Glossary
- 68-95-99.7
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For normal distributions, about 68.3% of the measurements fall within one standard deviation on either side of the mean; because of the shape of the curve, the number of measurements within two standard deviations is 95.4%, and the number of measurements within three standard deviations is 99.7%.
- Actual cost (AC)
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The sum of the amounts actually spent on the items.
- Alignment process
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Developing a common understanding among the key stakeholders of the purpose and goals of the project and the means and methods of accomplishing those goals.
- Analogous estimate
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An estimate that is based on other project estimates.
- Assignable cause
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Variations in quality that can be tracked and fixed
- Asynchronous communications
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Communications that take place when the parties are not present at the same time. Examples are e-mail and blogs.
- Atarimae hinshitsu
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Make things work the way they are supposed to work
- Atarimaie hinshitsu
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A Japanese quality management term that describes making things work the way they should.
- Attributes
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The characteristics and identifiers of an activity.
- Benchmarking
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Comparing your organization’s product or process to a standard of quality or industry best practice.
- Beta-test
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A trial of a product in its final stages of development.
- Bias
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The making of decisions based on a prejudged perspective.
- Bid
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A quote that lists the specific materials to be provided, the price for each, and a schedule for delivery.
- Bins
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subdivisions of measured values.
- Blog
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An online journal that can be private, shared by invitation, or made available to the world.
- Bottom-up estimating
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Project schedule as a hierarchy where the general descriptions of tasks are at the top and the lower levels become more detailed, finding the price of each item at the lowest level and then summing them to determine the cost of higher levels
- Budget at Completion (BAC)
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The estimate to complete is the difference between the original budget for the entire project.
- Budgeted cost of work performed (BCWP)
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Budgeted cost of work scheduled that has been done.
- Budgeted cost of work scheduled (BCWS)
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Comprises the detailed cost estimates for each activity in the project.
- Cash flow
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Movement of the project's money.
- Central limit theorem
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If several random factors are affecting the process, they tend to offset each other, yielding the most common results near the middle of the range.
- Chance cause
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Variations in quality caused by random events.
- Change management process
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A process that incorporates a change into the project planning and execution processes.
- Chartering organization
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The organization that determines the need for the project
- Check sheet
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A form on which the user can track each time a problem occurs.
- Closeout phase
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Includes transferring staff, archiving documents, closing offices, completing punch list tasks, and turning over the results of the project to the client. PMI calls this phase “closing of the project.”
- Cloud services
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A blanket term that describes a range of web-based software that uses the internet as its communication framework.
- Commodities
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Common products that are purchased based on the lowest bid.
- Communication matrix
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A list of reports, meetings, and document flowcharts that details who is included in each project meeting and the distribution of major documents in a table format.
- Complex adaptive systems
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consist of a large number of parts or activities that interact with each other in numerous and various ways. A complex adaptive system is adaptive if the activities adjust or react to the events of the environment. Successful adaptive systems adjust in a way that facilitates or allows the system or project to achieve its purpose.
- Complex systems
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Complex systems have multiple interacting components whose collective behavior cannot be simply inferred from the behavior of the individual components.
- Conceptual estimate
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Also known as “ballpark estimate”, it is developed with the least amount of knowledge. The major input into the conceptual estimate is expert knowledge or past experience.
- Contingency planning
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Development of alternative plans to respond to the occurrence of a risk event.
- Contingency reserves
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Money is budgeted for dealing with unplanned but statistically predictable cost increases.
- Contingency time
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If the project is behind schedule, the time can be made up by dropping activities.
- Contract
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An agreement between the organization and an outside provider of a service or materials.
- Contracting plan
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The contract plan defines the relationship between the project and the subcontractors (supplier, vendor, or partner) and also defines a process for making changes in the agreement to accommodate changes that will occur on the project.
- Control chart
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A document that tracks sample measurements collected over time while a process is running (also known as a run chart).
- Control limits
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The upper and lower extremes of allowable variation.
