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Glossary

Refer to this list for definitions of essential Project controls / Cost Engineering / Earned Value management, terms submitted by Project Controls practitioners from around the world.

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50/50 Technique

AACEi :

In earned value, a technique to earn budget based on assignment of budget equally across two accounting months. Budget is earned at 50% when started, and the remainder at completion. This technique is limited to work package less than two months in duration.

Acceleration

AACEi :

Conduct by the owner or its agent (either in a directed or constructive manner) in which a contractor is required to complete performance of a contracted scope of work earlier than scheduled. A directed acceleration occurs when the owner formally directs such acceleration completion. A constructive acceleration generally occurs when a contractor is entitled to an excusable delay; the contractor requests a time extension from the owner; the owner declines to grant a time extension or grants one in an untimely manner; the owner or its agent either expressly orders completion within the original performance period or implies in a clear manner that timely completion within the original performance period is expected; and the contractor gives notice to the owner or its agent that the contractor considers this action an acceleration order.

Accept/Acceptance

AACEi :(1) The formal process of accepting delivery of a product or a deliverable.

(2) The act of taking custody based on satisfactory verification.

(3) The act of an authorized representative, for itself or as agent for another, assumes ownership of existing identified supplies tendered or approves specific services rendered as partial or complete  performance of the contract.

(4) In TCM risk management, a response strategy for both threats and opportunities.

APM : A response to a threat where no course of action is taken.

PCI :(1) The formal process of accepting delivery of a product or a deliverable.

(2) The act of taking custody based on satisfactory verification.

(4) In TCM risk management, a response strategy for both threats and opportunities.

Acceptance Criteria

AACEi :

Implicit or explicit specifications that must be achieved for a product or service to be acceptable within the terms of the contract or agreement seeking its delivery.

APM :

The requirements and essential conditions that have to be achieved before a deliverable is accepted.

PMI :

A set of conditions that is required to be met before deliverables are accepted.

Acceptance Deliverables

PMI : Products, results, or capabilities produced by a project and validated by the project customer or sponsors as meeting their specified acceptance criteria.

Acceptance, Final (Partial)

AACEi : The formal action by the owner accepting the work (or a specified part thereof), following written notice from the engineer that the work (or specified part thereof) has been completed and is acceptable subject to the provisions of the contract regarding acceptance.

Accepted Risk

AACEi : Risks that are identified, but for which no other risk response is taken in the risk treatment process (e.g., avoid, reduce, transfer).

Access To The Work

AACEi : The right of the contractor to ingress and egress, and to occupy the work site as required to reasonably perform the work described in the contract documents. An example of denial of access to the work would be on the segment of a sewer installation project where no easements or work limits are indicated, but the contractor is ordered, after contract award, to conduct operations within a narrow work corridor necessitating different or unanticipated construction methods (e.g., use of sheeting).

Account Code Structure

AACEi : System used to assign summary numbers to elements of the work breakdown and account numbers to individual work packages.

Account Number

AACEi : An alphanumeric identification of a work package. An account number may be assigned to one or more activities. Syn.: Shop Order Number.

Accountability

AACEi : Answerable, but not necessarily charged personally with doing the work. Accountability cannot be delegated but it can be shared.

Accounting

APM : The process of collecting and communicating financial information to meet legal requirements, business management requirements, plus internal and external stakeholders’ needs.

Accounts Payable

AACEi : The value of goods and services rendered on which payment has not yet been made.

Accounts Receivable

AACEi : The value of goods shipped or services rendered to a customer on which payment has not yet been received. Usually includes an allowance for bad debts.

Accrual

AACEi : In earned value management, the actual costs that are recorded for goods and/or material received or services rendered before payment. For example, subcontractor service for a safety inspection for a specific piece of equipment in the month of January which was validated as completed may be recorded by accrual based on an estimated cost. However, the accruals originally recorded in January for the cost of this activity are adjusted after a final cost is determined.

Accuracy

PMI : Within the quality management system, accuracy is an assessment of correctness.

Accuracy Range

AACEi : An expression of an estimate’s predicted closeness to final actual costs or time. Typically expressed as high/low percentages by which actual results will be over and under the estimate along with the confidence interval these percentages represent. Syn.: Range of Accuracy.

Acquire Project Team

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

Acquisition

PMI : Obtaining human and material resources necessary to perform project activities. Acquisition implies a cost of resources, and is not necessarily financial.

Action

AACEi : A measure taken or implemented that is intended to influence the course of the project.

Action Item

AACEi : Something agreed to be done as a meeting outcome and usually recorded in meeting minutes.

Action Owner

AACEi : In TCM risk management, the party charged with implementing a risk response.

Action Plan

AACEi : A plan that describes what needs to be done and by when. Project plans are action plans.

Activity

AACEi : An operation or process consuming time and possibly resources (with the exception of dummy activities). An activity is an element of work that must be performed in order to complete a project. An activity consumes time, and may have resources associated with it. Activities must be measurable and controllable. An activity may include one or more tasks.

APM : 1. A task, job, operation or process consuming time and possibly other resources.

2. The smallest self-contained unit of work in a project.

PMI :

A distinct, scheduled portion of work performed during the course of a project.

PCI : The smallest self-contained unit of work used to define the logic of a project. In general, activities share the following characteristics: a definite duration, logic relationships to other activities in a project, use resources such as people, materials or facilities, and have an associated cost.

Activity Attributes

AACEi : Schedule-related characteristics and designations that uniquely describe a network activity. Attributes can include early and late start and finish dates; identification codes; resource assignments; predecessor and successor activities; and any other information that places the activity into accurate context of its place in the activity network.

PMI : 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 Bar

AACEi : A rectangle representing an activity on the bar chart. Its length is scaled according to the time scale.

Activity Calendar

AACEi : In computer scheduling, calendar that defines the working and non-working patterns applicable to an activity. The activity calendar is normally overridden by the project calendar.

Activity Code

AACEi : Alphanumeric designation system, with code(s) assigned to an activity to group or categorize its properties. Coding is used for detail and summary reporting purposes.

PMI : 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 Cost

AACEi : The monetary amount expended to complete an activity. Depending upon the cost model and job cost system used, Activity cost may or may not include indirect costs (jobsite and home office) as well as direct costs.

PMI :

Activity Cost Estimate: The projected cost of the schedule activity that includes the cost for all resources required to perform and complete the activity, including all cost types and cost components.

