Project Management Glossary

A – Project Management Terms

Accept

A decision to take no action against a threat. Project teams typically accept risks when they fall below risk thresholds or when the team thinks it best to act only if and when a threat occurs. (See also risk acceptance)

Acceptance Criteria

A set of conditions that are met before deliverables are accepted. See also deliverable and requirement.

The specific requirements expected of project deliverables. To be formally accepted, deliverables must meet all acceptance criteria.

Acceptance test

A test in which a team of end users runs a product through its full range of use to identify potential problems.

Accepted Deliverables

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

Accuracy

Within the quality management system, accuracy is an assessment of correctness.

Acquire Resources

The process of obtaining team members, facilities, equipment, materials, supplies, and other resources necessary to complete project work.

Acquisition

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

Acquisition process

This process obtains the personnel and resources necessary for project work. Acquisitions are closely coordinated with project budgets and schedules.

Action item

An activity or task that must be completed.

Action item status

This tracks an action item’s progress from creation to closure. Since work packages comprise multiple action items, keeping action item statuses updated is important for project progress.

Activity

A distinct, scheduled portion of work performed during the course of a project. It is the smallest unit of work necessary to complete a project work package (which includes multiple activities). Time, resources, and finances are required to complete each activity.

Activity Attributes

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

Activity Code

An alphanumeric value assigned to each activity that enables classifying, sorting, and filtering. See also activity identifier and activity label.

An alphanumeric value by which activities can be grouped and filtered. A code is assigned to each activity.

Activity Duration

The time in calendar units between the start and finish of a schedule activity. See also duration.

Activity Duration Estimates

The quantitative assessments of the likely number of time periods that are required to complete an activity.

Activity Identifier

A unique alphanumeric value assigned to an activity and used to differentiate that activity from other activities. See also activity code and activity label.

A unique alphanumeric value by which an individual activity can be distinguished. An activity identifier is assigned to each activity.

Activity Label

A phrase that names and describes an activity. See also activity code and activity identifier.

A short descriptor for an activity. Activity labels may be placed below arrows representing activities in activity-on-arrow (AOA) diagrams.

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.

This documents all the activities necessary to complete a project. Each activity is accompanied by its activity identifier and a description of the work it entails.

Activity-On-Arrow (AOA)

In this network diagram, arrows represent activities and nodes represent events or milestones. AOA diagrams can only indicate finish-to-start relationships.

Activity-On-Node (AON)

In a network diagram of this nature, nodes represent activities and arrows illustrate logical relationships between activities. AON diagrams can illustrate four relationship types: start-to-start, start-to-finish, finish-to-start, and finish-to-finish.

Actual Cost (AC)

The realized cost incurred for the work performed on an activity during a specific time period. See also budget at completion (BAC), earned value (EV), estimate at completion (EAC), estimate to complete (ETC), and planned value (PV).

Actual cost of work performed (ACWP)

This represents the total cost incurred for work done in a given period of time.

Actual duration

The length of time taken to complete an activity. 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.

Actual effort

The amount of labor performed to complete an activity. It is expressed in person-hours or similar units of work.

Actual expenditure

The sum of costs paid from a budget.

Actual progress

This measures the amount of work completed on a project. It is used to assess the comparison between project progress and project baselines and is usually stated as a percentage.

Adaptive Life Cycle

A project life cycle that is iterative or incremental.

Adaptive project framework (APF)

An approach to project management that rejects traditional, linear project management and instead accepts changing requirements and allows projects to be affected by external business environments. The ADF stresses flexibility in many aspects of project management and focuses on performing and evaluating project work in stages to allow room for replanning due to changing business goals, objectives, and requirements.

Administrative closure

This refers to the set of formal requirements fulfilled to end a project. Among other things, it involves documenting the formal acceptance of deliverables and ensuring that all relevant information is sent to a project’s sponsor and stakeholders.

Affinity Diagrams

A technique that allows large numbers of ideas to be classified into groups for review and analysis.

Aggregate planning

This strategy uses demand forecasts to manage scheduling and planning for project activities between three and 18 months in advance, so that the necessary resources and personnel can be efficiently acquired or assigned.

Agile

The Agile family of methodologies is a superset of iterative development approaches aimed at meeting ever-changing customer requirements. Agile development proceeds as a series of iterations, or sprints, with incremental improvements made in each sprint. Since agile projects do not have fixed scopes, agile methodologies are adaptive, and the iterative work is guided by user stories and customer involvement.

Agile project management

Agile project management draws from concepts of agile software development. Agile approaches focus on teamwork, collaboration, and stakeholder involvement, as well as the use of iterative development methods.

Agile software development

Agile software development originates from the Agile Manifesto, a set of principles that emphasizes meeting changing requirements through collaborative development and making ongoing improvements through iteration. It stresses the importance of being reactive to rapid changes in external environments.

Agreements

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.

Allocation

The assigning of resources for scheduled activities in the most efficient way possible. (See also resource allocation)

Alternative analysis

The evaluation of possible courses of action for project work in order to find the most suitable course of action.

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

Analogous Estimating

A technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project. See also bottom-up estimating, parametric estimating, program evaluation and review technique (PERT), and three-point estimating.

This technique uses historical project data to prepare time and cost estimates. It is considered the most inaccurate estimation technique. (See also top-down estimating)

Analytical Techniques

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

Analytical estimating

This technique computes total project time and cost estimates by preparing estimates for each project activity and adding them together. Analytical estimating is considered the most accurate estimation technique. (See also bottom-up estimating)

Application area

The specific project category of which the project is a part. Application areas can be defined on the basis of project products’ characteristics or applications or by the projects’ customers or stakeholders.

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]. See also discrete effort and level of effort

Project work associated with components of a work breakdown structure and performed in proportion, with discrete effort. Since the amount of apportioned effort (which includes activities such as quality assurance) depends directly on the amount of discrete effort, it cannot be considered separately from discrete effort. It is one of three types of activities used to measure work performance as part of earned value management.

Approach analysis

During the project planning phase, this type of analysis is used to examine the various methods by which a project’s goals may be achieved.

Arrow diagramming method (ADM)

A method of constructing a network diagram that uses arrows to represent activities and nodes to represent events or milestones. The ADM is used to construct activity-on-arrow (AOA) diagrams.

Artifact

Items that support software development. Artifacts include both items associated with the process of development, such as project plans, and items used to support actual aspects of development, such as use cases and requirements.

Assignment contouring

The process of assigning people to project work for changing numbers of hours per day as the project moves through different stages. Assignment contouring is typically done using project management software.

Assumption

Factors deemed to be true during the project planning process, though proof of their validity is not available. A project’s assumptions can affect its risks and outcomes, so you must consider them carefully.

A factor in the planning process considered to be true, real, or certain, without proof or demonstration.

Assumption Log

A project document used to record all assumptions and constraints throughout the project life cycle.

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.

Authority

The right to apply project resources, expend funds, make decisions, or give approvals.

Authorization

In general, authorization is the power to make decisions that the management grants. The specific remit for authorization varies on a case-by-case basis.

Authorized work

Work that management or others in authority approve.

Avoid

A response to a negative risk that seeks to ensure the risk does not occur or (if the risk cannot be eliminated) seeks to protect the project objectives from the negative risk’s impact. (See also risk avoidance)

B – Project Management Terms

Backward Pass

A critical path method technique for calculating the late start and late finish dates by working backward through the schedule model from the project end date. See also forward pass.

This calculates late-start and finish dates for project activities by working backwards from the project end date.

Balance

A phase in the portfolio life cycle that involves balancing a portfolio’s components based on risk, costs, and use of resources. It is an aspect of organizational project management. (See also portfolio balancing)

Balanced scorecard

A Balanced scorecard is a concept or tool used to assess whether an organization’s activities are correlated with its general vision and objectives.

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.

A diagrammed calendar schedule of project activities’ start and end dates in logical order. (See also Gantt chart)

Baseline

The approved version of a work product that can be changed using formal change control procedures and is used as the basis for comparison to actual results. See also cost baseline, performance measurement baseline, schedule baseline, and scope baseline.

This term represent the costs and schedules approved at the start of the project. They use baselines as a basis for monitoring and evaluating performance.

Basis of Estimates

Supporting documentation outlining the details used in establishing project estimates such as assumptions, constraints, level of detail, ranges, and confidence levels.

Benchmarking

Benchmarking is the comparison of actual or planned products, processes, and practices to those of comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measuring performance.

Benefits Management Plan

The documented explanation defining the processes for creating, maximizing, and sustaining the benefits provided by a project or program.

Benefits realization

This term focuses on ensuring that project results give customers and stakeholders the benefits they expect.

Bid Documents

All documents used to solicit information, quotations, or proposals from prospective sellers.

Bidder Conference

The meetings with prospective sellers prior to the preparation of a bid or proposal to ensure all prospective vendors have a clear and common understanding of the procurement. Also known as contractor conferences, vendor conferences, or pre-bid conferences.

Blueprint

A document that explains what a program means to accomplish and describes a program’s contribution to organizational objectives.

BOSCARD

This method details and considers the background, objectives, scope, constraints, assumptions, risks, and deliverables of new projects.

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). See also analogous estimating, parametric estimating, program evaluation and review technique (PERT), and three-point estimating.

This calculation computes total time and cost estimates for projects by preparing individual estimates for each of a project’s activities and adding them together. Bottom-up estimating is considered the most accurate estimation technique. (See also analytical estimating)

Brief

This refers to the document produced during a project’s concept phase. It is the primary document outlining requirements.

Budget

The sum of money allocated for a project. The term may also refer to a comprehensive list of revenues and expenses.

The approved estimate for the project or any work breakdown structure component or any schedule activity.

Budget at Completion (BAC)

The sum of all budgets established for the work to be performed. See also actual cost (AC), earned value (EV), estimate at completion (EAC), estimate to complete (ETC), and planned value (PV).

Budgeted cost of work performed (BCWP)

The portion of the budget allocated to scheduled work actually performed in a period of time. (See also earned value)

Budgeted cost of work scheduled (BCWS)

The portion of the budget allocated to work scheduled to be performed in a period of time. (See also planned value)

Burn down chart

A graph that shows the relationship between the number of tasks to be completed and the amount of time left to complete these tasks.

Burst point

A point in a network diagram at which multiple successor activities originate from a common predecessor activity. None of the successor activities may start until one finishes the predecessor activity.

Business analysis

The practice of identifying and solving business problems. It focuses on creating and implementing solutions to business needs via organizational development, process reengineering, or any number of other methods.

Business case

A documentation of the potential outcomes of a new project, including benefits, cost, and effects. It shows the reasoning for starting the project.

A documented economic feasibility study used to establish validity of the benefits of a selected component lacking sufficient definition and that is used as a basis for the authorization of further project management activities.

Business imperative

An issue, situation, or circumstance with the potential to affect a business in one way or another, depending on the course of action used to address it. Organizations prioritize business imperatives for actions that will realize any potential benefits or avoid any potential harm.

Business model

A company’s business model is the system by which the organization’s profitable activities are planned, structured, and executed, and by which it interacts with its customers.

Business operations

The entire ensemble of activities or business processes through which a company uses its assets to create value for its customers.

Business process

A Business process is a system of activities by which a business creates a specific result for its customers. There are three categories of business processes: management processes, operational processes, and supporting processes.

Business process modeling (BPM)

Business process modeling is the representation, analysis, and evaluation of business processes in an effort to improve them.

Business requirements

The conditions a product must satisfy to effectively serve its purpose within a business.

Business value

The business value of a project is the sum of positive effects — tangible and intangible — it has on the business.

The net quantifiable benefit derived from a business endeavor. The benefit may be tangible, intangible, or both.

C – Project Management Terms

Calendar unit

The smallest unit of time — usually hours or days — by which project activity durations are measured.

Capability maturity model (CMM)

This model is used to assess the maturity of business process capabilities. It was created to assess the capabilities of software development processes but is now used in a number of other industries as well. Like other maturity models, the CMM allows organizations to assess themselves against external benchmarks and provides recommendations for improvement.

CAPEX

CAPEX, or capital expenditure, is the money a company spends to acquire new fixed physical assets or upgrade old ones, typically for long-term use.

