Acceptance

The formal process of accepting delivery of a deliverable or a product. Acceptance Criteria. Those criteria, including performance requirements and essential conditions, which must be met before project deliverables are accepted. A prioritised list of criteria that the final product(s) must meet before the customer will accept them; a measurable definition of what must be done for the final product to be acceptable to the customer. They should be defined as part of the Project Brief and agreed between customer and supplier no later than the project initiation stage. They should be documented in the Project Initiation Document.

Acceptance Test

A formal, predefined test conducted to determine the compliance of the deliverable(s) with the acceptance criteria.

Accounts Payable

Accounts payable (A/P) is a file or account that contains money that a person or company owes to suppliers, but has not paid yet (a form of debt). When an invoice is received, it is added to the file, and then removed when it is paid. Thus, the A/P is a form of credit that suppliers offer to their purchasers by allowing them to pay for a product or service after it has already been received.

Accounts Receivable

Accounts receivable (A/R) is one of a series of accounting transactions dealing with the billing of a customer for goods and services he/she has ordered. In most business entities this is typically done by generating an invoice and mailing or electronically delivering it to the customer, who in turn must pay it within an established timeframe called "creditor payment terms." On a company's balance sheet, accounts receivable is the money owed to that company by entities outside of the company. The receivables owed by the company's customers are called trade receivables. Account receivables are classified as current assets assuming that they are due within one year. To record a journal entry for a sale on account, one must debit a receivable and credit a revenue account. When the customer pays off their accounts, one debits cash and credits the receivable in the journal entry. The ending balance on the trial balance sheet for accounts receivable is always debit.

Accrual

Work done for which payment is due but has not been made. See also Provision.

Accrued Costs

Costs that are earmarked for the project and for which payment is due, but has not been made.

Accrued Expense

Expense is recognized before cash is paid out. It is a liability with an uncertain timing or amount, but where the uncertainty is not significant enough to qualify it as a provision. An example is a pending obligation to pay for goods or services received from a counterpart, while cash is to be paid out in a latter accounting period when the amount is deducted from accrued expenses.

Accrued Revenue

Revenue is recognized before cash is received. It is an asset, such as unpaid proceeds from a delivery of goods or services, when such income is earned and a related revenue item is recognized, while cash is to be received in a latter period, when the amount is deducted from accrued revenues.

Acquire Project Team [Process]

The process of confirming human resource availability and obtaining the team necessary to complete project assignments.

Action Owner (risk related)

Some actions may not be within the remit of the risk owner to control explicitly; in that situation there should be a nominated owner of the action to address the risk. He or she will need to keep the risk owner apprised of the situation.

Activity

A component of work performed during the course of a project. The smallest self-contained unit of work used to define the logic of a project.

Activity Attributes [Output/Input]

Multiple attributes associated with each schedule activity that can be Included within the activity list. Activity attributes include activity codes, predecessor activities, successor activities, logical relationships, leads and lags, resource requirements, imposed dates, constraints, and assumptions.

Activity Code

One or more numerical or text values that identify characteristics of the work or in some way categorize the schedule activity that allows filtering and ordering of activities within reports.

Activity Duration

The time in calendar units between the start and finish of a schedule activity. See also duration.

Activity Identifier

A short unique numeric or text identification assigned to each schedule activity to differentiate that project activity from other activities. Typically unique within any one project schedule network diagram.

Activity List (Output/Input)

A documented tabulation of schedule activities that snows the activity description, activity identifier, and a sufficiently detailed scope of work description so project team members understand what work is to be performed.

Activity Network

A flow diagram showing the activities of a plan and their interdependencies. The network shows each activity's duration, earliest start and finish times, latest start and finish times and float. Also known as 'planning network'. See also Critical path.

Activity Status

The state of completion of an activity.

Actual Cost (AC)

Total costs actually incurred and recorded in accomplishing work performed during a given time period for a schedule activity or work breakdown structure component. Actual cost can sometimes be direct labour hours alone, direct costs alone, or all costs including indirect costs. Also referred to as the actual cost of work performed (ACWP). See also earned value management and earned value technique. The incurred costs that are charged to the project budget and for which payment das been made, or accrued.

Actual Cost of Work Performed (ACWP)

See actual cost (AC).

Actual Dates. The dates on which activities started and finished as opposed to planned or forecasted dates.

Actual Duration

The lime in calendar units between the actual start date of the schedule activity and either the data date of the project schedule if the schedule activity is in progress or the actual finish date if the schedule activity is complete.

Actual Expenditures

The money that has already been paid.

Actual Finish

The date on which an activity was completed.

Actual Start

The date on which an activity was started.

Actual Time expended

The elapsed time from the beginning of an activity to date.

Administer Procurements [Process]

The process of managing procurement relationships, monitoring contract performance, and making changes and corrections as needed.

Analogous Estimating [Technique]

An estimating technique that uses the values of parameters, such as scope, cost, budget, and duration or measures of scale such as size, weight, and complexity from a previous, similar activity as the basis for estimating the same parameter or measure for a future activity.

Application Area

A category of projects that have common components significant in such projects, but are not needed or present in all projects. Application areas are usually defined in terms of either the product (i.e., by similar technologies or production methods) or the type of customer (i.e. internal versus external government versus commercial) or industry sector (i.e.. utilities, automotive, aerospace, information technologies, etc.). Application areas can overlap.

