture

Low-Context Culture

Culture that relies on explicit verbal communication — Contrast with High-Context Culture

Plurality

Decisions made by the largest block in a group, even if a majority is not achieved.

Project Management System

Defined set of rules, policies, and procedures that a project manager follows and utilizes to complete a project.

Project Scope

Defines all of the work, and only the required work, involved in completing project objectives.

Risk Management Methodolgy

Defines how risk management processes will take place. Defines: • tools that will be available for risk management • acceptable approaches within the performing organization • which data sources can be accessed and used for risk management • the best approach for the project type and the project phase • the most appropriate approach considering the conditions of the project • the amount of flexibility for the project given the conditions, time frame and project budget

Staff Release Plan

Defines the conditions and circumstances regarding when a project staff member may be released from the project team.

Initiating the Project

Defining the project scope and obtaining approval from stakeholders. e.g. perform project assessment; define the high-level scope of the project; perform key stakeholder analysis; identify and document high-level risks, assumptions, and constraints; develop and obtain approval for the project charter.

Business Case

Definition of a project's worthiness for investment considering the deliverable(s) the project will produce. — Project Management Document — Contrast with Project Statement of Work

Project Requirements

Demands set by the customer, regulations or the performing organization that must exist for project deliverables to be acceptable.

Performance Reporting

Depiction of how well a project is performing, presented in the form of a report. See also Work Performance Report or Performance Report.

Procurement Statement Of Work

Describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results.

Medium

Device or technology used to transport a message.

Decoder

Device that decodes a message as it is being received.

Encoder

Device that encodes the message that is being sent.

Project Network Diagram

Diagram that visualizes the flow of project activities and their relationships to other project activities. See also PND

Delta

Difference between two versions

Execute

Directing, managing, performing, and accomplishing the project work; providing the deliverables; and providing work performance information.

Requirements Documentation

Document of stakeholder expectations in a project. Defines all the requirements that must be present for the work to be accepted by the stakeholders and for individual requirements to meet the business need for the project.

Bill of Materials

Document that defines the materials and products needed to create the items defined in the corresponding work breakdown structure (WBS) See also *BOM*

CSOW

Document that requires a buyer to fully describe the work to be completed and/or the product to be supplied. See also *Contract Statement of Work*

Procurement Document

Document utilized in bid and proposal activities, which includes the buyer's invitation for Bid, Invitation for Negotiations, Request for Information, Request for Quotation, Request for Proposal, and seller's responses.

Project Files

Documentation resulting from the project's activities. These files form part of Organizational Process Assets.

Crosby's DIRFT

Doing It Right the First Time Four major principles: *1.* The definition of quality is conformance to requirements *2.* The system of quality is prevention *3.* The performance standard is zero defects *4.* The measurement of quality is the price of non-conformance — Contrast with Deming's PDCA Cycle or Juran's Trilogy

Intrinsic Motivation

Doing an activity because it is interesting and derives spontaneous satisfaction from the activity itself. — Contrast with Extrinsic Motivation

DUR

Duration The total number of work periods (not including holidays or other nonworking periods) required to complete a schedule activity or work breakdown structure component. Usually expressed as workdays or workweeks. Sometimes incorrectly equated with elapsed time. Formulas: D = EF - ES + 1 Formulas: D = LF - LS + 1 Where EF is early finish, ES is early start, LF is late finish and LS is late start Can also be abbreviated as D or DU See also Activity Duration. Contrast with Effort.

Early Finish date The earliest a project activity can finish.

Early Start Date The earliest a project activity can begin.

Earned Value The physical work completed to date and the authorized budget for that work. The actual percentage of the BAC that represents the actual work completed in a project. "As of today, what is the estimated value of the work actually accomplished?" Formula: EV = PV / AC where PV is planned value and AC is actual cost

EVM

Earned Value Management A methodology that combines scope, schedule, and resource measurements to assess project performance and progress.

EVA

Economic Value Added Formula: EVA = project return vs initiative costs >

EEF

Enterprise Environmental Factors Any external or internal organizational factors that can affect project success. (e.g. culture, organizational structure, resources, commercial databases the project will use, market conditions and project management software.)

Networking

Establishing connections and relationships with other people from the same or other organizations.

EAC (atypical)

Estimate At Completion The expected actual costs to date plus remaining budget. Used when current variances are thought to be atypical of the future. AC plus the remaining value of work to perform. "As of now, how much do we expect the total project to cost? $_____." "What do we currently expect the TOTAL project to cost (a forecast)?" Formula: EAC atyp = AC + (BAC - EV) where AC is actual cost, BAC is budget at completion and EV is earned value

EAC (typical)

Estimate At Completion The expected total cost of actual costs to date plus the remaining budget modified by performance. Used when current variances are thought to be typical of the future and when project schedule constraints will influence the completion of the remaining effort. "As of now, how much do we expect the total project to cost? $_____." "What do we currently expect the TOTAL project to cost (a forecast)?" Formula: EAC typ = AC + [{BAC - EV)  (CPI C * SPI C )] where AC is actual cost, BAC is budget at completion, EV is earned value, CPI c is the current cost performance index and SPI c is the current schedule performance index

EAC

Estimate At Completion The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete. Used if no variances from the BAC have occurred or you will continue at the same rate of spending (as calculated in the cumulative CPI or based on the trends that have led to the current CPI). "As of now, how much do we expect the total project to cost?" "What do we currently expect the TOTAL project to cost (a forecast)?" Formula: EAC = BAC  CPI cum where BAC is budget at completion and CPI is cost performance index

EAC (variance)

Estimate At Completion The expected total cost of completing all work expressed as the sum of the actual cost to date plus a new estimate for the remaining work. Used when the original estimate was fundamentally flawed. "As of now, how much do we expect the total project to cost? $_____." "What do we currently expect the TOTAL project to cost (a forecast)?" Formula: EAC VAR = AC + Bottom-Up ETC where AC is actual cost and ETC is estimate-to-completion

ETC

Estimate To Complete "From this point on, how much MORE is project completion expected to cost (a forecast)?" Formula: ETC = EAC - AC where EAC is estimate at completion and AC is actual cost Can also be determined by re-estimating the remaining work from the bottom up.

EAC (using CPI)

Estimate at Completion The expected total cost of completing all work expressed as the sum of the actual cost to date plus a new estimate for the remaining work. Used when the original estimate was fundamentally flawed. "As of now, how much do we expect the total project to cost? $_____." "What do we currently expect the TOTAL project to cost (a forecast)?" Formula: EAC CPI = AC + [(BAC -EV) / CPI] where BAC is budget at completion, EV is earned value and CPI is cost performance index

Payback Period

Estimate of how long it will take for an organization to recover the costs of capital investment in a project.

Activity Duration Estimate

Estimate of the likely time it will take to complete a project, phase, or individual activities within a project — Project Management Document

Pessimistic Duration

Estimate of the longest activity duration that takes into account all of the known variables that could affect performance.

Schedule Forecast

Estimate or prediction of conditions and events in a project's future based on information and knowledge available at the time the schedule is calculated.

Definitive Estimate

Estimation type that is used late in the planning process and is associated with bottom-up estimating. Ranges between -5% and +10% ^^ accuracy - determined thru detailed work package analysis See also Bottom-Up Estimate Contrast with Rough Order of Magnitude Estimate

Net Present Value

Evaluation of monies returned on a project for each period the project lasts. Formula: NPV = PV I - PV O where PV I is the present value of inflow and PV O is the present value of outflow

Risk Audit

Examination and documentation of the effectiveness of risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process.

Benefit/Cost Ratio Model

Examination of the benefit-to-cost ratio of a project Formula: *BCR = Benefit / Costs* ≥ 1 See also *BCR*

BCR

Examination of the benefit-to-cost ratio of a project Formula: *BCR = Benefit / Costs* ≥ 1 See also *Benefit/Cost Ratio Model*

Value Analysis

Examination of the functions of a project's product in relation to the cost of the features and functions. The grade of the product is in relationship to the cost of the product. See also Product Analysis

Risk Distribution

Examines the possibility of all risk event possibilities within a given range. Five types: 1. Normal 2. Lognormal 3. Beta 4. Triangular 5. Uniform See also Continuous Probability Distribution

Inspection

Examining or measuring to verify whether an activity, component, product, result, or service conforms to specified requirements.

Ground Rules

Expectations regarding acceptable behavior by project team members.

EAD

Expected Activity Duration The process of estimating the number of work periods needed to complete individual activities with estimated resources. Formulas: EAD  = (P + M + O) / 3 Formulas: EAD BETA = (P + 4M + O) / 6 Formulas: EAD PERT = (P + 4M + O) / 6 Formulas: EAD WEIGHTED = (P + 4M + O) / 6 where EAD is expected activity duration, P is pessimistic, M is most likely and O is optimistic See also Triangular Distribution or Beta Distribution

EMV

Expected Monetary Value The monetary value of a risk exposure based on the risk's probability and impact in the risk matrix. -Typically used in quantitative risk analysis since it quantifies the risk exposure.

Information Management Systems

Facilities, processes, and procedures used to collect, store, and distribute information between producers and consumers of information in physical or electronic format.

Reporting System

Facilities, processes, and procedures used to generate or consolidate reports from one or more information management systems and facilitate report distribution to the project stakeholders.

FMEA

Failure Mode and Effect Analysis An analytical procedure in which each potential failure mode in every component of a product is analyzed to determine its effect on the reliability of that component and, by itself or in combination with other possible failure modes, on the reliability of the product or system and on the required function of the component; or the examination of a product (at the system and/or lower levels) for all ways that a failure may occur. For each potential failure, an estimate is made of its effect of the total system and of its impact. In addition, a review is undertaken of the action planned to minimize the probability of failure and to minimize its effects.

Fallback Plan

Fallback plans include an alternative set of actions and tasks available in the event that the primary plan needs to be abandoned because of issues, risks, or other causes. Contrast with Contingent Response Strategy

Sender-Receiver Model

Feedback loops and barriers to communications.

Closing the Project

Finalizing all project activities, archiving documents, obtaining acceptance for deliverables, and communication project closure. e.g. obtain final acceptance of the project deliverables; transfer the ownership of deliverables; obtain financial, legal, and administrative closure; distribute the final project report; collate lessons learned; archive project documents and materials; measure customer satisfaction.

Finish-to-Finish An activity relationship type that requires the current activity be finished before its successor can finish.

Finish-to-Start An activity relationship type that requires the current activity be finished before its successor can start.

FFP

Firm Fixed-Price contract Agreement that defines a total price for the product the seller is to provide. See also Firm Fixed-Price Contract or Lump Sum Contract

Time

First constraint that governs project management. A project should come in on or before its established schedule.

FPIF

Fixed Price Incentive Fee

FPEPA

Fixed-Price with Economic Price Adjustments Fixed-price contract with a special allowance for price changes based on economic reasons such as inflation or the cost of raw materials. Also FP-EPA

System Flowchart

Flowchart that illustrates the flow of a process through a system, such as a project change request through the change control system, or work authorization through a quality control process. See also Process Flowchart

Process Flowchart

Product Analysis

For projects that have a product as a deliverable, it is a tool to define scope that generally means asking questions about a product and forming answers to describe the use, characteristics, and other relevant aspects of what is going to be manufactured. Six types of Product Analysis • Product Breakdown • Systems Analysis • System Engineering • Value Engineering • Value Analysis • Functional Analysis

Estimate at Completion (w/variance)

Forecast of the TOTAL project cost if no variances from the BAC have occurred or if the project work will continue at the current rate of spending. Formula: EAC = BAC  CPI C where BAC is budget at completion and CPI C is cumulative cost performance index

Project Funding Requirements

Forecast project costs to be paid that are derived from the cost baseline for total or periodic requirements, including projected expenditures plus anticipated liabilities.

