PMP Exam Guide Glossary Flashcards
0
Q
Acquire Project Team
A
An executing process focused on getting the right people to work on the project at the right time. Acquire Project Team is executed according to the human resource plan.
1
Q
Acceptance
A
The act of approving the deliverables. Acceptance is usually performed by the project manager and the customer or sponsor at the end of the project, project phases, or at predefined milestones. Acceptance of the product, service, or result is formal.
2
Q
Activity
A
Also called Schedule activity. An activity is a task that must be performed in order to complete work on the project. Activities are created by further decomposing the work packages. Under current guidelines, the primary difference between a work package and an activity is that a work package is a component of the scope and describes some aspect of the deliverable, while an activity describes the work that must be done in order to complete the work package. Schedule activities are first defined, then sequenced and estimated for duration.
3
Q
Activity attributes
A
The informational components that accompany each schedule activity. These may include information on dependencies, leads and lags, assignments, accountability, requirements, constraints and
assumptions.
4
Q
Activity on Arrow (AOA)
A
A type of graphical project network diagram where schedule activities are represented by lines with arrows. The lines are connected by notes, usually represented by circles. AOA diagrams are seldom used in practice today and have been replaced by AON.
5
Q
Activity on Node (AON)
A
A type of graphical project network diagram where schedule activities are represented by nodes (usually rectangles), and their interdependencies are represented by lines with arrows.
6
Q
Activity List
A
The list of all schedule activities to be performed, derived by decomposing the work packages into their schedule components. The activity list is a primary output of the Define Activities Process.
7
Q
Activity Resource Requirements
A
The resources required to complete the activities in the activity list. Typically these are physical, human, and organizational resources but do not include financial resources.
8
Q
Actual Cost (AC)
A
Also know as Actual Cost of Work Performed (ACWP). A term used in earned value management. Actual Cost represents the amount that has been spent by the project up to a point in time. It is often contrasted with earned value to show the difference between the amount of value earned on the project (represented by the earned value) and what was spent to earn that value (represented by the actual cost).
9
Q
Actual Cost of Work Performed (ACWP)
A
Actual Cost of Work Performed represents the amount that has been spent by the project up to a point in time. It is often contrasted with earned value to show the difference between the amount of value earned on the project (represented by the earned value) and what was spent to earn that value (represented by the actual cost).
10
Q
Agreements
A
A document, defining intentions around the project or some component of the project, that has been accepted by both parties. It is helpful to think of agreements as contracts for purposes of the exam.
11
Q
Allowable Costs
A
Costs that are allowed under the terms of the contract. Typically, allowable costs become relevant under certain types of cost-reimbursable contracts where the buyer reimburses the seller’s allowable costs. If there are non-allowable costs in a contract, the buyer is not obligated to reimburse the seller for these.
12
Q
Alternatives Generation
A
A tool used in the Define Scope process to identify multiple possible approaches to solving a problem.
13
Q
Analogous Estimating
A
Also known as “Top-Down Estimating.” An estimating technique that uses the historical information from previously performed activities that are similar in nature, to estimate the effort, duration or cost needed to complete an activity.
14
Q
Analytical Techniques
A
A logical approach that looks at the relationship between outcomes and the factors that can influence them.
15
Q
Application (exam)
A
The application for the PMP or CAPM exam which requires the applicant to document an adequate combination of education and experience in project management. The application must be received and processed by the Project Management Institute before the applicant is eligible to schedule his or her certification exam.
16
Q
Arrow Diagramming Method
A
The method that produces activity on arrow (AOA) diagrams.
17
Q
Assumption
A
Anything that is considered to be true while planning. Assumptions should always be documented and validated, and they are often closely linked to constraints.
18
Q
Backward Pass
A
A technique used to calculate slack, or float, that begins with the last node of a project network diagram and logically works backward to the start. Using the backward pass technique, each schedule activity’s late start and late finish dates are determined.
19
Q
Bar Chart
A
A term in project management that equates to a Gantt Chart. In a bar chart, horizontal bars represent lengths of time for schedule activities. A calendar of dates represents the horizontal (X) axis.
