Project Management Glossary of Terms

Transcription

1 Project Management Glossary of Terms activity An element of project work that has an expected duration, and usually consumes cost and resources. Activities generally cover one or more tasks from a work package. activity definition Identifying the specific activities that must be performed to produce the various project deliverables. activity duration estimating Estimating the number of work periods which will be needed to complete individual activities. activity sequencing Identifying and documenting interactivity dependencies. ACWP ADM Actual Cost of Work Performed. The actual cost of completing project work. Arrow Diagramming Method. A network diagramming technique that uses arrows to represent activities and circles or nodes represent project events. administrative closure Generating, gathering, and disseminating information to formalize phase or project completion. analogous (top-down) estimating Estimating method in which top managers use their experience and expert judgement to determine a total project cost or time estimate, and apportion that total across the major categories of project work. analogy

2 AOA AON In risk management, a technique that draws from historical information and lessons learned from previous projects to gain information about project risks. Activity-On-Arrow. The diagramming technique used in the Arrow Diagramming Method (ADM). Activities are shown as arrows, and nodes represent project events. Activity-On-Node. The diagramming technique used in the Precedence Diagramming Method (PDM). Activities are shown as nodes linked by arrows that show the precedence relationships. assumption Any statement that must be taken to be true in order to begin planning. assumption BAC Assertion you choose to consider as true in order to begin planning. For example, assuming that the price of oil will be $1.50 per gallon on the first day of the project, so that you can use that price as a baseline amount for budgeting. Budget At Completion. Estimate of total cost to complete the project work. balanced matrix Matrixed organizational structure in which the balance of power is evenly split between the project manager and functional manager. BCWP Budgeted Cost of Work Performed. The estimate of costs for work actually completed. Also known as earned value. BCWS

3 Budgeted Cost of Work Scheduled. The estimate of costs needed to complete the scheduled project work. benchmarking The comparison of performance against another company or organization that is believed to be an industry leader. brainstorming A lateral thinking technique that encourages team creativity by eliminating criticism and evaluation. The goal is to generate as many ideas as possible with every idea receiving equal consideration. budget reserves Contingency reserves tied to specific work packages or project deliverables. business risk A risk for which one assumes a potential for profit as well as for loss. capital budgeting A decision-making process used to evaluate fixed asset purchases. certainty mode Decision-making mode in which you are completely sure of which states of nature you will face and the payoffs for each. change request Any formal or informal request to change specifications for project work. chart of accounts A hierarchical numbering system that identifies the specific accounting category for each element of project work in the Work Breakdown Structure. Also known as code of accounts.

4 Close-Out Phase The activities involved during Administrative Closure and hand-off of the project to its end-users. code of accounts A hierarchical numbering system that identifies the specific accounting category for each element of project work in the Work Breakdown Structure. Also known as chart of accounts. collocation Establishment of common physical location for a team. communications planning Determining the information needs of stakeholders: who needs what, when do they need it, and how will they receive it. completion contract A contract that is completed when the seller delivers the product to the buyer. compromise Also called win-win. Resolving conflict by finding a middle ground that satisfies all parties to some degree. conditional branch A subprocess in a network diagram that may need to be implemented under specified conditions. Only allowable in GERT. conflict management Also known as conflict resolution. Process for helping individuals or teams to resolve conflict that may be detrimental to their productivity. confronting Problem-solving approach to conflict management.

5 consideration Payment for goods or services provided. Consideration can be, but does not have too be, monetary payment. constraint Any factor that limits the way that a project can be approached. constraint Any factor that limits the way a project can be approached. constructive change Action or inaction by the buyer that effectively changes the terms of the contract. contingency plan A plan that tells you how to deal with identified risks when and if they occur. contingency reserve Cost or time reserve set aside to handle risk events. continuous process improvement Philosophy that quality must be continuously improved in order to meet customer needs. Uses a Plan-Do-Check-Act cycle. contract administration Managing the relationship with the seller. contract breach Breaking of a promise to perform part or all of a contract. contract change control system System for controlling contract changes. contract close-out