Variance at Completion

Forecasting formula that predicts how much of a variance a project will likely have based on current conditions within the project. "How much over/under budget will we be at the project's end?" Formula: VAC = BAC - EAC Where BAC is budget at completion and EAC is estimate at completion Contrast with Budget at Completion

Sum of Years' Digits

Form of accelerated depreciation that is based on the assumption that the productivity of an asset decreases with the passage of time. Under this method, a fraction is computed by dividing the remaining useful life of the asset on a particular date by the sum of the year's digits

Rolling Wave Planning

Form of progressive elaboration in which the imminent work is planned in detail, while future work is planned at a high level.

Organizational Policies

Formal and informal policies that are required for project plan development. Organizational policies include quality management, personnel administration and financial controls.

Seller Proposal

Formal response from a seller to a request for proposal or other procurement document specifying the price, commercial terms of sale, and technical specifications or capabilities the seller will do for the requesting organization that, if accepted, would bind the seller to perform the resulting agreement.

Beta Standard Deviation

Formula: *SD = (P - O) / 6* where *SD* is standard deviation, *P* is pessimistic and *O* is optimistic See also *Sigma*

Beta Distribution

Formula: EAD PERT = *(P + 4M + O) / 6* where *EAD* is expected activity duration, *PERT* is Program Evaluation & Review Technique *P* is pessimistic, *M* is most likely, *O* is optimistic See also *Expected Activity Duration, PERT, Weighted Distribution*

Economic Value Added

Formula: EVA = project return vs initiative costs >

Range of an Activity Duration

Formula: Range of an Activity Duration = Beta EAD +/- SD where EAD is estimated activity duration and SD is standard deviation

Standard Deviation

Formula: SD = (P - O) / 6 where P is pessimistic and O is optimistic See also Sigma

Working Captital

Formula: WC = C Assets - C Liabilities > where C is current

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. • Hygiene Agents -expectations that all workers have job security, a paycheck, clean and safe working conditions, a sense of belonging, civil working relationships, etc • Motivating Agents -motivate people to excel responsibility, appreciation of work, public recognition for a job well-done, the chance to excel, education, etc.

Future Value Benefit comparison model to determine the future value of money. Formula: FV = PV (1 + I) ^N where PV is present value, I is the given interest rate, and ^N is the number of periods.

Verify Scope

Gaining of formal acceptance of completed project deliverables form the customer, end-user or requesting party. Quality check/user acceptance testing. Key output -accepted deliverables Contrast with Quality Control

Influence/Impact Grid

Grid used to map out stakeholders based on their influence over a project in relation to their to their impact on project execution

Power/Influence Grid

Grid-based mapping of stakeholders according to their power and influence over a project.

Unanimity

Group decision method where everyone must be in agreement.

Majority

Group decision method where more than 50% of the group must be in agreement.

Conflict Management

Handling, controlling, and guiding a conflictual situation to achieve a resolution.

Project Costs

Identification of the resources, the needed quantity, and the schedule of the resources that are directly linked to the expected cost of project work. Four types: 1. direct costs 2. indirect costs 3. variable costs 4. fixed costs

Organizational Interface

Identification of which departments will be involved in a project.

Forming

In Tuckman's theory of team development, the phase in during which the project team meets and learns about their roles and responsibilities on a project

Norming

In the Tuckman Ladder Model, phase of project collaboration in which team members build relationships and begin to rely on each other while completing assignments.

Performing

In the Tuckman Ladder Model, phase of project collaboration in which team members have trust amongst themselves, work well together, and are able to resolve issues and problems quickly and effectively.

Storming

In the Tuckman Ladder Model, the phase during which the project team struggles for project positions, leadership and direction.

Conformance Work

In the cost of quality framework, conformance work is done to compensate for imperfections that prevent organizations from completing planned activities correctly as essential first-time work. Conformance work consists of actions that are related to prevention and inspection.

Nonconformance Work

In the cost of quality framework, nonconformance work is done to deal with the consequences of errors and failures in doing activities correctly on the first attempt. In efficient quality management systems, the amount of nonconformance work will approach zero.

Early Finish Date

In the critical path method, the earliest possible point in time when the uncompleted portions of a schedule activity can finish based on the schedule network logic, the data date, and any schedule constraints. Formula: EF = ES + DUR See also Early Finish

Early Start Date

In the critical path method, the earliest possible point in time when the uncompleted portions of a schedule activity can start based on the schedule network logic, the data date and any schedule constraints. See also Early Start

Late Finish Date

In the critical path method, the latest possible point in time when the uncompleted portions of a schedule activity can finish based on the schedule network logic, the project completion date, and any schedule constraints. See also LF or Late Finish

Late Start

In the critical path method, the latest possible point in time when the uncompleted portions of a schedule activity can start based on the schedule network logic, the project completion date, and any schedule constraints. Formula: LS = LF - D where LF is late finish and D is duration See also LS or Late Start Date

Risk Owner

Individual or entity that is responsible for monitoring and responding to an identified risk within a project.

Quality Control

Inspection-driven process that measures work results to confirm that the project is meeting relevant quality standards. Internal quality check of products of deliverables prior to giving them to the customer or end-user. Key output -validated deliverables Contrast with Quality Assurance or Verify Scope

Earned Value Analysis

Integrates scope, cost (or resource), and schedule measures to help the project management team assess project performance.

Internal Dependencies

Internal relationships to the project or the organization

ISO

International Organization for Standardization

IFB

Invitation For Bid Generally, this term is equivalent to request for proposal. However, in some application areas, it may have a narrower or more specific meaning.

5 Whys Method

Iterative interrogative technique used to explore the cause-and-effect relationships underlying a particular problem. Technique used in the Analyze phase of the Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control) methodology. The primary goal of the technique is to determine the root cause of a defect or problem by repeating the question "Why?" Each answer forms the basis of the next question.

Participative Management

Japanese-based management style that assumes workers are motivated by a sense of commitment, opportunity, and advancement -William Ouchi See also Ouchi's Theory Z

Ouchi's Theory Z

Japanese-based management theory that assumes workers are motivated by a sense of commitment, opportunity, and advancement -William Ouchi See also Participative Management

Expert Judgment

Judgment provided based upon expertise in an application area, knowledge area, discipline, industry, etc., as appropriate for the activity being performed. Such expertise may be provided by any group or person with specialized education, knowledge, skill, experience, or training.

Configuration Identification

Labeling of components, how changes are made to a product, and the accountability of the changes

Late Finish Date or Late Finish In the critical path method, the latest possible point in time when the uncompleted portions of a schedule activity can finish based on the schedule network logic, the project completion date, and any schedule constraints.

Late Start or Late Start Date The latest a project activity can begin. Used in the backward pass procedure to discover the critical path and project float. Formula: LS = LF - D where LF is late finish and D is duration

Project Initiation

Launching a process that can result in the authorization of a new project.

Letter of Intent

Letter stating that the intension of a buyer to create a contractual relationship with the seller. -not a contract

LOE

Level of Effort An activity that does not produce definitive end products and is measured by the passage of time. [Note: Level of effort is one of three earned value management (EVM) types of activities used to measure work performance.]

Waterfall Approach

Life-cycle that "predicts: the work that will happen in each phase of a project. See also Plan-Driven Approach or Predictive Life Cycle

Plan-Driven Approach

Life-cycle that "predicts: the work that will happen in each phase of a project. See also Predictive Life Cycle or Waterfall Approach

Code of Ethics

List of "right and honorable" aspirational and mandatory standards for acceptable behavior among those in the project management field. Four core values: *1.* responsibility *2.* respect *3.* fairness *4.* honesty

Low-Priority Risk Watch List

List of non-urgent risks that are identified and assigned to a watch list for periodic monitoring.

Effective Listening

Listening experience in which the receiver of the message is paying attention to visual cues from the speaker and para-lingual characteristics, and asking relevant questions.

Quality Assurance

Management process that defines the quality system or quality policy that a project must adhere to. Its purpose is to plan quality into a project rather than to inspect quality into a deliverable. Contrast to Quality Control

Operations Management

Management that deals with the ongoing, day-to-day activities that are at the core function of an organization; the salable goods and services at the heart of an organization's overall purpose.

Functional Management

Managers of the administration or functional units of an organization.

Dependency Types

Mandatory (Hard Logic) -legal/contractual/regulatory Discretionary (Soft Logic) -preferred, preferential External -outside project team control Internal -within project team control

Change Control Tool

Manual or automated tool used to assist with change and/or configuration management. At a minimum, the tools should support the activities of the change control board (CCB).

Salience Model

Mapping of stakeholder groups according to their power, urgency, and legitimacy in a project.

Power/Interest Grid

Mapping of stakeholders on a grid based to their power over a project with consideration for prioritization of their project needs, expectations and contributions.

Ogilopoly

Market condition in which the market is so tight that the actions of one vendor affect the actions of all the others. See also Marketplace Condition

Sole Source

Marketplace condition in which only one vendor is able to provide needed project item or service. (e.g. specialized service or consultant or unique type of material) See also Marketplace Condition

Statistical Analysis

Mean (average) = sum of data #s / # of items in data set Median = middle value when data is in order Mode = most frequently occurring # in a data set

Schedule Performance Index

Measure of schedule efficiency expressed as the ratio of earned value to planned value. "We are (only) progressing at _____ % of the rate originally planned." Formula: SPI = EV / PV ≥ 1 where EV is earned value and PV is planned value See also Cumulative Schedule Performance Index Contrast with Schedule Variance

Risk Threshold

Measure of the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. Above the risk threshold, the organization will not tolerate the risk. See also Risk Tolerance

Project Success

Measurement of how well a project is completed with regards to: • time (schedule adherence) • budget • functionality/quality • customer satisfaction Satisfying both current and future opportunities, commercial or technical.

CPI

Measurement of project success based on its financial performance. "We are getting $_____ worth of work out of every $1 spent. Funds are or are not being used efficiently." Formula: *CPI = EV / AC* ≥ 1 where *EV* is earned value, *AC* is actual cost See also *Cost Performance Index*

Profile Analysis Meeting

Meeting in which each of the roles in a project are examined and the role's interests, concerns, influence, knowledge about the project and attitude toward the project are documented.

Nonverbal

Message cues that are not conveyed from talking. Accounts for approximately 55% of all communications (e.g. facial expressions, hand gestures, body language, etc.)

Multi-Criteria Decision Analysis Process

Method for ranking potential project team members on several factors to determine project team fitness. Based on criteria such as education, skills, experience, knowledge, etc.

Conflict Resolution

Method for resolving disbutes between individuals *•* Collaborate (problem solve) win-win *•* Compromise (reconcile) lose-lose *•* Withdraw (avoid) lose-yield *•* Smooth (accommodate) lose-lose *•* Force (direct) win-lose

Attribute Sampling

Method of measuring quality that consists of noting the presence (or absence) of some characteristic (attribute) in each of the units under consideration. After each unit is inspected, the decision is made to accept a lot, reject it, or inspect another unit.

Resource-Leveling Heuristic

Method used for flattening a schedule when resources are over-allocated.

Qualitative Risk Analysis

Methodical and logical approach to examining and prioritizing risks based on their probability of occurring and their impact on the project should they occur. Determines four things: • identifies risks that require additional analysis through quantitative risk analysis • identifies risks that may proceed directly to risk response planning • identifies risks that are not critical, project-stopping risks, but that still must be documented • risk priority Contrast to Quantitative Analysis

Prototype

Model of the finished deliverable that allows the stakeholder to see how the final project deliverable may operate.

Scoring Model

Model that uses a common set of values for all of the projects up for selection.