Case study

A case study involves extensive and in-depth formal research into an area of a company, a situation, or an event. Case studies typically result in formal reports that are published in academic or professional publications. They investigate important, singular, or locally representative cases that contribute to the advancement of knowledge.

Cause and Effect Diagram

A decomposition technique that helps trace an undesirable effect back to its root cause.

Certified Associate in Project Management (CAPM)

This is an entry-level certification for project managers offered by the Project Management Institute. It is designed to build knowledge of project management processes and terms.

Champion

A project champion makes project success a personal responsibility. This person pushes the project team to work hard, liaise with stakeholders on behalf of the project, and support the project manager. Project champion is an informal role.

Change

A modification to any formally controlled deliverable, project management plan component, or project document.

Change Control

A process whereby modifications to documents, deliverables, or baselines associated with the project are identified, documented, approved, or rejected. See also change control board and change control system.

Change control is the process of identifying, evaluating, approving, and implementing changes to a project. It ensures that changes are introduced in a controlled and effective manner and that any adjustments necessitated by changes are also addressed.

Change Control Board

A formally chartered group responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, and for recording and communicating such decisions. See also change control and change control system.

An appointed group of stakeholders who evaluate proposed changes and decide when and whether to make them.

Change Control System

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

Change Control Process

The process by which changes to the project are evaluated before approval, implemented, and documented.

Change Control Tools

Manual or automated tools to assist with change and/or configuration management. At a minimum, the tools should support the activities of the CCB.

Change freeze

The point at which scope changes to a project are no longer permissible.

Change Log

A comprehensive list of changes submitted during the project and their current status.

Change management plan

A Change management plan details the change control process. It is created to ensure all changes are managed according to procedure. Change management plans can be created for individual projects or for organizations undergoing transitions.

A component of the project management plan that establishes the change control board, documents the extent of its authority, and describes how the change control system will be implemented.

Change Request

A formal proposal to modify a document, deliverable, or baseline.

A formal document submitted to the change control board that requests changes to the finalized project management plan. Change requests are usually made only for significant changes, as smaller changes with little to no impact on the project work can be brought to the project manager.

Checklist Analysis

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

Checksheets

A tally sheet that can be used as a checklist when gathering data.

Claim

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.

Claims Administration

The process of processing, adjudicating, and communicating contract claims.

Client/Customer

The people who will directly benefit from a project. A team executes a project with specific attention to a client’s requirements.

Closing Project or Phase

The final phase of the project management life cycle, in which all aspects of the project are officially completed and closed. This includes making sure that all deliverables have been given to the client, that the team notifies suppliers of completion, and that the team updates stakeholders regarding the end of the project and overall project performance.

The process of finalizing all activities for the project, phase, or contract. Closing Process Group. The process(es) performed to formally complete or close a project, phase, or contract.

Code of Accounts

A numbering system used to uniquely identify each component of the work breakdown structure (WBS).

An alphanumeric system used to assign unique identifiers to all work breakdown structure components.

Collaborative negotiation

Collaborative negotiation entails all negotiating parties obtaining at least some of what they want from negotiations.

Collect Requirements

The process of determining, documenting, and managing stakeholder needs and requirements to meet project objectives.

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.

Communication Methods

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

Communication Models

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

Communications log

This document is used to track all project-related communications. It is organized and edited by the project manager and details who communicated, when and where the communication took place, what information was shared, and the results of the communication.

Communications Management Plan

A component of the project, program, or portfolio management plan that describes how, when, and by whom information will be administered and disseminated. See also project management plan.

This plan states who will send and receive information on aspects of the project, what details are communicated, and when communications are sent. It is part of the project management plan.

Communication Styles Assessment

A technique to identify the preferred communication method, format, and content for stakeholders for planned communication activities.

Communication Technology

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

Communities of practice

Groups of people who share an area of interest within project management. They meet regularly to share and develop knowledge in the area of interest.

Competence

The ability and knowledge required to perform the tasks associated with a specific role.

Competence framework

The set of competence expectations by which one assesses a person’s suitability for a specific role.

Concept

The beginning phase of the project management life cycle. In the concept phase, the team presents the opportunity or problem (along with possible solutions) and examines the general feasibility of the project.

Conceptual project planning

Conceptual project planning involves developing the documentation from which a project’s organization and control system will originate.

Concurrent engineering

A product development approach where design and development are carried out at the same time. It is used to shorten the development life cycle and to release products more quickly. The simultaneous execution of design and development can help to improve design practicality.

Conduct Procurements

The process of obtaining seller responses, selecting a seller, and awarding a contract.

Configuration

Configuration of a product involves shaping its functions and characteristics to make it suitable for customer use.

Configuration management

Configuration management ensures that the product of a project meets all necessary specifications and stipulations. It provides well-defined standards for the management and team to guarantee that they meet quality and functional requirements, as well as any other characteristics considered important.

Configuration Management Plan

A component of the project management plan that describes how to identify and account for project artifacts under configuration control, and how to record and report changes to them.

Configuration Management System

A collection of procedures used to track project artifacts and monitor and control changes to these artifacts.

Conformance

Within the quality management system, conformance is a general concept of delivering results that fall within the limits that define acceptable variation for a quality requirement.

Consensus

A decision agreed upon by all members of a group.

Constraint

A factor that limits the options for managing a project, program, portfolio, or process.

A limitation on a project. Among other things, constraints may be financial or based on time or resource availability.

Constructability

Constructibility is a concept used in complex hard projects to assess and examine the entire construction process before beginning construction. It reduces the number of errors, setbacks, and delays once construction work actually begins.

Construction

The process by which a team builds infrastructure. Construction projects are complex. Engineers and architects supervise them, while a project manager manages the project work.

Consumable resource

A nonrenewable resource that cannot be used once consumed.

Context Diagrams

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.

Contingency

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

Contingency Plan

A document describing actions that the project team can take if predetermined trigger conditions occur.

An alternative or additional course of action planned in anticipation of the occurrence of specific risks.

Contingency Reserve

Time or money allocated in the schedule or cost baseline for known risks with active response strategies. See also management reserve and project budget.

An allocation of time or money (or both) set aside for the occurrence of known possibilities that could delay a project or make it more expensive. It is not the same as a management reserve, which is an allocation made for unforeseeable circumstances. Use of a contingency reserve is typically authorized upon the occurrence of a contingency.

Contingent Response Strategies

Responses provided which may be used in the event that a specific trigger occurs.

Contract

A contract is a mutually binding agreement that obligates the seller to provide the specified product or service or result and obligates the buyer to pay for it.

Contract administration

The process by which a team manages a relationship with a contracting party. It establishes protocols for dealings between contracting parties.

Contract Change Control System

The system used to collect, track, adjudicate, and communicate changes to a contract.

Contract closeout

The process of determining whether the terms of a contract were completed successfully and of settling any remaining terms.

Control

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

Control Account

A management control point where scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement.

A work breakdown structure tool that allows aggregation of costs for work packages as part of earned value management calculations.

Control chart

Control charts compare process results with historical averages and process control limits to show whether a process meets results expectations. If a process’s results are inconsistent or fall outside process control limits, it may need to be examined and adjusted.

A graphic display of process data over time and against established control limits, which has a centerline that assists in detecting a trend of plotted values toward either control limit.

Control Costs

The process of monitoring the status of the project to update the project costs and manage changes to the cost baseline.

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.

Control Procurements

The process of managing procurement relationships, monitoring contract performance, making changes and corrections as appropriate, and closing out contracts.

Control Quality

The process of monitoring and recording results of executing the quality management activities to assess performance and ensure the project outputs are complete, correct, and meet customer expectations.

Control Resources

The process of ensuring that the physical resources assigned and allocated to the project are available as planned, as well as monitoring the planned versus actual utilization of resources and performing corrective action as necessary.

Control Schedule

The process of monitoring the status of the project to update the project schedule and manage changes to the schedule baseline.

Control Scope

The process of monitoring the status of the project and product scope and managing changes to the scope baseline.

Core process

A process that follows an established order and is central to the performance of the process system or project of which it is part.

Corrective Action

An intentional activity that realigns the performance of the project work with the project management plan. See also preventive action.

A step taken to bring work back into alignment with performance expectations after it has failed to meet expectations. A corrective action, which is reactive, is not the same as a preventive action, which is proactive.

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 Baseline

The approved version of work package cost estimates and contingency reserve that can be changed using formal change control procedures and is used as the basis for comparison to actual results. See also baseline, performance measurement baseline, schedule baseline, and scope baseline.

The sum of work package estimates, contingency reserve, and other associated costs by which project performance is assessed. A formal change control process is necessary to change the cost baseline.

Cost benefit analysis

A Cost benefit analysis is used to weigh project costs against anticipated tangible project benefits.

Cost engineering

The application of scientific and engineering principles to several aspects of cost management. Among other things, cost engineers contribute to estimation procedures and project cost management. Cost engineering may also be called project controls in some industries.

Cost Management Plan

A component of a project or program management plan that describes how costs will be planned, structured, and controlled. See also project management plan.

This plan details how project costs will be planned, funded, and controlled. It is a part of the project management plan.

Cost of quality (COQ)

The cost associated with ensuring project quality. This cost may mean the difference between unacceptable and acceptable project results.

All costs incurred over the life of the product by investment in preventing nonconformance to requirements, appraisal of the product or service for conformance to requirements, and failure to meet requirements.

Cost overrun

A cost overrun occurs when unexpected costs cause a project’s actual cost to go beyond budget.

Cost Performance Index (CPI)

A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost. See also schedule performance index (SPI).

A cost performance index measures the cost efficiency of a project by calculating the ratio of earned value to actual cost.

Cost plus fixed fee contract (CPFC)

Under a cost plus fixed fee contract, the seller is reimbursed for costs incurred and paid a predetermined fixed 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.

Cost plus incentive fee contract (CPIF)

Under a cost plus incentive fee contract, the seller is reimbursed for costs incurred and paid an additional fee if they meet performance criteria specified in the contract.

Cost plus percentage of cost contract (CPPC)

Under a cost plus percentage of cost contract, the seller is reimbursed for costs incurred and paid an additional amount equal to a percentage of the costs incurred if they meet performance criteria specified in the contract.

Cost reimbursable contract

A cost reimbursable contract is a contract under which a seller is reimbursed for costs incurred and paid an additional sum as per a predetermined agreement as profit. They are typically negotiated for projects with costs that are not fully known or not well defined.

A type of contract involving payment to the seller for the seller’s actual costs, plus a fee typically representing the seller’s profit.

Cost Variance (CV)

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. See also schedule variance (SV).

The Cost variance of a project is its earned value minus its actual cost. A negative cost variance indicates that a project is running over budget. A positive cost variance indicates that a project is running below budget.

Cost/schedule impact analysis

A cost/schedule impact analysis determines the effects of a particular change on a project’s cost or schedule.

Crashing

A schedule compression technique used to speed up project work by increasing the rate at which critical path activities are completed by adding more resources — usually more personnel or more equipment. Crashing increases project costs, so it is used first on activities that can be sped up at the least additional cost.

A schedule compression technique used to shorten the schedule duration for the least incremental cost by adding resources. See also fast tracking and schedule compression.

Create WBS

The process of subdividing project deliverables and project work into smaller, more manageable components.

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.

Critical Chain Method

A schedule method that allows the project team to place buffers on any project schedule path to account for limited resources and project uncertainties.

Critical chain project management (CCPM)

Critical chain project management is an approach to managing projects that emphasizes the resources needed to complete project activities over activity order and durations set in a schedule. It uses resource optimization techniques like resource leveling and requires that activity start times be flexible.

Critical incident stress debriefing (CISD)

CISD is a psycho-educational exercise for small groups who have experienced a traumatic event. It is sometimes used in project management to help project teams cope with trauma and to rebuild team cohesion.

Critical Path

The sequence of activities that represents the longest path through a project, which determines the shortest possible duration. See also critical path activity and critical path method.

Critical Path Activity

Any activity on the critical path in a project schedule. See also critical path and critical path method.

A scheduled activity that is part of a project’s critical path.

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 critical path and critical path activity.

The Critical path method is used to estimate the shortest length of time needed to complete a project and to determine the amount of float for activities that are not part of the critical path.

Critical success factor

A critical success factor is an aspect of a project that is crucial to the success of the project.