6 Completion and settlement of the contract, including resolution of any open items. control The process of monitoring and measuring actual project performance against planned project performance, and making the necessary adjustments to bring the project performance in line with the project plan. cost account level The WBS level above the work package level. cost baseline An estimate of the most-likely project cost, including a cost for contingencies. cost budgeting Allocating the overall cost estimate to individual work items. cost control Controlling changes to the project budget. cost estimating Developing an approximation (estimate) of the costs of resources needed to complete project activities. cost of capital Average after-tax interest rate at which the project investment would be financed. Also called the hurdle rate. cost of quality All the costs incurred during the Quality processes, including Quality Planning, Quality Assurance, and Quality Control, that will ensure quality goals are achieved. cost-based contract Contract in which payment is tied to the cost to perform the contract.

7 cost-benefit analysis CPI CPM Comparison of the predicted costs versus the predicted benefits of a project. Cost Performance Index. A measurement of cost performance efficiency to date based on the ratio of costs budgeted to perform the work to actual costs to perform the work. Critical Path Method. Network analysis technique that uses a sequential Finish-to-Start network logic and calculates one early and late start and finish date for each activity. crashing A technique for compressing the total project duration by analyzing the cost and quality trade-offs associated with different alternatives. crisis management Reactive approach to managing risk. critical path CSI The network path that has the longest total duration. Activities on the critical path cannot be delayed or the project finish date will be delayed (unless subsequent activity durations are shortened). Critical Success Indicator. Product or process outcome sought by project stakeholders. culture CV The shared value system of an organization.

8 Cost Variance. The measured difference between the costs budgeted for an activity and the actual cost to finish an activity. decomposition The process of breaking down project deliverables and tasks into smaller tasks and work packages. Deliverable/Output Results that are measurable and verifiable, and that allow stakeholders to determine the project's progress. Delphi Technique A group-oriented technique used to collect forecasting information from experts in various locations. dependency A logical relationship between two project activities. design of experiments A statistical method used to determine which variable has the greatest effect, what relationships exist between variables, and which variables should be optimized for quality or value. detailed specifications Specifications describing a product or service's physical characteristics or the way it must be produced. direct property risk Risk of property damage due to weather, fire, and so on. dotted-line reporting relationship Indirect reporting relationship. dummy activity An activity that has no duration and consumes no resources. It is used in ADM to show a logical relationship that cannot be shown with regular activity arrows.

9 duration EAC EF The number of work-days or work-weeks required for completion of an activity. Estimate At Completion. Estimate of cost to complete the project work based on estimate to date and revisions of cost to complete remaining project work. Early Finish. The earliest possible time when an activity can finish. effort The number of person-hours or person-days required for completion of an activity. elapsed time ES EV The actual calendar time required from start to finish of an activity. May or may not be the same as duration. Early Start. The earliest possible time when an activity can start. Earned Value. A performance measurement method that compares the amount of work accomplished to the amount of work planned in terms of cost to complete the work. Earned value is a composite measurement of both actual cost and time performance in relation to scheduled cost and time performance. It is also known as budgeted cost of work performed. Execution Phase The activities that center on facilitating the "doing" of the project work according to the plans. expected monetary value

10 The probability that a risk will occur times the amount at stake if the risk should occur. Also known as expected value. expected value Potential payoff or amount at stake times the probability of occurrence of a risk. Also known as expected monetary value. expert judgment A method of determining project feasibility, in which internal and/or external specialists are queried about the technical and operational requirements for the project. express warranty Warranty to meet a pre-determined standard. fallback plan A second level of contingency plan, to be used in case the first-level contingency plan doesn't work. fast tracking Compressing total project duration by performing some activities in parallel that were originally scheduled sequentially. feasibility analysis FF float An analysis that provides technical and operational data to management to help them determine if a project will work for the organization or if an alternative should be pursued. Finish-to-Finish. The precedence relationship between two activities where Activity B can't finish until Activity A is finished. The amount of time an activity can be delayed from its Early Start (ES) without delaying the completion date of the project. Also called total float, path float, or slack.