Critical Chain Method

Modification of the project schedule based on the availability of project resources rather than on the pure sequence of events. Gives consideration to feeding, project, and resource buffers in addition to critical path (CP) duration — Contrast with Critical Path See also *CCM*

Sunk Cost

Money that has already been invested in a project.

Controlling and Monitoring the Project

Monitoring project progress, managing change and risk, and communicating project status. e.g. measure project performance using appropriate tools and techniques; manage changes to the project scope, schedule, and costs; ensure that project deliverables conform to the quality standards; update the risk register and risk response plan; assess corrective actions on the issue register; communicate project status to stakeholders.

Activity Attributes

Multiple attributes associated with each schedule activity that can be included within the activity list. Activity attributes include activity codes, predecessor activities and successor activities, logical relationships, leads and lags, resource requirements, imposed dates, constraints, and assumptions. — Project Management Document

Lead Time

Negative time that allows two or more activities to overlap where ordinarily these activities would be sequential.

NPV

Net Present Value Evaluation of monies returned on a project for each period the project lasts. Formula: NPV= PV I - PV O > where PV I is the present value of inflow PV O is the present value of outflow

Common Cause of Variance

Normal, predictable variance that occurs in a system, process or tested result. On a control chart, indicated by random points within the control limits. — Contrast to Special Cause of Variance See also *Random Cause of Variance*

Ramdom Cause of Variance

Normal, predictable variance that occurs in a system, process or tested result. On a control chart, indicated by random points within the control limits. See also Common Cause of Variance Contrast to Special Cause of Variance

Stakeholder Notification

Notice to stakeholders about resolved issues, approved changes and the overall health of a project.

Quantitative Risk Analysis

Numerical assessment of the probability and impact of identified risks, resulting in an overall risk score for the project. (more in-depth than qualitative risk analysis)

Acquisition

Obtaining human and material resources necessary to perform project activities. Implies a cost of resources, and is not necessarily financial.

Letter Contract

Often used as a stopgap solution, allows a vendor to begin working on the project immediately.

Adjourning

Once a project is completed, 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.

Project Team Member

One of a collection of individuals who will work together to ensure the success of a project.

Node

One of the defining points of a schedule network; a junction point joined to some or all of the other dependency lines.

Activity Code

One or more numerical or text values that identify characteristics of the work or in some way categorize the schedule activity that allows filtering and ordering of activities within reports.

Quality Metrics

Operational definitions that specify the measurements within a project and the expected targets for quality and performance.

RAG Rating

Ordinal scale that uses red, amber, and green (RAG) to capture probability, impact, and risk score.

Risk Categorization

Organization by sources of risk (e.g. using the RBS), the area of the project affected (e.g. using the WBS), or other useful category (e.g. project phase) to determine the areas of the project most exposed to the effects of uncertainty.

Strong Matrix Structure

Organization in which resources are pooled into one project team, but the functional managers have less project power than the project manager.

Projectized Structure

Organization that assigns a project team to one project for the duration of the project life cycle. The project manager has high-to-almost-complete project power. See also Projectized Organization

Composite Structure

Organization that creates a blend of the functional, matrix, and projectized structures

Functional Structure

Organization that is divided into functions with each employee having one clear functional manager. Each department acts independently of the other departments.

OBS

Organizational Breakdown Structure A hierarchical representation of the project organization that illustrates the relationship between project activities and the organizational units that will perform those activities. See also Organization Chart

Project-Based Organization

Organizational form that involves the creation of temporary systems for the performance of projects. PBOs conduct the majority of their activities as projects and/or provide project over functional approaches. See also PBO

Interpersonal Interface

Organizational interface that considers the formal and informal reporting relationships that may exist among project team members.

Weak Matrix Structure

Organizational type where resources are pooled into one project team, but the functional managers have more project power than the project manager.

Work Results

Outcome of activities performed to accomplish the project.

PMI Code of Ethics and Professional Conduct

PMI document that defines the expectations of its members to act responsibly, respectfully, fairly, and honestly in their leadership of projects and programs.

Organizational Risk

Performing organization-based factor that contributes to project risks through unreasonable cost, time and scope expectations; poor project prioritization; inadequate funding or the disruption of funding; and competition with other projects for internal resources.

Executing the Project

Performing the work necessary to achieve the stated objectives of the project. e.g. obtain and manage project resources; execute the tasks as defined in the project plan; implement the quality management plan; implement approved changes according to the change management plan; implement approved actions by following the risk management plan; maximize team performance.

Key Stakeholder

Person or entity that has the authority to make decisions in a project.

Stakeholder

Person or organization (e.g. customer, sponsor, performing organization, or the public) that is actively involved in a project, or whose interests may be positively or negatively affected by execution or completion of the project. May also exert influence over the project and its deliverables.

Influencer

Person who can positively or negatively influence a project's ongoing activities and/or the project's likelihood of success

Project Management Professional

Person who has proven project management experience and has qualified for and then passed the PMP examination. See also PMP

Certified Associate in Project Management

Person who has slightly less project management experience than a PMP, but who has qualified for and subsequently passed the CAPM examination. See also *CAPM*

CAPM

Person who has slightly less project management experience than a PMP, but who has qualified for and subsequently passed the CAPM examination. See also *Certified Associate in Project Management*

Portfolio Manager

Person who is a member of a high-level committee or board within an organization that decides which projects and program the organization should invest in.

Sender

Person who is sending the message.

Program Manager

Person who leads programs for an organization.

Business Partner

Person who may not be directly affected by a project's product, but whose interaction with the organization can influence the project.

Receiver

Person who receives a message.

Role

Person's responsibility for a specific portion of a project. (usually tied to a job title)

User

Person(s) who will pay for and use a project's deliverables See also Customer

Mitigate

Plan alteration in an effort to minimize the impact or probability of risk occurrence. Does not totally eliminate risk. Some residual risk will remain. Contrast with Avoid or Transfer

Configuration Management Plan

Plan that defines how changes to the features and functions of a project deliverable, the product scope, may enter the project — Project Management Document

Communications Management Plan

Plan that defines the stakeholders who need specific information, the person who will supply the information, the schedule for the information to be supplied, and the approved modality to provide the information. — Project Management Document

Contract Management Plan

Plan that directs the acquisition and adherence of both the buyer and the seller to the terms of a contract in significant purchases. — Project Management Document

Contingency Plan

Plan that explains the option to execute a backup plan in response to worse-case scenarios with risk impact. — Project Management Document

Change Management Plan

Plan which details the project procedures for entertaining change requests: how change requests are managed, documented, approved or declined. — Project Management Document

Organizational Process Asset

Plan, process, policy, procedure, or knowledge base that is specific to and used by the performing organization. Contrast with Enterprise Environmental Factor

Planned Value The authorized budget assigned to scheduled work. "As of today, what is the estimated value of the work planned to be done?"

Sink Point

Point in a network diagram where multiple tasks converge into one. This usually is a high risk time for the project schedule. This is a time when the project manager should focus on quality and project control.

Lag Time

Positive time or waiting time that moves two or more activities further apart

PDM

Precedence Diagramming Method

Estimate to Complete

Prediction of the expected cost to finish all the remaining project work. Formula: ETC = EAC - AC where EAC is estimate at completion and AC is actual cost Can also be determined by re-estimating the remaining work from the bottom up. Contrast with Estimate at Completion

Single Source

Preference for working with a specific vendor, despite the ability of many vendors to provide the needed item or service. See also Marketplace Condition

Planning the Project

Preparing the project plan and developing the work breakdown structure (WBS). e.g. assess detailed project requirements, constraints, and assumptions with stakeholders; create the work breakdown structure; develop a project schedule; develop budget, human resource management, communication, procurement, quality management, change management, and risk management plans; present the project plan to the key stakeholders; conduct a kick-off meeting.

Present Value A benefit comparison model to determine the present value of a future amount of money. Formula: PV = FV / (1 + r) N where FV is future value, r (or I) is the given interest rate, and N is the number of periods

Unit Price

Price allocated for a measurable unit of product or time.

Quotation

Price estimate [from seller to buyer] to be used as a determining factor in the procurement decision-making process. See also Bid

Bid

Price quote [from seller to buyer] that will serve as a determining factor in the procurement decision-making process. See also *Quotation*

Contract Change Control System

Process for making changes to a contract. Process includes: *•* forms *•* tracking *•* dispute resolution procedures *•* documented communications *•* conditions within the project, business or marketplace that justify the needed change *•* procedures for getting the changes approved within the performing organization

Make-or-Buy Decision

Process in which the project management team determines the cost-effectiveness, benefits, and feasibility of making a product versus buying it from a vendor.

Statistical Sampling

Process of choosing part of a population of interest for inspection.

Root Cause Identification

Process of finding out why a risk event may be occurring, the causal factors for the risk event, and then, eventually, how the event can be mitigated or eliminated.

Monitor and Control Project Work

Process of tracking, reviewing, and reporting the progress to meet the performance objectives defined in the project management plan.

Manage Stakeholder Expectations

Process that is based on what stakeholders expect from a project and on project communications from the project manager.

Integrated Change Control

Process through which the impact of proposals to make project changes are considered and controlled

Contract Negotiation

Process used to create a fair price for the product or service that is to be procured through seller offering and buyer consideration of purchase terms.

Project Closeout

Processes and procedures developed for the closing or cancelling of projects.

Closing Process Group

Processes performed to finalize all activities across all process groups to formally close a project or project phase or project contract.

Project Scope Management

Processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.

Monitoring and Controlling Process Group

Processes required to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes.

RFQ

Procurement document used to request price quotations from prospective seller s of common or standard products or services. Sometimes used in place of request for proposal and, in some application areas, it may have a narrower or more specific meaning. See also Request for Quotation or Request for Quote

Accepted Deliverables

Products, results, or capabilities produced by a project and validated by the project customer or sponsors as meeting their specified acceptance criteria.

Project Communications Management

Project Communications Management includes the processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and the ultimate disposition of project information.

Project Cost Management

Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.

Project Human Resource Management

Project Human Resource Management includes the processes that organize, manage, and lead the project team.

Project Integration Management

Project Integration Management includes the processes and activities to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups.

PMBOK

Project Management Body Of Knowledge Publication that defines widely accepted project management practices

Gantt Chart

Project Management Document A bar chart of schedule information where activities are listed on the vertical axis, dates are shown on the horizontal axis, and activity durations are shown as horizontal bars placed according to start and finish dates. See also Schedule Comparison Bar Chart

Resource Calendar

Project Management Document A calendar that identifies the working days and shifts on which each specific project resource is available.

Risk Register

Project Management Document A centralized database consisting of the outcome of all other risk management processes, such as the outcome of risk identification, qualitative analysis, and quantitative analysis. Includes: • list of identified risks • list of potential responses • root causes of risk • risk prioritization • probabilistic analysis • risk trends

Influence Diagram

Project Management Document A chart that identifies all of the elements, variables, decisions, and objectives as well as how each factor may influence another in a decision problem.

RACI Chart

Project Management Document A common type of responsibility assignment matrix that uses responsible, accountable, consult, and inform statuses to define the involvement of stakeholders in project activities. See also RACI

Product Scope Description

Project Management Document A document that describes the product, service or result that a project will create.

Project Organization Chart

Project Management Document A document that graphically depicts the project team members and their interrelationships for a specific project.

Project Schedule Network Diagram

Project Management Document A graphical representation of the logical relationships among the project schedule activities. See also Activity Network Diagram

Requirements Traceability Matrix

Project Management Document A grid that links product requirements from their origin to the deliverables that satisfy them. See also RTM

Probability and Impact Matrix

Project Management Document A grid used for mapping [through either a cardinal or ordinal scoring scale] the probability of each risk occurrence and its impact on project objectives if that risk occurs. Used in qualitative and quantitative risk analysis.