Approved Change Request [Output/Input]

A change request that has been processed through the integrated change control process and approved.

Associated Revenue

The part of a project cost that is of a revenue nature and therefore charged as incurred to the profit and loss account.

Assumptions

Assumptions are factors that, for planning purposes, are considered to be true, real, or certain without proof or demonstration.

Assumptions Analysis [Technique]

A technique that explores the accuracy of assumptions and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions.

Audit

The systematic retrospective examination of the whole, or part, of a project or function to measure conformance with predetermined standards.

Authorisation

The process of approving, funding, and communicating the authorisation for initiating work on a component.

Authority

The right to apply project resources, expend funds, make decisions, or give approvals.

Backward Pass

The calculation of late finish dates and late start dates for the uncompleted portions of schedule activities. Determined by working backwards through the schedule network logic from the project's end date. See also schedule network analysis.

Base Cost

Base costs include salary plus ancillary labour cost (as social security, health insurance). The base costs for own products are the costs to produce the product or to buy it on the market.

Base Cost Rate

The base cost rate is calculated by dividing base cost by the number of units which are used to determine the base cost. Example: yearly base cost of an employee divided by the required yearly working hours gives the hourly base cost rate.

Baseline

An approved plan for a project, plus or minus approved changes. It is compared to actual performance to determine if performance is within acceptable variance thresholds. Generally refers to the current baseline, but may refer to the original or some other baseline. Usually used with a modifier (e.g. cost performance baseline, schedule baseline, performance measurement baseline, technical baseline). A snapshot; a position or situation that is recorded. Although the position may be updated later, the baseline remains unchanged and available as a reminder of the original state and as a comparison against the current position. Products that have passed their quality checks and are approved are baselined products. Anything 'baselined' should be under version control in configuration management and 'frozen', i.e. no changes to that version are allowed.

Baseline Cost(s)

The amount of money a project or activity was intended to cost when the project plan was baselined.

Baseline Date(s)

The original planned start and finish dates for a project or an activity when the schedule was baselined.

Baseline Plan

The fixed project plan. It is the standard by which performance against project plan is measured.

Baseline Schedule

The fixed project schedule. It is the standard by which project schedule performance is measured.

Benefits

The positive outcomes, quantified or unquantified, that a project is being undertaken to deliver, and that justify the investment.

Benefits Realisation

The practice of ensuring that the outcome of a project produces the projected benefits claimed in the Business Case.

Best Practice

A best practice is an optimal way currently recognised by industry to achieve a stated goal or objective. For organisational project management, this includes the ability to deliver projects successfully, consistently, and predictably to implement organisational strategies.

Bottom-up Estimating [Technique]

A method of estimating a component of work. The work is decomposed into more detail. An estimate is prepared of what is needed to meet the requirements of each of the lower, more detailed pieces of work, and these estimates are then aggregated into a total quantity for the component of work. The accuracy of bottom-up estimating is driven by the size and complexity of the work identified at the lower levels.

Brainstorming [Technique]

A general data gathering and creativity technique that can be used to identify risks, ideas, or solutions to issues by using a group of team members or subject-matter experts.

Budget

A budget represents the (time-phased) cost performance target for a specific effort for the project or any work breakdown structure component or any schedule activity. It is valid to change the budget only if you change the scope. See also estimate. The resource estimate (in money or hours) assigned for the accomplishment of a specific task or group of tasks.

Budget at Completion (BAC)

The sum of all the budgets established for the work to be performed on a project or a work breakdown structure component or a schedule activity. The total planned value for the project.

Budget Cost

The cost anticipated at the start of a project.

Budgeted Cost of Work Performed (BCWP)

See earned value (EV).

Budgeted Cost of Work Scheduled (BCWS)

See planned value (PV).

Budget Element

Budget elements are the same as resources, the people, materials or other entities needed to do the work. They are typically assigned or a work package, but can also be defined at the cost account level.

Budget Estimate

An approximate estimate prepared in the early stages of a project to establish financial viability or to secure resources.

Budgeting

Time-phased financial requirements.

Buffer

See reserve.

Business Case

Information that describes the justification for setting up and continuing a PRINCE2 project. It provides the reasons (and answers the question 'Why?') for the project. It is updated at key points throughout the project.

Buyer

The acquirer of products, services, or results for an organization.

Calendar

A project calendar lists time intervals in which activities or resources can or cannot be scheduled. A project usually has one default calendar for the normal workweek, but many have other calendars as well. Each calendar can be customised with its own holidays and extra work days. Resources and activities can be attached to any of the calendars that are defined.

Calendar Unit

The smallest unit of time used in scheduling a project. Calendar units are generally in hours, days, or weeks, but can also be in quarter years, months, shifts, or even in minutes.

Capital employed

The amount of investment in an organisation or project, normally the sum of fixed and current assets, less current liabilities at a particular date.

Cash Flow

Cash receipts and payments in a specified period.

Cash Flow/Cash budget

The cash flow budget is a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing.

Cash Flow Forecast

A prediction of the difference between cash received and payments to be made during a specific period or for the duration of the project.

Change

A change to a project’s baseline scope, cost, time or quality objectives.

Change Authority

A group to which the Project Board may delegate responsibility for the consideration of requests for change. The change authority is given a budget and can approve changes within that budget.

Change Budget

The money allocated to the change authority to be spent on authorised requests for change.