Activity Definition

AACEi : Process of identifying specific activities that must be performed to produce project deliverables.

PMI : Define Activity: The process of identifying and documenting the specific actions to be performed to produce the project deliverables.

Activity Description

AACEi : A unique activity name and word description, which generally defines the work to be accomplished which easily identifies an activity to any recipient of the schedule.

Activity Duration

AACEi :(1) Length of time from start to finish of an activity, estimated or actual, in working or calendar time units.

(2) Best estimate of continuous time (hours, days, weeks, and months) needed to complete the work involved in an activity. This takes into consideration the nature of the work, and the resources needed to complete the task. Baseline activity duration development can become very complex when productivity impacts and nonstandard production rates must be utilized to meet the constraints of the project.

APM : The length of time that it takes to complete an activity.

PMI : The time in calendar units between the start and finish of a schedule activity.

PCI : Activity duration specifies the length of time (hours, days, weeks, months) that it takes to complete an activity. This information is optional in the data entry of an activity. Work flow (predecessor relationships) can be defined before durations are assigned. Activities with zero durations are considered milestones (milestone value of 1 to 94) or hammocks (milestone value of 95 to 99).

Activity Duration Estimating

AACEi : Estimation of the number of work periods that will be needed to complete the activity.

PMI :

A quantitative assessment of the likely amount or outcome for the duration of an activity.

Activity File

PCI : A file containing all data related to the definition of activities on a particular project.

Activity Identifier

AACEi : Syn.: Activity Code; Activity Number.

PMI : 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.

PCI : Activity Id: A unique code identifying each activity in a project.

Activity List

AACEi : A table of scheduled activities listing their respective descriptions, unique identification codes, sufficiently detailed scopes, and predecessor and successor activities, so that the project team can readily discern the work of each activity and the project as a whole .

PMI : A documented tabulation of schedule activities that shows 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 Diagram

PMI : Project schedule network diagram: A graphical representation of the logical relationships among the project schedule activities.

Activity Number

AACEi : Syn.: Activity Code; Activity Identifier.

Activity On Arrow (AOA)

AACEi : An activity network format. Schedule activities are represented by arrows and nodes are represented by circles. AOA networks require the use of “dummy” activities to properly model work flow.

Activity On Node (AON)

AACEi : An activity network format. Schedule activities are represented by boxes or bars and relationships are represented by arrows. Pure AON networks rely solely on finish-to-start relationships and do not employ the use of activity lags to model work flow.

APM :

A network diagram where the activities are represented by the nodes.

PCI : A network where activities are represented by a box or a node linked by dependencies.

Activity Relationship

AACEi : Activity relationships determine how activities relate to one another and establish schedule logic.

Activity Resource Requirement

PMI : The types and quantities of resources required for each activity in a work package.

Activity Sequencing

AACEi : The process of identifying and documenting dependencies among schedule activities.

Activity Status

AACEi : Information about the performance of an activity that is used to update schedule progress. Typical status information includes actual start and finish dates, percent complete, and remaining duration. This is information used to update the critical path method calculations periodically.

PCI : The state of completion of an activity. A planned activity has not yet started. A started activity is in progress. A finished activity is complete.

Activity Times

AACEi : Time information generated through the critical path method calculation that identifies the start and finish times for each activity in the network.

Activity Total Slack

AACEi : The latest allowable end time minus earliest allowable end time. The activity slack is always greater than or equal to the slack of the activity ending event.

Activity Type

AACEi : Dictates calendar used in scheduling software for schedule calculations. Typical activity types are: independent, task, hammock, WBS, and milestone.

Acts Of God

AACEi :(1) An extraordinary interruption by a natural cause, as a flood or earthquake, or the usual course of events that experience, foresight or care cannot reasonably foresee or prevent.

(2) An event in nature over which neither the owner nor the contractor has any control.

Actual And Scheduled Progress

AACEi : A comparison of the observable work done at a given time with the work planned up to that time.

APM : Actual Progress: A measure of the work that has been completed for comparison with the baseline.

Actual Completion Date

AACEi : The calendar date on which an activity was completed.

Actual Cost (AC)

AACEi : Syn.: Actual Cost Of Work Performed.(ACWP).

PMI : The realized cost incurred for the work performed on an activity during a specific time period.

PCI : The cost actually incurred.

Actual Cost Of Work Performed (ACWP)

AACEi :(1) The actual expenditures incurred by a program or project.

(2) The direct costs actually incurred and the direct costs actually recorded and assigned in accomplishing the work performed. These costs should reconcile with the contractor's incurred cost ledgers when they are audited by the client.

(3) In earned value management, a measure of the actual cost of the work performed as of a data date.

APM : The costs that have been charged to the budget and for which payment has been made, or accrued.

PCI :

The actual cost derived from the employed accounting system. Also called ACWP. The sum of costs actually incurred in accomplishing the work performed.

Actual Dates

PCI : Actual dates are entered as the project progresses. These are the dates that activities really started and finished as opposed to planned or projected dates.

Actual Direct Cost

PCI : Those costs specifically identified with a contract or project, based upon the contractor’s cost identification and accumulation system.

Actual Finish Date

AACEi : Date when work on an activity is substantially complete. Activity substantial completion is when only minor or remedial work remains and successor activities may proceed without hindrance from the predecessor’s remaining work. It is not necessarily the last day work will be performed on that activity. The remaining duration of this activity is zero.

PCI :

Date on which an activity was completed.

Actual Start Date

AACEi : Date when work on an activity actually started with intention of completing activity within the planned duration. The actual start date is not necessarily the first date work was performed on that activity. Interim starts and stops for an activity may show the need for splitting the activity into component parts.

PCI :

Date on which an activity was started.

Actual Time (AT)

AACEi : The number of whole project time increments from project inception through time now (data date).

Actual [Duration, Start, Finish, Logic, Etc.]

AACEi : Schedule information that shows what has actually occurred. For example, the actual start date for a task is the day on which the task actually started, and its actual cost is the expenditures incurred spent up to the present

PMI :

Actual Duration: The time 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.

Addaptive Life Cycle

PMI : A project life cycle, also known as change-driven or agile methods, that is intended to facilitate change and require a high degree of ongoing stakeholder involvement. Adaptive life cycles are also iterative and incremental, but differ in that iterations are very rapid (usually 2–4 weeks in length) and are fixed in time and resources.

Addenda

AACEi : Written or graphic instruments issued prior to the date for opening of bids which may interpret or modify the bidding documents by additions, deletions, clarification, or corrections.