Criticality index

Each project activity is assigned a percentage called a criticality index, which is a measure of how frequently it is a critical activity in project simulations. Activities with high criticality indexes are likely to prolong project duration if delayed.

Current finish date

The most up-to-date estimate of when an activity will finish.

Current start date

The most up-to-date estimate of when an activity will start.

Current state

A detailed representation of current business processes that is used as a point of comparison for efforts to analyze and improve processes’ efficiency, effectiveness, and outputs.

D – Project Management Terms

Data

Discrete, unorganized, unprocessed measurements or raw observations.

Data Analysis Techniques

Techniques used to organize, assess, and evaluate data and information.

Data Date

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

A data date, also called an as-of date, is a point at which a project’s status is measured and documented. It separates actual data from scheduled data.

Data Gathering Techniques

Techniques used to collect data and information from a variety of sources.

Data Representation Techniques

Graphic representations or other methods used to convey data and information.

Decision-Making Techniques

Techniques used to select a course of action from different alternatives.

Decision Tree Analysis

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

A diagrammatic technique used to illustrate a chain of decisions and to examine the implications of multiple decision-making or situational outcomes.

Decomposition

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

The hierarchical breaking down of project deliverables into smaller components that are easier to plan and manage.

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.

Defect Repair

An intentional activity to modify a nonconforming product or product component.

An action taken to remedy a product that is nonfunctional or does not match expectations or requirements.

Define

The phase in the portfolio life cycle in which projects, programs, and any organizational changes needed to realize strategic objectives are identified and examined.

Define Activities

The process of identifying and documenting the specific actions to be performed to produce the project deliverables.

Definitive estimate

A definitive estimate reaches a total project cost estimate by computing cost estimates for all a project’s work packages. Definitive estimating is considered a highly accurate estimation technique, with estimates falling within a ten-percent range of the actual budget.

Define Scope

The process of developing a detailed description of the project and product.

Deflection

The transferring of risk to another party, generally via a contract.

Deliverable

Any unique and verifiable product, result, or capability to perform a service that is produced to complete a process, phase, or project.

A final product or product component that must be provided to a client or stakeholder according to contractual stipulations.

Delphi technique

An estimation method based on expert consensus. Experts make estimates individually and simultaneously and then review their estimates as a group before making another set of estimates. The process is repeated, with the pool of estimates typically becoming narrower after each round of review until a consensus is reached. (See also wideband delphi)

Dependency

A logical relationship between project activities in a network diagram that determines when a dependent activity may begin.

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. ] See also apportioned effort and level of effort

Project work directly associated with components of a work breakdown structure. It is directly measurable. Discrete effort is one of three types of activities used to measure work performance as part of earned value management.

Determine Budget

The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Development Approach

The method used to create and evolve the product, service, or result during the project life cycle, such as predictive, iterative, incremental, agile, or a hybrid method.

Develop Project Charter

The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

Develop Project Management Plan

The process of defining, preparing, and coordinating all plan components and consolidating them into an integrated project management plan.

Develop Schedule

The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule model for project execution and monitoring and controlling.

Develop Team

The process of improving competences, team member interaction, and overall team environment to enhance project performance.

Diagramming Techniques

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

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.

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.]

Discretionary dependency

The preferred way to sequence activities when there is no logical limitation on how they must be ordered.

Do nothing option

An element of a project business case that states the consequences, if any, of not undertaking the project.

Documentation Reviews

The process of gathering a corpus of information and reviewing it to determine accuracy and completeness.

Drawdown

A method used to exercise control on the release of project funds. Instead of making entire project budgets available from the outset, management may choose to release funds at specific times. These releases are called drawdowns. Drawdowns may coincide with phase gates so that funds are released at the beginning of each phase.

Dummy activity

In activity-on-arrow diagrams, where arrows represent activities, dummy activities show logical relationships between activities. They are not actual activities themselves – dummy activity arrows are drawn with broken lines to differentiate them from regular activity arrows.

Duration

The total number of work periods required to complete an activity or work breakdown structure component, expressed in hours, days, or weeks. See also effort.

The amount of time taken to complete an activity or task from start to finish.

Duration compression

Duration compression techniques shorten a project’s duration without reducing its scope. This typically requires additional expenditure. There are two main duration compression techniques: crashing and fast tracking. (See also schedule compression technique)

Dynamic systems development method

The dynamic systems development method is one of the agile product development methodologies. Like other members of the agile family, it conducts development in a series of iterations, with user-story-based improvements made in increments. The dynamic systems development method operates with fixed cost and time constraints and uses the MoSCoW prioritization method to identify the desired product requirements with these constraints in mind.

E – Project Management Terms

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. See also early start date, late start date, late finish date, and schedule network analysis.

The earliest time by which a scheduled project activity can logically 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 finish date, late finish date, late start date, and schedule network analysis.

The earliest time by which a scheduled project activity can logically start.

Earned schedule

A method of measuring schedule performance that improves upon traditional earned value management. Earned value management tracks schedule variance only in terms of money and not in terms of time and thus does not accurately indicate schedule performance by the end of a project. To address this discrepancy, earned schedule theory uses the same data as traditional earned value management but tracks schedule performances separately with respect to money and time.

Earned Value (EV)

The measure of work performed expressed in terms of the budget authorized for that work. See also actual cost (AC), budget at completion, estimate at completion (EAC), estimate to complete (ETC), and planned value (PV).

A concept used to gauge project schedule and cost performance. Portions of the project budget are assigned to components of the work breakdown structure, and successful completion of a work breakdown structure component is understood as value earned through work.

Earned Value Management

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

A method of measuring project performance and progress with regard to scope, time, and costs. It is based on the use of planned value (where portions of the budget are allotted to all project tasks), and earned value (where progress is measured in terms of the planned value that is earned upon completion of tasks).

Effort

The number of labor units required to complete a schedule activity or work breakdown structure component, often expressed in hours, days, or weeks. See also duration.

The amount of labor needed to complete a task. It is measured in person-hours or similar units.

Effort estimate

A calculated approximation of the effort — measured in staff-hours or similar units — needed to complete an activity.

Effort management

The most efficient allocation of time and resources to project activities.

End user

The person or persons who will eventually use the product of a project. Products are designed with end users in mind.

Enhancement, maintenance, and upgrade (EMU)

Enhancement, maintenance, and upgrade are project classifications used in the software development industry. Enhancement projects involve improving the functionality or performance of software. Maintenance projects keep software functioning as expected. Upgrade projects create a new version of the software, called a release.

Enterprise Environmental Factors

Conditions, not under the immediate control of the team, that influence, constrain, or direct the project, program, or portfolio.

Internal and external factors that can impact projects. They include such things as climate, available resources, and organizational structure.

Enterprise modeling – Enterprise modeling is the creation of a model to represent an organization’s structure, processes, and resources. Enterprise models are built to increase understanding of how organizations work. They form the basis of improvement or restructuring efforts.

Epic

A set of similar or related user stories.

Estimate at Completion (EAC)

The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete. See also actual cost (AC), budget at completion (BAC), earned value (EV), estimate to complete (ETC) and planned value (PV).

The estimated total cost for all project work, calculated as the sum of the actual cost and the estimate to complete.

Estimate to Complete (ETC)

The expected cost to finish all the remaining project work. See also actual cost (AC), budget at completion (BAC), earned value (EV), estimate at completion (EAC), and planned value (PV).

At a given point in a project, the estimate of the cost of the work that still needs to be completed.

Estimating funnel

A metaphor for the increased accuracy in estimation made possible as a project progresses.

Estimation

The use of estimating techniques to reach approximations of unknown values.

Event chain diagram

A visual representation of a schedule network based on event chain methodology. It shows relationships between project activities and risk events.

Event chain methodology

A schedule network analysis method that enables uncertainty modeling. It is used to identify risk events’ impact on a schedule.

Event-Driven

The adjective describes an action that is prompted by the occurrence of an event.

Execution phase

The execution phase begins after activity approval and is the phase in which the team executes the project plan. Execution is typically the longest and most expensive phase in the project management life cycle.

Executive sponsor

Typically a member of the organization’s board who is ultimately responsible for the success of the project. They provide high-level direction to project managers and are accountable to the board for project success.

Expert judgment

The practice of using expert opinion to guide decision making.

External dependency

An outside relationship that affects the completion of a project activity.

Extreme programming (XP)

An agile software development methodology that emphasizes a high degree of responsiveness to evolving customer demands. Development cycles in extreme programming are short, and releases are frequent. Its main features include high-volume communication with customers and pair programming.

Extreme project management (XPM)

An approach to project management used mostly for complex projects with a high degree of uncertainty. XPM is designed for projects where requirements are expected to change. Therefore, it focuses on flexibility more than rigid scheduling. Where traditional project management proceeds sequentially through the project management life cycle and thus clearly defines problems, scopes, and solutions, extreme project management accepts that all three aspects will change as the project proceeds and thus emphasizes continual learning over deterministic planning.

F – Project Management Terms

Fallback plan

A predetermined alternative course of action adopted if a risk occurs and a contingency plan proves unsuccessful in avoiding the risk’s impact.

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. See also crashing and schedule compression.

A schedule compression technique or duration compression technique in which the duration of a critical path is shortened by performing sections of some critical path activities concurrently instead of consecutively.

Feasibility study

An evaluation of how likely a project is to be completed effectively, or how practical it is, taking resources and requirements into consideration.

Finish-To-Finish

In a finish-to-finish relationship, a successor activity cannot finish until a predecessor activity has finished.

A logical relationship in which a successor activity cannot finish until a predecessor activity has finished. See also finish-to-start, start-to-finish, start-to-start, and logical relationship.

Finish-To-Start

In a finish-to-start relationship, a successor activity cannot start until a predecessor activity has finished.

A logical relationship in which a successor activity cannot start until a predecessor activity has finished. See also finish-to-finish, start-to-finish, start-to-start, and logical relationship.

Fishbone diagram

A fishbone diagram is used in project management to identify and categorize the possible causes of an effect. (See also Ishikawa diagram)

Fixed duration

A task in which the time required for completion is fixed.

Fixed Formula Method

A method of estimating earned value in which a specified percentage of the budget value of a work package is assigned to the start milestone and the remaining percentage is assigned when the work package is complete. See also weighted milestone method.

The fixed formula method calculates earned value in a given period of time by splitting a work package budget between the start and completion milestones of a work package. A known proportion of value is earned upon beginning the work package, and the rest is earned upon completing the work package.

Fixed price contract (FPC)

A fixed price contract pays an agreed-upon fee and does not incorporate other variables, such as time and cost.

Fixed units

A task in which the number of resources used is fixed.

Fixed work

A task in which the amount of effort required is fixed.

Float

A measure of the schedule flexibility involving a particular task.

Flowchart

A diagram that lays out the complete sequence of steps in a process or procedure.

Focused improvement

An improvement strategy based on the theory of constraints. Attention is focused on addressing one limiting factor — called a constraint — at a time in order to optimize a system. Each constraint is improved until it no longer limits the system’s performance.

Fordism

Fordism, named for Henry Ford, is a manufacturing system in which mass-produced goods are priced affordably enough that those producing them may reasonably buy them with their own wages.

Forecast

A prediction or estimation of future project status based on available information.

Formal acceptance

The step at which authorized stakeholders sign off on a product, indicating that it meets their expectations.

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. See also backward pass.

A technique used to calculate early start and finish dates by working forwards from a point in a project schedule model.

Free Float

The amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint. See also total float, critical path, near-critical activity, and near-critical path.

The amount of time by which an activity can be postponed without affecting the early start dates of a successor activity.

Functional manager

The individual in charge of all activities carried out by a particular functional department within an organization.

Functional Organization

An organization which organizes and manages staff members in groups based on specialty areas.

An organizational structure in which staff is grouped by areas of specialization and the project manager has limited authority to assign work and apply resources. See also matrix organization and projectized organization.

Functional Requirements

The working characteristics of a product. These are based on how end users will use the product.

Future state

A detailed representation of the ideal condition of a company’s business processes after improvement.

G – Project Management Terms

Gantt Chart

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.

A Gantt chart is a type of bar chart that shows all the tasks constituting a project. Tasks are listed vertically, with the horizontal axis marking time. The lengths of task bars are to scale with tasks’ durations. (See also bar chart)

Gate

An end-of-phase checkpoint at which decisions are made regarding whether and how to continue with the project. (See also phase gate)

Go/No go

A point in a project at which it is decided whether to continue with the work.

