GLOSSARY TERMS

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Network Analysis: The process of identifying early and late start and finish dates for the uncompleted portions of project activities.

Network Diagram: A schematic display of activities and logical relationships of activities that comprise the project. Two popular drawing methods for scheduling are “arrow” and “precedence” diagramming methods.

Network Logic: The collection of activity dependencies that make up a project network diagram.

Network Planning: A broad generic term for techniques used to plan complex projects using logic diagrams (networks). Two of the most popular techniques are ADM and PDM.

 

 

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Objective: A predetermined result; the end toward which effort is directed.

Operational Planning: Planning concerned with the development of control mechanisms to assure the effective implementation of specified actions in the strategic or tactical plans. Operational planning provides a basis for the measurement of actual performance relative to the plan and usually has a planning horizon for one year or less.

Organizational Breakdown Structure (OBS): A depiction of the project organization arranged so as to relate work packages to organizational units.

Organizational Planning: Identifying, documenting, and assigning project roles, responsibilities, and reporting relationships.

Organizing: The process of defining certain parameters by which a project can be effectively administered.

Original Budget: The budget established at, or near, the time the contract was signed and based on the negotiated contract cost.

Outputs: Materials or information provided to others (internal or external customers).

Overall Change Control: Coordinating changes across the entire project.

Overhead (OH): Costs, which because of their incurrence for common or joint objectives, are not subject readily to treatment as direct costs.

Overhead Costs: Overhead costs are a specific category of indirect costs.

Overrun (Underrun): The value for the work performed to date minus the actual cost for that same work. When value exceeds actual cost, an underrun exists, When actual cost exceeds value, an overrun condition exists.

 

 

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Parametric Estimating: An estimating technique that uses a statistical relationship between historical data and other variables (e.g., square footage in construction, lines of code in software development) to calculate an estimate.           

Path: A set of sequentially connected activities in a project network diagram.

Percent Complete (PC): An estimate, expressed as a percent, of the amount of work, which has been completed on an activity, or group of activities.

Performance: The term performance is used as an attribute of the work product itself and as a general characteristic. The broad performance characteristics that are of interest to management are quality (effectiveness), cost (efficiency), and schedule. Performance is the highly effective common measurement that links the quality of the work product to efficiency and productivity.

Performance Measurement: The methods for measuring physical accomplishment on work package task(s), scheduled in accordance with achievement of higher level schedules. Each method utilized in measuring performance is assigned a value associated with an identifiable quantity of work within a cost account.

Performance Measurement Baseline (PMB): The time-phased baseline plan against which contract performance is measured. It is formed by the baselines assigned to scheduled work and the applicable indirect baseline. For future effort, not planned to the Control Account level, the performance measurement baseline also includes undistributed baselines.

Performance Reporting: Collecting and disseminating information about project performance to help ensure project progress.

Performing Organization: The enterprise whose employees are most directly involved in doing the work of the project.

PERT Chart: A specific type of project network diagram. See Program Evaluation and Review Technique.

Planning: The determination of a project’s objectives with identification of the activities to be performed, methods and resources to be used for accomplishing the tasks, assignment of responsibility and accountability, and establishment of an integrated plan to achieve completion as required.

Planning Package (PP): Work within a Control Account that has not yet been fully defined into detail tasks. It is future effort which, as a minimum, is 3 months beyond the near tern detailed task planning.

Policy: A statement of principles and beliefs, or a settled course, adopted to guide the overall management of affairs in support of a stated aim or goal. It is mostly related to fundamental conduct and usually defines a general framework within which other business and management actions are carried out.

Precedence Diagramming Method (PDM): A network diagramming technique in which activities are represented by boxes (or nodes). Activities are linked by precedence relationships to show the sequence in which the activities are to be performed.

Precedence Relationship: The term used in the precedence diagramming method for a logical relationship. In current usage, however, precedence relationship, logical relationship, and dependency are widely used interchangeably regardless of the diagramming method in use.

Predecessor Activity: In the precedence diagramming method, the “from” activity.

Price: The amount of money asked or given for a product (e.g. exchange value). The chief function of price in rationing the existing supply among prospective buyers.

Problem: A question or situation proposed for solution. The result of not conforming to requirements or, in other words, a potential task resulting from the existence of defects.

Problem/Opportunity Analysis: Evaluation of problems and/or opportunities presented by the customer, to determine the feasibility of developing a proposal for a project.