20
Q
Baseline
A
The original approved scope, cost, or schedule, plus all approved changes. Baselines represent the approved plan, and they are especially useful for measuring how actual results deviate from the plan. It is important to remember that the baselines can, and typically do, change throughout the life of the project as changes are approved. Baselines occasionally apply to other measured areas such as performance and quality.
21
Q
Basis of Estimates
A
The backup detail showing how cost or schedule estimates were derived, where they came from, who was involved, what information was used, and what estimating technique was used.
22
Q
Benchmarking
A
Using data from other projects, departments, or organizations to measure performance of the project or product.
23
Q
Bottom-up Estimating
A
A technique for estimating overall project duration, effort, or costs by estimating the lowest levels of the schedule or work breakdown structure (WBS) and and aggregating those numbers up to the summary nodes on the WBS. Bottom-up estimating is widely considered to be a relatively accurate, but often tedious, technique for estimating. This technique is the opposite of top-down or analogous estimating.
24
Bidder Conference
A meeting for potential sellers to come and understand the work they are considering bidding on. In a bidder conference, all bidders are given the same information and are kept on a level playing field.
25
Brainstorming
A technique to gather ideas that involves getting ideas from many participants in a rapid-fire and non-judgmental environment. Ideas are not evaluated until after they have all been gathered.
26
Budget
Also known as Cost Baseline. The cost baseline is a time-phased plan for when funds will be disbursed on a project. It helps the performing organization anticipate cash flow needs for the project life-cycle. Accuracy is dependent upon a well-defined project scope and schedule, although a summary-level cost baseline is typically supplied with the project charter before the scope and schedule are fully defined.
27
Budgeted at Completion (BAC)
The planned (budgeted) amount for the total project. The BAC represents what the project should cost at the point it is completed if everything proceeds according to plan.
28
Budgeted Cost of Work Performed (BCWP)
Also known as Earned Value. Earned Value is a cost accounting term representing the value of the work that has actually been completed up to a point in time. Earned Value (EV) is different from Actual Cost (AC) because EV measures what was actually done and how much that is worth, which is different from what has been spent. For instance, if the project spent $100,000 but got $200,000 of value out of that, the EV would be $200,000, while the AC would only be $100,000.
29
Budgeted Cost of Work Scheduled (BCWS)
Also known as Planned Value (PV). An earned value management term representing the value that should have been realized on the project at a given point in the schedule. Planned Value (PV) is contrasted with Earned Value (EV).
30
Buffer
Extra time or money added to the schedule or budget to allow for unanticipated overruns. Buffers are useful since they allow for some slippage without affecting the overall schedule or budget.
31
Business Case
The social, economic, or business outcomes that justify undertaking this project or part of the project.
32
Cause-and-Effect Diagrams
Also known as an Ishikawa diagram, or a fishbone diagram. Cause and effect diagrams graphically show the relationships between causes and effects. They are primarily used in risk and quality to help uncover the causes of risks, problems, or issues.
33
Certified Associate in Project Management (CAPM)
A project management credential created and managed by the Project Management Institute. The CAPM is for anyone who works on a project, can demonstrate the required education, and can demonstrate an adequate understanding of the PMBOK guide.
34
Change Control
Deliberately managing change to a project, whether that change is to the scope, cost, schedule, or quality baseline. In change control, change requests go through a formal process before they are approved or rejected. See Perform Integrated Change Control in chapter 4 for more information on the specific process associated with change control
35
Change Control Board
A group with formal responsibility for evaluating project change requests. The change control board makes up a part of the overall change control system.
36
Change Control System
The procedures for evaluating and managing requested changes to the project. This system varies from project to project and from organization to organization.
37
Change Log
The list of all changes, whether or not they were requested, made to the project. The change log is used as an input to various processes to ensure that the impacts of changes are properly reviewed and evaluated.
38
Change Request
Any requested change to a documented baseline. Change requests are typically only implemented once the scope, cost, schedule, or quality is "baselined." Since change requests are formal, before project baselines exist a less formal method is generally used. Change requests are processed according to the change control system.
39
Charter
The document that formally starts the project. The charter typically is issued by the sponsor and names the project manager. Additionally, it may list the high-level project requirements, the high-level milestones and a summary-level preliminary budget. The charter is a formal document created in the Develop Project Charter process. It authorizes the project manager to expend organizational resources in order to accomplish the project objective.