Additional Quality Planning

PMI : A set of tools used to define the quality requirements and to plan effective quality management activities. They include, but are not limited to: brainstorming, force field analysis, nominal group techniques and quality management and control tools.

Adjusted Internal Rate-Of-Return (AIRR)

AACEi : The compound rate of interest that, when used to discount the terminal values of costs and benefits of a project over a given study period, will make the costs equal the benefits when cash flows are reinvested at a specified rate. [1]

Adjusting Leads And Lags

PMI : A technique used to find ways to bring project activities that are behind into alignment with plan during project execution.

ADM

AACEi : Syn.: Arrow Diagramming Method (ADM).

ADM Project

PCI : Non-hierarchical project that uses the arrow-diagramming method.

Administrative Cost

AACEi : Syn.: General & Administrative Costs (G&A).

Advance Material Release (AMR)

PCI :

A document used by organizations to initiate the purchase of long-lead-time or time-critical materials prior to the final release of a design.

Adverse Weather

AACEi : Normal weather events that negatively affect the productivity of workers and/or which may affect a project’s critical path or consume float. What deems weather as being adverse is defined differently for each project depending on several factors, including location of a project, the project scope, and even the terms of union construction worker labor agreements. The definition of adverse weather cannot be standardized for all projects or locations, but represents conditions that should be expected during project execution that may impact work progress.

Advertising

PMI : The process of calling public attention to a project or effort.

Affinity Diagram

PMI : A group creativity technique that allows large numbers of ideas to be classified into groups for review and analysis.

Agent

AACEi : A person authorized to represent another (the principal) in some capacity. The agent can only act within this capacity or "scope of authority" to bind the principal. Agency agreements can be oral or in writing .

Aggregate

AACEi : A collection of items arbitrarily brought together as associated variables for analytical or comparative purposes.

Agile

APM : A family of development methodologies where requirements and solutions are developed iteratively and incrementally throughout the life cycle.

Agreement

AACEi : The written agreement between the owner and the contractor covering the work to be performed; other contract documents are attached to the agreement and made a part thereof as provided therein.

PMI : Any document or communication that defines the initial intentions of a project. This can take the form of a contract, memorandum of understanding (MOU), letters of agreement, verbal agreements, email, etc.

Allocated Baseline

AACEi : Requirements allocated to lower level system elements controlled by formal change control.

Allocated Requirements

AACEi : Requirements apportioned to the elements of a system by applying applicable knowledge and experience. Determination of allocated requirements is not as scientifically rigorous as determination of derived requirements.

Allocation

AACEi : 1) In planning and scheduling, the process of distributing or assigning work on an activity to specific resources.

2. In cost estimating and budgeting, the process of distributing or assigning cost of an item or activity (often an overhead or indirect cost) to specific cost or budget accounts.

Allowances

AACEi : 1) For estimating, resources included in estimates to cover the cost of known but undefined requirements for an individual activity, work item, account or sub-account.

2. For scheduling, dummy activities and/or time included in existing activities in a schedule to cover the time for known, but undefined requirements for a particular work task, activity, account or subaccount.

Alternative Analysis

PMI : A technique used to evaluate identified options in order to select which options or approaches to use to execute and perform the work of the project.

Alternative Dispute Resolution (ADR)

AACEi : Any procedure or combination of procedures used to resolve issues in controversy without the need to resort to litigation. ADR typically includes assisted settlement negotiations, conciliation, facilitation, mediation, fact-finding, mini-trials, and arbitration.

Alternative Generation

PMI : A technique used to evaluate identified options in order to select which options or approaches to use to execute and perform the work of the project.

Alternative Resource

PCI : A resource that may be substituted as the requirement for an activity if the requested resource is not available.

Ambiguity

AACEi : An uncertainty in the meaning of provisions of a contract, document or specification. Mere disagreement about the meaning of a provision does not indicate an ambiguity. There must be genuine uncertainty of meaning based on logical interpretation of the language used in the contract. Generally, ambiguities in contracts are construed against the drafter of the agreement.

Amendment

AACEi : A modification of the contract by a subsequent agreement. This does not change the entire existing contract but does alter the terms of the affected provisions or requirements.

Amortization

AACEi :

(1) As applied to a capitalized asset, the distribution of the initial cost by periodic charges to operations as in depreciation. Most properly applies to assets with indefinite life.

(2) The reduction of a debt by either periodic or irregular payments.

(3) A plan to pay off a financial obligation according to some prearranged schedule.

Analogous Critical Path

AACEi : The logic path determined by transferring the calculated critical path of the collapsed as-built onto the analogous logic path on the as-built schedule. The analogous critical path allows the analyst to reconcile the total difference in completion date between the collapsed state and the as-built state with the sum of the extracted delays, whole or in part, lying on the analogous path.

Analogous Estimating

APM : An estimating technique based on the comparison with, and factoring from, the cost of similar, previous work.

PMI : A technique for estimating the duration or cost of an activity or a project using historical data from a similar activity or project.

Analysis

AACEi : The examination of a complex whole and the separation and identification of its constituent parts and their relationships.

Analysis (Schedule Variance)

AACEi : Comparison of actual cost/schedule performance to that planned. This comparison includes identification of “potential change notices” and their cause. Derives from the monitoring of project expenditures, progress and performance. Requires application of independent review and creative thought processes to come up with a comprehensive understanding of how, why, and where project accounts are headed. Analysis should result in corrective action to offset/minimize any potential overruns and maximize any potential under runs.

Analyst-Caused Risk

AACEi :

Syn.: Analyst-Induced Risk; Iatrogenic Risk.

Analyst-Induced Risk

AACEi:

Syn.: Analyst-Caused Risk; Iatrogenic Risk.

Analytical Estimating

APM :

An estimating technique that uses detailed specifications to estimate time and cost for each product or activity.

Analytical Techniques

PMI : Various techniques used to evaluate, analyze, or forecast potential outcomes based on possible variations of project or environmental variables and their relationships with other variables.

And Relationship

AACEi : Logical relationship between two or more activities that converges on or diverges from an event. The “and” relationship indicates that every one of the activities has to be undertaken.

Annual Value

AACEi :

A uniform annual amount equivalent to the project costs or benefits taking into account the time value of money throughout the study period. Syn.: Annual Worth; Equivalent Uniform Annual Value.