Process: The logical organization of people, materials, energy, equipment, and procedures into work activities designed to produce a specified end result (work product).

Process Control: The set of activities employed to detect and remove special causes of variation in order to maintain or restore stability (statistical control).

Process Improvement: The set of activities employed to detect and remove common causes of variation in order to improve process capability. Process improvement leads to quality improvement.

Procurement Planning: Determining what to procure and when.

Production Control Procedures: A set of procedures used to confirm that products conform to established criteria or to force correction of the variances.

Production Planning: The function of setting the overall level of manufacturing or construction output. Its prime purpose is to establish production rated that will achieve management’s objective, while usually attempting to keep the production force relatively stable.

Program: A group of related projects managed in a coordinated way.

Program Evaluation and Review Technique (PERT): An event-oriented network analysis technique used to estimate project duration when there is a high degree of uncertainty with the individual activity duration estimates. PERT applies the critical path method to a weighted average duration estimate.

Program Management: The management of a related series of projects executed over a broad period of time, and which are designed to accomplish broad goals, to which the individual projects contribute.

Program Manager (PM): The individual who is assigned complete responsibility, authority, and control over all technical and administrative aspects of a program. The PM may delegate responsibilities to deputies who report to the PM.

Progress: Development to a more advanced stage. Progress relates to a procession of development and therefore shows relationships between current conditions and past conditions.

Project: A temporary endeavor undertaken to create a unique product or service.

Project Charter: A document issued by senior management that provides the project manager with the authority to apply organizational resources to project activities.

Project Cost Management: A subset of project management that includes the processes required ensuring that the project is completed within the approved budget.

Project Resource Management: A subset of project management that includes the processes required ensuring that the various elements of the project are properly coordinated.

Project Integration Management: A subset of project management that includes the processes required to ensure that the various elements of the project are properly coordinated.

Project Life Cycle: A collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project.

Project Management (PM): The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.

Project Management Body of Knowledge (PMBOK): An inclusive term that describes the sum of knowledge within the profession of project management. As with other professions such as law, medicine, and accounting, the body of knowledge rests with the practitioners and academics that apply and advance it. The PMBOK includes proven, traditional practices, which are widely applied, as well as innovative and advanced ones, which have seen more limited use.

Project Management Professional (PMP): An individual certified as such by the Project Management Institute.

Project Management Software: A class of computer applications specifically designed to aid with planning and controlling project costs and schedules.

Project Management Team: The members of the project team who are directly involved in project management activities. On some smaller projects, the project management team may include virtually all of the project team members.

Project Manager (PM): The individual responsible for managing a project.

Project Network Diagram: Any schematic display of the logical relationships of project activities. Always drawn from left to right to reflect project chronology.

Project Phase: A collection of logically related project activities, usually culminating in the completion of a major deliverable.

Project Plan: A formal, approved document used to guide both project execution and project control. The primary uses of the project plan are to document planning assumptions and decisions, to facilitate communication among stakeholders, and to document approved scope, cost, and schedule baselines. A project plan may be summary or detailed.

Project Plan Development: Taking the results of other planning processes and putting them into a consistent, coherent document.

Project Plan Execution: Carrying out the project plan by performing the activities therein.

Project Planning: The development and maintenance of the project plan.

Project Procurement Management: A subset of project management that includes the processes required to acquire goods and services from outside the performing organization.

Project Quality Management: A subset of project management that includes the processes required ensuring that the project will satisfy the need for which it was undertaken.

Project Risk Management: A subset of project management that includes the processes concerned with identifying, analyzing, and responding to project risk.

Project Schedule: The planned dates for performing activities and the planned dates for meeting milestones.

Project Scope Management: A subset of project management that includes the processes required to ensure that the project includes all of the work required, and only the work required, to complete the project successfully.

Project Summary: A brief synopsis of the project that clearly status the project objectives, goals, and constraints.

Projected Staffing Plan: A plan that describes the types of resources needed, how much of each type are needed, and when they are needed.

Project Team Members: The people who report either directly or indirectly to the project manager.

Project Time Management: A subset of project management that includes the processes required ensuring timely completion of the project.

Projected Organization: Any organizational structure in which the project manager has full authority to assign priorities and to direct the work of individuals assigned to the project.

Proposal Development: The process of choosing the best alternative to meet a customer’s need and developing a written offer of service to the customer.

Prototype: A simulated view of a proposed system using actual data together with text and illustrations or model screens.