Goal

An objective set by an individual or an organization. It is a desired endpoint reached by setting and working towards targets.

Goal setting

The process of creating specific, measurable, and attainable goals and of setting deadlines for these goals if desired.

Gold plating

The practice of incorporating features and improvements that go beyond a product’s agreed-upon characteristics. This is generally done to boost customer satisfaction.

Governance

The structure by which roles and relationships between project team members and an organization’s high-level decision makers are defined.

Graphical evaluation and review technique (GERT)

A network analysis technique that uses Monte Carlo simulation to bring a probabilistic approach to network logic and the formation of duration estimates. It is an alternative to the PERT technique but is not often used in complex systems.

H – Project Management Terms

Hammock activity

In a schedule network diagram, a hammock activity is a type of summary activity that represents a number of grouped – but unrelated -smaller activities that occur between two dates.

Handover

In the project life cycle, a handover is the point at which deliverables are given to users.

Hanger

An unplanned break in a network path, usually caused by oversights regarding activities or dependent relationships between activities.

HERMES

A project management method created by the Swiss government and used by IT and business organizations. It is a simplified project management method that can be adapted to projects with varying degrees of complexity. It provides document templates to expedite project-related work.

High-Level requirements

The high-level requirements explain the major requirements and characteristics of the final product, including its purpose as a product and within the company. (See also product description)

Historical information

Data from past projects used in the planning of future projects.

Human resource management plan

A human resource management plan details the roles of and relationships between personnel working on a project, as well as how personnel will be managed. It is part of the project management plan.

Hypercritical activities

Critical path activities with negative slack time. They are created when a sequence of critical path activities leading up to another activity is too long to be completed in the stated duration.

I – Project Management Terms

Information distribution

The channels used to provide stakeholders with timely information and updates regarding a project.

Initiation phase

The formal start of a new project. It involves receiving proper authorization and creating a clear definition for the project.

Inputs

The information required to start the project management process.

Inspection

The process of reviewing and examining the final product to assess compliance to initial requirements and expectations.

Integrated assurance

The process of coordinating assurance activities across a number of assurance providers.

Integrated change control

The coordination of changes throughout all aspects of a project, including scope, budget, and schedule.

Integrated master plan (IMP)

A project management tool used to break down project work in large, complex projects. It lists project tasks and events in a hierarchical structure and shows relationships between them.

Integrated master schedule (IMS)

An integrated master schedule is produced from an integrated master plan. It is a list of all project tasks represented as a networked schedule.

Integration management plan

A document that explains integration planning and details how changes to project aspects will be managed.

Integration planning

The process of deciding how project elements will be integrated and coordinated and how changes will be addressed throughout the project management process.

Integrative management

Management processes that coordinate a number of project aspects including cost, schedule, and resources (among others).

Invitation for bid

An invitation for expressions of interest that a procuring organization extends. (See also request for proposal)

Ishikawa diagram

Ishikawa diagrams are used in project management to identify the possible causes of an effect. (See also fishbone diagram)

ISO 10006

A set of quality-management guidelines for projects. It is a standard created by the International Organization for Standardization.

Issue

Anything that can cause problems for a project. The term typically refers to major problems that cannot be tackled by the project team on their own.

Issue log

Project issues and the persons responsible for resolving them. It may also include issue status, plans for resolution, and resolution deadlines.

Iteration

A concept from iterative software development that specifies a fixed time cycle for development work, typically a few weeks long. The development life cycle consists of a number of iterations, sometimes with a functional version of the software produced at the end of each one. Iterative development prioritizes time over scope, so there are rarely concrete requirements to be achieved in an iteration.

Iterative development

Iterative development focuses on developing products in a series of repeated fixed-time iterations, instead of working towards a single deliverable. At the end of an iteration, the team assesses progress and sets targets for the next iteration.

Iterative and incremental development

Iterative and incremental development is any combination of the iterative and incremental development approaches. It is an alternative to the waterfall development method: instead of focusing on sequential development with a single end product, it passes through a number of development cycles, with an improved version of the product, called an increment, produced at the end of each iteration.

J – Project Management Terms

K – Project Management Terms

Kanban

The word kanban means visual signal in Japanese. Kanban is a visual communication approach to the project management process. It uses visual tools like sticky notes or virtual cards in an online bulletin board to represent project tasks and to track and indicate progress throughout a project.

Kickoff meeting

The first meeting between a project team and stakeholders. It serves to review project expectations and to build enthusiasm for a project.

Key performance indicator (KPI)

A Key performance indicator is a metric for measuring project success. Key performance indicators are established before project execution begins.

L – Project Management Terms

Lag/Lag time

A necessary break or delay between activities.

Lag/Lead Time

Lag is The amount of time whereby a successor activity will be delayed with respect to a predecessor activity. Lead is the amount of time whereby a successor activity can be advanced with respect to a predecessor activity.

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 early finish date, early start date, late start date, and schedule network analysis.

The latest possible date a scheduled activity can be completed without delaying the rest of the project.

Late Start Date

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. See also early finish date, late finish date, early start date, and schedule network analysis.

The latest possible date a scheduled activity can be started without delaying the rest of the project.

Lateral thinking

Lateral thinking involves using a roundabout method to inspire new ideas or solutions. It can be done in a variety of ways, from using a random word to choosing an object in a room as a basis for thought.

Lead/Lead time

The amount of time an activity can be brought forward with respect to the activity it is dependent upon.

Lean manufacturing

A production methodology based on the idea of streamlining and doing more with less, such as by providing customers with the same product value while eliminating waste and thus reducing production costs.

Lean six sigma

Lean six sigma combines the no-waste ideals of lean manufacturing with the no-defects target of six sigma. The goal of Lean six sigma is to eliminate waste and defects so that projects cost less and deliver more consistent quality.

Lean Startup

Lean startup is a methodology for developing businesses and products that aims to shorten product development cycles and rapidly discover if a proposed business model is viable; this is achieved by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and validated learning.

Lessons Learned

The knowledge gained during a project which shows how project events were addressed or should be addressed in the future for the purpose of improving future performance.

The sum of knowledge gained from project work, which can be used as references and points of interest for future projects.

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 apportioned effort and discrete effort

Work that is not directly associated with components of a work breakdown structure but that can instead be thought of as support work. Examples of level of effort include maintenance and accounting. It is one of three types of activities used to measure work performance as part of earned value management.

Life cycle

The entire process used to build its deliverables. Life cycles are divided into a number of phases. A variety of life cycle models are in use in project management.

Line of balance

A graphical technique used to illustrate relationships between repetitive tasks in projects such as building identical housing units. Each set of repetitive tasks is illustrated as a single line on a chart. Project managers look for places where dependent tasks intersect, indicating that the successor task must be delayed.

Linear sequential model

A linear sequential model moves through a project life cycle’s phases systematically and sequentially. It is typically used for small projects with straightforward requirements, since sequential development makes it difficult to revise design based on testing or preliminary feedback. (See also waterfall model)

Linear scheduling method

A graphical scheduling technique used to assign resources when project work consists of repetitive tasks. It focuses on maximizing resource use and reducing time wastage due to interruptions.

Logic network

A chronologically arranged diagram that shows relationships between project activities.

Logical Relationship

A dependency between two activities or between an activity and a milestone. See also finish- to-finish, finish-to-start, start-to-finish, and start-to-start.

A dependency between project activities or between project activities and milestones.

M – Project Management Terms

Management

The act of overseeing planning, personnel, and resources to achieve a goal.

Management process

The act of planning and executing a project or process to meet a defined set of objectives or goals. Management processes may be carried out at multiple levels within organizations, with the scale and scope of activities typically increasing up the organizational hierarchy.

Management Reserve

Time or money that management sets aside in addition to the schedule or cost baseline and releases for unforeseen work that is within the scope of the project. See also contingency reserve and project budget.

An allocation of money or time (or both) to address unforeseeable circumstances that might delay or increase the costs of a project. A management reserve is not the same as a contingency reserve, which is an allocation made for known possibilities. The senior management must typically approve any release of funds from a management reserve.

Management science (MS)

A field of study that seeks to improve organizational decision making through the use of quantitative and scientific research methods. It evaluates management decisions and outcomes to find optimal solutions to problems, and thus enables better decision making. (See also operations research)

Master project

A master project file comprises a number of smaller projects, called subprojects, arranged hierarchically.

Matrix Organization

An organizational structure in which the project manager shares authority with the functional manager temporarily to assign work and apply resources. See also functional organization and projectized organization.

Employees in a matrix organization report to more than one boss, with different lines of reporting representing different organizational projects or functions. A matrix structure can boost employee engagement and cross-field approaches to problem solving, but it can also create ambiguity over an employee’s role.

Maturity model

Maturity is the extent to which an organization’s methods, processes, and decisions are standardized and optimized. A maturity model assesses one or more of these aspects against a set of external benchmarks to determine an organization’s maturity level. Maturity models allow organizations to assess themselves according to management best practices. They typically offer recommendations for improvement.

Megaproject

A complex, large-scale, and high-investment project. Only hard projects may be termed megaprojects.

Merge point

A point in a network diagram at which multiple predecessor activities culminate in a single successor activity. The successor activity may not start until all the predecessor activities have finished.

Milestone

Milestones indicate specific progress points or events in project timelines. They mark progress needed to complete projects successfully.

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

Milestone Schedule

A type of schedule that presents milestones with planned dates.

A milestone schedule details the time relationships associated with project milestones.

Mission statement

A concise enunciation of the goals of an activity or organization. Mission statements are usually a short paragraph, and can be created for entire organizations or for individual projects. They are designed to provide direction and guidance.

Modern project management

An umbrella term for a number of contemporary management strategies. In contrast to traditional management, modern project management: features more recognition of quality and scope variation; refines processes more frequently; stresses collective, interdisciplinary knowledge and team consensus over individual leadership. It is also less based on traditional hierarchies- modern project teams draw from a range of organizational levels and functional areas.

Monte Carlo simulation/technique

Monte Carlo simulation is a computer-based technique that performs probabilistic forecasting of possible outcomes to facilitate decision making. For each possible decision — from the most high-risk to the most conservative — a Monte Carlo simulation provides decision makers with a range of possible outcomes and the likelihood that each will occur.

MoSCoW

The MoSCoW prioritization method allows project managers to communicate with stakeholders on the importance of delivering specific requirements. The acronym indicates four categories of priority and importance for project requirements. Each requirement is prioritized as a “must have,” a “should have,” a “could have,” or a “won’t have.”

Most Likely Duration

An estimate of the most probable activity duration that takes into account all of the known variables that could affect performance. See also optimistic duration, and pessimistic duration.

An estimate of the most probable length of time needed to complete an activity. It may be used to compute expected activity duration through a technique called three-point estimation.

Motivation

A reason or stimulus that makes a person behave in a certain manner. In management, motivation refers to the desire to pursue personal or organizational goals and is positively associated with productivity.

Murphy’s Law

Murphy’s Law — “What can go wrong will go wrong.” — is cited in project management as a reason to plan adequately for contingencies.

N – Project Management Terms

Near-Critical Activity

An activity with a total float that is deemed to be low based on expert judgment. See also critical path, free float, near-critical path, and total float.

A near-critical activity has only a small amount of total float, or slack time. Near-critical activities have a high chance of becoming critical since their float is easily exhausted.

Near-Critical Path

A sequence of activities with low float which, if exhausted, becomes a critical path sequence for the project. See also critical path, free float, near-critical activity, and total float.

A series of activities with only small amounts of total float, called near-critical activities. A near-critical path may become a critical path if its float is exhausted.

Negative variance

The amount by which actual project performance is worse than planned project performance. Negative variances in time and budget show the project is taking longer and is more expensive than planned, respectively.

Negotiation

A discussion to resolve an issue between parties. Negotiations can take place at any point during an activity and may be formal or informal.

Net present value (NPV)

Net present value is a concept that compares the present value of a unit of currency to its inflation-adjusted possible value in the future. It allows organizations to determine the financial benefits, or lack thereof, of long-term projects.

Network Path

A sequence of activities connected by logical relationships in a project schedule network diagram. See also early finish date, early start date, late finish date, late start date, and network logic.