11 forcing Also called win-lose. Dealing with conflict by requiring others to yield. free float FS The amount of time an activity can be delayed without causing delay to the Early Start (ES) of any immediately subsequent activity. Finish-to-Start. The precedence relationship between two activities where Activity B can't start until Activity A is finished. Functional Organizational structure The traditional organizational structure where each department is responsible for carrying out a specific, similar set of activities and where reporting is hierarchical, with each individual reporting to a single manager. functional specifications Specifications describing how a product or service will perform. GERT Graphical Evaluation and Review Technique. A complex network methodology that allows for loops, conditional branches, and other non-sequential activities. grade Number or degree of product or service features. hammock A group of related activities that are reported as one aggregate activity. human resource practices Rules and procedures for managing people.

12 hurdle rate Average after-tax interest rate at which the project investment would be financed. Also called the cost of capital. implied warranty Promise to meet an unspecified standard, such as warranty of fitness for purpose or warranty of merchantability. indirect property risk Risk of additional expenditure needed to recover from a property loss influence currencies Types of influence that can be used within an organization to negotiate for resources. information distribution Making needed information available to project stakeholders in a timely manner. initiation Committing the organization to begin the next phase of the project. Initiation Phase The activities that center around defining the project's scope, success criteria, and key players. insurable risk IRR A risk for which one assumes a potential for loss but not for profit. Also known as pure risk. Internal Rate of Return. The discount rate that makes the NPV of the future cash return equal to the initial capital investment. joint and several liability

13 Legal term that assigns liability to all parties jointly, as well as to each party individually. joint probability Probability that two independent events will occur. known-unknowns Risks that will affect you, although you are not able to predict how or how much they will affect you. knowns Risks that will definitely affect you, although you have no control over them. lag time The number of work periods by which a specified activity will be delayed. lateral thinking lead A creative approach to team problem-solving where all concepts and issues related to a problem are considered. The goal is to form a new thought pattern and a fresh approach to solving a problem. A change in a logical relationship that allows the successor task to start before the predecessor task is completed. lessons learned LF Anecdotal reports of things that went wrong or recommendations for things to do in future projects. Late Finish. The latest possible time when an activity can finish without delaying the project finish date. liability risk Risk of needing to make good after causing damage to another.

14 life cycle costing loop LS Assessing the cost impact to the user across the entire life of a product. Life cycle costing includes assessment of costs for operation, service, reliability, safety, disposal, and other factors that may impact cost to the user. An activity sequence in a network diagram that must be revisited or repeated. Only allowable in GERT. Late Start. The latest possible time when an activity can start without delaying the project finish date. Management By Objectives (MBO) Type of participative management in which employees and managers set goals and specific performance objects, which are eventually used to measure the employee's performance. management reserves Contingency reserves tied to the project as a whole. material breach Serious contract breach which deprives the injured party of the benefits of the contract. matrix organizational structure An organizational structure where individuals still report upwards in the functional hierarchy, but they also report horizontally to one or more project managers. mean Average value in a sample. median Midpoint in a population. metrics

15 Operational definitions used to plan and monitor the quality of project activities and outputs. network logic diagram NPV OBS A graphic display that shows the sequence of project activities, and the interrelationships and dependencies among them. Net Present Value. The present value of an investment minus the initial investment. Organizational Breakdown Structure. A graphical representation that illustrates which functional organizations are responsible for the various types of work on the project. open task report List of tasks that should have been started or completed since your previous status review meeting, along with all of the tasks that should begin before the next status review meeting. opportunity Uncertain future event that is likely to have a positive impact on the project. organizational planning Identifying, documenting, and assigning project roles, responsibilities, and reporting relationships. organizational theory Body of knowledge providing information on the optimization of work processes through, among other things, organizational structure, power, and culture. overall change control Coordinating changes across the entire project. parametric modeling