40
Checklist
Any set of procedural instructions used to ensure that product or component quality is achieved. Checklists are created in the Plan Quality Management process and are used in the Perform Quality Control process.
41
Claim
An issue with performance against the contract brought by one party against another. Claims could be made by the buyer against the seller for non-performance, or by the seller against the buyer for untimely payment. Claims must be resolved before the contract can be properly closed out.
42
Close Procurements
One of two closing processes that focuses on making sure the procurement is completed, the product or service is accepted, and the contract is closed. Even if a contract is terminated early, the process of Close Procurements should be carried out.
43
Close Project or Phase
The closing process that administratively closes a phase or the overall project. In Close Project or Phase, all final project documentation and project files are completed, and lessons learned are documented
44
Closing Processes
The group of processes that focus on closing out the project or an individual phase. Closing processes focus on closing out the contract(s), releasing resources, delivering the product, and gaining formal stakeholder approval.
45
Collect Requirements
A planning process in scope management that documents the stakeholders' needs for the project. The resulting requirements documentation focuses on how the requirement, once it is built, will satisfy the underlying need or meet the opportunity that drove it.
46
Colocation
The act of physically locating everyone on a project team in the same space or general area. Colocation is used to break down distance barriers and facilitate team-building. A war room where all project team members work together is an example of colocation.
47
Communication
The act of accurately encoding, sending, receiving, accurately decoding, and verifying a message. Communication between a sender and a receiver may be formal, informal, oral, or written.
48
Communication Channels
The number of possible formal or informal paths of communication on a project. The concept of communication channels is particularly helpful in understanding how the addition of a small number of people to a project team can complicate the project manager's job of controlling communication channels is:
n(n-1)/2
where n= the number of people in the communication model
49
Communication Model
The formal paths of communication that will be used on the project. The traditional communication model involves a sender, a receiver, and a message, and both sender and receiver have responsibilities as to how they act upon the message.
50
Communications Management Plan
The component of the project plan that specifies communications requirements and how those requirements will be addressed by the project. The communications management plan describes what communications will be provided, to whom, in what format, and how often.
51
Conduct Procurements
The executing process in procurement management, where the seller responses are gathered, a seller is selected, and the contract is awarded. Conduct Procurements will only be performed on projects that procure goods or services from outside the organization, but on those projects it may be performed multiple times as needed.
52
Conflict
Difference of opinion or agenda on a project among team members or stakeholders. While not all conflict can be resolved to everyone's satisfaction, it is primarily the project manager's job to drive conflict resolution so that the project is not jeopardized.
53
Consensus
A group decision technique where the group agrees to support an outcome, even if the individuals do not all agree with the decision.
54
Constraint
Any external factor that limits the ability to plan. The most common constraints are scope, time, and cost, but they could be any factor, such as the law, weather, or resource availability. Constraints and assumptions are often closely linked
55
Context Diagram
A means of diagramming the scope where people and systems are shown along with how other people and systems will interact with them.
56
Contingency
Also known as reserve, contingency is padding time and / or money to the project's schedule or budget to help manage overruns. Contingency may or may not be communicated to project stakeholders, and it may be added at an activity level at any node on the WBS or even at an overall project level.
57
Contract Change Control System
The formal system for managing changes to the contract so that all changes are tracked and processed and all relevant parties are notified of the changes.
58
Contract
A legal document that specifies the relationship between two parties. In project management, these two parties are most often referred to as buyer and seller.
59
Control
See Monitoring and Controlling
60
Control Account
Also known as a "cost account," a control account is a node on the WBS where the scope, time and cost are measured. Control accounts contain one or more work packages and are used to measure earned value. A project may have numerous control accounts placed on the WBS at nodes where it would be particularly meaningful to measure the earned value of those parts of the project.
61
Control Account Manager
The individual accountable for the delivery of the work contained in the control account to the scope, budget, and schedule.
62
Control Chart
A specialized chart used in statistical process control to help determine whether or not a process is in control. Control charts are often associated with control limits, specification limits, means, standard deviations, and the rule of seven.