Change Control

Identifying, documenting, approving or rejecting, and controlling changes to the project baselines. The procedure to ensure that the processing of all Project Issues is controlled, including the submission, analysis and decision making.

Change Control Board (CCB)

A formally constituted group of stakeholders responsible for reviewing, evaluating, approving, delaying, or rejecting changes to a project. with all decisions and recommendations being recorded.

Change Control System [Tool]

A collection of formal documented procedures that define how project deliverables and documentation will be controlled, changed, and approved. In most application areas, the change control system is a subset of the configuration management system.

Change Freeze

A point on a project after which no further changes will be considered.

Change Log

A record of all project changes, proposed, authorised, rejected or deferred.

Change Management

The formal process through which changes to the project plan are approved and introduced.

Change Request

Requests to expand or reduce the project scope, modify policies, processes, plans, or procedures, modify costs or budgets, or revise schedules. A request to obtain formal approval for changes to the scope, design, methods, costs or planned aspects of the project.

Charter

See project charter.

Check Point

A team-level, time-driven review of progress, usually involving a meeting.

Check Point Report

A progress report of the information gathered at a checkpoint meeting, which is given by a team to the Project Manager and provides reporting data as defined in the Work Package.

Claim

A request, demand, or assertion of rights by a seller against a buyer, or vice versa, for consideration, compensation, or payment under the terms of a legally binding contract, such as for a disputed change.

Client

The party to a contract who commissions work and pays for it on completion.

Close Procurements [Process]

The process of completing each project procurement.

Close Project or Phase [Process]

The process of finalizing all activities across all of the Project Management Process Groups to formally complete the project or phase.

Closing Processes [Process Group]

Those processes performed to finalize all activities across all Project Management Process Groups to formally close the project or phase.

Code of Accounts [Tool]

Any numbering system used to uniquely identify each component of the work breakdown structure. Used to monitor project costs by category.

Collect Requirements [Process]

Collect Requirements is the process of defining and documenting stakeholders' needs to meet the project objectives.

Co-location [Technique]

An organizational placement strategy where the project team members are physically located close to one another in order to improve communication, working relationships, and productivity.

Commitment

A binding financial obligation, typically in the form of a purchase order or contract.

Committed Costs

Costs that are legally committed even if delivery has not taken place with invoices neither raised nor paid.

Common Cause

A source of variation that is inherent in the system and predictable. On a control chart, it appears as part of the random process variation (i.e., variation from a process that would be considered normal or not unusual), and is indicated by a random pattern of points within the control limits. Also referred to as random cause. Contrast with special cause.

Communication Management Plan [Output/Input]

The document that describes: the communications needs and expectations for the project; how and in what format information will be communicated; when and where each communication will be made; and who is responsible for providing each type of communication. The communication management plan is contained in. or is a subsidiary plan of, the project management plan.

Communication Plan

Part of the project initiation document describing how the project's stakeholders and interested parties will be kept informed during the project.

Comparative Estimating

An estimating technique based on the comparison with, and factoring from, the cost of a previous similar project or operation.

Completion

When it is agreed that a project or part of a project has been completed in accordance with all requirements.

Completion Date

The calculated date by which the project could finish, following careful estimating and scheduling.

Concession

An Off-Specification that is accepted by the Project Board without corrective action. The acceptance of something that is not within specified requirements.

Conduct Procurements [Process]

The process of obtaining seller responses, selecting a seller, and awarding a contract.

Configuration Audit

A comparison of the latest version number and status of all products shown in the configuration library records against the information held by the product authors.

Configuration Management System [Tool]

A subsystem of the overall project management system. It is a collection of formal documented procedures used to apply technical and administrative direction and surveillance to: identify and document the functional and physical characteristics of a product, result, service, or component; control any changes to such characteristics; record and report each change and its implementation status; and support the audit of the products, results, or components to verify conformance to requirements. It includes the documentation, tracking systems, and defined approval levels necessary for authorizing and controlling changes.

Configuration Management

A discipline, normally supported by software tools, that gives management precise control over its assets (for example, the products of a project), covering planning, identification, control, status accounting and verification of the products.

Configuration Status Account

A report on the status of products

The required products can be specified by identifier or the part of the project in which they were developed.

Constraint [Input]

The state, quality, or sense of being restricted to a given course of action or inaction. An applicable restriction or limitation, either internal or external to a project, which will affect the performance of the project or a process. For example, a schedule constraint is any limitation or restraint placed on the project schedule that affects when a schedule activity can be scheduled and is usually in the form of fixed imposed dates.

Consumable Resource

A type of resource that only remains available until consumed (for example a material). See also replenishable resource.

Contingency

See reserve. The planned allotment of time and cost or other resources for unforeseeable risks within a project. Something held in reserve for the unknown.

Contingency Allowance

See reserve.

Contingency Budget

The amount of money required to implement a contingency plan. If the Project Board approves a contingency plan, it would normally set aside a contingency budget, which would only be called upon if the contingency plan had to be implemented.

Contingency Plan

A plan that provides an outline of decisions and measures to be taken if defined circumstances, outside the control of a PRINCE2 project, should occur. Alternative course(s) of action to cope with project risks or if expected results fail to materialise.

Contingency Planning

The process of identifying and planning appropriate responses to be taken when a threat (risk) actually occurs.

