Glossary Terms Flashcards
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What is the 5 Whys Method?
An effective tool for root cause analysis in which the question “Why?” is asked of a problem in succession until the root cause is found. Developed by Sakichi Toyoda, a Japanese inventor and industrialist, the 5 Whys method is an integral part of the Lean philosophy.
What is the 80/20 Rule?
A general guideline that states 80% of problems or defects are due to 20% of causes.
Also known as the Pareto Principle, often visualized using a Pareto Chart.
What is A/B Testing?
A marketing approach to determine user preferences by showing different user sets an ‘Alpha’ and ‘Beta’ version with one independent variable.
This method helps identify which version performs better.
Define Accept in project management.
A strategy for managing negative risks that involves acknowledging risk and not taking any action until it occurs.
What are Acceptance Criteria?
A set of conditions that is required to be met before deliverables are accepted.
What are Accepted Deliverables?
Deliverables that meet acceptance criteria and are formally signed off by the customer or sponsor.
This is part of the scope validation process.
What is Active Listening?
A communication technique that involves acknowledging the speaker’s message and confirming understanding through clarification.
What is an Activity?
A distinct portion of work, scheduled with a beginning and an end, that must be performed to complete work on the project.
Also known as a schedule activity. See also “Task”.
What are Activity Attributes?
Multiple attributes associated with each activity that can be included within the activity list.
These attributes provide additional information about each activity.
What are Activity Cost Estimates?
Budgets assigned to each task, resulting in the project budget, including labor, materials, equipment, and fixed cost items.
This information can be presented in detailed or summarized form.
Define Activity Dependency.
A logical relationship that exists between two project activities indicating whether the start of an activity is contingent upon an event or input from outside the activity.
Understanding dependencies is crucial for effective project scheduling.
What are Activity Duration Estimates?
Quantitative assessments of the likely number of time periods required to complete an activity.
These estimates help in planning and scheduling project timelines.
What is an Activity List?
A documented tabulation of schedule activities that shows the activity description, activity identifier, and a sufficiently detailed scope-of-work description.
This helps project team members understand what work is to be performed.
What does Activity on Arrow or Activity on Node refer to?
A graphical diagram where schedule activities are represented by nodes and their dependencies are depicted by arrows.
This visual representation aids in understanding project flow.
What are Activity Resource Estimates?
Material and human resources needed to complete an activity, often expressed by a probability or range.
These estimates are crucial for resource allocation and management.
Define Activity Resource Requirements.
The resources (physical, human, and organizational) required to complete the activities in the activity list.
Proper identification of resources is essential for project success.
What is Actual Cost (AC) in Earned Value Management?
Earned Value Management term for the realized cost incurred for the work performed on an activity during a specific time.
AC is a key metric for assessing project performance against budget.
What does Adaptive mean in project management?
A type of project life cycle or methodology that values responding to change over following a set plan.
Adaptive methodologies seek solutions that deliver maximum value to the customer.
What is Administrative Closure?
Involves verifying and documenting project results to formalize project or phase completion.
This process ensures that all project deliverables are completed and accepted.
What is an Affinity Diagram?
A technique that allows large numbers of ideas to be classified into groups for review and analysis.
This method helps in organizing thoughts and identifying patterns.
What is Affinity Estimating?
Technique designed to rapidly estimate large stories (epics or features) in the backlog. Examples include T-Shirt sizing, coffee cup sizes, or Fibonacci sequence.
This approach helps in quick estimation without detailed analysis.
Define Agile.
Refers to a type of project lifecycle or methodology based on a set of values and principles characterized by an openness towards change for the promotion of value or benefits delivery for the customer.
Agile methodologies support iterative development and flexibility.
What certifications are associated with Agile project management?
Agile project management certifications include:
* PMI-ACP®
* Disciplined Agile portfolio of certifications.
These certifications validate knowledge and skills in Agile practices.
What is the role of an Agile Coach?
A process role on a project team that helps organizations achieve true agility by coaching teams across the enterprise on how to apply agile practices and choose their best way of working.
An Agile Coach is similar to a Scrum Master but has a broader focus.
What is Agile Estimating?
An approach that assists with planning a project appropriately from the beginning to ensure the team can focus on the quality of each deliverable.
This technique emphasizes early and effective planning.