Resource Breakdown Structure

Project Management Document A hierarchical decomposition of the resources required to complete the deliverables within a project. See also RBS

Work Breakdown Structure

Project Management Document A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables. See also WBS

Organizational Chart

Project Management Document A hierarchical representation of the project organization that illustrates the relationship between project activities and the organizational units that will perform those activities. Organized into a top-down graphic. See also Organizational Breakdown Structure Contrast with Responsibility Assignment Matrix

WBS Template

Project Management Document A prepopulated WBS for repetitive projects.

Scatter Diagram

Project Management Document A quality control tool that tracks the relationship between two variables over time. The two variables are considered as related as they track closer against a diagonal line.

Parametric Estimate

Project Management Document 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. increased accuracy - based on historical information and other metrics

Performance Report

Project Management Document A report that depicts how well a project is performing. See also Work Performance Report or Performance Reporting.

Schedule Network Template

Project Management Document A set of activities and relationships that have been established that can be used repeatedly for a particular application area or an aspect of the project where a prescribed sequence is desired.

Quality Checklist

Project Management Document A structured tool used to verify that a set of required steps has been performed.

Process Improvement Plan

Project Management Document A subsidiary plan of the project management plan that details the steps for analyzing processes to identify activities that enhance their value while identifying and eliminating waste and non-value-added activities.

Three-Point Estimate

Project Management Document A technique used to estimate cost or duration by applying an average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates. Formula: (P + M + O) / 3 where P is pessimistic, M is most likely and O is optimistic See also Triangular Distribution

Summary Budget

Project Management Document Addresses the predetermined budget allotted for a project or a rough order of magnitude estimate based on the preliminary project scope statement.

Fixed-Price

Project Management Document An agreement that sets the fee that will be paid for a defined scope of work regardless of the cost or effort to deliver it. Three kinds: • firm-fixed price • fixed-price incentive fee • fixed-price with economic price adjustments Cost overruns equate to increased risk : the seller See also Firm Fixed-Price Contract or Lump Sum Contract Contrast with Fixed-Price Incentive Fee or Fixed-Price with Economic Price Adjustment

Histogram

Project Management Document Bar chart used to show frequency of problems, ranking of services, or any other distribution of data, using the height of bars as an indicator. Contrast with Pareto Chart

PMBOK Guide

Project Management Document Book published by the Project Management Institute that serves as a guide to the Project Management Body of Knowledge. Provides good practices for most projects, most of the time.

Project Calendar

Project Management Document Calendar that documents resource schedule availability for project work.

Schedule Comparison Bar Chart

Project Management Document Chart that depicts discrepancies between current activity status and the estimated activity status. See also Gantt Chart

Responsibility Assignment Matrix

Project Management Document Chart that shows the correlation between project team members and the work they have been assigned to complete. See also RAM or RACI Chart. Contrast with Organization Chart

Milestone Chart

Project Management Document Chart used to plot the high-level deliverables and external interfaces of a project, such a a customer walk-through, against a calendar. See also Gantt Chart

Pareto Diagram

Project Management Document Chart, ordered by frequency of occurrence, that shows how many results were generated by each identified cause. Based on Pareto's Principle "a relatively small number of causes [~20%] will typically produce a large majority of problems or defects [~80%]." -the 80/20 rule Contrast with Histogram

Published Estimating Data

Project Management Document Collection of production rates, material costs, labor trades, and industry-specific price guidelines.

Project Record

Project Management Document Communications that are a part of the organizational process assets of a project (e.g. email, memos, letters, faxes)

Teaming Agreement

Project Management Document Contract that defines the limited relationship between two or more organizations in their attempt to seize an opportunity.

Risk Related Contractual Agreement

Project Management Document Contract used to transfer risk response obligation from one party to another.

Fixed-Price Incentive Fee

Project Management Document Contract with a set price plus opportunities for bonus payments based on meeting specific goals on cost, schedule, and/or other objectives. Typically include a price ceiling for costs and associated bonuses. Cost overruns equate to  risk : seller See also FPIF

Fixed Price with Economic Price Adjustment

Project Management Document Contract with a set price, but with a special provision allowing for predefined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decreases) for specific commodities. Cost overruns equate to  risk : seller See also FPEPA Contrast with Fixed-Price or Fixed-Price Incentive Fee

Fishbone Diagram

Project Management Document Diagram that illustrates how potential problems within a project may contribute to failure or errors within a project. See also Cause and Effect Diagram or Ishikawa Diagram

Force Field Analysis Diagram

Project Management Document Diagram used for plotting the strengths and weaknesses of the forces (stakeholders) that have influence over project decisions.

Ishikawa Diagram

Project Management Document Diagram used to find the root cause of factors that are causing risks within a project. See also Cause-and-Effect Diagram or Fishbone Diagram

Stakeholder Register

Project Management Document Directory of project stakeholders and their characteristics including contact information, position, concerns, interests, and attitude toward a project.

Proposal

Project Management Document Document [from seller to buyer] that is used in the procurement decision-making process. Includes information on the vendor's skills, the vendor's reputation, and ideas on how the vendor can complete the contracted work for the buyer.

Project Statement of Work

Project Management Document Document that defines the product, service or results a project will create. See also Statement of Work or Contract Statement of Work Contrast with Business Case

Formal Acceptance Documentation

Project Management Document Document that formally records project customer and/or sponsor acceptance of project deliverables.

Project Charter

Project Management Document Documentation from outside of a project's boundaries that formally authorizes the existence of the project and provides the project manager with the authority to apply organizational resources to project activities.

Project Closure Document

Project Management Document Documentation of a project's completion, closure, and transfer of project deliverables to other parties within an organization or to the project customer.

Quality Baseline

Project Management Document Documentation of the quality objectives for a project, including the metrics for stakeholder acceptance of the project deliverable.

Lessons Learned

Project Management Document Documentation of what did and did not work in project implementation. -to be created by the entire project team as the project progresses with the purpose of improving future performance.

Historical Information

Project Management Document Documents and data on prior projects including project files, records, correspondence, closed contracts, and closed projects.

Independent Estimate

Project Management Document Estimate that is created by the performing organization or outside experts to predict the costs of a procured product. See also "Should Cost" Estimate

Project Report

Project Management Document Formal communication on project activities, their status and conditions.

Tree Diagram

Project Management Document Hierarchy and decomposition of a solution, an organization, or a project team. (e.g. WBS or org chart)

Time & Materials Contract

Project Management Document Hybrid contractual arrangement in which the buyer pays for the time and materials for the procured work. Smaller contract, typically used for smaller procurement conditions. May contain a "not-to-exceed" clause, or the buyer assumes the risk. See also T&M or Unit Price Contract

Run Chart

Project Management Document Line graph that shows the results of inspection in the order in which they have occurred. Its goal is first to demonstrate the results of a process over time [without defined control limits] and then to use trend analysis to predict when certain trends may reemerge. Contrast with Control Chart

Schedule Activities

Project Management Document List of activities needed to create the work package deliverable for a project. See also Activity List

Qualified Seller List

Project Management Document List of vendors that are qualified to do business with the performing organization.

Milestone List

Project Management Document List that identifies project milestones, their details and attributes.

Decision Tree

Project Management Document Method used for determining which of two or more decisions is the best one in a given scenario.

NDA

Project Management Document Nondisclosure Agreement Document that requires that information about a contract, person or entity not be disclosed to anyone within or outside of the performing organization.

Project Notebook

Project Management Document Notebook for keeping project records. Part of organizational process assets.

Strategic Plan

Project Management Document Plan that defines how a project will mesh with the organization's goals.

Requirements Management Plan

Project Management Document Plan that defines how the project requirements will be defined, gathered, documented and managed.

Procurement Management Plan

Project Management Document Plan that defines processes and policies for choosing, selecting, and acquiring goods and services from outside the performing organization.

Staffing Management Plan

Project Management Document Plan that defines staff acquisition, timetables, release criteria, training needs, reward and recognition systems, compliance issues, and project safety concerns. Elements include: • staff acquisition • timetable • staff release plan • training needs • rewards and recognition • compliance issues • safety

Quality Management Plan

Project Management Document Plan that defines what quality means for a project, how the project will achieve quality, and how the project will map to organizational procedures pertaining to quality.

Request for Quote

Project Management Document Procurement document used to request price quotations from prospective seller s of common or standard products or services. Sometimes used in place of request for proposal and, in some application areas, it may have a narrower or more specific meaning. See also Request for Quotation or RFQ

Human Resource Plan

Project Management Document Project management subordinate plan that defines how project team members will be brought onto the project team, managed, and released from the project team. Also defines team training, safety issues, roles and responsibilities, and how the project's reward and recognition system will operate.

Request for Proposal

Project Management Document Request [from buyer to seller] asking the seller to provide the price to complete procured work or to provide a procured product. See also RFP

Invitation for Bid

Project Management Document Request [from buyer to seller] for the seller to provide the buyer with the price for a procured product or service. See also IFB or Request for Proposal

Defect Repair Request

Project Management Document Request to repair defects within project deliverables

Project Scope Management Plan

Project Management Document Subsidiary project management plan that controls how 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.

Risk Management Plan

Project Management Document Subsidiary project management plan that defines how risks will be identified, analyzed, responded to and monitored within a project. Also defines the iterative risk management process that the project is expected to adhere to. Includes: • methodology • roles and responsibilities • budgeting • timing • risk categories • definitions of risk probability and impact • updated risk categories

Text-Oriented Responsibility Format

Project Management Document Text-oriented version of a RACI or RAM chart. Used to provide a more detailed account of project roles and responsibilities. See also Position Description or Role-Responsibility-Authority Form

Role-Responsibility-Authority Form

Position Description

Project Management Document Text-oriented version of a RACI or RAM chart. Used to provide a more detailed account of project roles and responsibilities. See also Role-Responsibility-Authority Form or Text-Oriented Responsibility Format

Flowchart

Project Management Document The depiction in a diagram format of the inputs, process actions, and outputs of one or more processes within a system; how they are related and how the overall process works.

Project Scope Statement

Project Management Document The description of the project scope, major deliverables, exclusions, assumptions, constraints and acceptance criteria.

Project Management Plan

Project Management Document The document that describes how the project will be executed, monitored, and controlled and then closed. Contains the following components: • Project scope management plan • Change management plan • Configuration management plan • Requirements management plan • Schedule management plan • Cost management plan • Quality management plan • Process improvement plan • Human resource management plan • Communications management plan • Risk management plan • Procurement • Stakeholder • Schedule baseline • Cost performance baseline • Scope baseline

Product Scope

Project Management Document The features and functions that characterize the product or service that will result from the completion of a project.

Scope Baseline

Project Management Document The sum of project deliverables. Approved version of a scope statement, work breakdown structure (WBS), and its associated WBS dictionary, that can be changed only through formal change control procedures and is used as a basis for comparison.

Work Package

Project Management Document The work defined at the lowest level of the work breakdown structure for which cost and duration can be estimated and managed. Contrast with Activity

Project Presentation

Project Management Document Tool for providing information to customers, management, the project team and other stakeholders.

Organization Breakdown Structure

Project Management Document Traditional chart that depicts organizational breakdown by department, units, or teams and disciplines. See also OBS or Organization Chart

PMI

Project Management Institute An organization of project management professionals from around the world, supporting and promoting the careers, values and concerns of project managers.

PMO

Project Management Office A business unit that centralizes the operations and procedures of all projects within an organization. Supports the project manager through software, templates, and administrative support.

PMP

Project Management Professional Person who has proven project management experience and has qualified for and then passed the PMP examination.

PND

Project Network Diagram Diagram that visualizes the flow of project work, the relationship among activities, the critical path, and the expected project end date.

Project Procurement Management

Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.

Project Quality Management

Project Quality Management includes the processes and activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken.

Project Risk Management

Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project.