Contingency Reserve [Output/Input]

The amount of funds, budget, or time needed above the estimate to reduce the risk of overruns of project objectives to a level acceptable to the organization.

Contract [Output/Input]

A contract is a mutually binding agreement that obligates the seller to provide the specified product or service or result and obligates the buyer to pay for it.

Contractor

A person, company or firm who holds a contract for carrying out the works and /or the supply of goods or services in connection with the project.

Contract Price

The price payable by the customer under the contract for the proper delivery of supplies and services specified in the scope of work of the contract.

Contract Target Cost

The negotiated costs for the original defined contract and all contractual changes that have been agreed and approved, but excluding the estimated cost of any authorised, unpriced changes.

Contract Target Price

The negotiated estimated cost plus profit or fee.

Control

Comparing actual performance with planned performance, analyzing variances, assessing trends to effect process improvements, evaluating possible alternatives, and recommending appropriate corrective action as needed.

Control Account [Tool, CA]

A management control point where scope, budget (resource plans), actual cost, and schedule are integrated and compared to earned value for performance measurement. Control accounts are placed at selected management points of the work breakdown structure. Each control account may include one or more work packages, but each work package may be associated only with one control account. Each control account is associated with a specific single organisational component on the organisational breakdown structure. Previously called a cost account. See also work package. A management control point at which actual costs can be accumulated and compared to earned value and budgets (resource plans) for management control purposes. A control account is a natural management point for budget/schedule planning and control since it represents the work assigned to one responsible organisational element on one work breakdown structure element.

Control Chart [Tool]

A graphic display of process data over time and against established control limits, and that has a centreline that assists in detecting a trend of plotted values toward either control limit.

Control Costs [Process]

The process of monitoring the status of the project to update the project budget and managing changes to the cost baseline.

Control Limits

The area composed of three standard deviations on either side of the centreline, or mean, of a normal distribution of data plotted on a control chart that reflects the expected variation in the data. See also specification limits.

Control Schedule [Process]

The process of monitoring the status of the project to update project progress and managing changes to the schedule baseline.

Control Scope [Process]

The process of monitoring the status of the project and product scope and managing changes to the scope baseline.

Controlling

See control.

Coordination

Coordination is the act of ensuring that work carried out by different organisations and different places fits together effectively.

Corporate Governance

The process by which an organisation directs and controls its operational and strategic activities, and by which the organisation responds to the legitimate rights, expectations, and desires of its stakeholders.

Corrective Action

Documented direction for executing the project work to bring expected future performance of the project work in line with the project management plan.

Cost Account

A cost account defines what work is to be performed, who will perform it and who is to pay for it. Another term for cost account is control account.

Cost Account Manager

A member of a functional organisation responsible for cost account performance, and for the management of resources to accomplish such activities.

Cost Benefit Analysis

The comparison of costs before and after taking an action, in order to establish the saving achieved by carrying out that action.

Cost Breakdown Structure

The hierarchical breakdown of a project into cost elements.

Cost Budgeting

The allocation of cost estimates to individual project activities or deliverables.

Cost Centre

A location, person, activity or project in respect of which costs may be ascertained and related to cost units.

Cost Code

A unique identity for a specified element of work. A code assigned to activities that allows costs to be consolidated according to the elements of the code structure.

Cost Curve

A graph plotted against a horicontal timescale and cumulative cost vertical scale.

Cost Estimating

The process of predicting the costs of a project.

Cost incurred

A cost identified through the use of the accrued method of accounting or a cost actually paid. Costs include direct labour, direct materials and all allowable indirect costs.

Cost Management Plan [Output/Input]

The document that sets out the format and establishes the activities and criteria for planning, structuring, and controlling the project costs. The cost management plan is contained in, or is a subsidiary plan of, the project management plan.

Cost of Quality (COQ) [Technique]

A method of determining the costs incurred to ensure quality. Prevention and appraisal costs (cost of conformance) include costs for quality planning, quality control (QC), and quality assurance to ensure compliance to requirements (i.e.. training, QC systems, etc.). Failure costs (cost of non-conformance) include costs to rework products, components, or processes that are non-compliant, costs of warranty work and waste, and loss of reputation.

Cost Performance Baseline

A specific version of the time-phased budget used to compare actual expenditures to planned expenditures to determine if preventive or corrective action is needed to meet the project objectives.

Cost Performance Index (CPI)

A measure of cost efficiency on a project. It is the ratio of earned value (EV) to actual costs (AC). CPI = EV divided by AC. A term used in earned value management. A measure, expressed as a percentage or other ratio of actual cost to budget plan. The ratio of work accomplished versus work cost incurred for a specified time period. The CPI is an efficiency rating for work accomplished for resources expended.

Cost Performance Report

A regular cost report to reflect cost and schedule status information for the management.

Cost Plan

A budget that shows the amounts and expected dates of incurring costs on the project or on a contract.

Cost-Plus-Fixed-Fee (CPFF) Contract

A type of cost-reimbursable contract where the buyer reimburses the seller for the seller's allowable costs (allowable costs are defined by the contract) plus a fixed amount of profit (fee).

Cost-Plus-Incentive-Fee (CPIF) Contract

A type of cost-reimbursable contract where the buyer reimburses the seller for the seller's allowable costs (allowable costs are defined by the contract), and the seller earns its profit if it meets defined performance criteria.