- Cost aggregation
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Process of subtotaling coasts by category or activity.
- Cost of quality (COQ)
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The difference between the additional money spent on prevention and the corresponding reduction in the cost of failure.
- Cost Performance Index (CPI)
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The ratio of the earned value to the actual cost.
- cost variance (CV)
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The difference between the earned value and the actual cost.
- Cost- reimbursable contract / cost-plus contracts
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The organization agrees to pay the contractor for the cost of performing the service or providing the goods.
- Crashing the schedule
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describes the techniques used to shorten the project schedule.
- Critical path
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The path through the network that results in the latest completion date of the project.
- Culture
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Reflects the community’s assumptions, norms, values, and artifacts.
- Current schedule
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A schedule update is distributed regularly to provide project stakeholders with an assessment of the progress of the project against the master schedule while providing new start and end dates for all activities and the project.
- Darnall-Preston Complexity Index (DPCI™)
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The Darnall-Preston Complexity Index (DPCI™) is designed to develop a project profile that reflects different aspects of the project that will influence the approach to leading and executing the project.
- Dependency
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The relationship between a predecessor activity and a successor activity.
- Detailed estimate
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After a project design is more complete, a project detailed estimate can be developed. When the project team knows the number of rooms, the type of materials, and the building location of a home, the project team can provide a detailed estimate. A detailed estimate is not a bid.
- Deterministic system
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A system that will produce the same results if you start with the same conditions. The outcome can be reliably predicted if you know the starting conditions.
- Duration
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How long will the project take to accomplish from beginning to end.
- Early start dates (ES)
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The earliest date the activity can begin.
- Earned value (EV)
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Sum the budgeted cost of work performed at a specified point in the project schedule.
- Earned value management (EVM)
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A method of periodically comparing the budgeted costs with the actual costs during the project.
- Ecology
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The science of ecology studies interactions between individual organisms and their environments, including interactions with both conspecifics and members of other species.
https://plato.stanford.edu/entries/ecology/
- Emotional Intelligence
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Emotional Intelligence - The ability to sense, understand, and effectively apply emotions as human energy.
- Emotional Intelligence Quotient
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Emotional Intelligence Quotient (EQ) - The ability to use, understand, and manage your emotions in positive ways.
- Estimate
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An educated guess based on knowledge, experience, and inference.
- Estimate to Complete (ETC)
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The manager evaluates the accuracy of the cost estimates for the activities that have taken place and uses that experience to predict how much money it will take to complete the unfinished activities of the project.
- Execution phase
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Includes the major activities needed to accomplish the work of the project. PMI calls this phase “carrying out the work.”
- Extensible markup language (XML)
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a set of rules that allows for content marked by tags to be read. The data can be imported into a spreadsheet or database for analysis.
6.2
- External attributes
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The relative size of the project, duration of the project, and the available resources.
- Finish-finish relationship
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Activities can start at different times but they must finish at the same time.
- Finish-start relationship
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Activities that have predecessor-successor relationships occur sequentially—one after the other.
- Fishbone diagram
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A drawing that represents cause and effect to determine a quality problem
- Fixed-price contract
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A legal agreement between the project organization and an entity (person or company) to provide goods or services to the project at an agreed-on price.
- Fixed-price contract with price adjustment
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Used for unusually long projects that span years.
- Fixed-price with incentive fee
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A contract type that provides an incentive for performing on the project above the established baseline in the contract.
- Fixed-total-cost contract
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If the service provider is responsible for incorporating all costs, including profit, into the agreed-on price.
- Fixed-unit price contract
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If the service or materials can be measured in standard units, but the amount needed is not known accurately, the price per unit can be fixed.
- Float
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The amount of time an activity, network path, or project can be delayed from the early start without changing the completion date of the project.
- Flowchart
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A diagram that uses standard symbols to display a process that has branches or loops.
- Free float
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Activities that are not on the critical path have a different between their early start date and their late start date, those activities can be delayed without affecting the project completion date.