Annual Worth

AACEi : Syn.: Annual Value; Equivalent Uniform Annual Value.

Annually Recurring Costs

AACEi : Those costs that are incurred in a regular pattern each year.

Annuity

AACEi :(1) An amount of money payable to a beneficiary at regular intervals for a prescribed period of time out of a fund reserved for that purpose.

(2) A series of equal payments occurring at equal periods of time.

Anticipatory Breach

AACEi : A specific refusal by the contractor to perform within the terms of the contract documents before performance is due; or a clear indication that the contractor is unable or unwilling to perform. Syn.: Repudiation.

Application Area

AACEi : Projects sharing specialized components that logically segregate work by product or production technology or by user.

PMI : 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.

Application Area

AACEi : The form furnished by the owner or the engineer which is to be used by the contractor in requesting progress or final payments and which shall contain an affidavit, if required, in the general or supplementary conditions. The application for payment includes all supporting documentation as required by the contract documents.

Applying Leads And Lags

PMI : A technique that is used to adjust the amount of time between predecessor and successor activities.

Apportioned Effort

AACEi :(1) An earned value technique that status is assessed consistent with a base task(s). The earned value percent complete of the base effort is used to status the apportioned effort work package. Apportioned effort is technically related and time-phased proportionally to the base until designated.

(2) Effort that cannot be readily measured or divided into discrete work packages, but its performance can be measured in proportion to other measureable efforts.

PMI :

An activity where effort is allotted proportionately across certain discrete efforts and not divisible into discrete efforts. [Note: Apportioned effort is one of three earned value management (EVM) types of activities used to measure work performance.]

Approve

AACEi : To accept as technically satisfactory by person or persons in authority. The approval may still require confirmation by someone else at a higher level of authority for legal or commercial considerations.

Approved Change Request

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

Approved Change Request Review

PMI : A review of the change requests to verify that these were implemented as approved.

Approved System

PCI : An EVM system that has been accepted by a customer, typically documented by an advance agreement or imilar document. Approval may be found at a single geographic location or in multiple locations. Multiple approved systems may also reside within a single geographic location.

Approved To Proceed

PCI : Approval by the project board at initiation or prior to the beginning of the next stage.

Arbitration

AACEi : A method for the resolution of disputes by an informal tribunal in which a neutral person or persons with specialized knowledge in the field in question renders a decision on the dispute. An arbitrator may grant any award which is deemed to be just and equitable after having afforded each party full and equal opportunity for the presentation of the case. Arbitration does not strictly follow the rules of evidence and discovery procedures found in litigation. Arbitration may be conducted under the auspices of an organization (e.g., the American Arbitration Association) which is available as a vehicle for conducting arbitration.

Archive Plan

PCI : A function of some computer programs that allows versions of a plan to be archived.

Arrow

AACEi : The graphic representation of activities in ADM network. One arrow represents one activity. The tail of the arrow represents the start of the activity. The head of arrow represents the finish. The arrow is not  a vector quantity and is not drawn to scale. A solid line is used for actual activities and a dashed line for dummies. It is uniquely defined by two events.

Arrow Diagram

AACEi : A network (logic diagram) on which the activities are represented by arrows between event nodes.

Arrow Diagramming Method (ADM)

AACEi : A method of constructing a logical network of activities using arrows to represent the activities and connecting those head-to-tail. This diagramming method shows the sequence, predecessor and successor relationships of the activities. Syn.: ADM.

PCI : One of two conventions used to represent an activity in a project. Also known as Activity-on-Arrow or i/j method.

Artifact (Planning)

AACEi : A piece of information that is produced, modified, or used by a process, defines an area of responsibility, and is subject to version control. An artifact can be a model, a model element, or a document. A document can enclose other documents.

As-Built Schedule

AACEi : Historical project record showing actual start and finish dates for work performed. Generally, shows logic used in the sequence of construction, along with actual start and finish dates.

As-Late-As-Possible (ALAP)

AACEi : An activity for which the scheduling application sets the early dates as late as possible without delaying the early dates of any successor.

As-Of Date

AACEi : Syn.: Data Date; Update Date.

As-Planned Schedule

AACEi : The plan or baseline schedule the contractor developed to estimate/bid/contract to perform the work. The as-planned schedule incorporates planned production rates, work calendars, resource availability, logic ties, constraints and activity durations to meet contract requirements and contractor needs or desires.

As-Soon-As-Possible (ASAP)

AACEi : An activity for which the scheduling application sets the early dates to be as soon as possible. This is the default activity type in most project management systems.

Assessed Value

AACEi : That value entered on the official assessor's records as the value of the property applicable in determining the amount of taxes to be assessed against that property.

Assets

AACEi : Anything owned that has a monetary value, e.g., property, both real and personal, including notes, accounts and accrued earnings or revenues receivable and cash or its equivalent. Assets may be subdivided into current, fixed, etc. Property: real, i.e. physical; or intangible, i.e. knowledge, systems, or practices. Assets are created through the investment of resources in projects.

Assumption

PMI : A factor in the planning process that is considered to be true, real, or certain, without proof or demonstration.

Assumption Analysis

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

Attribute

AACEi : In the context of asset or project planning, a characteristic or property which is appraised in terms of whether it does or does not exist, (e.g., go or not-go) with respect to a given requirement.

Attribute Sampling

PMI : Method of measuring quality that consists of noting the presence (or absence) of some characteristic (attribute) in each of the units under consideration. After each unit is inspected, the decision is made to accept a lot, reject it, or inspect another unit.

Audit

AACEi : In the context of asset or project performance assessment, a formal, independent examination with intent to verify conformance with established requirements through surveillance and inspection. They may be either internal or external.

Authority

AACEi :(1) Power of influence, either granted to or developed by individuals, that leads to others doing what those individuals direct.

(2) Formal conferment of such influence through an instrument such as a project charter.

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

Authorize

AACEi : Give final approval; a person who can authorize something is vested with authority to give final endorsement and which requires no further approval or agreement.

Authorized Unpriced Work (AUW)

PCI : Any scope changed for which authorization to proceed has been given, but for which the estimated costs are not yet settled.

Authorized Work

AACEi : An effort that has been approved by higher authority and may or may not be definitive.

PCI : The effort which has been defined, plus that work for which authorization has been given, but for which defined contract costs have not been agreed upon.

Average Annual Cost

AACEi : The conversion, by an interest rate and present worth technique, of all capital and operating costs to a series of equivalent equal annual costs. As a system for comparing proposal investments, it requires assumption of a specific minimum acceptable interest rate.