Cost-Reimbursable Contract

A type of contract involving payment to the seller for the seller's actual costs, plus a fee typically representing seller's profit. Cost-reimbursable contracts often include incentive clauses where, if the seller meets or exceeds selected project objectives, such as schedule targets or total cost, then the seller receives from the buyer an incentive or bonus payment.

Cost/Risk Analysis (CRA)

Assessment and synthesis of the cost risks and/or estimating uncertainties affecting the project to gain an understanding of their individual significance and their combined impact on the project’s objectives, to determine a range of likely outcomes for project cost.

Cost Variance (CV)

A measure of cost performance on a project. It is the difference between earned value (EV) and actual cost (AC). CV = EV minus AC. The difference (positive or negative) between the actual expenditure and the planned/budgeted expenditure.

Crashing [Technique]

A specific type of project schedule compression technique performed by taking action to decrease the total project schedule duration after analyzing a number of alternatives to determine how to get the maximum schedule duration compression for the least additional cost. Typical approaches for crashing a schedule include reducing schedule activity durations and increasing the assignment of resources on schedule activities. See also fast tracking and schedule compression.

Create WBS (Work Breakdown Structure) [Process]

The process of subdividing project deliverables and project work into smaller, more manageable components.

Criteria

Standards, rules, or tests on which a judgment or decision can be based, or by which a product, service, result, or process can be evaluated.

Critical Activity

Any schedule activity on a critical path in a project schedule. Most commonly determined by using the critical path method. Although some activities are "critical,'' in the dictionary sense, without being on the critical path, this meaning is seldom used in the project context.

Critical Chain Method [Technique]

A schedule network analysis technique that modifies the project schedule to account for limited resources.

Critical Path

Generally, but not always, the sequence of schedule activities that determines the duration of the project. It is the longest path through the project. See also critical path methodology. This is the line connecting the start of a planning network with the final activity in that network through those activities with the smallest float. Often this is a line through the network connecting those activities with a zero float, i.e. those activities where any delay will delay the time of the entire network. The series of tasks from the beginning of a project up to its end that takes the longest time. This is also the shortest time in which all tasks in the project can be completed. By definition, no task on the critical path can have any slack time. In other words, no task on the critical path can be delayed or extended without affecting the finishing date of the project.

Critical Path Methodology (CPM) [Technique]

A schedule network analysis technique used to determine the amount of scheduling flexibility (the amount of float) on various logical network paths in the project schedule network, and to determine the minimum total project duration. Early start and finish dates are calculated by means of a forward pass, using a specified start date. Late start and finish dates are calculated by means of a backward pass, starting from a specified completion date, which sometimes is the project early finish date determined during the forward pass calculation. See also critical path.

Critical Task

A task on the critical path.

Criticality Index

Used in risk analysis, the criticality index represents the percentage of simulation trials that resulted in the activity being placed on the critical path.

Current Dates

The planned start and finish dates for an activity according to the current schedule. Cut-off Date. The end date of a reporting period.

Customer

The person or group who commissioned the work and will benefit from the end results.

Dangle

An activity in a network diagram that has either no predecessors or no successors. If neither, it is referred to as an isolated activity. Data Date. The date up to or through which the project's reporting system has provided actual status and accomplishments. Also called as-of date and time-now date.

Decision Tree Analysis [Technique]

The decision tree is a diagram that describes a decision under consideration and the implications of choosing one or another of the available alternatives. It is used when some future scenarios or outcomes of actions are uncertain. It incorporates probabilities and the costs or rewards of each logical path of events and future decisions, and uses expected monetary value analysis to help the organization identify the relative values of alternate actions. See also expected monetary value analysis.

Decomposition [Technique]

A planning technique that subdivides the project scope and project deliverables into smaller, more manageable components, until the project work associated with accomplishing the project scope and providing the deliverables is defined in sufficient detail to support executing, monitoring, and controlling the work.

Defect

An imperfection or deficiency in a project component where that component does not meet its requirements or specifications and needs to be either repaired or replaced.

Defect Repair

The formally documented identification of a defect in a project component with a recommendation to either repair the defect or completely replace the component.

Define Activities [Process]

The process of identifying the specific actions to be performed to produce the project deliverables.

Define Scope [Process]

The process of developing a detailed description of the project and product.

Deliverable [Output/Input]

Any unique and verifiable product, result, or capability to perform a service that must be produced to complete a process, phase, or project. Often used more narrowly in reference to an external deliverable, which is a deliverable that is subject to approval by the project sponsor or customer. See also product and result. An item that the project has to create as part of the requirements. It may be part of the final outcome or an intermediate element on which one or more subsequent deliverables are dependent. According to the type of project, another name for a deliverable is 'product'.

Delphi Technique [Technique]

An information gathering technique used as a way to reach a consensus of experts on a subject. Experts on the subject participate in this technique anonymously. A facilitator uses a questionnaire to solicit ideas about the important project points related to the subject. The responses are summarized and are then recirculated to the experts for further comment. Consensus may be reached in a few rounds of this process. The Delphi technique helps reduce bias in the data and keeps any one person from having undue influence on the outcome.

Dependency

See logical relationship.

Dependent Task

A task that cannot begin before a previous task finishes. e.g. Task B, 'putting on shoes' is dependent on task A, 'putting on socks'.

Determine Budget [Process]

The process of aggregating the estimated costs of individual activities or work packages to establish an authorized cost baseline.