- Frequency distribution
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How many measurements fall into each established category.
- Functional managers
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Functional managers and team focus on the technology of the project. On a training project, the functional manager would include the professional trainers; on an information technology project, the software development managers would be functional managers.
- Gantt chart
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A type of bar chart used to illustrate activity relationships in a project. The Gantt chart was developed by Henry Gantt and used on major projects, including building the Hoover Dam and the U.S. interstate highway system.2 The Gantt chart is a time-scaled graphic that represents each activity with a bar that reflects the duration, start, and finish time.
- Goal
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An end toward which effort is directed.
- Histogram
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A type of frequency distribution chart.
- Humm Factor
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A qualitative survey tool designed to capture the thoughts of the project participants.
- Inference
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The process of deriving conclusions based on assumptions.
- Initiation phase
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Includes activities such as holding alignment and kickoff meetings, identifying the project team, developing the resources needed to develop the project plan, and identifying and acquiring the project management infrastructure. PMI calls this phase the “starting the project.”
- Intelligent numbering
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Breaking the activity into smaller units and listing the tasks needed to accomplish that step.
- Interest
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A percentage of the amount of the loan that has not been repaid.
- Internal attributes
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The clarity of a project’s scope, the complexity of the organization, and the agreement among stakeholders.
- Internal Rate of Return (IRR)
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A method used if the project involves buying and installing equipment to make a profit.
- Kaizen
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A Japanese quality management term that describes participation by all.
- Kansei
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A Japanese quality management term that describes learning from the way the client uses the product to make improvements.
- Key Supplier
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A relationship with one or two suppliers based on developing cost savings for both organizations.
- Known risks
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Events that have been identified and analyzed for which advance planning is possible.
- Lag time
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An account of time must go by before a successor activity can begin.
- Lead time
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The successor activity can overlap the end of its predecessor activity and begin before the predecessor is finished.
- Lesson learned meeting
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a review meeting conducted to capture lessons that can be learned from the project, and how those lessons can be transferred and applied to future projects.
12.1
- Long lead items
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Items that take a long time to acquire.
- Management reserves
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Money can be made available at the manager's discretion to meet needs that would change the scope of the project.
- Mean
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Central point in a distribution of items affected by random factors, represented by the Greek letter mu, µ
- Milestone schedule
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Establishes key dates throughout the life of a project that must be met for the project to finish on time.
- Milestones
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Significant events in a project which consume no resources and have no duration.
- Miryokuteki hinshitsu
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A Japanese quality management term that describes giving products an aesthetic quality to make them pleasing to use.
- Myers-Briggs Type Indicator
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Myers-Briggs Type Indicator - A tool used for identifying how people perceive the world and make decisions.
- Natural dependency
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The successor activity starts after and is dependent on the predecessor activity.
- Negative float
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The calculated completion date of the last activity is later than the targeted completion date established at the beginning of the project.
- Nonlinear system (chaotic system)
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can produce wildly different results even if the starting conditions are almost exactly the same.
- Normal distribution
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If a distribution of items is charted, and the factors that cause variation are random, the chart will resemble the shape of a bell.
- Objective
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A measurable outcome.
- Official rules
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The rules of the project that are stated.
- Openly-licensed
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Open Licenses are a set of conditions applied to an original work that grant permission for anyone to make use of that work as long as they follow the conditions of the license. A work refers to an original creation, such as a video, song, document, or piece of software, that can be copyright protected.
- Operational rules
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The official rules that are enforced.
- Operations manager
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A manager whose primary focus is to efficiently and effectively achieve the purpose of the organization.
- Organizational risks
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Risks associated with the business purpose of the project.
- Outsourcing
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Procure work from outside companies.
- Parameters
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Measurable factors that can be used in an equation.
- Parametric estimates
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Estimates that are calculated by multiplying measured parameters by cost-per-unit values
- Partnership
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A formal arrangement to execute the project with each party contributing resources.