What are Agile Life Cycles?
A project life cycle that is iterative or incremental; also referred to as change-driven or adaptive.
Agile Life Cycles are suitable for environments with high levels of change.
What is the Agile Manifesto?
In 2001, a group of 17 software developers met in Snowbird, Utah to discuss lightweight software development, resulting in four core values:
* Individuals and interactions over processes and tools
* Working software over comprehensive documentation
* Customer collaboration over contract negotiation
* Responding to change over following a plan.
The Agile Manifesto laid the foundation for Agile methodologies.
What is Agile Modeling?
A representation of the workflow of a process or system that the team can review before it is implemented in code.
Agile Modeling helps teams visualize and refine their processes.
What are the Agile Principles?
A set of 12 guidelines that support the Agile Manifesto
These principles help practitioners and teams internalize and act upon Agile methodologies.
What is Agile Principle 1?
Customer satisfaction by early and continuous delivery of valuable software.
What is Agile Principle 2?
Welcome changing requirements, even late in development.
What is Agile Principle 3?
Deliver working software frequently (weeks rather than months).
What is Agile Principle 4?
Close, daily cooperation between business and technical people.
What is Agile Principle 5?
Projects are built around motivated individuals, who should be trusted.
What is Agile Principle 6?
Face-to-face conversation is the best form of communication (colocation).
What is Agile Principle 7?
Working software is the primary measure of progress.
What is Agile Principle 8?
Sustainable development, able to maintain a constant pace.
What is Agile Principle 9?
Continuous attention to technical excellence and good design.
What is Agile Principle 10?
Simplicity is essential
What is Agile Principle 11?
Best architectures, requirements, and designs emerge from self-organizing teams.
What is Agile Principle 12?
Regularly, the team reflects on how to become more effective, and adjusts accordingly.
What is Agile Release Planning?
A process in which a team determines the number of iterations or Sprints that are needed to complete each release, the features that each iteration will contain, and the target dates of each release.
What does Agile Space encourage?
A team space that encourages colocation, collaboration, communication, transparency, and visibility.
What are Agreements in project management?
Documents or communication that define the initial intentions of a project, such as contracts, MOUs, SLAs, letters of agreement, letters of intent, verbal agreements, and emails.
Examples include contracts, memorandums of understanding (MOUs), service-level agreements (SLAs), letters of agreement, letters of intent, verbal agreements, email, or other written agreements.
What are Allowable Costs?
Costs that are allowed under the terms of the contract, relevant in cost-reimbursable contracts where the buyer reimburses the seller’s allowable costs.
Allowable costs become relevant under certain types of cost-reimbursable contracts.
Define Analogous Estimating.
A technique for estimating the duration or cost of an activity using historical data from a similar activity or project, also known as ‘Top-Down Estimating’.
This technique leverages past project data to inform current project estimates.
What are Analytical Techniques?
Logical approaches that examine the relationship between outcomes and the factors that can influence them.
These techniques are used for analysis in various project management contexts.
What are Approved Change Requests?
Change requests that have been reviewed and approved by the change control board (CCB) and are ready to be scheduled for implementation.
The CCB ensures that only necessary changes are approved to maintain project integrity.
What is an Artifact in project management?
Any project management processes, inputs, tools, techniques, outputs, EEFs, and OPAs that the project management team uses, subject to configuration management.
Artifacts are maintained and archived by the team throughout the project lifecycle.
What is an Assumption in project planning?
Anything considered to be true while planning
Assumptions should be documented and validated and are often closely linked to constraints.
What is Assumption and Constraint Analysis?
A process that explores the validity of project assumptions within constraints and identifies risks from any incompleteness or inaccuracy of these assumptions.
What is an Assumption Log?
A list of all uncertainties that are treated as true for the purpose of planning.
What is Attribute Sampling Data?
Data that is counted such as the number of product defects or customer complaints.
What is an Audit in project management?
An examination of a project’s goals and achievements, including adequacy, accuracy, efficiency, effectiveness, and compliance with methodologies and regulations.
True or False: An Audit is a collaborative process that encourages team input.
False
An Audit tends to be a formal, one-sided process that can be demoralizing to team members.
Define Autocratic decision-making.
A group decision-making method in which one member makes the decision after considering the larger group’s ideas.