16 Mathematical models used for estimating the cost of project work (for example, cost-per-square-foot models in the construction industry). Pareto Chart A bar chart or histogram that illustrates the causes of problems and their relative severity. It is a very useful tool for prioritizing efforts to solve problems. payoff PDM A risk variable. The potential gain or loss for each strategy in each state of nature. Precedence Diagramming Method The most common method for sequencing project activities. Activities are shown on nodes that are connected by arrows that show precedence relationships. performance reporting Collecting and disseminating performance information. This includes status reporting, progress measurement, and forecasting. personnel-related risk Risk of needing to make good after causing damage to employees. Planning Phase The activities included in the creation of plans that will serve as tools for the staffing, directing, and monitoring of project work. PMIS Project Management Information System. All the manual or automated tools and techniques used by the project to collect data, publish it to the appropriate people, store it for later retrieval, and archive it when it is no longer current. precedence relationship

17 The logical relationship between two activities that describes the sequence in which the activities should be carried out. predecessor activity In sequencing two activities, the predecessor is the activity that must take place prior to the other. It is the "from" activity. present value The result from discounting future earnings by deducting the cost of capital for an investment. price-based contract Contract in which payment is tied to a pre-established cost estimate. proactivity In risk management, dealing with risk events before they occur. probability A value used to characterize the degree of uncertainty. process A pattern of activities designed to bring about a particular result. process management Unifying, systematic approach to quality as a series of interrelated processes. procurement planning Determining what to produce and when. product cut-over Process of transferring the product or process to customer or stakeholder representatives. product-oriented processes

18 Processes involving product specification, development, or production. production surveillance Method of monitoring seller performance. program Ongoing work managed in a series of related projects that may or may not have a definite end point. Program Evaluation and Review Technique (PERT) A rigorous networking technique used to estimate project and activity durations for very complex projects by factoring in optimistic and pessimistic duration estimates. progressive elaboration A process of development in which additional layers of detail are defined over the course of a project. project An endeavor with a unique set of goals and constraints and a clearly defined beginning and end. project goals How you intend to accomplish your project purpose, and what success criteria you intend to meet. Often referred to as project goals and objectives. project audit Activity for verifying the completion of a milestone, phase, or project deliverables. project center Also known as war room. Physical home of the project. Project Charter The document that makes the project official and confers authority on the project manager.

19 project communications management The process of making sure that the right information can get to the right person at the right time. project coordinator Functional project role in which the project manager reports to and shares limited decision-making responsibilities with a functional manager. project cost management The process of making sure that the project is completed within budget. project expediter Functional project role in which the project manager serves as staff assistant to an executive who has the real responsibility for the project. project human resource management The process of making the most of the people assigned to the project. project integration management The process of coordinating all of the elements of the project. project interfaces The various reporting relationships that occur within the project as well as at the boundaries of the project. Project Life Cycle A useful tool to help stakeholders and others understand what project management activities must occur to complete the project successfully. project management The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.

20 project management processes Processes involving the way that project work is organized. Project-oriented processes include initiating, planning, executing, controlling, and closing processes. project manager The person in charge of planning, controlling, communicating, negotiating, and solving problems on a project. project objectives How you intend to accomplish your project purpose, and what success criteria you intend to meet. Often referred to as project goals and objectives. project office Project administrative staff. project plan The culminating output of the planning processes that includes the baselines for cost, quality, and schedule performance, as well as formal approval for the project Scope Definition. project plan development Taking the results of other planning processes and putting them into a consistent, coherent document. project plan execution Carrying out the project plan by performing the activities included therein. project procurement management The process of obtaining goods and services from outside suppliers appropriately.

21 project quality management The process of making sure that the project meets stakeholder requirements. project risk management The process of ensuring that risks to project success are identified and dealt with appropriately. project risk management Methodology of dealing with risk by proactively identifying risk factors, analyzing and quantifying them, selecting the most appropriate responses to deal with the risk, implementing the risk responses, and responding to changes in risk over the course of the project. project scope management The process of making sure that all necessary work is included, and that no unnecessary work is included in the project. project time management The process of making sure that the project is completed on time. projectitis A syndrome in which the project team loses a sense of affiliation with the parent organization and develops an "usversus-them" mentality. projectized organizational structure An organizational structure where the project manager and a core project team operate as a completely separate organizational unit within the parent organization. Also called "Pure Project structure." pure project structure An organizational structure where the project manager and a core project team operate as a completely separate organizational unit within the parent organization. Also called "Projectized Organizational structure."