Project Stakeholder Management

Project Stakeholder Management includes the processes required to identify the people, groups, or organizations that could impact or be impacted by the project, to analyze stakeholder expectations and their impact on the project, and to develop appropriate management strategies for effectively engaging stakeholders in project decisions and execution.

Project Time Management

Project Time Management includes the processes required to manage the timely completion of the project.

Organizational Structure Constraint

Project constraint that is due to correlations between the structure of an organization and the amount of power a project manager has within a project.

Closed Procurements

Project contracts or other procurement agreements that have been formally acknowledged by the proper authorizing agent as being finalized and signed off.

Stakeholder Management

Project knowledge that focuses on managing and engaging stakeholders. Four processes: • identifying the project stakeholder • planning management of stakeholders • managing the stakeholders • controlling stakeholder engagement

Expert Power

Project management authority that comes from both experience with the involved technology and from experience working in similar projects.

Formal Power

Project management power that is sanctioned by senior management

Reward

Project management power that provides the project manager with the authority to reward the project team.

Referent

Project manager is personally known by the project team. See also Referent Power

Referent Power

Project manager refers to the person who assigned him the position.

Brainstorming

Project requirements gathering activity in which participants are encouraged to generate as many ideas as possible, with an understanding that no idea is to be judged or dismissed during the session. — Contrast with Nominal Group Technique

Systems Engineering

Project scope statement-creation process that studies how a system should work, designs and creates a system model and then enacts the working system based on the project's goals and the customer's expectations. See also Product Analysis

Mathematical Model

Project selection method to determine the likelihood of success. (e.g. linear programming, nonlinear programming, dynamic programming, integer programming, multi-objective programming)

Monte Carlo Analysis

Project simulation approach that predicts how various scenarios may work out, given any number of variables. -does not provide a specific answer, but a range of possible answers See also Monte Carlo Simulation

Staff Acquisition

Project team assembly. Characteristics to consider: Experience -What is the experience of the project team member? Has he done similar work in the past? Has he done it well? interest level -Are the project team members interested in working on this project? Characteristics -How will each individual team member work with other project team members? Availability -Will the project team members desired for the project be available? Project managers should confer with functional managers on the availability of potential team members. Knowledge -What is the competency and proficiency of the available project team members?

Soft Project

Project that is intended to bring about change and does not have a physical end product.

Portfolio

Projects, programs, sub-portfolios, and operations managed as a group to achieve strategic objectives.

Purchase Order A form of unilateral contract that the buyer provides to the vendor showing that the purchase has been approved by the buyer's organization.

QFD

Quality Function Deployment

Juran's Trilogy

Quality Planning, Quality Control, Quality Improvement Contrast with Crosby's DIRFT or Deming's PDCA Cycle

Sensitivity Analysis

Quantitative risk analysis and modeling technique used to help determine which risks have the most potential impact on the project. It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values. The typical display of results is in the form of a tornado diagram. Contrast with Expected Monetary Value

Green Condition

RAG Rating category assigned to risks that are generally fairly low in impact, probability or both. See also RAG Rating

Red Condition

RAG Rating category assigned to risks that are high in impact and probability. See also RAG Rating

Amber Condition

RAG Rating category assigned to risks that are somewhat high in impact and probability. See also *RAG Rating, Yellow Condition*

Yellow Condition

RAG Rating category assigned to risks that are somewhat high in impact and probability. See also Amber Condition and RAG Rating

Ordinal Scale

Ranking approach that identifies and ranks risks from very high to very unlikely or to some other value.

Project Burn Rate

Rate at which the project budget is being burned (spent). In earned value management, burn rate is calculated via the formula, 1/CPI, where CPI stands for Cost Performance Index, which is equal to Earned Value / Actual Cost.

Defect Repair

Reactive activity to repair a defect that does not meet the documented quality requirements within a project. Contrast with Corrective Action or Preventive Action

Assumption Log

Recording of identified project assumptions for testing and analysis and for the recording of the testing and analysis results. — Project Management Document

Status Review Meeting

Regularly scheduled meeting in which information about a project and its performance is exchanged and analyzed.

Path Divergence

Relationship in which a schedule activity has more than one successor.

Information Gathering Techniques

Repeatable processes used to assemble and organize data across a spectrum of sources.

Fee

Represents profit as a component of compensation to a seller.

Request for Information

Request [from buyer to seller] for additional information about the seller's products and/or services. See also RFI

Request for Quotation

Request [from buyer to seller] for the price for a procured product or service. See also Request for Quote

RFI

Request for Information A type of procurement document whereby the buyer requests a potential seller to provide various pieces of information related to a product or service or seller capability.

RFP

Request for Proposal Procurement document used to request proposals from prospective sellers of products or services. In some application areas, it may have a narrower or more specific meaning.

Constructive Change

Requested change for which the buyer and seller cannot reach an agreement on compensation for the change, or cannot agree that a change has occurred.

RTM

Requirements Traceability Matrix A grid that links product requirements from their origin to the deliverables that satisfy them.

Regulation

Requirements imposed by a governmental body. These requirements can establish product, process, or service characteristics, including applicable administrative provisions that have government-mandated compliance.

Extrinsic Motivation

Requires an instrumentality between the activity and some separable consequences such as tangible or verbal rewards. Satisfaction comes not from the activity itself but rather from the extrinsic consequences to which the activity leads. — Contrast with Intrinsic Motivation

RBS

Resource Breakdown Structure A hierarchical breakdown of project resources by category and resource type.

Technical Interface

Resources that will be doing the project work once the project team identifies the disciplines and specialties that will be required for completion of the project scope statement.

Contingent Response Strategy

Response that may be used in the event that a specific risk event occurs. — Contrast with Fallback Plan

RAM

Responsibility Assignment Matrix Chart that shows the correlation between project team members and the work they have been assigned to complete.

RACI

Responsible, Accountable, Consult, Inform See also RACI Chart

ROI

Return On Investment A performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. Formula: ROI = (Benefits - Costs) / Costs

Risk Urgency Assessment

Review and determination of the timing of actions that may need to occur sooner than other risk items.

Active Risk Acceptance

Risk acceptance that includes further action eg. setting aside contingency to offset the effect of the risk. — Contrast with Passive Risk Acceptance

Passive Risk Acceptance

Risk acceptance that includes no action beyond documenting the decision. — Contrast with Active Risk Acceptance

Business Risk

Risk based on the assumption that the project has a potential for both profit and lost May have a positive or negative outcome. (e.g. use of a less-experienced worker for task completion, a forgoing of formal training for on-the-job education) See also *Speculative Risk*

Speculative Risk

Risk of [financial or ] gain or loss. May have a positive or negative outcome. (e.g. use of a less-experienced worker for task completion, a forgoing of formal training for on-the-job education) See also Business Risk

Risk Reassessment

Risk reassessment is the identification of new risks, reassessment of current risks, and the closing of risks that are outdated.

Mitigation

Risk response effort to reduce the probability and/or impact of an identified project risk

Transference

Risk response that transfers the ownership of the risk to another party. Typically involve a fee and contractual relationships.

Project Management Risk

Risk that deals with faults in the management of a project: the unsuccessful allocation of time, resources, and scheduling; unacceptable work results; and poor project management.

Insurable Risk

Risk that has only a negative outcome. (e.g. risk of fire, loss of life or limb, theft, natural disaster, etc.) See also Pure Risk

Pure Risk

Risk that has only a negative outcome. (e.g. risk of fire, loss of life or limb, theft, natural disaster, etc.) See also Insurable Risk

Performance Risk

Risk that is associated with changes to industry standards or with levels that are set for expectations of impractical performance. See also Quality Risk or Technical Risk

Quality Risk

Risk that is associated with levels that are set for expectations of impractical quality. See also Performance Risk or Technical Risk

Technical Risk

Risk that is associated with new, unproven, or complex technologies being used on a project. See also Quality Risk or Performance Risk

External Risk

Risk which exists outside the project, but directly affects it. (e.g. legal issues, labor issues, shift in project priorities, weather)

ROM

Rough Order of Magnitude Rough estimate that is used during the initiating processes and in top-down estimates. Range of variance for the estimate can be from -25% to +75%.

Rough Order of Magnitude

Rough estimate that is used during the initiating processes and in top-down estimates. Range of variance for the estimate can be from -25% to +75%. Best used early in the project life cycle when limited information is available for estimation development. See also ROM Contrast with Definitive Estimate

SPI

Schedule Performance Index "We are (only) progressing at _____ percent of the rate originally planned." Formula: SPI = EV / AC [≥ 1] where EV is earned value and AC is actual cost

Schedule Variance A measure of schedule performance expressed as the difference between the earned value and the planned value. Formula: SV = EV - PV [ ≥ 0 ] where EV is earned value and PV is planned value

Cost

Second key constraint for all projects. A project must meet budgeted allowances in order to use resources as efficiently as possible.

Team Members

See Project Team Member.

Hammock Activity

See Summary Activity.

Feedback

Sender confirmation that the intended receiver of a message understands the message by directly asking for a response, clarification questions, or other confirmation.

Transfer

Shift of negative risk impact to a third party. (e.g. via insurance policy or contract penalty clause) Contrast with Avoid or Mitigate

Interrelationship Digraph

Shows complex solutions where the causes and effects of problems and benefits are intertwined with one another.

Resource

Skilled human resources (specific disciplines either individually or in crews or teams), equipment, services, supplies, commodities, material, budgets, or funds.

Information Presentation Tool

Software package that allows the project management team to present a project's status through graphics, spreadsheets and text (e.g. MS Project)

Functional Manager

Someone with management authority over an organizational unit within a functional organization. The manager of any group that actually makes a product or performs a service. Sometimes called a line manager.

Tool

Something tangible, such as a template or software program, used in performing an activity to produce a product or result.

Objective

Something toward which work is to be directed, a strategic position to be attained, a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed.

Schedule Milestone

Specific date when a project phase should be completed. (often treated as project constraints)

Communication Technology

Specific tools, systems, computer programs, etc., used to transfer information among project stakeholders.

Project Standard Deviation

Square root of project variance  Formula: SD = (P - O) / 6

Resistant Stakeholder Status

Stakeholder is aware of a project, but is not keen to the changes the project will create.

Supportive Stakeholder Status

Stakeholder is aware of the project, is happy about the project and is hopeful for project success.

Leading Stakeholder Status

Stakeholder that is aware of the project, wants it to be successful and is working to make ensure its success.

Positive Stakeholder

Stakeholder who has an interest in project success. Often has the most to gain from a project's success and/or the most to lose in case of project failure.

Neutral Stakeholder

Stakeholder who has neither a positive nor negative attitude about a project and who is unaffected by its success or failure.

Negative Stakeholder

Stakeholder who is opposed to a project's existence

Criteria

Standards, rules, or tests on which a judgment or decision can be based or by which a product, service, result, or process can be evaluated.

Start-to-Finish An activity relationship that requires an activity to start so that its successor can finish. (the most unusual of all the activity relationship types.)

Start-to-Start A logical relationship in which a successor activity cannot start until a predecessor activity has started.

SOW

Statement of Work A narrative description of products, services, or results to be delivered by the project.

Regression Analysis

Statistical approach to predicting what future values may be, based on historical values. Creates quantitative predictions based on variables within one value to predict variables in another.

Work Performance Information

Status of project deliverables: information about progress on the work that's been started, finished or has yet to begin.

SWOT

Strengths, Weaknesses, Opportunities, Threats

Project Planning Methodology

Structured method to guide the project team during development of project plan. Standard forms and templates or even complicated simulations may be used.

Variance Analysis

Study of deviations of actual behavior versus forecasted or planned behavior in budgeting or management accounting.

Risk Response Plan

Subsidiary project management plan that defines the risk responses that are to be used in a project for both positive and negative risks.