What does it mean to Avoid in risk management?
A strategy for managing negative risks or threats that involves changing the project management plan to remove the risk entirely by extending the schedule, changing the strategy,
increasing the funding, or reducing the scope.
What is a Backlog?
The prioritized list of all the work, presented in story form, for a project team.
See also ‘Iteration Backlog’
What is Backlog Refinement?
The progressive elaboration of project requirements and/or the ongoing activity in which the team collaboratively reviews, updates, and writes requirements.
What is a Backward Pass?
Technique for calculating the late start and late finish dates of the schedule activities. This is part of the critical path method and is paired with forward pass to determine activity and schedule float along with the critical path.
What is a Bar Chart?
A graphic display of schedule-related information. In the typical bar chart, schedule activities or WBS 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.
See also ‘Gantt Chart’
What does a Baseline represent in project management?
Original objectives plus approved change requests for scope, schedule, cost, and resources required to finish the project.
Baselines represent the approved plan, and they are useful for measuring how actual results deviate from the plan.
What is Benchmarking?
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.
What is a Benefit Cost Analysis?
A financial analysis tool used to determine the benefits provided by a project against its costs.
What does the Benefit Cost Ratio (BCR) represent?
The ratio of the expected benefits and the anticipated costs.
What is a Benefits Management Plan?
The documented explanation defining the processes for creating, maximizing, and sustaining the benefits provided by a project or program. It also describes how and when the benefits of a project will be derived and measured.
Both the business case and the benefits management plan are developed with the benefits owner prior to the project being initiated. Additionally, both documents are referenced after the project has been completed. Therefore, they are considered business documents rather than project documents or components of the project management plan.
What are Bidder Conferences?
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 called vendor conferences, pre-bid conferences, or contractor conferences.
What is Bottom-Up Estimating?
A method of estimating project duration or cost by aggregating the estimates of the lower-level
components of the WBS.
What is Brainstorming in project management?
A simple technique used to generate a list of ideas. It should be led by a facilitator with a group consisting of stakeholders, team members, and subject matter experts. After quickly generating a list of alternatives, the group then performs analysis of the alternatives and generally chooses
a particular option for action.
What is a Breach of Contract?
The failure to meet some or all the obligations of a contract.
Define Budget.
A time-phased plan for when funds will be disbursed on a project. It helps the organization anticipate when money will be coming in and/or going out, for the duration of the project.
Budget accuracy is dependent upon a well-defined project scope and schedule. The total project budget is the cost baseline plus management reserves.
See also ‘Cost Baseline’
What is Budget at Completion (BAC)?
The sum of all budgets established to provide financial support for the work to be performed.
What is a Buffer in project management?
A planning term related to contingency.
See also ‘Reserve’
What is a Burn Chart?
A tool that is used to track the progress of the project by plotting the number of days of sprint against the number of hours of work remaining. It is used to communicate progress during and at the end of an iteration/sprint/ increment, showing the number of stores that have been
completed and the ones that remain.
The concept is as the project progresses over time, the backlog of work will “burn down”/lessen.
What is the Burn Rate?
The rate at which the project consumes financial resources, representing negative cash flow.
Burn rates are often used by agile projects to budget costs for planned
iterations/sprints/increments.
What is a Burndown Chart?
A graphical representation of the work remaining versus the time left in a timebox.
What is a Burnup Chart?
A graphical representation of the work completed toward the release of a product.
Define Business Case.
A documented economic feasibility study used to establish the 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.
What is a Business Document?
An input that includes the business case for the project and the benefits management plan.
What are Business Requirement Documents (BRD)?
Listing of all requirements for a specific project.
What is Business Risk?
The inherent risk in any business endeavor that carries the potential for either profit or loss. Types of business risks are competitive, legislative, monetary, and operational.
What is Business Value?
The net quantifiable benefit derived from a business endeavor. The benefit may be tangible, intangible, or both.
Define Cadence.
A rhythm of execution.
Also see ‘time box’
What is Capability Maturity Model Information (CMMI)?
The CMMI provides a framework for the integration of process improvement for multiple process areas.
Associated with quality management.
What does a Cause and Effect Diagram show?
The relationship between causes and effects
Primarily used in root cause analysis for risk and quality to uncover causes of risks, problems, or issues.