63
Control Costs
The process to monitor and control project costs to ensure they align with the plan. Control costs is proactive to anticipate change and risk factors, as well as reactive to actual factors that affect project costs.
64
Control Account Plan (CAP)
The plan for how a given control account will be performed and measured. Since each control account is a division of the overall project, each CAP functions essentially like a mini-project plan for that division of work.
65
Control limits
The upper and lower limits, used in statistical process control, that determine whether or not a process is in control. Upper and lower control limits are set at prescribed intervals and measured in standard deviations, above and below the mean. As long as the data points fall between the control limits, the process is in control.
66
Control Procurements
The monitoring and controlling process performed by the buyer to ensure compliance by the seller or other party. Administer Procurements compares performance against terms and conditions specified in the contract to make certain that the seller meets his or her contractual obligations. The seller's performance is typically rated or evaluated by the buyer and is communicated back to the seller.
67
Control Quality
The monitoring and controlling process that focuses on work product quality. Control Quality is different from Perform Quality Assurance in that Control Quality inspects actual work products and tests them against requirements, while Perform Quality Assurance looks at the overall quality process to ensure that it is being followed and that it is working effectively.
68
Control Risks
The process that reviews the risks that have and have not occurred on the project and evaluates how the execution of the risk management plan lines up to the plan itself.
69
Control Schedule
A monitoring and controlling process where the planned schedule is compared with the work performance information. If the project is ahead of schedule or behind schedule, corrective action in the form of change requests or updates to the plan may be necessary.
70
Control Scope
A monitoring and controlling process that ensures that changes to the scope baseline are properly controlled.
71
Corrective Action
Any action taken to bring future results in line with the plan. Corrective action may change the plan or the way the plan is executed.
72
Cost
Any project expenditure. Costs are tracked on numerous levels, but usually tie back to a chart of accounts and nodes on the work breakdown structure.
73
Cost Account
Also known as Control Account. A control account is a node on the WBS where the scope, time and cost are measured. Control accounts contain one or more work packages and are used to measure earned value. A project may have numerous control accounts placed on the WBS at nodes where it would be particularly meaningful to measure the earned value of those parts of the project.
74
Cost Aggregation
Adding activity-level costs or cost estimates to get the cost or cost estimate for a work package.
75
Cost-Benefit Analysis
An analysis of potential scope changes and the forecasted benefits of making these changes and the costs involved. Quality is the section on the exam where this is most relevant, and in quality management, benefits should always outweigh cost.
76
Cost Forcasts
Cost Estimates adjusted for performance There are several ways to do this, including using the Estimate At Complete, the Estimate To Complete, the Budgeted at Completion, the Cost Performance Index and others.
77
Cost Baseline
Also known as Budget. The cost baseline is a time-phased plan for when funds will be disbursed on a project. It helps the performing organization anticipate cash flow needs for the project life-cycle. Accuracy is dependent upon a well-defined project scope and schedule, although a summary level cost baseline is typically supplied with the project charter before the scope and schedule are fully defined.
78
Cost Management Plan
The plan for how project costs will be measured, monitored, and controlled. The cost management plan is created in the Develop Project Management Plan process.
79
Cost of Quality (COQ)
The sum of all project costs expended associated with achieving quality. Cost of Quality includes a complete analysis that includes planning, execution, control, the costs of potential alternatives, and the costs of quality failure.
80
Cost Performance Index (CPI)
Expressed as CPI = EV ÷ AC, the CPI is an earned value calculation borrowed from the discipline of cost accounting. The CPI can be useful for predicting future performance based on previous history, as well as for plotting trends over time. Conventional wisdom dictates that a CPI >= 1 is preferable since that indicates that the project is earning value at a cost that is better than planned, while a CPI < 1 is undesirable since it indicates that performance lags the plan.
81
Cost-Plus-Fee (CPF)
Also known as Cost-Plus-Percentage-Of-Cost (CPCC), it is a type of contract where the buyer pays the seller's costs for performing contractual duties plus a fee that is tied to the costs. Typically this fee is calculated as a percentage of costs. This contract type places a large portion of the risk on the buyer, as the seller stands to be financially rewarded when costs run high.