Develop Human Resource Plan [Process]

The process of identifying and documenting project roles, responsibilities, and required skills, reporting relationships, and creating a staffing management plan.

Develop Project Charter [Process]

The process of developing a document that formally authorizes a project or a phase and documenting initial requirements that satisfy the stakeholder's needs and expectations.

Develop Project Management Plan [Process]

The process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans.

Develop Project Team [Process]

The process of improving the competencies, team interaction, and the overall team environment to enhance project performance.

Develop Schedule [Process]

The process of analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule.

Deviation

Departure from established plan or requirements

Direct and Manage Project Execution [Process]

The process of performing the work defined in the project management plan to achieve the project's objectives.

Direct costs

Cost that are specifically attributable to an activity or group of activities without apportionment. The cost of resources expended in the achievement of work that are directly charged to a project, without the inclusion of indirect costs.

Direct labour

Labour that is specifically identified with a particular activity. It is incurred for the exclusive benefit of the project.

Discipline

An area of expertise.

Discounted Cash Flow

The concept of relating future cash inflows and outflows over the life of a project or operation to a common base value thereby allowing more validity to comparison of projects with different durations and rates of cash flow.

Distribute Information [Process]

The process of making relevant information available to project stakeholders as planned.

Duration (DU or DUR)

The total number of work periods (not including holidays or other nonworking periods) required to complete a schedule activity or work breakdown structure component. Usually expressed as workdays or workweeks. Sometimes incorrectly equated with elapsed time. Contrast with effort.

Earliest Finish Date (EF)

In the critical path method, the earliest possible point in time on which the uncompleted portions of a schedule activity (or the project) can finish, based on the schedule network logic, the data date, and any schedule constraints. Early finish dates can change as the project progresses and as changes are made to the project management plan.

Earliest Start Date (ES)

In the critical path method, the earliest possible point in time on which the uncompleted portions of a schedule activity (or the project) can start, based on the schedule network logic, the data date, and any schedule constraints. Early start dates can change as the project progresses and as changes are made to the project management plan.

Earned Value (EV)

The value of work performed expressed in terms of the approved budget assigned to that work for a schedule activity or work breakdown structure component. Also referred to as the budgeted cost of work performed (BCWP).

Earned Value Management (EVM)

A management methodology for integrating scope, schedule, and resources, and for objectively measuring project performance and progress. Performance is measured by determining the budgeted cost of work performed (i.e., earned value) and comparing it to the actual cost of work performed (i.e., actual cost).

Earned Value Technique (EVT) [Technique]

A specific technique for measuring the performance of work and used to establish the performance measurement baseline (PMB). The technique used to quantify the budget value of work achieved.

Effort

The number of labour units required to complete a schedule activity or work breakdown structure component. Usually expressed as staff hours, staff days, or staff weeks. Contrast with duration.

Effort-driven Activity

An activity whose duration is governed by resource usage and availability.

Effort remaining

The estimate of effort remaining to complete an activity.

Elapsed time

The total number of calendar days (excluding non-work days such as holidays or weekends) that is needed to complete an activity.

Electronic Invoice

Some invoices are no longer paper-based, but rather transmitted electronically over the Internet. It is still common for electronic remittance or invoicing to be printed in order to maintain paper records. Standards for electronic invoicing varies widely from country to country. Use of the XML message format for electronic invoices has begun in recent years. There are two standards currently being developed. One is the cross industry invoice under development by the United Nations standards body UNCEFACT and the other is UBL (Universal Business Language).

End activity

An activity with no logical successors.

End Project Report

A report given by the Project Manager to the Project Board that confirms the hand-over of all products and provides an updated Business Case and an assessment of how well the project has done against its Project Initiation Document.

End Stage Assessment

The review by the Project Board and Project Manager of the End Stage Report to decide whether to approve the next Stage Plan (unless the last stage has now been completed). According to the size and criticality of the project, the review may be formal or informal. The approval to proceed should be documented as an important management product.

End Stage Report

A report given by the Project Manager to the Project Board at the end of each management stage of the project. This provides information about the project performance during the stage and the project status at stage end.

Enterprise Environmental Factors [Output/Input]

Any or all external environmental (actors and internal organizational environmental factors that surround or influence the project's success. These factors are from any or all of the enterprises involved in the project, and include organizational culture and structure, infrastructure, existing resources, commercial databases, market conditions, and project management software.

Escalation

The process by which aspects of the project such as issues are drawn to the attention of those senior to the project manager, such as the sponsor, steering group or project board.

Estimate [Output/Input]

A quantitative assessment of the likely amount or outcome. Usually applied to project costs, resources, effort, and durations and is usually preceded by a modifier (i.e.. preliminary, conceptual, feasibility, order-of-magnitude, definitive). It should always include some indication of accuracy (e.g., ± x percent). See also budget and cost.

Estimate Activity Durations [Process]

The process of approximating the number of work periods needed to complete individual activities with estimated resources.

Estimate Activity Resources [Process]

The process of estimating the type and quantities of material, people, equipment or supplies required to perform each activity.

Estimate at Completion (EAC) [Output/Input]

The expected total cost of a schedule activity, a work breakdown structure component, or the project when the defined scope of work will be completed. The EAC may be calculated based on performance to date or estimated by the project team based on other factors, in which case it is often referred to as the latest revised estimate, See also earned value technique and estimate to complete.