In a schedule network diagram, a network path is a logically connected continuous series of activities.

Network Logic

All activity dependencies in a project schedule network diagram. See also early finish date, early start date, late finish date, late start date, and network path.

Node

A point at which dependency lines connect on a schedule network diagram. See also precedence diagramming method (PDM) and project schedule network diagram.

In a network diagram, a node is a point at which dependency lines meet. In activity-on-node diagrams, nodes represent activities. In activity-on-arrow diagrams, they represent events or stages.

Nonlinear management (NLM)

Nonlinear management refers broadly to management practices which emphasize flexibility, self-organization, and adaptation to changing circumstances. It runs counter to concepts in linear management, which seek to impose structure on organizations. The defining characteristics of nonlinear management include encouragement of out-of-the-box thinking, proactivity in responding to challenges, and flexible working arrangements for employees.

O – Project Management Terms

Objective

A clear, concise statement about what an activity is meant to accomplish. Objectives are written to be SMART: specific, measurable, achievable, realistic, and time-bound. A successful project meets all its stated objectives.

Operations and maintenance

Operations and maintenance is the stage at which a project or system is handed over to staff who will put it into full operation and carry out routine maintenance.

Operations management

The duty of ensuring that an organization’s operations are functioning optimally. Operations managers maintain and improve the efficacy and efficiency of business processes. They seek to develop operations which deliver high-quality outputs while keeping costs low.

Operations research (OR)

A field of study that uses mathematical, statistical, and scientific methods to aid and optimize decision making. It uses techniques such as mathematical modeling and optimization to enable better decision making. (See also management science)

Opportunity

A risk that would have a positive effect on one or more project objectives. See also issue, risk, and threat.

In project management, an opportunity is a possibility that can contribute to project objectives. Opportunities in project management are classified as a type of risk.

Opportunity cost

The opportunity cost of a particular course of action is the loss of potential gains from all alternative courses of action.

Optimistic Duration

An estimate of the shortest activity duration that takes into account all of the known variables that could affect performance. See also most likely duration and pessimistic duration.

An estimate of the shortest length of time needed to complete a specific activity or task. It may be used to compute expected activity duration through a technique called three-point estimation.

Order of magnitude estimate

An order of magnitude estimate provides an early, imprecise idea of the time and money required to complete a project. It uses historical data from completed projects to form adjusted estimates for similar new projects, usually presenting these estimates as ranging from -25 percent to +75 percent of the actual budget to indicate the levels of uncertainty involved.

Organization

A formally structured arrangement of parties that actively pursues a collective purpose. Organizations can be affected by external factors, and they in turn can affect the external environment.

Organization development

Broadly, organization development involves strategic efforts to improve aspects of organizational performance such as efficacy, efficiency, and sustainability, as well as aspects of organizational health such as employee satisfaction and engagement. The term may also refer to a field of study focusing on the characteristics of organizations and their growth and evolution.

Organizational Breakdown Structure

A hierarchical representation of the project organization, which illustrates the relationship between project activities and the organizational units that will perform those activities. See also resource breakdown structure, risk breakdown structure, and work breakdown structure (WBS).

A hierarchical model of an organization’s units and all its activities. It shows relationships between activities and organizational units and indicates the responsibilities of each unit, thus providing a holistic perspective of how an organization operates.

Organizational Enabler

A structural, cultural, technological, or human-resource practice that the performing organization can use to achieve strategic objectives. See also organizational project management.

Any practice, tool, knowledge, or skill base that facilitates an organization’s pursuit of its objectives may be termed an organizational enabler.

Organizational planning

The strategic process of defining roles, responsibilities, and reporting hierarchies for parties within an organization, keeping the organization’s objectives in mind. It is carried out based on the principles and strategies by which an organization manages its members.

Organizational Process Assets

Plans, processes, policies, procedures, and knowledge bases specific to and used by the performing organization.

The specific set of formal and informal plans and processes in use at an organization. They also constitute the sum of knowledge and experience accumulated from past efforts. Organizational process assets are essentially the unique knowledge and processes that facilitate an organization’s operations.

Organizational Project Management

A framework in which portfolio, program, and project management are integrated with organizational enablers in order to achieve strategic objectives. See also organizational enabler.

A strategic approach that emphasizes the effective management of projects, programs, and portfolios as the best way to pursue organizational objectives. It focuses on aligning an organization’s activities with its objectives and on managing these activities collectively, so they contribute to objectives.

Organizational Project Management Maturity

The level of an organization’s ability to deliver the desired strategic outcomes in a predictable, controllable, and reliable manner.

A measure of an organization’s ability to meet its objectives by effectively managing all its activities. It can be assessed with a maturity model called the OPM3, which, like other maturity models, provides comparisons and recommendations for improvement.

Output

In project management, an output is the (usually physical) end product of a process.

Overall change control

The evaluation, coordination, and management of project-related changes. It concerns both the effective integration of changes to benefit the project and the management of adverse changes or emergencies, so that project activities are not disrupted.

P – Project Management Terms

P3 assurance

P3 assurance involves satisfying sponsors and stakeholders that projects, programs, and portfolios are on course to meet performance expectations, fulfill objectives, and meet requirements.

P3 management

P3 management refers collectively to the management of projects, programs, and portfolios.

Parallel life cycle

In a parallel life cycle, certain phases are conducted in parallel (they overlap).

Parametric Estimating

An estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters. See also analogous estimating, bottom-up estimating, program evaluation and review technique (PERT), and three-point estimating.

A technique for estimating cost and duration based on using historical data to establish relationships between variables — for example, calculating unit costs and the number of units required to complete a similar activity.

Pareto chart

A Pareto chart is a combination bar chart and line graph where the bars represent category frequencies in descending order from left to right, and the line tracks the cumulative total as a percentage.

Path Convergence

A relationship in which a schedule activity has more than one predecessor. See also path divergence, predecessor activity, and successor activity.

On a schedule network diagram, path convergence occurs when an activity has multiple predecessors.

Path Divergence

A relationship in which a schedule activity has more than one successor. See also path convergence, predecessor activity, and successor activity.

On a schedule network diagram, path divergence occurs when an activity has multiple successors.

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.

The percent complete indicates the amount of work completed on an activity as a percentage of the total amount of work required.

Performance Measurement Baseline

Integrated scope, schedule, and cost baselines used for comparison to manage, measure, and control project execution. See also baseline, cost baseline, schedule baseline, and scope baseline.

A performance measurement baseline uses the schedule, cost, and scope baselines to create a point of comparison by which project performance is assessed. Variance from the performance measurement baseline may prompt corrective action.

Performance reporting

Performance reporting is formally informing stakeholders about a project’s current performance and future performance forecasts. The aspects of performance to be reported are typically laid out in a communications management plan.

Performing Organization

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

The performing organization for a project is the one whose members and resources most directly perform the project work.

Pessimistic Duration

An estimate of the longest activity duration that takes into account all of the known variables that could affect performance. See also most likely duration, and optimistic duration.

The pessimistic duration is an estimate of the longest length of time needed to complete a specific activity or task. It may be used to compute expected activity duration through a technique called three-point estimation.

PEST analysis

A PEST analysis examines how political, economic, social, and technological factors might affect a project.

Phase

A distinct stage in a project life cycle.

Phase Gate

A review at the end of a phase in which a decision is made to continue to the next phase, to continue with modification, or to end a project or program. See also project phase.

A phase gate is an end-of-phase checkpoint where the project leadership reviews progress and decides whether to continue to the next phase, revisits work done in the phase, or ends the project.

Planned Value (PV)

The authorized budget assigned to scheduled work. See also actual cost (AC), budget at completion (BAC), earned value (EV), estimate at completion (EAC), and estimate to complete (ETC).

The budget assigned to the work it is meant to accomplish. (See also budgeted cost for work scheduled)

Planning

The development of a course of action to pursue goals or objectives.

Planning phase

In project management, planning refers specifically to a phase of the life cycle that involves creating plans for management, control, and execution, as well as for what a project is meant to accomplish.

Planning poker

A consensus-based estimation technique. It attempts to avoid the anchoring effect — where the first estimate forms a baseline for all subsequent estimates — by having project team members make estimates simultaneously and discuss their estimates until they reach agreement.

Portfolio

Projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives. See also program and project.

A collectively managed set of programs and projects.

Portfolio Charter

A document issued by a sponsor that authorizes and specifies the portfolio structure and links the portfolio to the organization’s strategic objectives. See also program charter and project charter.

Portfolio Balancing

The process of optimizing the mix of portfolio components to further the strategic objectives of the organization.

An aspect of organizational project management, portfolio balancing involves selecting and tailoring a portfolio’s components so they can be managed in line with organizational objectives.

Portfolio charter

A portfolio charter details the formal structure of a portfolio and describes what it is meant to achieve. It authorizes the creation of a portfolio and connects its management with organizational objectives.

Portfolio Management

The centralized management of one or more portfolios to achieve strategic objectives. See also program management and project management.

The collective management of portfolios and their components in line with concepts of organizational project management.

Portfolio Management Plan

A document that specifies how a portfolio will be organized, monitored, and controlled. See also program management plan and project management plan.

Portfolio Manager

The person or group assigned by the performing organization to establish, balance, monitor, and control portfolio components in order to achieve strategic business objectives. See also program manager and project manager.

The individual responsible for balancing and controlling a portfolio in line with concepts of organizational project management.

Portfolio, program, and project management maturity model (P3M3)

The P3M3 assesses organizational performance in portfolio, program, and project management via a set of key process areas (KPAs). Like other maturity models, the P3M3 allows organizations to measure their performance against external benchmarks and provides a roadmap for project performance and delivery improvement.

Positive variance

The amount by which actual project performance is better than planned project performance. Positive variances in time and budget show the project is proceeding faster and is less expensive than planned, respectively.

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. See also node and project schedule network diagram.

The process of constructing a project schedule network diagram. It illustrates the logical relationships between project activities and shows the order in which they must be performed by using nodes to represent activities and arrows to show dependencies. PDM also indicates early and late start and finish dates, as well as activity durations.

Precedence network

A precedence network visually indicates relationships between project activities. Boxes and links are used to represent activities and activity relationships. Precedence networks also detail the time relationships and constraints associated with activities.

Predecessor Activity

An activity that logically comes before a dependent activity in a schedule. See also successor activity and summary activity.

In a schedule, a predecessor activity logically comes immediately before another activity, which is dependent on the predecessor.

Preventive Action

An intentional activity that ensures the future performance of the project work is aligned with the project management plan. See also corrective action.

A step taken to ensure future work does not stray from performance expectations. A preventive action, which is proactive, is not the same as a corrective action, which is reactive.

PRINCE2

PRINCE2 is an acronym for projects in controlled environments, version 2. It is a project management methodology that emphasizes business justifications for projects. PRINCE2 management is based on clear organization of project roles and responsibilities and managing when necessary rather than by obligation. It involves planning and executing projects in a series of stages, with stipulated requirements for each work package.

PRiSM

PRiSM is an acronym for projects integrating sustainable methods. It is a project management methodology that focuses on minimizing negative impacts on society and the environment. PRiSM focuses on sustainability. It is essentially green project management.

Probability and Impact Matrix

A grid for mapping the probability of occurrence of each risk and its impact on project objectives if that risk occurs. See also risk.

A visual framework for categorizing risks based on their probability of occurrence and impact.

Problem statement

A problem statement concisely states and describes an issue that needs to be solved. It is used to focus and direct problem-solving efforts.

Process

A process is a repeatable sequence of activities with known inputs and outputs. Processes consume energy.

Process architecture

The sum of structures, components, and relationships that constitute a process system, which is a complex system of processes. It refers to the overall design of a process system and comprises both infrastructure (the constituent parts and relationships) and suprastructure (the larger system of which the process system is part).

Process management

The act of planning, coordinating, and overseeing processes with a view to improving outputs, reducing inputs and energy costs, and maintaining and improving efficiency and efficacy.

Process-based project management

A methodology that views projects as means of pursuing organizational objectives. It involves using an organization’s mission and values to guide the creation and pursuit of project objectives. If project objectives aren’t in alignment with the company mission statement, they are amended accordingly.

Procurement Management Plan

A component of the project or program management plan that describes how a team will acquire goods and services from outside of the performing organization. See also project management plan.