Project PERT

Sum of PERT values of individual tasks

Project Variance

Sum of individual task variances, which can only be discovered at the project's end. Goal of project VAR analysis: • to prevent future variances • to determine the root cause of variances • to determine if the variances are an anomaly or if the estimates were flawed • to determine of the variances are within a predetermined acceptable range, such as -10 percent or +5 percent. • to determine if the variances can be expected on future project work. Formula: VAR = BAC - AC where BAC is budget at completion, and AC is actual cost

Cost Aggregation

Summing the lower-level cost estimates associated with the various work packages for a given level within the project's WBS or for a given cost control account.

Cost Change Control System

System that examines any changes associated with scope changes, the cost of materials, and the cost of any other resources, and the associated impact on the overall project cost.

Information Retrieval System

System that quickly and effectively stores, archives and accesses project information

Seller Rating System

System used by an organization to rate prior experience with each vendor they have worked with in the past. Used for tracking performance, quality ratings, delivery, and contract compliance.

Time Reporting System

System used for recording the actual time to complete project activities.

Risk Identification

Systematic process of combing through a project, the associated project plan, work breakdown structure, and all supporting documentation to identify as many risks that may affect the project as possible.

Exploit

Taking action to ensure realization of the positive risks within a project. Contrast with Enhance or Share

Technical, Quality or Performance Risk

Technical risk is associated with new, unproven, or complex technologies being used on a project. Changes to the technology during the project implementation can also be a risk. Quality risks are the levels set for expectations of impractical quality and performance.

Phase-Gate Process

Technique in which an initiative or project (e.g., new product development, software development, process improvement, business change) is divided into distinct stages or phases, separated by decision points (known as gates). See also *Stage-Gate Process, Waterfall Process*

Risk Data Quality Assessment

Technique to evaluate the degree to which the data about risks is useful for risk management.

Idea Mapping

Technique used to consolidate ideas created through individual brainstorming sessions into a single map to reflect commonality and differences in understanding and to generate new ideas. See also Mind Mapping.

Analytical Technique

Technique used to evaluate, analyze, or forecast potential outcomes based on possible variations of project or environmental variables and their relationships with other variables.

Group Creativity Techniques

Techniques that are used to generate ideas within a group of stakeholders.

Group Decision-Making Techniques

Techniques to assess multiple alternatives that will be used to generate, classify, and prioritize product requirements.

Data Gathering and Representation Techniques

Techniques used to collect, organize, and present data and information.

Schedule Compression

Techniques used to shorten the schedule duration without reducing the project scope.

Smoothing

Temporary conflict resolution method that involves minimizing the perceived size of the problem. Can be used to temporarily calm team relations and boisterous discussions.

Interpersonal Skills

The ability to interact with, lead, motivate and manage people. These involve: • trustworthiness • conflict resolution • active listening • overcoming resistance to change

Management Skills

The ability to plan, organize, direct, and control individuals or groups of people to achieve specific goals. These involve: • negotiations • influence • facilitation • behavior management

Buyer

The acquirer of products, services, or results for an organization.

Delegate

The act of assigning work to others Delegation styles: E -entrust/enlist T -teach/touch F -familiarize/follow up P -praise (the process)/participate (in feedback)

Tailor

The act of carefully selecting process and related inputs and outputs contained within the PMBOK Guide to determine a subset of specific processes that will be included within a project's overall management approach.

Active Listening

The act of confirming that the message is being received through feedback, questions, prompts for clarity and other signs of confirmation

Actual Cost

The actual amount of monies that have been spent on a project to date; the realized cost incurred for the work performed on an activity during a specific time period. "As of today, what is the actual cost incurred for work accomplished?" Formula: *AC = cost of work-to-date* See also *Actual Cost of Work Performed, ACWP, Total Cost*

Material

The aggregate of things used by an organization in any undertaking, such as equipment, apparatus, tools, machinery, gear, material, and supplies.

Project Governance

The alignment of project objectives with the strategy of the larger organization by the project sponsor and project team. A project's governance is defined by and is required to fit within the larger context of the program or organization sponsoring it, but is separate from organizational governance.

Cost Variance

The amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost. Formula: *CV= EV - AC* ≥ 0 where *EV* is earned value, *AC* is actual cost — Contrast with Cost Performance Index

Lead

The amount of time a successor activity can be advanced with respect to a predecessor activity. Contrast with Lag

Lag

The amount of time a successor activity is required to be delayed with respect to a predecessor activity. Contrast with Lead

Free Float

The amount of time that a single activity can be delayed without delaying the early start time of any successor or violating a schedule constraint. Formula: FF = successor ES - C ES - C D where ES is early start and D is duration and C is current See also FF. Contrast with Total Float

Program Management

The application of knowledge, skills, tools, and techniques to a program to meet the program requirements and to obtain benefits and control not available by managing projects individually.

Project Management

The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

Schedule Baseline

The approved version of a project timeline that can be changed only through formal change control procedures and is used as a basis for comparison to actual results.

Baseline

The approved version of a work product that can be changed only through formal change control procedures and is used as a basis for comparison.

Control Limits

The area composed of three standard deviations on either side of the centerline or mean of a normal distribution of data plotted on a control chart, which reflects the expected variation in the data. See also *Specification Limits.*

Application Area

The area of expertise, industry, or function where a project is centered. (e.g. architecture, IT, health care, manufacturing, etc.) Usually defined in terms of either the product (i.e., by similar technologies or production methods) or the type of customer (i.e., internal versus external, government versus commercial) or industry sector (i.e. utilities, automotive, aerospace, information technologies, etc.). Application areas can overlap.

Specification Limits

The area, on either side of the centerline, or mean, of data plotted on a control chart that meets the customer's requirements for a product or service. This area may be greater than or less than the area defined by the control limits. See also Control Limits.

Validation

The assurance that a product, service, or system meets the needs of the customer and other identified stakeholders. It often involves acceptance and suitability with external customers. Contract with verification.

Authority Power

The authority of project management team members over other project team members, may also include the ability to make decisions and sign proposals for project work and purchases.

Coercive Power

The authority of the project manager to discipline subordinates See also *Penalty Power*

Penalty Power

The authority of the project manager to discipline subordinates See also Coercive Power

Choice of Media

The best modality to use when communicating in terms of relevance to the information being communicated

Risk Score

The calculated score based on each risk's probability and impact. (may be used in qualitative and quantitative risk matrices)

Elapsed Time

The calendar time or span required to complete activities based on the resources available. Does not include holiday or non-working days Contrast with Duration or Effort

Emotional Intelligence

The capabilities to identify, assess, and manage the personal emotions of oneself and other people, as well as the collective emotions of groups of people.

Portfolio Management

The centralized management of one or more portfolios to achieve strategic objectives.

Schedule Data

The collection of information for describing and controlling the schedule.

Network Logic

The collection of schedule activity dependencies that makes up a project schedule network diagram.

Decision Gate

The conclusion of a project phase is marked by a review of both key deliverables and project performance till date to determine if the project should continue into its next phase and detect and correct errors cost-effectively. See also Phase Exit, Milestone, Phase Gate, Stage Gate, or Kill Point.

Stage Gate

The conclusion of a project phase is marked by a review of both key deliverables and project performance till date to determine if the project should continue into its next phase and detect and correct errors cost-effectively. See also phase exit, Milestone, Phase Gate, Decision Gate, or Kill Point.

Privity

The confidential and secret nature of the relationship between the buyer and the seller in a contract.

Data Precision

The consideration of the risk ranking scores that takes into account any bias, the accuracy of the data submitted, and the reliability of the nature of the submitted data.

Cost Budgeting

The cost aggregation achieved by assigning specific dollar amounts for each of the scheduled activities in the WBS -applies to costs over time.

Cost Estimate

The cost associated with a work package or activity within the project schedule. — Contrast with Budget

Cost of Non-Conformance to Quality

The cost associated with not satisfying quality expectations. — Contrast to Cost of Conformance See also *Cost of Poor Quality*

Cost of Conformance

The cost associated with the monies spent to attain the expected level of quality. — Contrast to Cost of Non-Conformance

COQ

The costs for attainment of the expected level of quality within a project. See also *Cost of Quality*

Risk Appetite

The degree of uncertainty an entity is willing to take on, in anticipation of a reward.

Risk Tolerance

The degree, amount, or volume of risk that an organization or individual will withstand. See also Risk Threshold

The difference between the earned value amount and the cumulative actual costs of a project. Formula: *CV = EV - AC* where *EV* is earned value, *AC* is actual cost See also *Cost Variance*

Variance

The difference between what was expected and what was experienced. Formula: VAR = (SD) ^2 Where SD is standard deviation

Quality Control Measurements

The documented results of control quality activities.

Early Start

The earliest a project activity can begin. See also Early Start Date

Early Finish

The earliest a project activity can finish. Formula: EF = ES + DUR See also Early Finish Date

Business Value

The entire value of the business; the total sum of all tangible and intangible elements.

Sponsoring Organization

The entity responsible for providing the project's sponsor and a conduit for project funding or other project resources.

Verification

The evaluation of whether or not a product, service, or system complies with a regulation, requirement, specification, or imposed condition. It is often an internal process. Contrast with validation.

Cost Baseline

The expected costs a project will incur and when those expenses will happen. — Project Management Document

Estimate at Completion (typical)

The expected total cost of completing all work expressed as the sum of the actual cost to date plus the estimate to complete modified by performance when current variances are likely to be typical of the future and when project schedule constraints are expected to influence the completion of the remaining effort. Formula: EAC VARIANCE = AC + [{BAC - EV)  (CPI C * SPI C )] where AC is actual cost, BAC is budget at completion, EV is earned value, CPI C is cumulative cost performance index and SPI C is cumulative schedule performance index

Estimate at Completion (atypical)

The expected total cost of completing all work expressed as the sum of the actual cost to date plus the estimate to complete when current variances are likely to be atypical of the future. Formula: EAC ATYPICAL = AC + (BAC - EV) where AC is actual cost, BAC is budget at completion and EV is earned value

Estimate at Completion

The expected total cost of completing all work expressed as the sum of the actual cost to date plus the estimate to complete when the original estimate was fundamentally flawed. Formula: EAC TYPICAL = AC + Bottom-Up ETC where AC is actual cost and ETC is estimate to complete. Contrast with Estimate to Complete

Closure Processes

The final process group of the project management life cycle; the process group in which the project or project phase is closed -documents are archived and project contracts closed.

Scope Validation

The formal inspection of the project deliverables, which leads to project acceptance.

Contract Closure

The formal verification of the contract completeness by the vendor and the performing organization.

Client Acceptance

The fourth criterion for project success. The client's satisfaction with the completed project or project deliverable.

Political Interface

The hidden goals, personal agendas, and alliances among project team members and stakeholders.

Culture Shock

The initial reaction a person experiences when in a foreign environment.

Late Start Date

The latest a project activity can begin. Used in the backward pass procedure to discover the critical path and project float. See also LS or Late Start

Late Finish

The latest a project activity can end. Used in the backward pass procedure to discover the critical path and project float. See also LF or Late Finish Date

Organizational Project Management Maturity

The level of an organization's ability to deliver the desired strategic outcomes in a predictable, controllable, and reliable manner.

Risk Responsibility

The level of ownership an individual or entity has over a project risk.

Project Environment

The location and culture of the environment in which project work will reside, including any social, economic and environmental variables the project must work with and around.

Phase

The logical division of a project based on the work or deliverable completed within that phase. See also Project Phase.

Logistical Interface

The logistics of team locale, time zones, geographical boundaries, and travel requirements within a project.

Project Portfolio Management

The management and selection of projects that support an organization's vision and mission. The balance of priority, risk, reward and return on investment. (a senior management process)

Project Objectives

The measurable goals that determine a project's acceptability to the project customer and the overall success of the project. Often include cost, schedule, technical requirements and quality demands.