Average-Interest Method

AACEi : A method of computing required return on investment based on the average book value of the asset during its life or during a specified study period.

Avoid

AACEi : In TCM risk management, a response strategy for threats that involves eliminating either the probability or impact.

APM : A response to a threat that eliminates its probability or impact on the project.

Avoidance (Risk)

AACEi : Risk response strategy that eliminates the threat or opportunity of a specific risk event, usually by eliminating its potential cause.

PMI : Risk Avoidance: A risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact.

Backcharge

AACEi :

Cost of corrective action taken by the purchaser, chargeable to supplier by contract terms.

Backlog

PMI : A listing of product requirements and deliverables to be completed, written as stories, and prioritized by the business to manage and organize the project’s work.

Backup

AACEi :

Supporting documents for an estimate or schedule including detailed calculations, descriptions of data sources, and comments on the quality of the data.

Backward Pass

AACEi :

Network schedule calculation that determines the latest each activity in the network may start (LS) and finish (LF) and still maintain the minimum overall duration of the project as calculated by the forward pass. It counts backward toward the beginning of the schedule to determine the last possible start and finish dates for each activity that will not delay project completion.

PMI : A critical path method technique for calculating the late start and late finish dates by working backward through the schedule model from the project end date.

PCI : A procedure within time analysis to calculate the late start and late finish dates of all activities in a project.

Balance

APM :

A phase in the portfolio life cycle where the component projects and programmes are balanced in terms of risk, resource usage, cash flow and impact across the business.

Balanced Matrix

PCI :

An organizational matrix where functions and projects have the same priority.

Bar Chart

AACEi :

Graphic representation of a project that includes the activities that makes up the project and placed on a time scale. Bar charts are time scaled, show activity number, description, duration, start and finish dates, and an overall sequencing of the flow of work. Bar charts do not generally include the logic ties between activities.

PMI : 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.

PCI :

A view of project data that uses horizontal bars on a time scale to depict activity information. Frequently called a Gantt chart.

Base

AACEi : Syn.: Base Estimate; Base Schedule.

Base Date

AACEi :

Syn.:Base Time

PCI :

Original planned start and finished dates for an activity. Used to compare with current planned dates to determine any delays. Also used to calculate budgeted cost of work scheduled for earned-valued analysis.

Base Estimate

AACEi :

Estimate excluding escalation, foreign currency exchange, contingency and management reserves. Syn.: Point Estimate ; Single Point Estimate.

Base Period (Of A Given Price Index)

AACEi :

Period for which prices serve as a reference for current period prices; in other words, the period for which an index is defined as 100 (if expressed in percentage form) or as 1 (if expressed in ratio form).

Base Point For Escalation

AACEi :

Cost index value for a specific month or an average of several months that is used as a basis for calculating escalation.

Base Schedule

AACEi :

Schedule excluding risks (i.e., excluding contingency).

Base Time

AACEi :

The date to which all future and past benefits and costs are converted when a present value method is used (usually the beginning of the study period). Syn.: Base Date.

Baseline

AACEi :(1) In project control, the reference plans in which cost, schedule, scope and other project performance criteria are documented and against which performance measures are assessed and changes noted.

(2) The budget and schedule that represent approved scope of work and work plan. Identifiable plans, defined by databases approved by project management and client management, to achieve selected project objectives. It becomes basis for measuring progress and performance and is baseline for identifying cost and schedule deviations. Syn.: Control Baseline.

(3) In earned value management systems, the general term to refer to the contractual baseline. See contract budget baseline and performance measurement baseline for the typical earned value management (EVM) definitions of the different baseline levels within the EVM baseline plan.

APM : The reference levels against which a project, programme or portfolio is monitored and controlled.

PMI : The approved version of a work product that can be changed only through formal change control procedures and is used as a basis for comparison.

PCI : A copy of the project schedule for a particular time (usually before the project is started) that can be used for comparison with the current schedule.

Baseline Review

PCI :

A customer review conducted to determine with a limited sampling that a contractor is continuing to use the previously accepted performance system and is properly implementing a baseline on the contract or option under review.

Baseline Schedule

AACEi :

(1) A fixed project schedule that is the standard by which project performance is measured. The current schedule is copied into the baseline schedule that remains frozen until it is reset. Resetting the baseline is done when the scope of the project has been changed significantly, for example after a negotiated change. At that point, the original or current baseline becomes invalid and should not be compared with the current schedule.

(2) Version of schedule that reflects all formally authorized scope and schedule changes.

PCI :

The baseline schedule is a fixed project schedule. It is the standard by which project performance is measured. The current schedule is copied into the baseline.

Basis

AACEi : Written documentation that describes how an estimate, schedule, or other plan component was developed and defines the information used in support of development. A basis document commonly includes, but is not limited to, a description of the scope included, methodologies used, references and defining deliverables used, assumptions and exclusions made, clarifications, adjustments, and some indication of the level of uncertainty.

Basis Of Estimate

PMI : Supporting documentation outlining the details used in establishing project estimates such as assumptions, constraints, level of detail, ranges, and confidence levels.

Batch Operations

PCI : Operations performed by the computer without the need for any user intervention.

Battery Limit

AACEi : Comprises one or more geographic boundaries, imaginary or real, enclosing a plant or unit being engineered and/or erected, established for the purpose of providing a means of specifically identifying certain portions of the plant, related groups of equipment, or associated facilities. It generally refers to the processing area and includes all the process equipment, and excludes such other facilities as storage, utilities, administration buildings, or auxiliary facilities. The scope included within a battery limit must be well-defined so that all personnel will clearly understand it. On drawings, this is often referred to in the phrase: inside/outside battery limits or ISBL/OSBL.

Beginning (Start) Node Of Network (ADM)

AACEi : A node at which no activities end, but one or more activities begin.

Beginning Event

AACEi : An event that signifies the beginning of an activity. Syn.: Preceding Event; Predecessor Event; Starting Event.

Beginning Network Event

AACEi :

The event that signifies the beginning of a network (or subnet).

Benchmarking

AACEi : A measurement and analysis process that compares practices, processes, and relevant measures to those of a selected basis of comparison (i.e., the benchmark) with the goal of improving performance. The comparison basis includes internal or external competitive or best practices, processes or measures. Examples of measures include estimated costs, actual costs, schedule durations, resource quantities, etc.

