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PROJECT MANAGEMENT TERMINOLOGY
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D E F G H
I J K L M N O
P Q
R S T
U V W X Y Z
Parametric Estimating Relies on knowledge of
mathematical relationships; measured in $/unit (scalable, quantifiable). It does
not make use of team estimate. (part of cost budgeting and cost
estimating). Using a mathematical model to predict the duration of a task (e.g.
taking the average duration of all past tasks)
Parametric modeling Involves
using project characteristics (parameters) in a mathematical
model to predict project costs.
Pareto charts are a graphical representation of what
is vital and what is trivial. Recognize that vital
does not always mean expensive 80/20 rule is a guideline,
not a rigid rule
Pareto Diagram Used to show how
results were generated, by type or category of identified
cause
Pareto Diagram is a histogram, ordered by frequency of
occurrence, that shows how many results were generated by
type or category of identified cause. Rank ordering is used
to guide corrective action - the project team should take
action to fix the problems that are causing greatest number
of defects first
Path
Convergence Tendency of parallel
paths of equal duration to delay the completion of the
milestone where they meet
Payback Period Number of time
periods up to the point where cumulative revenues exceeds
cumulative costs. Weakness in this approach is the lack of
emphasis on the magnitude of the profitability. Does not
account for time value of money nor consider value benefits
after payback.
Penalty Power:
The ability to gain support because the project personnel
perceive the project manager as capable of directly or
indirectly dispensing penalties that they wish to avoid.
Penalty power usually derives from the same source as reward
power, with one being a necessary condition for the other
percentage complete method
This method is used for the budgeted cost of work performed
(BCWP)
Performance charts.
A performance chart provides a way to monitor performance
when several characteristics contribute to overall output.
Performance reporting
involves collecting and disseminating performance
information to provide stakeholders with information about
how resources are being used to achieve project objectives.
Performance reports
provide information on the project scope and cost
performance, such as which budgets have been met and which
have not - Performance Reports also alert the project team
to issues that may cause problems in the future
Performance Reviews – meetings
held to assess status and/or progress.is
a tool and technique for Performance Reporting which
happens after Information Distribution
Performance Scope of Work –
describes the performance – not the functionality-- required
by the customer
PERT
Weighted Average = (O + 4M +
P)/6 standard deviation = (P - O)/6 variance =
standard deviation2 (To add standard deviations: convert to
variance then add; take the square root of the sum). Best
method when you have no historical data for a similar task.
Results is the 50% point (mean).
Precedence Diagram Methods
The general term used for any project management network
applications is precedence diagram method (PDM). The
operative word is precedence because it signifies
existence of predecessor activities
Prevention
refers to keeping errors out of the process, whereas
inspection refers to keeping errors out of the hand of
the customer
Present Value Probability *
Impact.
Present Value is the future value of a payment
discounted at a discount rate for the delay in payment. This
rate is also called the "Cost of Capital"
Privity - legal relationship that
exists between any contracting parties (e.g. if company “A”
hires “B” and “B” subcontract to “C”, “C” is not legally
bound by anything “A” can say; the privity is with
“B”)
preferred logic,
preferential logic or soft logicDiscretionary
Dependencies are usually defined based on knowledge of best
practices within a particular knowledge
area....Discretionary dependencies may also be called
preferred logic, preferential logic or soft logic.
Process adjustments
involve immediate corrective or preventive action as a
result of quality control measurements. In some cases, the
process adjustment may need to be handled according to
procedures for integrated change control
Procurement Audit – structured
review that flush out issues, and set-up lessons learned.
Helps ensure problems are resolved for future projects.
A procurement
audit is a structured review of the procurement process from
procurement planning through contract administration. The
objective of a procurement audit is to identify successes
and failures that warrant transfer to other procurement
items on this project or to other projects within the
performing organization
Product Analysis
involves developing a better understanding of the product of
the project. It includes techniques like product breakdown
analysis systems engineering, value engineering, value
analysis, function analysis and quality function deployment.
Product Scope - features and
functions that are to be included in a product; completion
is measured against the
requirements.
Project Baseline – should be
changed for all implemented changes. Sometimes, certain
classification of changes get automatic approval on a
project and do not need Change Control Board approval.
Project Charter - formal document
used and approved by senior management that explains purpose
of the project including business needs addressed and the
resulting product (deliverables and objectives). It
describes responsibilities and authority of the project
manager to apply organizational resources to project
activities. Clarification to the Project Charter must be
addressed to the sponsor(s) who approved the charter.