What is a Cease and Desist Letter?
A legal document sent to an individual or a business with the direct intention of stopping
specific activities and preventing their occurrence or recurrence.
What does Certified Associate in Project Management (CAPM) mean?
PMI® Certification that offers recognition to practitioners who are interested in or are just starting a career in project management, as well as project team members who wish to demonstrate their project management knowledge. This certification denotes that the individual possesses the knowledge in the principles and terminology of A Guide to the Project Management Body of Knowledge (PMBOK® Guide), which outlines generally recognized good practices in project management.
What is Change Control?
Purposeful management of changes to the project (scope, schedule, cost, or quality). In change control, a change request goes through a formal process before a decision (approve/deny) is made.
What is the role of a Change Control Board (CCB)?
Responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project
Also records and communicates such decisions.
What is a **Change Control Form **used for?
A document used to request a project change. Can include recommendations for corrective or preventive actions.
See also ‘Change Request’
What does a Change Control System describe?
A set of procedures that describes how modifications to the project deliverables and documentation are managed and controlled.
What is a Change Log?
A living list of all project change requests (CR). This log is used to track and provide accurate status of each CR (requester, owner, details, impact analysis, decision, etc.).
What is Change Management?
A comprehensive, cyclic, and structured approach for transitioning individuals, groups, and organizations from a current state to a future state in which they realize desired benefits. It is different from project change control, which is a process whereby modifications to documents, deliverables, or baselines associated with the project are identified and documented, and then are approved or rejected.
What is a Change Management Plan?
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.
The Change Management Plan is essential for managing changes in a structured manner.
What is a Change Request (CR)?
Request for change sent to upper management or the Change Control Board (CCB) for its evaluation and approval.
See also ‘Change Control Form’
Define Charter in project management.
A shortened name for the project charter, which is a formal document that starts the project and provides the reason for the project based on the business case. The charter may include high-level requirements, assumptions, constraints, milestones, and preliminary budget.
See also ‘Project Charter’
What is the purpose of a Checklist?
A set of procedural instructions used to ensure that a product or component quality is achieved.
Checklists help maintain consistency and thoroughness in processes.
What does Checklist Analysis involve?
A technique for systematically reviewing materials using a list for accuracy and completeness.
Checklist Analysis is often used in quality control processes.
What is a Claim in project management?
An issue with the contract brought by one party against another that must be resolved before the contract can be properly closed out.
Claims can arise due to various disputes, often leading to negotiations or legal proceedings.
What is the Close Project or Phase Process?
The process of finalizing all activities for the project, phase, or contract.
This process ensures that all project deliverables are completed and accepted.
What are Close-Out Meetings?
Sessions held at the end of a project or phase during which teams discuss work and capture lessons learned.
Close-Out Meetings are critical for reflecting on project successes and areas for improvement.
What is the Closing Process Group?
One of the five Project Management Process Groups that consists of processes performed to formally complete or close the project, phase, or contract.
It ensures that all aspects of the project are finalized and documented.
What role does a Coach play in project management?
An agile servant leader role that exists to help the team and identify and remove any impediments (obstacles)
Coaches facilitate team dynamics and improve overall performance.
Define Coaching in the context of project management.
The act of giving guidance and direction to another person to facilitate personal and/or professional growth and development.
Effective coaching can lead to higher team morale and productivity.
What is a Code of Accounts?
A numbering system used to uniquely identify each component of the WBS.
It helps in organizing and tracking project elements efficiently.
What does the Code of Ethics and Professional Conduct encompass?
A PMI® published body of knowledge that describes the ethical, professional behavior and expectations of an individual working as a project management professional (PMP®).
It serves as a guideline for maintaining professionalism in project management.
What is Collaboration in project management?
The act of working together and sharing information to create deliverables, work products or results.
Collaboration enhances team synergy and project outcomes.
What is the Collect Requirements Process?
The process in which requirements documentation is developed. Precedes the Define Scope process.
This process is essential for ensuring that all stakeholder needs are captured.
Define Colocation.
An organizational placement strategy in which the project team members are physically located close to one another to improve communication, working relationships, and productivity.
Colocation can significantly reduce misunderstandings and increase team cohesion.
What is a Common Cause?