Estimate Costs [Process]

The process of developing an approximation of the monetary resources needed to complete project activities.

Estimate to Complete (ETC) [Output/Input]

The expected cost needed to complete all the remaining work for a schedule activity, work breakdown structure component, or the project. See also earned value technique and estimate at completion.

Estimating

The use of arrange of tools and techniques to produce estimates.

Event

State in the progress of a project after the completion of all preceding activities, but before the start of any succeeding activity. (A defined point that is the beginning or end of an activity).

Exception

A situation where it can be forecast that there will be a deviation beyond the tolerance levels agreed between Project Manager and Project Board (or between Project Board and corporate or program management, or between a Team Manager and the Project Manager).

Exception Assessment

This is a meeting of the Project Board to approve (or reject) an Exception Plan.

Exception Plan

This is a plan that often follows an Exception Report. For a Stage Plan exception, it covers the period from the present to the end of the current stage. If the exception were at a project level, the Project Plan would be replaced.

Exception Report

A report that describes an exception provides an analysis and options for the way forward and identifies a recommended option. The Project Manager presents it to the Project Board. A focused report drawing attention to instances where planned and actual results are expected to be, or are already, significantly different.

Execute

Directing, managing, performing, and accomplishing the project work, providing the deliverables, and providing work performance information.

Executing Processes (Process Group]

Those processes performed to complete the work defined in the project management plan to satisfy the project objectives.

Executive

The single individual with overall responsibility for ensuring that a project or program meets its objectives and delivers the projected benefits. This individual should ensure that the project or program maintains its business focus, that it has clear authority and that the work, including risks, is actively managed. The chairperson of the Project Board, representing the customer and owner of the Business Case.

Expected Monetary Value (EMV)

The product of an event’s probability of occurrence and the (financial) gain or loss that will result. Hence if there is a 50% probability of rain and the rain will result in a €1000 increase in cost, the EMV will be €500.

Expected Monetary Value Analysis

A statistical technique that calculates the average outcome when the future includes scenarios that may or may not happen. A common use of this technique is within decision tree analysis.

Expended hours

The hours spent to achieve an activity or group of activities.

Expenditure

A charge against available funds, evidenced by a voucher, claim or other document. Expenditures represent the actual payment of funds.

Expert Judgment [Technique]

Judgment provided based upon expertise in an application area, knowledge area, discipline, industry, etc. as appropriate for the activity being performed. Such expertise may be provided by any group or person with specialized education, knowledge, skill, experience, or training.

External Constraint

A constraint from outside the project.

Factors

Situations that effect or influence outcomes.

Failure Mode and Effect Analysis (FMEA) [Technique]

An analytical procedure in which each potential failure mode in every component of a product is analyzed to determine its effect on the reliability of that component and, by itself or in combination with other possible failure modes, on the reliability of the product or system and on the required function of the component; or the examination of a product (at the system and/or lower levels) for all ways that a failure may occur. For each potential failure, an estimate is made of its effect on the total system and of its impact. In addition, a review is undertaken of the action planned to minimize the probability of failure and to minimize its effects.

Fast Tracking [Technique]

A specific project schedule compression technique that changes network logic to overlap phases that would normally be done in sequence, such as the design phase and construction phase, or to perform schedule activities in parallel. See also crashing and schedule compression.

Feasibility Study

A feasibility study is an early study of a problem to assess if a solution is feasible. The study will normally scope the problem, identify and explore a number of solutions and make a recommendation on what action to take. Part of the work in developing options is to calculate an outline Business Case for each as one aspect of comparison.

Filter

Criteria used to evaluate and select a potential component or decide whether a component meets the “go/no go” conditions.

Financial Appraisal

An assessment of the financial aspects of a project or a program.

Finish Date

A point in time associated with a schedule activity's completion. Usually qualified by one of the following: actual, planned, estimated, scheduled, early, late, baseline, target, or current.

Finish-to-Finish (FF)

The logical relationship where completion of work of the successor activity cannot finish until the completion of work of the predecessor activity. See also logical relationship.

Finish-to-Start (FS)

The logical relationship where initiation of work of the successor activity depends upon the completion of work of the predecessor activity. See also logical relationship.

Firm-Fixed-Price (FFP) Contract

A type of fixed price contract where the buyer pays the seller a set amount (as defined by the contract), regardless of the seller's costs to complete the contract.

Fixed Date

A calendar date (associated with a schedule) that cannot be moved or changed during the project.

Fixed Price Contract

Contract that provides for a price which normally is not subject to any adjustment unless certain provisions (such as contract change, economic pricing, or defective pricing) are included in the agreement. These contracts are negotiated usually where reasonably definite specifications are available, and costs can be estimated with reasonable accuracy. A fixed price contract places minimum administrative burden on the contracting parties, but subjects the contractor to the maximum risk arising from full responsibility for all cost escalations. Also called firm price contract.

Fixed-Price-Incentive-Fee (FPIF) Contract

A type of contract where the buyer pays the seller a set amount (as defined by the contract), and the seller can earn an additional amount if the seller meets defined performance criteria.

Float

Also called slack. See total float and free float.

Flowcharting [Technique]

The depiction in a diagram format of the inputs, process actions, and outputs of one or more processes within a system.

Flow Diagram

A graphic representation of workflow and the logical sequence of the work elements without regard to a timescale. It is used to show the logic associated with a process rather than duration for completion of work.