- Phase
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A phase represents a grouping of similar activities that has a very loosely defined beginning and end.
- Planned value (PV)
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Amount of work that should have been done by a particular date.
- Planning phase
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includes developing detailed staffing, procurement, and project controls plans. PMI calls this phase “organizing and preparing.”
- Positive correlation
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When measurable items both increase or decrease together.
- positive correlation
- Precedence diagram method (PDM)
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A technique for graphically displaying the logic of the schedule by placing the activities in boxes with arrows between them to show the precedence-successor relationships. This type of diagram is also called a project network diagram.
- Proactive
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Planning in advance of a potential risk
- Process managers
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managers who have expertise in estimating, cost tracking, planning, and scheduling.
- Procurement
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The process of obtaining goods and services from providers who are outside of the organization.
- Programmers
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Programmers will specify the performance requirements of the equipment, and suppliers that have equipment that meets the requirements will bid on the project.
- Progress payments
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Payments made before the end of the project and based on the progress of the work.
- Project
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PMI defines a project by its two key characteristics: it is temporary and undertaken to create a product, service, or result that is unique. Projects are undertaken by various organizations to better fulfill their purposes.
- Project control
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Project controls is both the planning function and the function that tracks progress against the plan.
- Project culture
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The shared norms, beliefs, values, and assumptions of the project team.
- Project environment
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The project environment includes all the issues related to the environment that will influence the development and execution of the project plan.
- Project Execution Plan
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How the work will be accomplished.
- Project logic
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The development of the activity sequence or determining the order in which the activities will be completed.
- Project logic diagram
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Represents the logical sequence of the activities needed to complete the project.
- Project management
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“The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.”1
- Project management offices (PMOs)
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Facilitate development of organizational knowledge, skills, and tools to internally charter and manage projects.
- Project manager
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A manager whose primary focus is on the goals of the project.
- Project network diagram
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A technique for graphically displaying the logic of the schedule by placing the activities in boxes with arrows between them to show the precedence-successor relationships. This type of diagram is also called a precedence diagram method (PDM).
- Project Profiling
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the process of extracting a characterization from the known attributes of a project.
- Project quality
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Project quality focuses on the end product or service deliverables that reflect the purpose of the project.
- Project quality plan
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The project manager is responsible for developing a project quality plan that defines the quality expectations and assures that the specifications and expectations are met.
- Project risk
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An uncertain event or condition that may occur and negatively affect the project
- Project scope
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Defines what is inside the project and what is outside.
- Project sponsor
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The project sponsor is outside the day-to-day operations of the project and has the organizational authority to provide resources and overcome barriers for the project.
- Punch list
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a list of all the items found by the client/or team/manager.
- Purpose statement
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Provides a project with an anchor or organizational focus.
- Qualified
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Meet standards of reliability and capability.
- Quality
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How well something meets the expected or specified requirements of its grade.
- Quality Control (QC)
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The management of production standards through statistical interpretation of random product measurements, which emphasizes consistency and accuracy.
- Reactive
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Responding to problems or unexpected events when they occur.
- Reconciliation
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The process of matching the schedule of transfers with the schedule of activity payments.
- Relationship dependence
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a key aspect of complex adaptive systems, characterized by the dependence of the project on the activities, the interdependence of the activities, and the specialization of the activities.
- Request for proposal (RFP)
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Describes the work, service, or product to be provided by the vendor and the quality level required.
- Request for quote (RFQ)
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A list of materials and supplies is developed and provided to the suppliers.
- Resource calendar
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A calendar that indicates which days they are available and which are days off to consider the availability of team members, consultants, and vendors.
- Resource leveling
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Managing the schedule of activities to ensure that enough resources are available to complete each task by distributing the workload.
- Resources
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Time, materials, facilities, and equipment needed to accomplish the project.
- Responsibility Matrix
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A table of people and types of problems that might require decisions.
- Risk
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the possibility of loss or injury.
- Risk assessment
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includes both the identification of potential risk and the evaluation of the potential impact of the risk.