PMI : Bench-marking is the comparison of actual or planned practices, such as processes and operations, to those of comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measuring performance.

Beneficial Occupancy

AACEi : Use of a building, structure, or facility by the owner for its intended purpose (functionally complete), although other contract work, nonessential to the function of the occupied section, remains to be completed.

Benefit

APM : The quantifiable and measurable improvement resulting from completion of deliverables that is perceived as positive by a stakeholder. It will normally have a tangible value, expressed in monetary terms that will justify the investment.

PCI : The enhanced efficiency, economy and effectiveness of future business operations to be delivered by a program.

Benefit Cost Analysis

AACEi :

A method of evaluating projects or investments by comparing the present value or annual value of expected benefits to the present value or annual value of expected costs.

Benefit Framework

PCI :

An outline of the expected benefits of the program, the business operations affected and current and target performance measures.

Benefit Management

APM :

The identification, definition, planning, tracking and realisation of business benefits.

PCI :

Combined with program management, Benefits Management is the process for planning, managing, delivering and measuring the program benefits.

Benefit Management Plan

PCI :

Specifies who is responsible for achieving the benefits set out in the benefit profiles and how achievement of the benefits is to be measured, managed and monitored. The Benefits Management Plan is part of the program definition.

Benefit Profile

PCI :

Located in the program definition, the Benefits Profiles describe the planned benefits to be realized by the program. The benefits profile also states where, when and how they are to be realized.

Benefit Realization

APM : The practice of ensuring that benefits are derived from outputs and outcomes.

Benefit-To-Cost Ratio (BCR)

AACEi : Benefits divided by costs, where both are discounted to a present value or equivalent uniform annual value.

Best Practices

AACEi : Practical techniques gained from experience that have been shown to produce best results.

Biases

AACEi : Lack of objectivity based on the enterprise’s or individual's position or perspective. Systematic and predictable relationships between a person's opinion or statement and his/her underlying knowledge or circumstances. Note: There may be "System Biases" as well as "Individual Biases".

Bid

AACEi : To submit a price for services; a proposition either verbal or written, for doing work and for supplying materials and/or equipment.

Bid Bond

AACEi : Syn.: Bond, Bid.

Bid Security

AACEi :

Security is provided in connection with the submittal of a bid to guarantee that the bidder, if awarded or offered the contract, will execute the contract and perform the work. The requirements for the bid security are usually designated in a specific section of the bidding documents. The bid security is payable to the owner (usually around 5% of the total bid price) in the form of either a certified or bank check or a bid bond issued by a surety satisfactory to the owner. The bid security of the successful bidder is usually retained until the bidder has executed the agreement and furnished the required contract security, whereupon the bid security is returned. Bid security of the other bidders is returned after the bid opening.

Bidder

AACEi : The individual, partnership, or corporation, or combination thereof, acting directly or through an authorized representative, formally submitting a bid directly to the owner, as distinct from a sub-bidder, who submits a bid to a bidder.

Bidder Conference

PMI : The meetings with prospective sellers prior to the preparation of a bid or proposal to ensure all prospective vendors have a clear and common understanding of the procurement. Also known as contractor conferences, vendor conferences, or pre-bid conferences.

Bidding Documents

AACEi:

The advertisement for bids, instructions to bidders, information available to bidders, bid form with all attachments, and proposed contract documents (including all addenda issued prior to receipt of bids).

Bidding Requirements

AACEi :

The advertisement for bids, instructions to bidders, supplementary instructions and all attachments therein, information to bidders and all attachments therein, and bid form and all attachments therein.

Bill Of Materials (BOM)

AACEi :(1) Set of physical elements required to build a project.

(2) Hierarchical view of the physical assemblies, subassemblies, and components needed to fabricate a manufacturing product.

(3) Descriptive and quantitative list of materials, supplies, parts, and components required to produce a designated complete end item of materials, assembly, or subassembly.

Bill Of Quantities (BOQ)

AACEi : Descriptive and quantitative list of materials, supplies, parts, and components required to produce a designated complete end item of materials, assembly, or subassembly. Typically includes a description of the associated “method of measurement”.

Blanket Bond

AACEi :

An effort by a prime contractor to reduce the prices quoted by subcontractors and/or suppliers, by providing the bid price to other subcontractors or suppliers in an attempt to get the other subcontractors or suppliers to underbid the original price quoted. The reverse of this situation is when subcontractors try to get a better price out of a prime contractor. This is known as bid peddling.

Blue Print

APM : A document defining and describing what a programme is designed to achieve in terms of the business and operational vision.

Board

APM : A body that provides sponsorship to a project, programme or portfolio. The board will represent financial, provider and user interests.

Bond, Bid

AACEi :

A bond that guarantees the bidder will enter into a contract on the basis of the bid.

Bond, Payment

AACEi : A bond that is executed in connection with a contract and which secures the payment of all persons supplying labor and material in the prosecution of the work provided for in the contract.

Bond, Performance

AACEi : A bond that is executed in connection with a contract and which secures or guarantees the completion, performance and fulfillment of all the work, undertakings, covenants, terms, conditions, and agreements contained in the contract.

Bonds

AACEi : Instruments of security furnished by the contractor and/or surety in accordance with the contract documents. The term contract security refers to the payment bond, performance bond and those other instruments of security

required in the contract documents.

Book Value (Net)

AACEi :(1) Current investment value on the books calculated as original value less depreciated accruals.

(2) New asset value for accounting use.

(3) The value of an outstanding share of stock of a corporation at any one time, determined by the number of shares of that class outstanding.

Bottom-Line

AACEi : Ambiguous term that in TCM cost estimating or risk management typically refers to the total overall cost or profit of a project or program. In TCM decision analysis, may refer to a stakeholder’s threshold or decision making criterion beyond which a decision not-to-proceed, approve, or accept will be made.

Bottom-Up Estimating

APM : An estimating technique that uses detailed specifications to estimate time and cost for each product or activity.

PMI:

"A method of estimating project duration or cost by aggregating the estimates of the lower-level components of the work breakdown structure (WBS)."

PCI : This is the method of making estimates for every activity in the work breakdown structure and summarizing them to provide a total project cost estimate.

Brainstorming

AACEi : Process in which a group of people, selected for their creativity and knowledge, are brought together to seek solutions to particular problems or simply to find better ways of meeting objectives. Suggestions, however outlandish, are encouraged and pursued during a creativity session. From this, many ideas, some entirely new, are brought forward for analysis and ranking.