82
Cost-Plus-Fixed-Fee (CPFF)
A type of contract where the buyer pays the seller's allowable costs for performing contractual duties plus a fixed sum for performing the work. The buyer bears much of the risk by paying the seller's allowable costs; however, this contract type places some of the burden on the seller, since the seller's profit is fixed regardless of how long or expensive the contract work is.
83
Cost-Plus-Incentive-Fee Contract (CPIF)
A type of contract where the buyer pays the seller's allowable costs for performing contractual duties plus an incentive fee tied to the seller's performance. The incentive is often calculated by the seller's performance at keeping costs down. This contract type distributes the risk between the buyer and the seller.
84
Cost-Reimbursable Contract (CRC)
A type of contract where project costs incurred by the seller are reimbursed by the buyer. In addition, the buyer typically pays the seller an additional fee for the seller's profit. Cost reimbursable contracts often include incentives to the seller to keep costs down, where the seller would share a percentage of the cost savings with the buyer. The share of risk distributed to the buyer and seller depends upon the specifics of the contract.
85
Cost Variance
Commonly abbreviated as CV, cost Variance is the earned value minus the actual costs, expressed as CV = EV-AC. Cost variance is useful to represent how project spending is tracking against the plan. A positive cost variance is generally considered to be a good thing, and a negative cost variance indicates overspending and is considered to be undesirable.
86
Crashing
Applying additional resources to one or more activities in order to complete the work more quickly. Crashing usually increases cost more than risk and can lead to the law of diminishing returns as resource allocation passes optimal levels. Compare with Fast Tracking.
87
Create WBS
The planning process for Creating the work breakdown structure. This process decomposes all of the work necessary to perform the project and organizes it into the work breakdown structure (WBS). The WBS dictionary, which provides expanded information on the WBS is also an output of this process
88
Criteria
Objective Measures for acceptance or judging quality.
89
Critical Activity
Any schedule activity that appears on the project's critical path. An activity is designated as critical if its delay would delay the overall project assuming all other activities finished as planned.
90
Critical Chain Method
A technique for managing a project's schedule that focuses on managing the constraints caused by limited human and material resource availability. Based on the Theory of Constraints, the critical chain method manages schedule buffers and emphasizes flexibility and keeping all resources fully working.
91
Critical Path
One or more combinations of activities from start to finish in a project network diagram, any one of which delayed would delay the completion of the entire project
92
Critical Path Method
A technique of schedule analysis, where the schedule activities are evaluated to determine the float (or slack) for each activity and the overall schedule. The critical path method uses forward pass, backward pass and float analysis to identify all network paths, including the critical path. The reason this technique is known as the critical path method is that the path of least flexibility and highest risk (i.e. the critical path) is identified so that it may be managed appropriately.
93
Decision Tree
A tool used in risk management to analyze risk and the expected monetary value of a decision or event to evaluate the outcome of certain scenarios. Decision trees are used to evaluate uncertainty.
94
Decomposition
A technique for progressively breaking down the scope into smaller and smaller components. Decomposition is performed on nodes of the work breakdown structure and typically stops when the decomposed pieces are small enough to be assigned and estimated for time and cost. These smaller nodes (work packages) are later decomposed further into schedule activities.
95
Defect
An issue when the project's product, service or result does not match the documented scope. Defects are often costly and require rework.
96
Define Activities
The planning process that takes work packages from the work breakdown structure (WBS) and further decomposes then into schedule activities.
97
Define Scope
The planning process that results in the project scope statement. The goal of this process it to develop a detailed understanding of he scope and to document that understanding
98
Deliverable
A part of the product, or the product itself, that is presented to the customer or stakeholders for acceptance.
99
Delphi Technique
A form of expert judgement where a group of stakeholders is asked a question or opinion in a way that prevents the people being polled from knowing who the others are. Named after the blind oracle at Delphi in ancient Greece, the Delphi Technique is often use to prevent highly opinionated stakeholders from influencing the rest of the group
100
Dependency
A relationship between two or more activities where one activity must be started or completed before another related activity may be started or completed. Considering two activities of "Purchase Laptops" and "Configure Laptops," the start activity "Configure Laptops" might be said to be dependent upon the finish of activity "Purchase Laptops." A Dependency may be mandatory, discretionary, or external to the organization. It is also known as a logical relationship between nodes. See entries on START-FINISH, START-START, FINISH-FINISH, and FINISH-START.