Earned Value

The measure of the physical work completed to date expressed in terms of the budget authorized for that work. "As of today, what is the estimated value of the work actually accomplished?" -BCWP (budget cost of work performed) Formula: EV = actual % complete * BAC where BAC is budget at completion Other Formulas: EV = CV / AC Other Formulas: EV = SV / PV Other Formulas: EV = CPI / AC Other Formulas: EV = SPI / PV

Project Management Staff

The members of the project team who perform project management activities such as schedule, communications, risk management, etc.

Expected Monetary Value

The monetary value of a risk exposure based on the risk's probability and impact in the risk matrix. Typically used in quantitative analysis. The lower cost option is the better option. See also EMV Contrast with Sensitivity Analysis

Cost of Poor Quality

The monies spent to recover from not adhering to the expected level of quality. See also *Cost of Non-Conformance to Quality*

Effort

The number of labor units required to complete a schedule activity or work breakdown structure component, often expressed in hours, days, or weeks. Required before duration can be calculated. Contrast with Duration or Elapsed Time

Active Observation

The observer interacts with the worker to ask questions and understand each step of the work being completed. In some instances, the observer could serve as an assistant in doing the work.

Passive Observation

The observer records information about the work being completed without interrupting the process. See also Invisible Observer

Invisible Observer

The observer records information about the work being completed without interrupting the process. See also Passive Observation

Preferred Logic

The order of activities does not necessarily have to occur in a specific order. See also Discretionary Dependency, Preferential Logic or Soft Logic

Soft Logic

The order of activities doesn't necessarily have to occur in a specific order. See also Discretionary Dependency, Preferred Logic or Preferential Logic

Preferential Logic

The order of activities doesn't necessarily have to occur in a specific order. See also Discretionary Dependency, Preferred Logic or Soft Logic

Quality Management System

The organizational framework whose structure provides the policies, processes, procedures, and resources required to implement the quality management plan. The typical project quality management plan should be compatible to the organization's quality management system.

Project Deliverable

The output of a project. See also Deliverable

Project Manager

The person assigned by the performing organization to lead the team that is responsible for achieving project objectives through the project phases or completion. See also PM

Forcing Power

The person with the power makes the decision

Customer

The person(s) or organization(s) that will pay for the project's product, service, or result. Can be internal or external to the performing organization. See also *User*

Ethics

The personal, cultural, and organizational interpretation of right and wrong

Work Performance Report

The physical or electronic representation of work performance information compiled in project documents, intended to generate decisions actions, or awareness. See also Performance Report or Performance Reporting

Physical Environment

The physical structure and surroundings that affect a project's work.

Paralingual

The pitch, tone, and inflections in a sender's voice affecting the message being conveyed.

Funding Limit

The pre-determined budget in relation to the project scope.

Confronting

The preferred approach to conflict resolution in which the problem is confronted head-on. See also *Problem Solving*

Negotiation

The process and activities to resolving disputes through consultations between involved parties.

Determine Budget

The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Develop Schedule

The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule model.

Perform Quality Assurance

The process of auditing the quality requirements and the results from quality control measurements to ensure that appropriate quality standards and operational definitions are used.

Advertising

The process of calling public attention to a project or effort.

Manage Stakeholder Engagement

The process of communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle ensuring that they either get what they expect fromthe project or that they are made to understand the reasons behind any requirements that will not be satisfied through the project.

Funding Limit Reconciliation

The process of comparing the planned expenditure of project funds against any limits on the commitment of funds for the project to identify any variances between the funding limits and the planned expenditure.

Close Procurements

The process of completing each project procurement.

Acquire Project Team

The process of confirming human resource availability and obtaining the team necessary to complete the project activities.

Plan Scope Management

The process of creating a scope management plan that documents how the project scope will be defined, validated, and controlled.

Manage Communications

The process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition of project information in accordance with the communications management plan.

Plan Risk Management

The process of defining how to conduct risk management activities for a project.

Develop Project Management Plan

The process of defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive project management plan.

Identify Risks

The process of determining which risks may affect the project and documenting their characteristics.

Collect Requirements

The process of determining, documenting, and managing stakeholder needs and requirements to meet project objectives.

Define Scope

The process of developing a detailed description of the project and product.

Plan Communications Management

The process of developing an appropriate approach and plan for project communications based on stakeholder's information needs and requirements and available organizational assets.

Estimate Costs

The process of developing an approximation of the monetary resources needed to complete project activities.

Plan Stakeholder Management

The process of developing appropriate management strategies to effectively engage stakeholders throughout the project life cycle, based on the analysis of their needs, interests, and potential impact on project success.

Plan Risk Responses

The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.

Plan Procurement Management

The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

Stakeholder Identification

The process of ensuring that all stakeholders have been identified, documented and classified as early as possible in a project and that they are subsequently represented, and their needs, expectations, and concerns are addressed.

Plan Schedule Management

The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.

Expected Activity Duration

The process of estimating the number of work periods needed to complete individual activities with estimated resources. Formulas: EAD  = (P + M + O) / 3 Formulas: EAD PERT = (P + 4M + O) / 6 Formulas: EAD Beta = (P + 4M + O) / 6 Formulas: EAD Weighted = (P + 4M + O) / 6 where EAD is expected activity duration, P is pessimistic, M is most likely and O is optimistic

Estimate Activity Resources

The process of estimating the type and quantities of material, human resources, equipment, or supplies required to perform each activity.

What-If-Scenario Analysis

The process of evaluating scenarios in order to predict their effect on project objectives.

Close Project or Phase

The process of finalizing all activities across all of the Project Management Process Groups to formally complete a project or phase.

Quality Planning

The process of first determining which quality standards are relevant to a project and then finding best methods for adhering to those quality standards.

Validate Scope

The process of formalizing acceptance of the completed project deliverables.

Document Review

The process of gathering a corpus of information and reviewing it to determine accuracy and completeness.

Make-or-Buy Analysis

The process of gathering and organizing data about project requirements and analyzing them against available alternatives including the purchase or internal manufacture of the product.

Market Research

The process of gathering information at conferences, online reviews, and a variety of sources to identify market capabilities.

Progressive Elaboration

The process of gathering project details in steady, uniform steps, using deductive reasoning, logic, and a series of information-gathering techniques to identify the details about the project, product or solution.

Plan Human Resource Management

The process of identifying and documenting project roles, responsibilities, required skills, reporting relationships, and creating a staffing management plan.

Sequence Activities

The process of identifying and documenting relationships among the project activities.

Define Activities

The process of identifying and documenting the specific actions to be performed to produce the project deliverables.

Plan Quality Management

The process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with quality requirements.

Identify Stakeholders

The process of identifying the people, groups, or organizations that could impact or be impacted by a decision, activity, or outcome of the project; and analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success.

Procurement Planning

The process of identifying which parts of a project warrant procurement from a vendor by the buyer.

Control Quality

The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

Control Risks

The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

Develop Project Team

The process of improving competencies, team member interaction, and overall team environment to enhance project performance. Contrast with Manage Project Team

Direct and Manage Project Work

The process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project's objectives.

Control Procurements

The process of managing procurement relationships, monitoring contract performance, and making changes and corrections as appropriate.

Control Communications

The process of monitoring and controlling communications throughout the entire project life cycle to ensure the information needs of the project stakeholders is met.

Control Stakeholder Engagement

The process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders.

Control Schedule

The process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan.

Control Scope

The process of monitoring the status of the project and product scope and managing changes to the scope baseline.

Control Costs

The process of monitoring the status of the project to update the project costs and managing changes to the cost baseline.

Conduct Procurements

The process of obtaining seller responses, selecting a seller, and awarding a contract.

Perform Qualitative Risk Analysis

The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.

Claims Administration

The process of processing, adjudicating, and communicating contract claims

Negotiated Settlements

The process of reaching final equitable settlement of all outstanding issues, claims, and disputes through negotiation.

Perform Integrated Change Control

The process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition.

Proposal Evaluation Technique

The process of reviewing proposals provided by suppliers to support contract award decisions.

Create WBS

The process of subdividing project deliverables and project work into smaller, more manageable components.

Manage Project Team

The process of tracking team member performance, providing feedback, resolving issues, and managing team changes to optimize project performance. Contrast with Develop Project Team

Plan Cost Management

The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.

Planning Process Group

The project management process group that creates the project management plan to execute, monitor and control, and close the project.

Initial Project Organization

The project team and key stakeholders as listed in the project scope statement. On larger projects, the team organization and structure.

Activity Cost Estimate

The projected cost of the schedule activity that includes the cost for all resources required to perform and complete the activity, including all cost types and cost components.

Tolerance

The quantified description of acceptable variation for a quality requirement.

Work Performance Data

The raw observations and measurements identified during activities being performed to carry out the project work.

Business Need

The reason for a project's existence.

Acknowledgment

The receiver of a message signals that the message has been received; shows receipt of the message, but not necessarily agreement with the message.

Configuration Status Accounting

The recording and reporting of information needed to manage configuration items effectively, including: A record of the approved configuration documentation and identification numbers. The status of proposed changes, deviations, and waivers to the configuration. See also *CSA*

Phase Gate

The review of a phase to detect and correct errors cost-effectively, to determine if its requirements were met as well as if the project should continue into its next phase. See also Phase End Review, Phase Exit, Decision Gate, Stage Gate, or Kill Point

Phase Exit

Phase-End Review

The review of a phase to determine if its requirements were met. See also Phase Exit, Phase Gate or Kill Point

Kill Point

The review of a phase to determine whether requirements are being met satisfactorily enough to warrant project continuation or if it is better to "kill" the project. See also Phase Exit, Milestone, Phase Gate, Decision Gate, or Stage Gate

Procurement Audits

The review of contracts and contracting processes for completeness, accuracy, and effectiveness.

Authority

The rights to apply project resources, expend funds, make decisions, or give approvals.

Configuration Verification and Auditing

The scope validation and completeness auditing of project or phase deliverables to ensure that they are in alignment with the project plan

Selected Seller

The seller which has been selected to provide a contracted set of services or products.

Critical Path

The sequence of activities that represents the longest path through a project, which determines the shortest possible duration. -The path in the network diagram that cannot be delayed without the affecting the project completion date. Formulas: *EF = ES + Dur* Formulas: *LS = LF - Dur* — Contrast with Critical Chain

Project Life Cycle

The series of [generally] sequential phases that a project passes through from its initiation to its closure. See Life Cycle. Contrast with Product Life Cycle

Life Cycle

The series of phases that a project passes through from its initiation to its closure. See also Project Life Cycle.

Product Life Cycle

The series of phases that represent the evolution of a product, from concept through delivery, growth, maturity, and to retirement. Contrast with Project Life Cycle

Unaware Stakeholder Status

The stakeholder doesn't know about the project, nor how it might affect the stakeholder.

Stakeholder Management Plan

The stakeholder management plan is a subsidiary plan of the project management plan that defines the processes, procedures, tools, and techniques to effectively engage stakeholders in project decisions and execution based on the analysis of their needs, interests, and potential impact.

Functional Analysis

The study of functions within a system, project or what's more likely in the project scope statement, the product the project will be creating. Focuses on the goals of the product, how the product will be used, and the expectations the customer has of the product once it leaves the project and moves into operations. May also consider the cost of the product in operations. See also Product Analysis

BAC

The sum of all budgets established for the work to be performed. (the budget) "How much did we BUDGET for the TOTAL project effort?" Formula: *BAC = EAC × CPI* where *EAC* is estimate at completion, *CPI* is cost performance index See also *Budget At Completion*

Budget At Completion

The sum of all budgets established for the work to be performed. (the budget) "How much did we BUDGET for the TOTAL project effort?" Formula: *BAC = EAC * CPI* where *EAC* is estimate at completion, *CPI* is cost performance index — Contrast with Variance at Completion

Scope

The sum of the products, services, and results to be provided as a project. See also Project Scope or Product Scope.