PMI :"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.

PCI : The unstructured generation of ideas by a group of people.

Breach Of Contract

AACEi : Failure, by either the owner or the contractor, without legal excuse, to perform any work or duty owed to the other person.

Breakdown Structure

AACEi : A hierarchical structure by which project elements are broken down, or decomposed.

APM:

A hierarchical structure by which project elements are broken down, or decomposed. Examples include: Cost Breakdown Structure (CBS), Organisational Breakdown Structure (OBS), Product Breakdown Structure (PBS), and Work Breakdown Structure (WBS).

Breakeven Chart

AACEi : A graphic representation of the relation between total income and total costs for various levels of production and sales indicating areas of profit and loss.

Breakeven Point

AACEi :(1) In business operations, the rate of operations output, or sales at which income is sufficient to equal operating costs or operating cost plus additional obligations that may be specified.

(2) The operating condition, such as output, at which two alternatives are equal in economy.

(3) The percentage of capacity operation of a manufacturing plant at which income will just cover expenses.

Breakout Schedule

AACEi : Jobsite schedule, generally in bar chart form, used to communicate day-to-day activities to all working levels on the project as directed by construction manager. Detail information with regard to equipment use, bulk material requirements, and craft skills distribution, as well as the work to be accomplished, forms content of schedule. Issued on a weekly basis with a two to three-week look ahead from the issue date.

Brief

APM : The output of the concept phase of a project or programme.

Budget At Completion (BAC)

AACEi : The summation of time phased costs at any Work Breakdown Structure (WBS) level. In earned value management according to the ANSI EIA 748 standard, all levels have BAC including work packages, planning packages, summary planning packages, Performance Management Baseline (PMB), Management Reserve (MR), Undistributed Budget (UB), and Contract Budget Baseline (CBB).

PMI:

The sum of all budgets established for the work to be performed.

PCI:

The sum total of the time-phased budget.

Budget Elements

PCI : Budget elements are the same as resources -- the people, materials, or other entities needed to do the work of the program. For example, Engineer, Technician, Travel, and Pipe can all be budget elements. These budget elements can be validated against a Resource Breakdown Structure (RBS). Budget elements are typically assigned to a work package, but can also be defined at the cost account level.

Budget Estimate

AACEi : An estimate generally prepared to form the basis for authorization and/or appropriation of funds.

Budget Unit

PCI : The budget unit is the base unit for the calculation. For example, the Engineer budget element might have a budget unit of hours. Since budget units are user defined, they can be any appropriate unit of measure. For example, a budget unit might be hours, dollars, linear feet, or tons.

Budgeted Cost Of Work Performed (BCWP)

AACEi : Syn.: Earned Value (EV).

PCI:

A measure used to quantify the overall progress of the investment in monetary terms. BCWP is calculated by applying a performance measurement factor to the planned cost. (By comparing BCWP with ACWP, it is possible to determine if the investment is under or over budget.) Another term for BCWP is ""Earned Value.""

Budgeted Cost Of Work Scheduled (BCWS)

AACEi : Syn.: Planned Value (PV).

PCI:

The sum of the budgets for all planned work scheduled to be accomplished within a given time period. This term is often used to designate the cumulative to-date budget.

Budgeting

AACEi : A process used to allocate the estimated cost of resources into cost accounts (i.e., the cost budget) against which cost performance will be measured and assessed. Budgeting often considers time-phasing in relation to a schedule and/or time-based financial requirements and constraints.

APM :

Budgeting and cost control: The estimation of costs, the setting of an agreed budget, and management of actual and forecast costs against that budget.

PCI : Time phased financial requirements.

Budget

AACEi : A planned allocation of resources. The planned cost of needed materials is usually subdivided into quantity required and unit cost. The planned cost of labor is usually subdivided into the workhours required and the wage rate (plus fringe benefits and taxes).

PMI:

The approved estimate for the project or any work breakdown structure component or any schedule activity.

PCI:

The planned cost for an activity or project.

Buffer

APM : A term used in critical chain for the centralised management of contingencies.

PMI : A provision in the project management plan to mitigate cost and/or schedule risk. Often used with a modifier (e.g., management reserve, contingency reserve) to provide further detail on what types of risk are meant to be mitigated.

Bulk Material

AACEi : Material bought in lots. These items can be purchased from a standard catalog description and are bought in quantity for distribution as required. Examples are pipe (non-spooled), conduit, fittings, and wire.

Burden

AACEi :(1) In construction, the cost of maintaining an office with staff other than operating personnel. Also includes federal, state and local taxes, fringe benefits and other union contract obligations. In manufacturing, burden sometimes denotes overhead.

(2) In earned value, this is a broad term that refers to all non-direct costs including overheads, general & administrative, and cost of money as applicable. The common characteristic of a burden is the cost is expressed as a rate on top of the direct costs.

PCI:

Overhead expenses distributed over appropriate direct labor and/or material base.

Burden Of Proof

AACEi : The necessity of proving the facts in a dispute on an issue raised between the owner and the contractor. In a claim situation, the burden of proof is always on the person filing the claim. This is true whether the contractor is claiming against the owner, or the owner is making a claim against the contractor .

Burn Rate

AACEi : Rate at which resources such as funds or man-hours are or were being expended on a project.

Business Assurance

PCI : Ensuring that actual costs and elapsed time is in line with plan costs and schedule times and that the business case remains available.

Business Assurance Coordinator

PCI :

A person in the project assurance team who is responsible for planning, monitoring and reporting on all business assurance aspects of a project.

Business Case

AACEi : Defines a project’s or other investment’s justification for business decision making purposes. Depending upon the business’ decision making criteria, it typically includes an outline of objectives, deliverables, time, cost, technical, safety, quality and other attributes in respect to how the project or investment addresses the objectives and requirements of the business. May include information on project risks (either threats or opportunities), competitive impact, resource requirements, organizational impacts, key performance indicators (particularly profitability) and critical success factors.

APM:

Provides justification for undertaking a project or programme. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution.

PMI:

A documented economic feasibility study used to establish validity of the benefits of a selected

component lacking sufficient definition and that is used as a basis for the authorization of further project management activities.

PCI :

A document used to justify the commitment of resources to a project.

Business Change Manager

APM : The role responsible for benefits management from identification through to realisation.

Business Planning

AACEi : The determination of financial, production and sales goals of a business organization; and the identification of resources, methods, and procedures required to achieve the established objectives within specified budgets and timetables.