A reason contributing to a quality problem that is usually considered acceptable. Common causes are considered unpreventable or if they are preventable, the cost of prevention would not justify the benefit.
Opposite of ‘Special Cause’
Define Communication.
Act of accurately encoding, sending, receiving, decoding, and verifying messages.
Communication between a sender and receiver can be oral or written, formal or informal.
What are Communication Channels?
The number of possible communication paths on a project. The formula for calculating communication channels is: [n(n-1)]/2; n=number of people on the project.
This formula helps determine the complexity of communication within a team.
What is a Communication Method?
A systematic procedure, technique, or process used to transfer information among project stakeholders.
This includes various forms and channels of communication.
What are Communication Models?
A description, analogy, or schematic used to represent how the communication process will be performed for the project.
Models help clarify communication strategies.
What is Communication Requirements Analysis?
An analytical technique to determine the information needs of the project stakeholders through interviews, workshops, or study of lessons learned from previous projects.
This analysis ensures that all stakeholders receive the necessary information.
What is a Communication Styles Assessment?
A technique to identify the preferred communication method, format, and content for stakeholders for planned communication activities.
This assessment helps tailor communication to stakeholder preferences.
What is Communication Technology?
Specific tools, automated systems, computer programs, etc., used to transfer information among project stakeholders.
Examples include email, project management software, and instant messaging.
What is a Communications Management Plan?
A component of the project, program, or portfolio management plan that describes how, when, and by whom information about the project will be administered and disseminated.
This plan is crucial for effective communication throughout the project lifecycle.
Define Community of Practice (CoP).
As described by E. Wenger in his book, Cultivating Communities of Practice, the CoP uses the same basic idea as used by Shell in their off-shore drilling platforms to establish local forums of “experts” with the specific mandate to create an arena in which project managers would feel comfortable sharing their findings and learnings from their projects.
What is a Completion Contract?
A type of contract that is completed when the vendor delivers the product to the buyer and the buyer accepts the product.
Define Complexity in the context of project management.
A characteristic of a program, project, or its environment, which is difficult to manage due to human behavior, system behavior, or ambiguity.
What does Compliance refer to?
The state of meeting—or being in accord with—organizational, legal, certification or other relevant regulations.
Define Compromise in the context of project management.
An option in conflict management in which both parties give up something to reach an agreement.
What does Conduct Procurement Process involve?
The process of obtaining seller responses, selecting a seller, and awarding a contract.
What is the Cone of Uncertainty?
Agile term describing the difficulty of estimating early due to unknowns and how that should improve over time.
Define Configuration Item.
Any component or project element that needs to be managed to ensure the successful delivery of the project, services, or result.
What is Configuration Management?
A tool used to manage changes to a product or service being produced as well as changes to any of the project documents—for example, schedule updates.
What is a 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 is essential for maintaining the integrity and performance of project deliverables.
What does a Configuration Management System consist of?
A collection of procedures used to track project artifacts and monitor and control changes to these artifacts.
This system ensures that all changes are systematically managed throughout the project lifecycle.
Define Conflict in a project context.
Difference of opinion or agenda on a project amongst team members, stakeholders, or customers.
Conflict can arise from differing perspectives, priorities, or interests within a project.
What is Conflict Management?
The application of one or more strategies for dealing with disagreements that may be detrimental to team performance.
Effective conflict management is crucial for maintaining team cohesion and productivity.
What is the process of Conflict Resolution?
The process of working to reach an agreement after a conflict situation arises.
Conflict resolution techniques can include negotiation, mediation, and problem-solving.
What is Consensus?
Group decision technique in which the group agrees to support an outcome even if the individuals do not agree with the decision.
Consensus aims to ensure that all voices are heard while still reaching a collective decision.
Define Constraint in project management.
An external factor that limits the ability to plan. Constraints and assumptions are closely linked.
Constraints can include budget limits, resource availability, and regulatory requirements.
What is a Context Diagram?
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.
Context diagrams help clarify the boundaries and interactions of the project scope.
What is a Contingency Plan?
A risk response strategy developed in advance, before risks occur; it is meant to be used if and when identified risks become reality.
Contingency plans are essential for effective risk management in projects.
What does Contingency Reserve refer to?