A procurement management plan explains how an organization will obtain any external resources needed for a project.

Product breakdown structure (PBS)

A product breakdown structure is used in project management to record and communicate all project deliverables in a hierarchical tree structure. It may be thought of as a comprehensive list of all project outputs and outcomes.

Product description

A product description defines and describes a project product and its purpose. (See also high-level requirements)

Product Life Cycle

The series of phases that represent the evolution of a product, from concept through delivery, growth, maturity, and to retirement. See also project life cycle.

Product verification

Product verification involves examining a deliverable to ensure, among other things, that it meets requirements, quality benchmarks, and expectations set by the product description. It is conducted before a product is presented to a customer for acceptance.

Professional development unit (PDU)

A continuing education unit that project management professionals (PMPs) take to maintain certification.

Program

Related projects, subsidiary programs, and program activities managed in a coordinated manner to obtain benefits not available from managing them individually.

A collectively managed set of projects.

Program Charter

A document issued by a sponsor that authorizes the program management team to use organizational resources to execute the program and links the program to the organization’s strategic objectives. See also portfolio charter and project charter.

An approved document that authorizes the use of resources for a program and connects its management with organizational objectives.

Program Evaluation and Review Technique (PERT)

A technique used to estimate project duration through a weighted average of optimistic, pessimistic, and most likely activity durations when there is uncertainty with the individual activity estimates. See also analogous estimating, bottom-up estimating, parametric estimating, and three-point estimating.

PERT is a statistical method used to analyze activity and project durations. PERT networks are typically illustrated with activity-on-arrow diagrams. The method makes use of optimistic, pessimistic, and most likely durations to estimate expected durations for project activities and to determine float times, early and late start dates, and critical paths. (See also three-point estimating)

Program Management

The application of knowledge, skills, and principles to a program to achieve the program objectives and to obtain benefits and control not available by managing program components individually. See also portfolio management and project management.

The collective management of programs and their components in line with concepts of organizational project management.

Program Management Plan

A document that integrates the program’s subsidiary plans and establishes the management controls and overall plan for integrating and managing the program’s individual components. See also portfolio management plan and project management plan.

Program Management Office

A management structure that standardizes the program-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. See also project management office.

Program Manager

The person authorized by the performing organization to lead the team or teams responsible for achieving program objectives. See also portfolio manager and project manager.

A program manager has formal authority to manage a program and is responsible for meeting its objectives as part of organizational project management methods. They oversee, at a high level, all projects within a program.

Progress analysis

The measurement of progress against performance baselines. Progress analysis collects information about the status of an activity that may prompt corrective action.

Progressive Elaboration

The iterative process of increasing the level of detail in a project management plan as greater amounts of information and more accurate estimates become available.

The practice of adding and updating details in a project management plan. It aims at managing to increase levels of detail as estimates are revised, and more up-to-date information becomes available.

Project

A temporary endeavor undertaken to create a unique product, service, or result. See also portfolio and program.

A temporary, goal-driven effort to create a unique output. A project has clearly defined phases, and its success is measured by whether it meets its stated objectives.

Project accounting

In project management, project accounting deals with reporting on the financial status of projects. It measures financial performance and actual costs against budgets or baselines. Therefore, it complements project management while providing financial information to the sponsor. Project accounting may also be referred to as job cost accounting.

Project baseline

A project baseline comprises the budget and schedule allocations set during the initiation and planning phases of a project. Assuming the scope of the project remains unchanged, it may be used to determine variance from budget or schedule.

Project calendar

A project calendar indicates periods of time for scheduled project work.

Project Budget

The sum of work package cost estimates, contingency reserve, and management reserve. See also contingency reserve and management reserve.

Project Calendar

A calendar that identifies working days and shifts that are available for scheduled activities.

Project 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 portfolio charter and program charter.

A Project charter is a document that details the scope, organization, and objectives of a project. It is typically created by a project manager and formally approved by the sponsor. A project charter authorizes the project manager’s use of organizational resources for the project and is understood to be an agreement between the sponsor, stakeholders, and project manager. (See also project)

Project cost management (PCM)

The use of an information system to estimate, measure, and control costs through the project life cycle. It aims at completing projects within budgets.

Project definition

A project definition or project charter is a document created by a project manager and approved by a project sponsor that details the scope, organization, and objectives of a project. It authorizes a project manager’s use of resources for a project and constitutes an agreement between the sponsor, stakeholders, and project manager (See also project charter)

Project Life Cycle

The series of phases that a project passes through from its start to its completion. See also product life cycle.

Project Management

The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. See also portfolio management and program management.

Project management body of knowledge (PMBOK)

The PMBOK is a collection of project management-related knowledge maintained by the Project Management Institute.

Project Management Office

A management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques. See also program management office.

An organizational unit that oversees project management-related activities within an organization. It seeks to facilitate and expedite project work through the use of standard procedures. A project management office also functions as a repository of general, project-related knowledge and resources.

Project Management Plan

The document that describes how the project will be executed, monitored and controlled, and closed. See also portfolio management plan, program management plan, communications management plan, cost management plan, resource management plan, procurement management plan, quality management plan, requirements management plan, risk management plan, schedule management plan, scope management plan, staffing management plan, and stakeholder engagement plan.

Project management process

A management process that encompasses all phases of a project, from initiation to the meeting of objectives.

Project management professional (PMP)

A Project management professional (PMP) is a person certified by the Project Management Institute upon completion of a course of formal education, an examination, and a certain number of hours managing projects. The certification is considered the gold standard in project management.

Project management simulators

Software training tools that teach project management skills via interactive learning and provide real-time feedback by which project management trainees can practice and reassess their decision making. Some simulators, such as the Monte Carlo simulator, are used to support and complement decision making in real projects.

Project management software

Project management software is a family of tools typically used in the management of complex projects. They provide the ability to: calculate estimates; create and manage schedules and budgets; track and oversee project activities and progress; assign and allocate resources; optimize decision making; and communicate and collaborate with members of a project team.

Project management triangle

A visual metaphor that illustrates relationships between scope, cost, and schedule. It expresses the idea that none of the three aspects can be amended without affecting the others.

Project Manager

The person assigned by the performing organization to lead the team that is responsible for achieving the project objectives. See also portfolio manager and program manager.

The person tasked with initiating, planning, executing, and closing a project, and with managing all aspects of project performance through these phases. The term is typically used for a project management professional. Project managers are able to use organizational resources for projects. They serve as contact points for sponsors, program managers, and other stakeholders.

Project network

A visual representation of the activities and dependencies involved in the successful completion of a project.

Project performance indicators

Measures used to assess project performance, usually with reference to project or performance baselines. These typically include cost, schedule, and scope statuses.

Project Phase

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

A distinct stage in a project management life cycle. Each phase comprises a set of project-related activities.

Project plan

A document formally approved by the project manager, sponsor, and other stakeholders which states the approved cost, schedule, and scope baselines. It guides project execution, control, and quality and performance assessment. The project plan also forms the basis for communication between parties involved in a project. Project plans can vary in their levels of detail.

Project planning

Project planning is usually the longest phase of the project management life cycle. It involves determining cost, schedule, and scope baselines and using these to create a detailed roadmap for executing project activities and producing deliverables.

Project portfolio management (PPM)

A method of collectively managing a portfolio’s constituent programs and projects to pursue organizational objectives. It involves optimizing the mix and scheduling of projects to pursue objectives as effectively as possible. Project portfolio management is closely related to organizational project management.

Project Schedule

An output of a schedule model that presents linked activities with planned dates, durations, milestones, and resources.

Project Schedule Network Diagram

A graphical representation of the logical relationships among the project schedule activities. See also node and precedence diagramming method (PDM).

A diagram is a visual representation of how scheduled project activities are ordered and related. Depending on the type of network diagram, boxes represent activities or events, and arrows indicate activities or dependencies, typically with expected durations.

Project Scope

The work performed to deliver a product, service, or result with the specified features and functions.

Project scope statement

A project scope statement details what a project is meant to achieve and describes the deliverables expected. It forms the basis of measurable objectives by which the success of a project will be assessed. Project scope statements are typically part of project plans.

The description of the project scope, major deliverables, assumptions, and constraints.

Project stakeholders

Broadly, a Stakeholder is any party which may be affected by a project. In project management, the term usually refers to parties with an interest in the successful completion of a project.

Project team

A project team is responsible for leading and collectively managing a project and its related activities through the project’s life cycle. Project teams may contain members from several different functional groups within an organization. Depending on the nature of the project, a project team may be disbanded upon completion of a project.

Project tiers

Project sizing categorizes projects into project tiers based on staff power or time required for completion to determine the most appropriate project management practices.

Projectized Organization

An organizational structure in which the project manager has full authority to assign work and apply resources. See also functional organization and matrix organization.

A projectized organization arranges all its activities into a collection of projects, programs, and portfolios. Projects are typically completed for external clients or customers. The prioritization of project work means the project manager can utilize resources and assign work as they see fit.

Proof of concept

A proof of concept is derived from a pilot project or experiment that examines whether an activity can be completed, or a concept can be realized. It shows the feasibility of an idea.

Proport

The term proport is used to define the sum of unique skills that team members bring to a project. These skills can be harnessed for collective benefit.

Q – Project Management Terms

Quality

In project management, quality is a measure of a deliverable’s degree of excellence. Quality may also refer to a clearly defined set of stakeholder requirements by which results are assessed.

Quality assurance

A set of practices designed to monitor processes and provide confidence that result in deliverables meeting quality expectations. It may involve quality audits and the stipulated use of best practices.

Quality control

The use of standardized practices to ensure that deliverables meet stakeholder expectations. It involves not only the definition and identification of unacceptable results but also the management of processes to optimize results.

Quality Management Plan

A component of the project or program management plan that describes how an organization’s policies, procedures, and guidelines will be implemented to achieve the quality objectives. See also project management plan.

A quality management plan identifies stakeholders’ quality expectations and details quality assurance and quality control policies to monitor results and meet these expectations. It is part of a project management plan.

Quality planning

Quality planning involves identifying expected quality standards and creating mechanisms to ensure these standards are met. It may also recommend corrective action if quality standards are not being met.

Quality, cost, delivery (QCD)

QCD is an approach to management that focuses on assessing production processes with regard to three aspects: quality, cost, and delivery. It seeks to simplify process management and facilitate decision making by providing objective information about each of the three aspects, with an understanding that modifications to any one aspect will also affect the others.

Qualitative risk analysis

A project management technique that subjectively analyzes risk probability and impact. The risks are categorized on a probability and impact matrix, and those deemed significant may undergo a quantitative risk analysis.

The mathematical analysis of risk probability and impact. In project management, it is not a substitute for qualitative risk analysis. Instead, quantitative analysis is conducted after qualitative analysis and assesses risks that qualitative analysis has identified as significant.

R – Project Management Terms

RAID log

RAID is an acronym for risks, assumptions, issues, and dependencies. The RAID log is a project management tool that records developments in these four aspects of project work for the stakeholders’ benefit and for an end-of-project review.

RASCI/RACI chart

A RASCI chart is created during project initiation to identify those who are: responsible for project activities, accountable for ensuring that work is done, signing off on the work, consulted in relation to work activities, and informed about the status of the work. The acronym may be simplified as RACI. (See also responsibility assignment matrix)

Reengineering

Reengineering involves the extensive redesign or rethinking of core processes to achieve major performance improvements. It focuses on optimizing key performance areas such as quality and efficiency. Reengineering often involves restructuring organizations so that multi-functional teams can manage processes from start to end.

Release

In IT project management, a release is a fully functional software delivered to a customer as agreed, typically after a series of iterations.

Remote team

A remote team’s members work in collaboration, usually electronically, from different geographic locations.

Repeatable

The term repeatable is used to describe a sequence of activities that may be easily and efficiently replicated. Repeatable processes are economical since they typically avoid negative variances and have established operations.

Request for proposal

A formal invitation for expressions of interest that is extended by an organization looking to procure goods or services. (See also invitation for bid)

Request for quotation

Upon receipt of proposals after issuing a request for proposal, an organization will issue a request for quotations to shortlisted proposers, asking for detailed cost estimations for specific goods or services.

Requirements management plan

A requirements management plan explains how project requirements will be defined, managed, and delivered. It is part of a project management plan and is used to guide project execution and control to adequately deliver requirements.