Payment Systems

The system used to provide and track supplier's invoices and payments for services and products.

Schedule Network Analysis

The technique of identifying early and late start dates, as well as early and late finish dates, for the uncompleted portions of project schedule activities. See also Backward Pass, Critical Path Method, Critical Chain Method, Network Analysis, or Resource Leveling.

Network Analysis

Precedence Relationship

The term used in the precedence diagramming method for a logical relationship. In current usage, however, precedence relationship, logical relationship, and dependency are widely used interchangeably, regardless of the diagramming method used. Precedence Diagramming Method (PDM) includes four types of dependencies or relationships between activities: 1. Finish-to-Start 2. Finish-to-Finish 3. Start-to-Finish 4. Start-to-Start See also Logical Relationship.

Triple Constraint

The three original criterion -time, cost and performance -on which the success of a project was based.

Actual Duration

The time in calendar units between the actual start date of the schedule activity and either the data date of the project schedule (if the schedule activity is in progress) or the actual finish date (if the schedule activity is complete).

Activity Duration

The time in calendar units between the start and finish of a schedule activity. Formulas: *DUR = EF - ES + 1* *DUR = LF - LS + 1* where *EF* is early finish, *ES* is early start, *LF* is late finish and *LS* is late start See also *Duration, DU, DUR*

Opportunity Cost

The total cost of an opportunity that is refused in favor of another opportunity.

Duration

The total number of work periods (not including holidays or other nonworking periods) required to complete a schedule activity or work breakdown structure component. Usually expressed as workdays or workweeks. Does not include holidays or non-workdays. Sometimes incorrectly equated with elapsed time. Formulas: DUR = EF - ES + 1 Formulas: DUR = LF - LS + 1 Where EF is early finish, ES is early start, LF is late finish and LS is late start See also Activity Duration. Contrast with Effort or Elapsed Time.

Project Float

The total time a project can be delayed without passing the customer-expected completion date. Formulas: DUR = EF - ES + 1 Formulas: DUR = LF - LS + 1 Formulas: Total Float = LF - ES Formulas: Total Float = LF - EF Formulas: Free Float (FF) = successor ES - current ES - current DUR Formulas: Early Float (EF) = ES + DUR - 1 Formulas: Early Start (ES) = predecessor EF + 1 Formulas: Late Finish (LF) = successor LS - 1 Formulas: Late Start (LS) = LF - DUR + 1 where DUR is duration or activity duration

Total Float

The total time an activity can be delayed without affecting project completion. Formula: TF = LS - ES TF LF - EF where LS is late start, ES is early start, LF is late finish and EF is early finish Contrast with Free Float

Activity Resource Requirements

The types and quantities of resources required for each activity in a work package.

Planned Value

The work scheduled and the authorized budget authorized to accomplish that work. The percentage of the BAC (budget at completion) that reflects where the project should be at the current time. "As of today, what is the estimated value of the work planned to be done?" -BCWS (budget cost of work scheduled) Formula: PV = planned % complete * BAC where BAC is budget at completion

Responsibility

The work that a role performs.

McGregor's Theory of X and Y

Theory by Douglas McGregor that states management categorizes workers into one of two categories: X is bad -assumes people are lazy, needing constant supervision and micromanagement, unable to be trusted. X people avoid work, shun responsibility, and lack the aptitude to achieve. Y is good -assumes people are good, self-led, self-directed, motivated, and able to accomplish new tasks proactively.

Acquired Needs Theory

Theory developed by David McClelland that is based on a belief that a person's needs are acquired and developed over time. The needs are shaped by circumstance, conditions, and life experiences for each individual. *Need for Achievement* the need to achieve is high, so person avoids both low-risk and high-risk situations. Achievers like to work alone or with other high achievers, and they need regular feedback to gauge their achievement and progress. *Need for Affiliation* have a driving need for affiliation. Look for harmonious relationships, want to feel accepted by people, and conform to the norms of the project team. *Need for Power* -are usually seeking either personal or institutional power. Personal power is the ability to control and direct other people. Institutional power is the ability to direct the efforts of others for the betterment of the organization. See also *McClelland's Theory of Needs* or *Three Needs Theory*

McClelland's Theory of Needs

Theory developed by David McClelland that is based on a belief that a person's needs are acquired and developed over time. The needs are shaped by circumstance, conditions, and life experiences for each individual. All people, according to this theory, are driven by one of the following three needs: Need for Achievement -the need to achieve is high, so person avoids both low-risk and high-risk situations. Achievers like to work alone or with other high achievers, and they need regular feedback to gauge their achievement and progress. Need for Affiliation -have a driving need for affiliation. Look for harmonious relationships, want to feel accepted by people, and conform to the norms of the project team. Need for Power -are usually seeking either personal or institutional power. Personal power is the ability to control and direct other people. Institutional power is the ability to direct the efforts of others for the betterment of the organization. See also Acquired Needs Theory

Three Needs Theory

Theory developed by David McClelland that is based on a belief that a person's needs are acquired and developed over time. The needs are shaped by circumstance, conditions, and life experiences for each individual. Need for Achievement -the need to achieve is high, so person avoids both low-risk and high-risk situations. Achievers like to work alone or with other high achievers, and they need regular feedback to gauge their achievement and progress. Need for Affiliation -have a driving need for affiliation. Look for harmonious relationships, want to feel accepted by people, and conform to the norms of the project team. Need for Power -are usually seeking either personal or institutional power. Personal power is the ability to control and direct other people. Institutional power is the ability to direct the efforts of others for the betterment of the organization. See also McClelland's Theory of Needs or Acquired Needs Theory

Tuckman's Theory

Theory of team development, created by Dr. Bruce Tuckman in 1965, that builds on the belief that project teams actually go through a natural development process. Five phases: Forming -project team meets and learns about their roles and responsibilities on the project. Involves little interaction Storming -project team struggles for project positions, leadership and project direction. Can be a hostile time. Project manager's role is to mediate disagreement and squelch unproductive behavior. Norming -project team members' go about getting the project work, begin to rely on each other, and generally complete their project assignments. It is usually pretty safe for the project manager to allow the project team to manage themselves. Performing -by this stage, the project team has begun to trust one another, work well together, and resolve issues and problems quickly and effectively. The project manager stays out of the way but remains available to help and guide as needed. Adjourning -the project is complete. The project team moves on to other assignments as a unit or is disbanded with individual team member going in their separate directions. Project manager uses the staffing management plan as a guide for releasing project team members from the project team.

Vroom's Expectancy Theory

Theory that assumes people will behave based on what they expect as a result of their behavior. i.e. People will work in relation to the expected reward. See also Expectancy Theory

Triple Constraints of Project Management

Theory that posits that time, cost and scope are three constraints that are a part of every project. See also Iron Triangle

Expectancy Theory

Theory that states that people will behave based on what they expect as a result of their behavior. See also Vroom's Expectancy Theory

Sapir-Whorf Hypothesis

Theory that suggests there's a link between the language a person (or culture) speaks and how that person or culture behaves in the world.

Maslow's Hierarchy of Needs

Theory, by Abraham Maslow, that builds on the idea that all people have specific needs that must be met prior to concerning themselves with other needs. 5 layers of needs, from highest to lowest, are: Physiological -necessities to life: air, water, food, clothing and shelter Safety -stability in life, work and culture Social -love, approval and friends Esteem -respect, appreciation, and approval of others Self-Actualization -personal growth, knowledge and fulfillment

Performance

Third criterion for project success. The finished product must operate according to specifications.

Mathematical Analysis

This involves calculating the theoretically early and late start and finish dates for all project activities without regard to any resource pool restrictions.

Executing Process Group

Those processes performed to complete the work defined in the project management plan to satisfy the project specifications.

Initiating Process Group

Those processes performed to define a new project or a new phase of an existing project in order to obtain authorization to start the project or phrase.

Communication

Three categories: *•* Interactive Communication *•* Push Communication *•* Pull Communication

T&M

Time and Materials Contract A type of contract that is a hybrid contractual arrangement containing aspects of both cost-reimbursable and fixed-price contracts. Time and material contracts resemble cost-reimbursable type arrangements in that they have no definitive end, because the full value of the arrangement is not defined at the time of award. Thus, time and material contracts can grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, time and material arrangements can also resemble fixed-price arrangements. For example, the unit rates are preset by the buyer and seller, when both parties agree on the rates for the category of senior engineers.

TCPI

To-Complete Performance Index Formula used to forecast the likelihood of a project to achieve its goals based on what is currently happening in the project. "In order to stay within budget, what rate must we meet for the remaining work?" Formula for estimating ability to meet the budget at completion: TCPI = [(BAC - EV) / (BAC - AC)] [≤ 0 ] Formula for estimating ability to meet a newly created estimate at completion: TCPI = [(BAC - EV) / (EAC - AC)] [ ≤ 0 ] where BAC is budget at completion, EAC is estimate at completion, EV is earned value and AC is actual cost

Law of Dimishing Returns

Too much in will eventually result in less out

Screening System

Tool that filters or screens out vendors that don't qualify for a contract.

Scope Creep

Undocumented, unapproved changes to the project scope.

Refinement

Update to the work breakdown structure. See also Referent

Phased Estimate

Used to allocate funds on a periodic basis Ranges between -10% and +25% less time, less cost, less accuracy -based on previous projects Contrast with Budgetary Estimate

Project Management Maturity Model

Used to allow organizations to benchmark the best practices of successful project management firms.

Process Decision Program Chart

Used to understand a goal in relation to the steps for getting to the goal. See also PDPC

VAC

Variance At Completion "As of today, how much over or under budget do we expect to be at the end of the project?" Formula: VAC = BAC - EAC where BAC is budget at completion and EAC is estimate at completion

Budget

View of project cost estimates from both a total and a periodic perspective. The approved estimate for the project or any work breakdown structure component or any schedule activity. — Contrast with Cost Estimate

Deming's PDCA Cycle

W. Edwards Deming The Plan-Do-Check-Act cycle which describes the logical progression of project management duties; the cycle on which project management is based. Contrast with Crosby's DIRFT or Juran's Trilogy

Planning Package

WBS entry located below a control account and above the work packages. Signifies that there is more planning to be completed for the specific deliverable. See also Control Account.

Trigger

Warning sign or symptom that a risk has occurred or is about to occur. See also Trigger Condition

Alternative Dispute Resolution

When there is an issue or claim that must be settled before a contract can be closed, the parties involved in the issue or claim will try to reach a settlement through mediation or arbitration.

360 Review

Where not only team members get their performance review done by the seniors/managers. Managers also get feedback from the team members

Conformance

Within the quality management system, a general concept of delivering results that fall within the limits that define acceptable variation for a quality requirement.

Customer Satisfaction

Within the quality management system, a state of fulfillment in which the needs of a customer are met or exceeded for the customer's expected experiences as assessed by the customer at the moment of evaluation.

Accuracy

Within the quality management system, accuracy is an assessment of correctness in terms of achieving the desired result or being able to be measured correctly. Means "Results are correct". — Contrast with Precision

Precision

Within the quality management system, precision is a measure of exactness. Implies that the measurements are "consistent with very little variation." Contrast with Accuracy

WBS

Work Breakdown Structure A deliverables-oriented breakdown of project scope.

Questionnaires and Surveys

Written sets of questions designed to quickly accumulate information from a large number of respondents.

Project Budgeting Tools

• cost aggregation • reserve analysis • historical relationships • funding limit reconciliation

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Project Management Terms and Concepts

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