22 pure risk A risk for which one assumes a potential for loss but not for profit. Also known as insurable risk. Purpose Statement The document that explains why the project was undertaken and what it is supposed to achieve. quality The totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. quality Overall conformance of the project's products or products to customer requirements. quality assurance Evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. quality audit Checks or inspects the results of the Quality Assurance system, the fitness of the project's output, or the fitness of the quality plan. quality control Monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. quality planning Identifying which quality standards are relevant to the project and determining how to satisfy them. quality tools

23 Set of methodologies, such as statistical process control or root cause analysis, which may be used in Quality Planning, Quality Assurance, or Quality Control. range Difference between the highest and lowest values in a population. range of values In risk management, typically a series of values representing a best case, most likely case, and worst case. ratio/range analysis Technique of estimating project risk against a known baseline. reactivity In risk management, dealing with risk events after they have occurred. regulation Mandatory characteristics for specific products, services, or processes. relative frequency In risk management, the estimated number of times that a risk event will occur. resource leveling Incorporating applicable resource management guidance into project scheduling decisions. resource planning Determining what resources (people, equipment, or materials) and what quantities of each should be used to perform project activities. resource-constrained scheduling

24 Project scheduling with start and finish dates reflecting limited available resources. responsibility risk A person's decision-making involvement on a project. A measure of the probability of the occurrence of a risk event and the impact of the risk event if it should occur. risk identification Determining which risks are likely to affect the project and documenting characteristics of each. risk event A specific occurrence that may impact the project in the future, either positively or negatively. risk event status A measure or ranking of the importance of the risk event. risk event status The expected monetary value of a risk event. risk event value Estimated amount that you can lose or gain if a risk event occurs. risk factors Factors that should be considered when assessing risk. They include risk events, risk probability, risk impact, and time. risk impact A dollar value representing the amount at stake. risk management plan Plan that details how the project will deal with identified and unidentified risks.

25 risk mode Decision-making mode in which you know the states of nature you will face, you can confidently state the probability of occurrence for each state of nature, and you know the potential payoff for each state of nature. risk probability A percentage value representing the likelihood of occurrence. risk quantification Evaluating risks and risk interactions to assess the range of possible project outcomes. risk response control Responding to changes in risk over the course of the project. risk response development Defining enhancement steps for opportunities and responses to threats. risk trigger An early warning sign of an approaching risk event. risk-averse Risk tolerance pattern in which the tolerance for risk decreases at a disproportionately high rate as the degree of risk increases. risk-neutral Risk tolerance pattern in which the tolerance for risk can be expected to decrease in inverse proportion to the degree of risk. risk-seeking Risk tolerance pattern in which the tolerance for risk decreases at a disproportionately low rate as the degree of risk increases.

26 robust design role A quality term referring to a product or service's immunity from variation due to external factors. What an individual will do on a project. S-curve The graphical shape that represents cumulative cost plotted as a factor of time. The S-curve visually demonstrates the fluctuation of planned project costs across project duration. schedule control Controlling changes to project schedule. schedule development Analyzing activity sequences, activity durations, and resource requirements to create the project schedule. scope definition Subdividing the major project deliverables into smaller, more manageable components. scope change control Controlling changes to project scope. scope creep Unmanaged changes to the scope of the project that impact the cost, quality, or timing of the project output. scope management plan A plan that describes how scope changes will be managed, classified, and documented. scope planning Developing a written scope statement as the basis for future project decisions.