A component of the project or program management plan that describes how requirements will be analyzed, documented, and managed. See also project management plan.

Requirements traceability matrix

A table that tracks requirements through the project life cycle and product testing. It is used to ensure that a project is able to deliver the stipulated requirements during the verification process.

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

Requirements

A set of stipulations regarding project deliverables. They are a key element of the project scope and explain in detail the stakeholders’ expectations for a project.

Residual risk

Any risks that have not or cannot be addressed by risk mitigation or risk avoidance procedures. The residual risk that remains after risk responses have been implemented. (See also secondary risk).

Resource allocation

The assigning and scheduling of resources for project-related activities, ideally in the most efficient manner possible. Resource allocation is typically handled by a project manager, though they may be overridden by a program manager if resources are to be shared between multiple projects. (See also allocation)

Resource availability

Resource availability indicates whether a specific resource is available for use at a given time.

Resource Breakdown Structure

A hierarchical list of resources needed for project work represented by functions and classified by category and type. (See also organizational breakdown structure, risk breakdown structure, and work breakdown structure (WBS)).

Resource Calendar

A resource calendar indicates resource availability over a period of time, usually identifiable by the working days and shifts upon which each specific resource is available..

Resource Leveling

A resource optimization technique in which adjustments are made to the project schedule to optimize the allocation of resources and which may affect critical path. See also resource smoothing and resource optimization technique.

A technique that involves amending the project schedule to keep resource use below a set limit. It is used when it is important to impose limits on resource use. Resource leveling can affect a project’s critical path.

Resource Loading Profiles

Resource loading profiles indicate the number and type of personnel required to do project work over periods of time.

Resource Management Plan

A component of the project management plan that describes how project resources are acquired, allocated, monitored, and controlled. See also project management plan and staffing management plan.

Resource Optimization Technique

A technique in which activity start and finish dates are adjusted to balance demand for resources with the available supply. See also resource leveling and resource smoothing.

Resource optimization techniques seek to reconcile supplies and demands for resources. Depending on whether project duration or limiting resource use is prioritized, they can be used to amend activity start and finish dates in ways that do or do not affect a project’s critical path. (See also resource leveling and resource smoothing)

Resource Smoothing

A technique that makes use of float when allocating resources so as not to affect total project duration. It is used when project time constraints are important. Resource leveling does not affect a project’s critical path.

A resource optimization technique in which free and total float are used without affecting the critical path. See also resource leveling and resource optimization technique.

Resource-Limited schedule

A resource-limited schedule has had its start and end dates adjusted based on the expected availability of resources.

Resources

The elements needed for a project to successfully meet its objectives. Examples of resources include equipment, staff, locations, facilities, and money.

Responsibility Assignment Matrix

A grid that shows the project resources assigned to each work package. The responsibility assignment matrix identifies those who are: responsible for project activities, accountable for ensuring that work is done, consulted about work activities, and informed about the work status. (See also RASCI/RACI chart)

Retainage

he sum of money withheld from a contract payment until completion of the contract according to terms.

Return on investment (ROI)

The expected financial gain of a project expressed as a percentage of total project investment. It is used to assess the overall profitability of a project.

Risk

Risk is an uncertain event or condition that, if it occurs, affects the pursuit of objectives and may has an affect on one or more project objectives. In project management, risks that have a positive affect is called an opportunity, while risks that have a negative effect is called a threat. (See also issue).

Risk Acceptance

A risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs. See also risk avoidance, risk enhancement, risk exploiting, risk mitigation, risk sharing, and risk transference.

Risk acceptance involves acknowledging a risk and not taking preemptive action against it.

Risk Appetite

The degree of uncertainty an organization or individual is willing to accept in anticipation of a reward. See also risk threshold and risk tolerance.

The amount and type of risk an organization is willing to accept in anticipation of gains. It is not the same as risk tolerance, which is the amount of variation in performance measures that an organization is willing to accept.

Risk assessment

An activity that involves identifying possible risks to a project and examining how these risks, if they occur, would affect objectives.

Risk Avoidance

Risk avoidance focuses on avoiding threats that can harm an organization, its projects, or assets. Unlike risk management, which is geared toward mitigating the impact of a negative event, risk avoidance seeks to address vulnerabilities and make sure those events do not occur.

A risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact. See also risk acceptance, risk enhancement, risk exploiting, risk mitigation, risk sharing, and risk transference.

Risk Breakdown Structure

A hierarchical model representation of potential sources of all risks, arranged categorically. See also organizational breakdown structure, resource breakdown structure, and work breakdown structure (WBS).

Risk Category

A set of risks grouped by potential causes of risk.

Risk efficiency

A concept based on the idea of maximizing the return-to-risk ratio. It can do this in two ways: by minimizing exposure to risk for a given level of expected return or by seeking the highest possible expected return for a given level of risk.

Risk Enhancement

A risk response strategy whereby the project team acts to increase the probability of occurrence or impact of an opportunity. See also risk acceptance, risk avoidance, risk exploiting, risk mitigation, risk sharing, and risk transference.

Risk enhancement involves increasing the probability of an opportunity, or positive risk, occurring.

Risk Exposure

An aggregate measure of the potential impact of all risks at any given point in time in a project, program, or portfolio.

Risk Exploiting

A risk response strategy whereby the project team acts to ensure that an opportunity occurs. See also risk acceptance, risk avoidance, risk enhancement, risk mitigation, risk sharing, and risk transference.

Risk exploitation focuses on ensuring that an opportunity, or positive risk, occurs.

Risk identification

The process of identifying and examining risks and their effects on project objectives.

Risk management

A subset of management strategies that deals with identifying and assessing risks and acting to reduce the likelihood or impact of negative risks. Risk managers seek to ensure that negative risks do not affect organizational or project objectives.

Risk Management Plan

A component of the project, program, or portfolio management plan that describes how risk management activities will be structured and performed. See also project management plan.

Risk Mitigation

A risk response strategy whereby the project team acts to decrease the probability of occurrence or impact of a threat. See also risk acceptance, risk avoidance, risk enhancement, risk exploiting, risk sharing, and risk transference.

Risk mitigation involves decreasing the probability of a negative risk occurring, as well as protecting project objectives from a negative risk’s impact.

Risk monitoring and control

The risk monitoring and control process uses a risk management plan to identify risks and implement appropriate risk responses.

Risk Owner

A risk owner is responsible for determining and enacting appropriate responses to a specific type of risk. (See also risk response owner)

The person responsible for monitoring the risk and for selecting and implementing an appropriate risk response strategy.

Risk Register

A repository in which outputs of risk management processes are recorded.

A risk register, or risk log, is a tool used to chronicle risky situations and risk responses as they arise.

Risk response owner

A risk owner monitors a specific type of risk and implements appropriate risk responses when necessary. (See also risk owner)

Risk response planning

Risk response planning is typically conducted after risk analyses to determine appropriate courses of action for risks is deemed significant.

Risk Sharing

A risk response strategy whereby the project team allocates ownership of an opportunity to a third party who is best able to capture the benefit of that opportunity. See also risk acceptance, risk avoidance, risk enhancement, risk exploiting, risk mitigation, and risk transference.

Risk sharing involves handing ownership of a positive risk to a third party who is typically specialized and better able to realize the opportunity.

Risk Threshold

The measure of acceptable variation around an objective that reflects the risk appetite of the organization and stakeholders. See also risk appetite and risk tolerance.

The level at which the likelihood or impact of a risk becomes significant enough that the risk manager deems a risk response necessary.

Risk Tolerance

deprecated! – The degree of uncertainty that an organization or individual is willing to withstand. See also risk appetite and risk threshold.

The level of variation in performance measures that an organization is willing to accept. It is not the same as risk appetite, which is the level and type of risk an organization is prepared to accept in anticipation of gains.

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. See also risk acceptance, risk avoidance, risk enhancement, risk exploiting, risk mitigation, and risk sharing.

Risk transference involves handing ownership of risk to a third party who is typically specialized and better able to address the risk or to withstand its impact.

Risk trigger

An event that causes a risk to occur. A trigger can serve as a warning that a risk has occurred or is about to occur.

Rolling Wave Planning

An iterative planning technique in which the work to be accomplished in the near term is planned in detail, while the work in the future is planned at a higher level.

A planning approach that focuses on in-depth detailing of work to be accomplished in the near term and progressively lower levels of detail for work scheduled farther in the future. It is based on the idea that work scheduled in the future is more subject to change and thus less worth planning in detail. Rolling wave planning only works for schedules with clearly defined iterations.

Root cause

The primary reason an event occurs.

Run book

A comprehensive catalog of information needed to conduct operations and to respond to any emergency situations that arise during operations. It typically details, step by step, all regular operational procedures and emergency responses.

S – Project Management Terms

S-Curve Analysis

An s-curve tracks cumulative financial or labor costs. S-Curve analysis is a technique used to compare a project’s cumulative costs at any given point with a cumulative cost baseline created during the planning phase. It allows project managers and sponsors to indicate performance trends and progress, by using a graph that displays cumulative costs over a specific time period.

Schedule

A comprehensive list of project activities and milestones in logical order, with start and finish dates for each component.

Schedule baseline

A schedule baseline is the original project schedule — approved by the project team, sponsor, and stakeholders — by which performance is assessed. The approved version of a schedule model are generally inflexible, but can be changed using a formal change control procedure and is used as the basis for comparison to actual results. (See also baseline, cost baseline, performance measurement baseline, and scope baseline).

Schedule Compression

A schedule compression technique is used to shorten the schedule duration and speed up projects without affecting or reducing the project scope, by decreasing the duration of a project’s critical path. There are two main schedule compression techniques: crashing and fast tracking. (See also duration compression, crashing and fast tracking)

Schedule Management Plan

A component of the project or program management plan that establishes the criteria and the activities for developing, monitoring, and controlling the schedule. See also project management plan.

Schedule Model

A logically arranged, time-based plan for project activities to create a project schedule. It is 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.

Schedule Model Analysis

Schedule model analysis is used to investigate or analyze the output of the project schedule created from a schedule model. It aims to optimize the schedule, usually via the use of scheduling software.

Schedule Network Analysis

Schedule network analysis uses a variety of techniques to identify early and late start and finish dates for the uncompleted portions of project activities to create project schedules.

Schedule Performance Index (SPI)

A measure of schedule efficiency calculated as the ratio of earned value to planned value at a given point in time. It shows whether a project is running to schedule. An SPI lower than one indicates the project is behind schedule. An SPI higher than one indicates the project is ahead of schedule. (See also Cost Performance Index (CV)).

Schedule Variance (SV)

A measure of schedule performance calculated as the difference between the earned value and the planned value at a given point in time. (See also Cost Variance (CV)).

Scientific management

Scientific management was an early attempt to bring scientific approaches to process management. Its earliest form was derived from a 1911 monograph by Frederick W. Taylor, who focused on increasing economic efficiency via the analysis and optimization of labor processes.

Scope

The scope of a project constitutes everything it is supposed to accomplish in order to be deemed successful.

Scope Baseline

A set of requirements, expectations, and work packages approved as project deliverables, used to guide and assess project performance. The approved version of a scope statement, work breakdown structure (WBS), and its associated WBS dictionary that can be changed using formal change control procedures and is used as the basis for comparison to actual results. (See also baseline, cost baseline, performance measurement baseline, and schedule baseline).

Scope change management

Scope change management deals with amendments to the scope as set in the scope baseline and project management plan. Since scope amendments typically affect cost and schedule estimates, scope change management involves revising estimates and adequately communicating these to stakeholders, as well as obtaining the resources necessary to fulfill new scope requirements.

Scope Creep

Scope creep refers to the uncontrolled expansion to product or project scope without adjustments to time, cost, and resources. Its gradual changes in project scope that occur without a formal scope change procedure. Scope creep is considered negative since unapproved changes in scope affect cost and schedule but do not allow complementary revisions to cost and schedule estimates.

Scope Management Plan

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

Scrum

Scrum is an iterative development procedure used in software development projects. Scrum-based projects focus on prioritizing requirements and working towards a clear set of goals over a set time period, called a sprint. The development team thus works through the list of requirements over a number of sprints. Scrum-based projects usually do not have project manager. Instead, the project team meets daily for progress updates.

Secondary Risk

A risk that arises as a direct result of implementing a risk response. (See also residual risk).