Time or money allocated in the schedule or cost baseline for known risks with active response strategies.
This reserve helps ensure that the project can respond effectively to unforeseen events.
What is Contingency Theory?
A theory credited to Fred. E. Fielder which states that the set of skills and attributes that helped a project manager in one environment may work against them in another environment.
This theory emphasizes the importance of adapting management styles to varying project contexts.
Define Continuous Improvement (CI).
The ongoing effort to improve products, services, or processes.
Continuous improvement is a fundamental principle in quality management and operational excellence.
What is Continuous Integration?
The practice of regularly merging all software code into a shared environment, several times a day, to check code quality and functionality.
This process helps identify integration issues early.
Define Continuous Process Improvement.
The systematic, ongoing effort to improve products, services, or processes in an organization.
This approach focuses on incremental improvements over time.
What is a Contract?
A mutually binding agreement that obligates the seller to provide the specified project or service or result and obligates the buyer to pay for it.
Contracts can vary in complexity and scope.
What is a Contract Change Control System?
The system used to collect, track, adjudicate, and communicate changes to a contract.
This system helps manage changes effectively to avoid disputes.
What is a Control Account?
A management control point at which scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement.
Control accounts help in monitoring project performance.
What are Control Charts?
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. These charts are often associated with control limits, specification limits, means, and standard deviation. Control charts are used to analyze and communicate the variability of a process or project activity over time.
See also ‘Variability Control Charts’
What is the purpose of Control Costs Process?
Monitor and control project costs to ensure they align with the cost baseline/budget.
This process is crucial for maintaining financial discipline in projects.
What is the Control Procurements Process?
this process is performed by the buyer to ensure compliance by the seller and the other party; it compares the terms in the
agreement/contract. Is a process of managing procurement relationships, monitoring contract performance, making changes and corrections as appropriate, and closing out contracts.
Part of the Monitoring and Controlling Process Group.
What is the Control Quality Process?
This process focuses on the quality of deliverables.
Part of the Monitoring and Controlling Process Group.
What is the Control Resources Process?
This process ensures that the flow and usage of physical resources line up with the plan.
Part of the Monitoring and Controlling Process Group.
What is the Control Schedule Process?
This process compares the planned work to the actual work.
Part of the Monitoring and Controlling Process Group.
What is the Control Scope Process?
This process ensures that changes to scope are properly controlled.
Part of the Monitoring and Controlling Process Group.
What is a Controlling PMO?
A type of PMO that provides support and requires compliance through various means. Compliance may involve adopting project management frameworks or methodologies; using specific templates, forms, and tools; or conformance to governance.
What is Corrective Action in project management?
Steps (action) to bring future results in line with the plan.
This can change the plan or the way
the plan is being executed.
What is 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.
What is the Cost Baseline?
The approved version of the time-phased project budget, excluding any management reserves, which can be changed only through formal change control procedures and is used as a basis for comparison to actual results.
Also see ‘Budget’
What is a Cost Forecast?
Cost estimates adjusted based on performance
This includes Estimate at complete, budget at completion, estimate to complete, etc.
What is a Cost Management Plan?
A component of a project or program management plan that describes how costs will be planned, structured, and controlled.
What does the Cost of Conformance refer to?
The money spent during a project to avoid failures.
This includes prevention costs that build a quality product and appraisal costs that assess the quality.
What does the Cost of Non-Conformance refer to?
The money spent after a project is complete because of failures.
This includes internal and external failure costs.
Define Cost of Quality (CoQ).
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.
What is the Cost Performance Index (CPI)?
A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost.
What is a Cost Plus Award Fee (CPAF) Contract?
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.
What is a Cost Plus Fixed Fee (CPFF) Contract?
A type of cost-reimbursable contract in which the buyer reimburses the seller for the seller’s allowable costs plus a fixed amount of profit.
What is a Cost Plus Incentive Fee (CPIF) Contract?
A type of cost-reimbursable contract where the buyer reimburses the seller for allowable costs, and the seller earns profit if it meets defined performance criteria.
What does Cost Variance (CV) measure?
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.
What is a Cost-Benefit Analysis?
A cost-benefit analysis allows project managers to compare if the benefits of an action outweigh the costs or, conversely, if the costs outweigh the benefits. This can be an important criterion in decision making.