Follow-on Action Recommendations

A report that can be used as input to the process of creating a Business Case/Project Mandate for any follow-on PRINCE2 project and for recording any follow-on instructions covering incomplete products or outstanding issues. It also sets out proposals for post project review of the project's products.

Forecast

An estimate or prediction of conditions and events in the project's future based on information and knowledge available at the time of the forecast. The information is based on the project's past performance and expected future performance, and includes information that could impact the project in the future, such as estimate at completion and estimate to complete.

Forecast Costs

A projection of future costs that the project will incur. Forward Pass. The calculation of the early start and early finish dates for the uncompleted portions of all network activities. See also schedule network analysis and backward pass.

Free Float

The amount of time that a schedule activity can be delayed without delaying the early start date of any immediately following schedule activities. See also total float.

Full Cost

Total cost of all resources used or consumed in production, including direct, indirect, and investing costs.

Function

A specialist department that provides dedicated services, for example accounts department, marketing department or IT.

Functional Manager

Someone with management authority over an organizational unit within a functional organization. The manager of any group that actually makes a product or performs a service. Sometimes called a line manager.

Functional Organization

A hierarchical organization where each employee has one clear superior, and staff are grouped by areas of specialization and managed by a person with expertise in that area.

Fund

A fund represents the money available for expenditure in the accomplishment of the effort.

Funding

The actual money available for expenditure in the achievement of contract work.

Funding Profile

An estimate of funding requirements over time.

Gantt Chart [Tool ]

A graphic display of schedule-related information. In the typical bar chart, schedule activities or work breakdown structure 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. This is a diagram of a plan's activities against a time background, showing start and end times and resources required.

Gate Review

A generic term, rather than a PRINCE2 term, meaning a point at the end of a stage or phase where a decision is made whether to continue with the project. In PRINCE2 this would equate to an end stage assessment.

Goal

A one sentence definition of specifically what will be accomplished, incorporating an event signifying completion.

Grade

A category or rank used to distinguish items that have the same functional use (e.g., "hammer"), but do not share the same requirements for quality (e.g., different hammers may need to withstand different amounts of force).

Hammock Activity

See summary activity.

Handover

The point inn the life cycle where deliverables are handed over to the sponsor and users.

Hierarchical coding structure

A coding system that can be represented as a multi-level tree structure in which every code except those at the top of the tree has a parent code.

Hierarchy of networks

Range of networks (network diagrams) at different levels of detail, from summary down to working levels, showing the relationships between those networks.

Highlight Report

Report from the Project Manager to the Project Board on a time driven frequency on stage progress.

Histogram

A graphic display of planned and/or actual resource usage over a period of time. It is in the form of a vertical bar chart, the height of each bar representing the quantity of resource usage in a given time unit. Bars may be single, multiple or show stacked resources.

Historical Information

Documents and data on prior projects including project files, records, correspondence, closed contracts, and closed projects.

Holiday

An otherwise valid working day that has been designated as exempt from work.

Human Resource Plan

A document describing how roles and responsibilities, reporting relationships, and staffing management will be addressed and structured for the project. It is contained in or is a subsidiary plan of the project.

Hypercritical activities

Activities on the critical path with negative float.

Identify Risks [Process]

The process of determining which risks may affect the project and documenting their characteristics.

Identify Stakeholders [Process]

The process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success.

Impact

A noticeable effect or influence. The assessment of the effect on an objective of a risk occurring.

Impact Analysis

An assessment of the merits of pursuing a particular course of action or of the potential impact of a requested change.

Imposed Date

A fixed date imposed on a schedule activity or schedule milestone, usually in the form of a "start no earlier than" and "finish no later than" date. A point in time determined by external circumstances.

Key Criteria

Predetermined measures, values or conditions used in a scoring model to measure alignment with strategic goals.

Lag [Technique]

A modification of a logical relationship that directs a delay in the successor activity. For example, in a finish-to-start dependency with a ten-day lag, the successor activity cannot start until ten days after the predecessor activity has finished. See also lead.

Manage Project Team [Process]

The process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance.

Near-Critical Activity

A schedule activity that has low total float. The concept of near-critical is equally applicable to a schedule activity or schedule network path. The limit below which total float is considered near critical is subject to expert judgment and varies from project to project.

Objective

Something toward which work is to be directed, a strategic position to be attained, or a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed.

Parallel Activities

Two or more activities that can be done at the same time.

Qualitative Risk Analysis

A generic term for subjective methods of assessing risks that cannot be identified accurately.

Reactive Risk Response

An action or set of actions to be taken after a risk has occurred in order to reduce or recover from the effect of the threat or to exploit the opportunity. Such actions are funded from Management Reserve.

Sales

A marketing technique used to promote a project.

Target Completion Date

The date planned to complete an activity or project.

Uncertainty

The spread in estimates for schedule, cost and performance arising from the expected range of outcomes. Often termed estimating error.

Validation

The assurance that a product, service, or system meets the needs of the customer and other identified stakeholders. It often involves acceptance and suitability with external customers. Contrast with verification.

Warranty

A promise given by a contractor to the client or owner regarding the nature, usefulness or condition of supplies or services delivered under the contract.

Yield

The return on an investment.

Zero Float

Zero float is a condition where there is no excess time between activities. An activity with zero float is considered a critical activity.