27 scope statement An output of Scope Planning that documents stakeholders' common understanding of major activities to be performed in the project and why they are performed. scope verification SF Formalizing acceptance of the project scope. Start-to-Finish. The precedence relationship between two activities where Activity A must start before Activity B can finish. smoothing Also known as yield-lose, or narrowing the areas at conflict. solicitation Obtaining quotations, bids, offers, or proposals as appropriate. solicitation planning Documenting product requirements and identifying potential sources. source selection SOW SPI SS Choosing from among potential sellers. Statement Of Work. A document that fully defines what product or service will be supplied according to contract. Schedule Performance Index. A measurement of scheduling performance efficiency to date based on the ratio of amount of work completed to amount of work scheduled.

28 Start-to-Start. The precedence relationship between two activities where Activity B can't start until Activity A starts. staff acquisition Getting the human resources needed assigned to and working on the project. staffing management plan Forecast of what types of staff will work on a project, when they will be needed, how they will be recruited, and when they will be released. staffing requirements Description of the skills required for a project as well as when the skills will be required. stakeholder Someone who has a business interest in the outcome of the project, or who is actively involved on the project. standard Non-mandatory guidelines or characteristics that have been approved by a recognized body of experts, such as the International Organization for Standards. standard deviation Standard spread of data from the mean, calculated by taking the square root of the variance. state of nature A risk variable. A potential scenario that you may have to face. statistical analysis Interpreting population data based on statistical samples. statistical summing Technique of calculating the probability of a range of estimates.

29 strategy A risk variable. A choice you can make to deal with the states of nature. strong matrix Matrixed organizational structure in which the balance of power shifts to the project manager rather than the functional manager. subnet An activity in a PDM diagram representing a sub-project with its own subnetwork of activities. successor activity SV In sequencing two activities, the successor is the activity that must take place after the other. It is the "to" activity. Schedule Variance. The measured difference between the planned or scheduled activity duration and the actual activity duration. team Group of individuals who have committed to and share mutual accountability for meeting a common goal, using a common approach. team development Developing individual and group skills to enhance project performance. templates Tools that reflect the organization's "lessons learned" from previous work. term contract A contract that engages the seller to deliver a set amount of service--measured in staff-hours or a similar unit-over a set period of time.

30 time value of money Taking into account the cost of using capital over a period of time. Total Quality Management (TQM) Management approach to creating customer satisfaction by empowering workers and focusing on processes rather than functions. uncertainty The possibility that a risk event will affect a project. uncertainty mode Decision-making mode in which you must estimate the probability of each state of nature. You may or may not know the potential payoff for each state of nature. union probability Probability that one of two independent events will occur. unknown-unknowns VAC Risks that are beyond your ability to foresee. Variance At Completion. Estimated cost overrun or underrun for completing project work. variance Spread of values about the mean of a population. version control Process required during file sharing or shared file storage to ensure that one file does not overwrite another, and that everyone is working off of the most up-to-date document. virtual team Team that is distributed across multiple locations.

31 waiver Giving up of a contract right. war room Also known as project center. Physical home of the project. warranty Promise that goods or services will meet a standard. warranty of fitness for purpose Implied warranty that requires goods to be fit for the usage that was intended by the buyer. warranty of merchantability Implied warranty that requires goods to be fit for ordinary usage. watch list Term for a list of risk triggers or symptoms that the project team should scan for. If an item on the watch list occurs, that indicates the need to implement the risk response plan. WBS Work Breakdown Structure. A graphical representation of the major sub-projects or deliverables on a project. WBS Dictionary Information about each element of the WBS. The information should include an unambiguous description of the task, along with information used to measure performance and completeness. weak matrix Matrixed organizational structure in which the balance of power shifts to the functional manager rather than the project manager. win-win

32 Compromise approach to conflict management. withdrawal Dealing with conflict by avoiding it altogether. work authorization system Communications system that tells work package owners when to start working and when to expend organizational resources. work package The lowest level of tasks on a Work Breakdown Structure. Work packages are comprised of activities. yield-lose Also known as smoothing, or narrowing the areas at conflict. zero defects Philosophy in which no errors are tolerated, and all process outputs must conform to standard.