- Risk averse
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Avoid taking risks whenever possible
- Risk avoidance
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Developing an alternative strategy that has a higher probability of success but usually at a higher cost.
- Risk breakdown structure (RBS)
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A way of organizing identified risks into categories using a table format.
- Risk evaluation
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Prioritizing risks by the likelihood and potential impact.
- Risk events
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Occurrences that have a negative impact on the project.
- Risk management
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Identifying and assessing the risks to the project and managing those risks to minimize their impact.
- Risk mitigation
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Development and deployment of a plan to avoid, transfer, share, and reduce project risk
- Risk mitigation plan
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A plan designed to eliminate or minimize the impact of risk events.
- Risk reduction
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Actions or investment of funds to reduce the risk on a project
- Risk sharing
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Partnering with others to share responsibility for risk.
- Risk transfer
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A risk reduction method that shifts the risk from the project to another party
- Rough order of magnitude (ROM)
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an estimate taking into account information needed for development.
- Samples
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Randomly selected subsets from the total population.
- Scaled
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To match the size and complexity of the current project or by applying standardized formulas.
- Schedule Performance Index (SPI)
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The ratio of earned value to planned value gives an indication of how much of the project is completed.
- Scope change log
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A record that should be kept to track changes.
- Scope creep
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the incremental expansion in the project scope.
- Scope of work (SOW)
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typically a written document that defines what work will be accomplished by the end of the project—the deliverables of the project.
- Self-performed
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Project team members perform the work.
- Simple payback
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if the purpose of the project is to improve cash flow—make it more positive or less negative—the improved positive cash flow each year is applied to the original cost (negative cash flow) of the project to determine how many years it would take to pay back the original cost.
- Six Sigma (6σ)
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Quality management practices based on continuous efforts at improvement involving everyone at the company.
- Slack (float)
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If the critical path takes less time than is allowed by the client to complete the project, the project has a positive total float or project slack. If the client’s project completion date precedes the calculated critical path end date, the project has negative float.
- Solicitation
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The process of requesting a price and supporting information from bidders.
- Span of control
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The span of control represents the number of people reporting to a manager.
- Stakeholders
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those who have a share or interest in the organization.
- Standard deviation
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The calculated amount of difference of the measurements from the central value.
- Start-start relationship
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When two or more project activities occur at the same time or concurrently.
- Statistics
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The mathematical interpretation of numerical data.
- Suppliers
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Providers of commodities.
- Synchronous communications
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communications that take place when all the parties are present at the same time. Examples are telephone calls and video conferencing.
- Tags
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characters inserted on either side of a particular section or a form or document that assign a data label.
- Technical management
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The technical management on the project is the management of the technology inherent in the project—not the technology used by the team to manage the project.
- Time & materials contract (T&M)
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The contractor might charge an hourly rate for labor, plus the cost of materials, plus a percentage of the total costs.
- Tolerances
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The control limits of variations in quality
- Total float
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The difference between the finish date of the last activity on the critical path and the project completion date.
- Total quality management (TQM)
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A flexible program that is adapted from Japanese practices
- typology
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A classification or profile of projects that is reflected in two dimensions.
1.5 - UCC filings
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Standardized financial disclosure documents that conform to the uniform commercial code.
- Unknown risks (unforeseen risks)
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Events that have not been identified and for which there is no advance planning.
- Variance
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The difference between planned and actual progress.
- Vendors
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Provide a unique product or service that cannot be readily purchased in the marketplace and typically provides a product or service that is designed for the project.
- Version control
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labeling each revision, which enables the team to understand the latest activity and status of the document (or the activity behind the document).
- Virtual teams
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teams that use electronic methods of communicating without face-to-face meetings.
- Work breakdown structure
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a list of activities, including estimates of their durations, their relationships with others, and the resources assigned to them.
- Work breakdown structure (WBS)
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A list of activities, including estimates of their durations, their relationships with others, and the resources assigned to them.