Security

Security in project management refers broadly to protecting humans, information, and resources from risk.

Six Sigma

An approach to process management that focuses on the near total elimination of product or service defects. It uses quality management methods to improve and optimize processes involved in the production of a product or service so that 99.99966 percent of process outcomes are defect-free.

Slack time

The length of time an activity’s early start can be delayed without affecting project duration. (See also float)

Slip chart

A slip chart graphically compares predicted activity completion dates with originally planned completion dates.

Slippage

The negative variance between planned and actual activity completion dates. Slippage may also refer to the general tendency of a project to be delayed beyond planned completion dates.

Soft project

A soft project does not have a physical output.

Software engineering

Software engineering is generally defined as the use of engineering principles in software development. It systematically employs scientific and technological approaches in the design, operation, and modification of software.

Spiral life cycle

An IT system’s development model that aims to learn from experience by drawing from both iterative development and the waterfall model. It has four sequential phases: identification, design, construction, and evaluation and risk analysis. At the end of each life cycle, an iteration is assessed by the customer, and the spiral sequence begins again upon receipt of customer feedback. The spiral model is typically used in long-term projects or those where requirements are expected to vary, and customer feedback is to be incorporated in phases.

Sponsor

An individual or a group that provides resources and support for the project, program, or portfolio, and is accountable for enabling success. The sponsor has ultimate authority over a project, and provide high-level direction, approve project funding as well as deviations from cost and budget, and determine project scope. Sponsors are typically members of the senior management and are expected to provide high-level support for a project. (See also stakeholder).

Sprint

In iterative project development, a sprint is a fixed unit of time during which the project typically passes through a complete development life cycle. A sprint is usually a few weeks long.

Staffing Management Plan

A component of the resource management plan that describes when and how team members will be acquired and how long they will be needed. See also resource management plan.

Stakeholder

An individual, group, or organization that may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project, program, or portfolio. In project management, the Stakeholder is any party with an interest in the successful completion of a project. More generally, the term refers to anyone who is affected by a project. (See also sponsor)

Stakeholder Engagement Plan

A component of the project or program management plan that identifies the strategies and actions required to promote productive involvement of stakeholders in project or program decision making and execution. See also project management plan.

Standards

A standard prescribes a collection of standardized rules, guidelines, and characteristics requirements for processes or products that are approved by a recognized body. Standards are not by definition mandatory. They are adopted by consensus, although they may be enforced as a requirement for participation in certain markets.

Start-To-Finish

A logical relationship in which a successor activity cannot finish until a predecessor activity has started. (See also finish-to-finish, finish-to-start, start-to-start, and logical relationship).

Start-To-Start

A logical relationship in which a successor activity cannot start until a predecessor activity has started. (See also finish-to-finish, finish-to-start, start-to-finish, and logical relationship).

Statement of work (SoW)

A Statement of work is a comprehensive and detailed list of deliverables expected under a contract, with expected dates for each deliverable.

Steering committee

A steering committee provides high-level strategic guidance on a project. It typically comprises individuals from a number of stakeholder organizations and serves to provide consensus-based direction on projects with a large number or a diversity of stakeholders.

Story point

In sprint-based projects, a story point is a measure of the amount of work required to implement a particular user story. Assigning and totaling story points allows project teams to target a realistic number of user stories for action during an iteration or sprint.

Successor Activity

In a schedule, a successor is a dependent activity logically comes after and depends on another activity immediately preceding it. (See also predecessor activity and summary activity).

Summary Activity

In a network diagram, a summary activity combines a group of related schedule activities aggregated and displayed as a single activity. (See also predecessor activity and successor activity).

Sunk cost

A cost that cannot be recovered once spent.

Systems development life cycle (SDLC)

In systems engineering, the systems development life cycle is the process of creating, releasing, and maintaining an information system, which may comprise hardware, software, or both. The typical SDLC has six sequential phases: planning, analysis, design, implementation, testing, and maintenance.

Systems Engineering

A field of engineering that applies principles of systems thinking to the development of complex systems. Since complex systems are more difficult to coordinate and make cohesive, systems engineering focuses on developing and optimizing systems as interactive wholes instead of sums of parts. As complex systems comprise both technical and human elements, systems engineering is, by nature, interdisciplinary.

T – Project Management Terms

Task

In project management, a task is a unit of work or activity needed for progress towards project goals. Typically, a task must be completed by a set deadline. Tasks may be further broken down into assignments or subtasks.

Task analysis

A task analysis details the actions or resources required to complete a task.

Testing

The testing phase involves assessment of the product developed so as to gauge quality and performance and to determine whether requirements have been met.

Theory of constraints

The theory of constraints explains that any process is limited from optimum performance by its weakest link or links, called constraints. The theory of constraints methodology involves identifying these weak links via a strategy called focusing and improving them until they no longer limit performance.

Threat

A negative risk that would have a negative effect on one or more project objectives. (See also issue, opportunity, and risk).

Three-Point Estimating

A technique used to estimate cost or duration by applying an average or weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates. (See also analogous estimating, bottom-up estimating, parametric estimating, and program evaluation and review technique (PERT)).

A superset of estimating techniques that use averages (or weighted averages) of most likely, optimistic, and pessimistic costs, and duration estimates to form final estimates.

Time and material contract

A time and material contract pays per unit of time and reimburses materials costs for contracted work.

Time chainage diagram

In project management, a time chainage diagram graphically represents scheduled activities for a hard project completed sequentially over a geographic distance, such as the construction of a motorway or the laying of a pipeline. It thus provides both a scheduled time and a relative geographic location for each activity.

Time limit

The time limit for a task is the window of time or deadline by which it must be completed.

Time-scaled network diagram

A network diagram is time scaled if the lengths of activities are drawn to scale to indicate their expected durations.

Timebox

Timeboxing is a project management strategy that prioritizes meeting deadlines over scope requirements. It involves assigning specific lengths of time, called timeboxes, to project activities. Project teams work to address as many requirements as possible within each timebox, proceeding to successor activities once the time limit has passed.

Timeline

A Timeline is a graphical, sequential representation of project activities.

To-Complete Performance Index (TCPI)

A project’s to-complete performance index is a measure of the cost performance it needs to achieve to be completed within budget, or with the remaining resources in order to meet a specified management goal. The TCPI is calculated as the ratio of the cost to finish the outstanding work to the remaining budget. (See also actual cost (AC), budget at completion (BAC), earned value (EV), and estimate at completion (EAC)).

Tolerance

The acceptable level of variance in project performance. The project sponsor is typically informed if tolerance levels are crossed.

Top-Down estimating

Top-Down estimating uses historical data from similar projects to compute time and cost estimates. (See also analogous estimating)

Total cost of ownership (TCO)

The total cost of ownership estimates the sum total of direct and indirect costs incurred in the purchase, operation, and maintenance of an asset through its life.

Total Float

The length of time that a schedule activity can be delayed or extended from its early start date without delaying the project end date or violating a schedule constraint. (See also free float, critical path, near-critical activity, and near-critical path.)

Trigger Condition

An event or situation that indicates that a condition that causes a risk to occur. Trigger conditions can serve as warning signs that risks have occurred or are about to occur. (See also risk trigger)

U – Project Management Terms

Unified process

A unified process may refer to any one of a family of iterative software development process frameworks. Unified processes have four phases: inception, elaboration, construction, and transition. Each phase comprises a number of timeboxed iterations, which in turn involve a cycle of specifying requirements, analysis, design, implementation, and testing, with emphases on these shifting as the project team proceeds through iterations. Each iteration results in an improved version of the system called an increment.

Use case

In software development, a use case is a step-by-step list of actions that end users would take to achieve specific goals. Use cases facilitate end user-focused software testing.

User story

A project requirement stated in one sentence. It typically identifies users, real or hypothetical, what these users want from software, and why they want it. Project development teams prioritize user stories in each iteration by assigning story points

V – Project Management Terms

V life cycle

The V in V life cycle stands for verification and validation. It is a sequential software development process that matches a corresponding testing phase to each phase in the software development life cycle. During the verification phase, a project team works at increasingly granular levels of detail to identify requirements and design, and then builds the software. Validation proceeds in the opposite direction, as testers examine software components in turn before moving on to systems testing and finally checking that the project as a whole meets requirements.

Variance Analysis

A technique for investigating deviations and determining the cause and degree of difference between the planned baseline and actual performance. See also cost variance (CV), schedule variance (SV), and variance at completion.

Variance at completion (VAC)

A project’s variance at completion is a projection of the amount of budget deficit or surplus, expressed as the difference between its budget at completion and its estimate at completion. See also budget at completion (BAC), cost variance (CV), estimate at completion (EAC), and variance analysis.

Value engineering

Value engineering seeks to increase the functionality-to-cost ratio of a product by providing improved functionality at lower cost. Some applications of value engineering attract criticism, as manufacturers may decrease costs by using lower-quality components that decrease product lifespans.

Value for money ratio

In project management, the value for money ratio is expressed as the ratio of financial and other benefits to the resources expended in a project.

Value tree

A hierarchical model of the characteristics of a product or service that determine its value.

Vertical slice

A performance indicator that demonstrates progress across all project components or performance areas at a given point in time.

Virtual design and construction (VDC)

A method based on using technology in design and construction projects. It uses building information modeling (BIM) tools that focus on designable and manageable aspects of projects to create integrated models that predict project performance.

Virtual team

A virtual team comprises people from different organizations, locations, or hierarchies. It is not necessarily the same as a remote team, which is a group of people working together from different locations.

W – Project Management Terms

Waterfall Model

The Waterfall model is a software development life cycle in which development phases are sequential, non-iterative, and do not overlap. It is typically reserved for small projects with straightforward, clearly defined requirements since a sequential development process makes it difficult to revisit the analysis and design phases once testing has begun. (See also linear sequential model)

WBS Dictionary

A document that provides detailed deliverable, activity, and scheduling information about each component in the work breakdown structure. See also work breakdown structure (WBS).

Weighted milestone method

The weighted milestone method allows project managers to estimate earned value by splitting work packages into divided measurable segments. Each segment represents a portion of the budget value for the work package and ends with a milestone. When a segment milestone is classified as complete, a portion of the total work package value has been earned.
See also, Fixed Formula Method.

What-If scenario analysis

A simulation technique that allows project managers to evaluate scenarios, determine and compare specific conditions’ effects on project schedules and objectives.

Wideband Delphi

An estimation technique based on expert consensus. Each member of an estimation team uses a work breakdown structure to create anonymous estimates of the effort required to complete each project element or work package. The estimates are then reviewed as a group before the experts create new estimates, and the process is repeated for a number of rounds until a consensus is reached. (See also delphi technique)

Work

In project management, work is the amount of effort needed to complete a task.

Work authorization system

A formal procedure to ensure that project work is performed on time and in logical order.

Work breakdown structure (WBS)

A Work breakdown structure is a comprehensive, hierarchical model of the deliverables constituting the scope of a project. It details everything a project team is supposed to deliver and achieve. A work breakdown structure categorizes all project elements, or work packages, into a set of groups and may be used to form cost estimates.

Work breakdown structure dictionary

A document that details, describes, and provides scheduling information for every element of a work breakdown structure. It may be thought of as a dictionary-cum-schedule of work packages.

Work package

The work packages of a project are its lowest-level deliverables. They are defined at the lowest level of the work breakdown structure for which cost and duration are estimated and managed, detailed in a work breakdown structure dictionary.

Work stream

In project management, a work stream is a logically arranged series of activities that must be completed to pursue project objectives. The term typically refers to the full sequence of work activities from project initiation to project closure.

Workaround

An immediate and temporary response to an issue in way to circumvent a problem which does not have a permanent solution or for which a prior response had not been planned or was not effective.
See also, Risk Mitigation.

Work Breakdown Structure (WBS)

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 organizational breakdown structure, resource breakdown structure, risk breakdown structure, and WBS dictionary.

X – Project Management Terms

X-Bar Control Charts

An x-bar control chart includes two separate charts that display the means and sample ranges for a number of periodically gathered, same-size samples. The sampled data constitute some characteristic of a product or a process.

Y – Project Management Terms

Z – Project Management Terms

0-9 Project Management Terms

80-20 Rule

Also known as the Pareto Principle, is an aphorism which asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event.