101
Design of Experiments(DOE)
A technique using data analysis to determine optimal condition. It is most often used when there are multiple variables to be considered, and this technique analyzes how factors influence and change these variables. An Engineer might use DOE to evaluate and determine the right combination of transmission gearing , wheel size, and tires for a new automobile within the cost constraints he or she has been given.
102
Determine Budget
The planning process where the individual cost estimates are compiled into the cost baseline. The cost baseline is a time-phased representation of costs so that stakeholders can see what funds will be needed and when they will be needed.
103
Develop Project Charter
An initiating process where the project charter is produced. This process typically occurs very early in the project, but also may take place at the beginning of each project phase. the output of this process formally authorizes the project to begin, names the project manager, and provides resources for the project.
104
Develop Project Management Plan
The planning process in which all subsidiary components of the project plan are integrated into a single plan that will drive the rest of the project.
105
Develop Project Team
The executing process of enhancing the project team. Develop Project Team focuses on improving the overall sense of teamwork and the individual skills and abilities of he project team members
106
Develop Schedule
The planning process where the activities are arranged on a calendar to create a schedule. The project schedule may take several forms and have varying degrees of detail.
107
Diagramming Techniques
Various means of depicting a system or a virtual concept such as a business or system process flow using drawings to show entities, relationships, and interactions
108
Dictatorship
A group decision technique where one person makes the decisions for the entire group. This technique is generally not viewed favorably when it comes to the exam.
109
Direct and Manage Project Work
A high level executing process as part of integration management that focuses on carrying out the project plan. Direct and Manage Project Work is closely tied to the process Monitor and Control Project Work, where he performance and quality of the execution is measured against the plan
110
Direct Cost
A cost, usually measured and reported in Control Procurements, that is a direct project expense. Direct costs may include salaries of project workers, materials, and other expenses that are solely for the project. Generally, direct cost data is collected and reported as part of the Direct and Manage Project Execution process and becomes part of he Work Performance Information.
111
Distribute Information
The executing process where information is distributed to the stakeholders according to the communications management plan.
112
Document Analysis
A technique used in the Collect Requirements process to review existing documentation in order to gather requirements for a new product. An organization's marketing lliterature developed for a product that does not yet exist would be a good example of a document that would be used for analysis.
113
Dummy Activity
A part of Activity on Arrow (AOA) project network diagrams where a "false" schedule activity is assigned a duration of 0. A dummy activity, represented as a dashed line between two circular notes, is used to create logical relationships.
115
Duration
The amount of time needed to complete a schedule activity or work package. Duration is different from effort, since duration is concerned with calendar time, while effort is concerned with work hours.
Ex:
a schedule activity that takes 8 workers 5 days, would require 40 days of effort, but may be possible to complete in the duration of only one work week. Durations are estimated during the Estimate Activity Durations process.
116
Early Finish Date (EF)
- Used for schedule activities on project network diagrams
- the earliest date possible that an activity could be completed given all of the constraints, durations, and logical relationships that exist within a schedule.
117
Early Start Date (ES)
- Used for schedule activities on project network diagrams
- the earliest date possible that an activity could stat given all of the constraints, durations, and logical relationships that exist within a schedule.
118
Earned Value (EV)
- Also known as Budgeted Cost of Work Performed (BCWP)
- The cost accounting term representing the value of the work that has acutally been completed up the a point in time.
- Different from Actual Cost (AC) because EV measures what was actually done and how much that is worth, which is different from what has been spent.
- EX: if a project spent $100,000 but got $200,000 of value out of that, the EV would be $200,000, while the AC woudl be only $100,000
119
Effort
- The amount of work needed to complete an activity.
- Effort is different from duration, as duration measures how long something will take on a calendar
- Effort is determined or estimated during the Estimate Activity Duration process
- EX: 3 people working on an activity for 2 weeks might spend approx 240 man hours of effort, but might require only 80 schedule hours (duration) to complete.