Resources cannot be committed without the Charter. The
Charter is an input to ALL the project management processes.
Project Closeout (output to cost
control) Process and procedures developed for the closing or
canceling of projects
Project closure -
Confirmation that the project has met all customer
requirements for the product of the project (the customer
has formally accepted the project results and deliverables
and the requirements of the delivering organization,
although Administrative Closure is the process in which you
formalize acceptance of the product of the project, the
specific output from the process is "Project Closure"
Project Communications Management
- process required to ensure proper collection and
dissemination of project information.
Project Cost Management
Processes required to ensure that the project is completed
within the approved budget.
Project Human Resource Management
- process required to make the most effective use of the
people involved with the project
Project Plan – as an input to team
development, the project plan describes the technical
context within which the team operates.
Project Portfolio
Management refers to the selection and support of
projects or program investments. These investments in
projects and programs are guided by the organization's
strategic plan and available resources.
Project Management
Information System(PMIS): A PMIS consists of
tools and techniques used to gather, integrate, and
disseminate the outputs of project management processes. It
is used to support all aspects of the project from
initiating through closing, and can include both manual and
automated systems.
Project Network Diagrams
is an output from Activity Sequencing Process
Project Procurement Management -
the processes required to acquire goods and services from
outside the performing organization.
Project Scope - the work that must
be done in order to deliver a product; completion is
measured against the project plan.
Project Scope Management -
processes required to ensure that the project includes only
the work required to complete the project successfully.
Project Selection Method -
Benefit Measurement (comparative approach) and
Constrained Optimization (mathematical approach).
Project
success depends primarily on customer satisfaction.
Project Time Management -
processes required to ensure timely completion of the
project
Purchase Order A form of
contract that is normally unilateral and used for simple
commodity purchases.
Purpose is to
test the value of data (input to Qualitative Analysis)
Project Reports: Formal
project reports on project status and/or issues
project directory lists
all the project team members and other stakeholders. The
directory may be formal or informal, highly detailed or
broadly framed, based on the needs of the project
Progress Reporting -
describing what the project team has accomplished - for
example, percent complete to schedule, or what is completed
versus what is in process. Progress Reporting are summary
reports about % complete and provide a quick overview of the
project
project plan is a
document or collection of documents that should be expected
to change over time as more information becomes available
about the project. The performance measurement baselines
will usually change intermittently, and then generally only
in response to an approved scope of work or deliverable
change
Quantitative Risk Analysis
Analyzing
numerically the probability of each risk and its impact on
the project objectives
If the project is terminated
early, the scope verification process should
establish and document the level and extent of completion
Quality Audit Structured review of
other quality management activities performed to identify
lessons learned (used for process improvement) Part of
Quality Assurance. Provide management confidence that the
project will satisfy relevant quality standards.
The
objective of a quality audit is to identify lessons learned
that can improve performance of this project or of other
projects within the performing organization
Quality Function Deployment (QFD)
The purpose of Quality Function Deployment (QFD) is to
increase the probability that deliverables produced in every
stage of product and process development meet internal and
external customer requirements. The centerpiece of QFD is a
matrix that represents:
Customer
needs. How your organization can meet those needs. What your
competition is doing.
Quality Policy is "the
overall intentions and direction of an organization with
regard to quality, as formally expressed by top management"
Quality Management plan
should describe how the project management team will
implement its quality policy
Quality Variable A quality
characteristic that is measurable
Revisions are a special
category of schedule updates. Revisions are changes to the
schedule start and finish dates in the approved project
schedule. These changes are generally incorporated in
response to scope changes or changes to estimates
Risk Identification
involves determining which risks might affect the project
and documenting their characteristics
Risk Monitoring and Control
Keeping track of
identified risks and ensuring execution of risk plans
Risk Response Planning
Determining actions
to enhance opportunities and reduce threats to project
objectives
Risk Management plan
includes defining key risks, including constraints and
assumptions, and planned responses and contingencies.
project plan includes the Risk Management plan
Sunk cost cannot be
used to determine which project should be selected. Sunk
cost is the cost tha has already been incurred
Sensitivity Analysis
helps to determine which risks have the most potential
impact on the project. It examines the extent to which the
uncertainty of each project element affects the objective
being examined when all other uncertain elements are held at
their baseline values.
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