120
Enterprise Environmental Factors (EEF)
Any factor outside of the project's control that influences the project. This could include organisational attitudes, culture, reporting relationships, goverment, the economy, laws, etc.
121
Estimate
A numerical representation of cost or time. Estimates should always specify the confidence and expecte margin of error.
- EX: an early estimate for the design of a software database might be represented as follows: Database Design, Preliminary Estimate =92 hours +/- 50%
122
Estimate Activity Duration
Planning process which estimates how long a schedule activity should take. These estimates may be expressed as a specific number (eg 2 weeks) or as a range (eg 1 to 3 weeks). Activity durations are derived through a variety of methods, but are generally a function of the amount of work to be done, the resources applied to the task, expert judgement and historical info.
123
Estimate Activity Resources
Planning process that estimates the material and human resources needed to perform a schedule activity to completion. This process may be performed before, after, or in parallel with the process of Sequence Activities.
124
Estimate at Complete (EAC)
The forcasted amount a project should cost at its end, factoring in all of the performance metrics that have occurred at this point in the project. At a project's beginning, the EAC should be equal to Budgeted at Complete (BAC); however, if the project performs better than expected, or if risk occurrence is lower than expected, EAC could be lower than BAC. EAC is calculated by using: EAC=BAC/CPI
125
Estimate Costs
Planning Process of estimating the costs of activities which have not been performed. Estimate Costs is performed after the scope has been defined, the activities have been decomposed, and the duration and resources for each activity have been estimated. The cost estimates are later mapped back to the WBS and are used to create the budget.
126
Estimate to Complete (ETC)
The forecasted amount it will take to finish a project from a point in time going forward. The ETC factors in known performance metrics. ETC answers the questions "how much more will it cost us to complete the project at this point?" ETC is calculated by using: ETC= EAC - AC
127
Executing Process Group
ll executing processes and activities focus on carrying out some aspect of the project plan, and on most projects the majority of project costs are expended during executing processes.
128
Exit Gate
A logical point at the end of a project phase, where an independent party reviews that phase's deliverables to determine whether or not they were completed successfully and the subsequent project phase should be initiated. Commonly referred to as stage gates, phase gates, or kill points.
129
Expected Monetary Value (EMV)
A method to calculate the value of potential future outcomes, factoring in the possible costs and probability of events. Decision Tree analysis is one method that uses EMV.
130
Expert Judgement
Using knowledgeable groups or individuals to assist in project decisions. Expert judgement is a highly favored technique within Project Management.
131
Facilitated Workshops
A meeting or series of meetings where a facilitator works with the project stakeholders from various disciplines to determine requirements. Joint Application Design (JAD) is an example of a specific type of facilitated workshop.
132
Facilitation Techniques
A technique used in integration management to move early stakeholders toward consensus on the broad goals of the project.
133
Fast Tracking
Performing project activities in parallel that would have been performed in sequence. It is most often the discretionary dependencies that are discarded in order to fast track activities. Usually results in the project schedule being completed in a shorter time frame, but INCREASES RISK
134
Finish Date
The date that an activity is predicted (or permitted) to finish, based on the analysis of the schedule. The early finish date of a schedule activity is calculated by performing a forward pass on the project network diagram, and the late finish date is calculated by performing a backward pass.
135
Finish-to-Finish (FF)
The logical relationship between nodes in a project network Diagram. A FF relationship between two schedule activities (eg. T & W) indicates that regardless of when activity W starts, it cannot finish before activity T does.
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Finish-to-Start (FS)
The most common logical relationship between nodes in a project network Diagram. A FS relationship between two schedule activities (eg. D & E) indicates that the successor activity (E) cannot be started until the preceding activity (D) has finished
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Fixed-Price-Incentive-Fee Contract
A type of contract where the seller is paid a fixed price for the contract but can also earn an incentive fee, paid by the buyer, for achieving predefined targets related to the seller's contract performance.
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Fixed-Price Contract (AKA Lump Sum)
Also called Firm-Fixed-Price Contract. A contract that specifies a fixed price for the deliverable paid by the buyer to the seller. Firm-Fixed-price contracts transfer primary risk to the seller, since the seller is paid one price regardless of costs, efforts, or any other potential uncertainty. Ex: Purchase Order.