Business Risk Assessment

APM : The assessment of risk to business objectives rather than risk to achieving project, programme or portfolio objectives.

Business Value

PMI : A concept that is unique to each organization and includes tangible and intangible elements. Through the effective use of project, program, and portfolio management disciplines, organizations will possess the ability to employ reliable, established processes to meet enterprise objectives and obtain greater business value from their investments.

Business-As-Usual

APM : An organisation’s normal day-to-day operations.

Buyer

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

Calculate Schedule

AACEi : A modeling process that defines all critical activities and individual activity scheduling data. The process applied in most scheduling software calculates the start and finish dates of activities in two passes. The first pass calculates early start and finish dates from the earliest start date forward. The second pass calculates the late start and finish activities from the latest finish date backwards. The difference between the pairs of start and finish dates for each task is the float or slack time for the task.

Calendar

AACEi : Defined work periods and holidays that determine when project activities may be scheduled. Multiple calendars may be used for different activities, which allows for more accurate modeling of the project work plan. E.g., 5-day work week calendar vs. 7-day work week.

PCI:

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 work week (Monday through Friday for example), but may have other calendars as well. Each calendar can be customized with its own holidays and extra work days. Resources and activities can be attached to any of the calendars that are defined.

Calendar Range

AACEi : Span of the calendar from calendar start through end date. The calendar start date is unit number one. The calendar range is usually expressed in years.

Calendar Start Date

AACEi : The date assigned to the first unit of the defined calendar; the first day of the schedule.

Calendar Unit

AACEi : The smallest common/standard unit of time used in a particular calendar for scheduling an activity or a project. Calendar units are generally in hours, days, or weeks, but can also be shifts or even minutes.

Calendar File

PCI : A file containing calendar information for one or more calendars.

Capacity Factor

AACEi : In cost estimating, an exponential factor used in the capacity factor estimating method. Syn.: Capacity Utilization Factor; Scaling Factor.

Capacity Factor Method

AACEi : In cost estimating, an exponential factor used in the capacity factor estimating method. Syn.: Capacity Utilization Factor; Scaling Factor.

Capacity Utilization Factor

AACEi : Syn.: Capacity Factor; Scaling Factor.

Capital Budgeting

AACEi : A systematic procedure for classifying, evaluating, and ranking proposed capital expenditures for the purpose of comparison and selection, combined with the analysis of the financing requirements.

Capital Project

AACEi : A project in which the cost of the end result or product is capitalized (i.e., cost will be depreciated). The product is usually a physical asset such as property, real estate or infrastructure, but may include other assets that are depreciable.

Capital Recovery

AACEi :(1) Charging periodically to operations amounts that will ultimately equal the amount of capital expenditure.

(2) The replacement of the original cost of an asset plus interest.

(3) The process of regaining the net investment in a project by means of revenue in excess of the costs from the project. (Usually implies amortization of principal plus interest on the diminishing, unrecovered balance.)

Capital Recovery Factor

AACEi : A factor used to calculate the sum of money required at the end of each of a series of periods to regain the net investment of a project plus the compounded interest on the unrecovered balance.

Capital, Direct

AACEi : Syn.: Direct Costs.

Capital, Fixed

AACEi : The total original value of physical facilities which are not carried as a current expense on the books of account and for which depreciation is allowed by the Federal Government. It includes plant equipment, building, furniture and fixtures, and transportation equipment used directly in the production of a product or service. It includes all costs incident to getting the property in place and in operating condition, including legal costs, purchased patents, and paid-up licenses. Land, which is not depreciable, is often included. Characteristically it cannot be converted readily into cash.

Capital, Indirect

AACEi :

Syn.: Indirect Costs.

Capital, Operating

AACEi : Capital associated with process facilities inside battery limits.

Capital, Sustaining

AACEi :

The fixed capital requirements to:

1. Maintain the competitive position of a project throughout its commercial life by improving product quality, related services, safety, or economy; or,

2. Required to replace facilities which wear out before the end of the project life.

Capital, Total

AACEi : Sum of fixed and working capital.

Capital, Venture

AACEi : Capital invested in technology or markets new at least to the particular organization.

Capital, Working

AACEi : The funds in addition to fixed capital and land investment which a company must contribute to the project (excluding startup expense) to get the project started and meet subsequent obligations as they come due. Working capital includes inventories, cash and accounts receivable minus accounts payable. Characteristically, these funds can be converted readily into cash. Working capital is normally assumed recovered at the end of the project.

Capitalized Cost

AACEi :(1) The present worth of a uniform series of periodic costs that continue for an indefinitely long time (hypothetically infinite).

(2) The value at the purchase date of the asset of all expenditures to be made in reference to this asset over an indefinite period of time. This cost can also be regarded as the sum of capital which, if invested in a fund earning a stipulated interest rate, will be sufficient to provide for all payments required to maintain the asset in perpetual service.

Cards-On-The-Wall Planning

AACEi : A planning technique in which team members interact to create a project strategy, tactical approach, and resulting network by locating and interconnecting task cards using walls as the work space. The wall data are transferred into a computer model for scheduling, critical path analysis and iteration.

Case Structure

PCI : A breakdown of the project budget. Case numbers can be subdivided only twice to produce three levels: Case, Sub-Case, and Sub-Sub-Case.

Cash Costs

AACEi : Total cost excluding capital and depreciation spent on a regular basis over a period of time, usually one year. Cash costs consist of manufacturing cost and other expenses such as transportation cost, selling expense, research and development cost or corporate administrative expense.

Cash Flow (Net)

AACEi : The net flow of funds into or out of a project. The sum, in any time period, of all cash receipts, expenses, and investments. Also called cash proceeds or cash generated. The stream of monetary values—costs and benefits—resulting from a project investment.

Cash Flow Management

AACEi : The planning of project expenditures relative to income or authorized funding in such a way as to minimize the carrying cost of the financing for the project or keep within the constraints of a time-phased budget. This maybe achieved by accelerating or delaying some activities, but at the risk of ineffective performance, late completion and consequent increased cost.

Cash Flow

AACEi : Inflow and outflow of funds within a project. A time-based record of income and expenditures, often presented graphically.

Cash Return, Percent Of Total Capital

AACEi : Ratio of average depreciation plus average profit, to total fixed and working capital, for a year of capacity sales. Under certain limited conditions, this figure closely approximates that calculated by profitability index techniques where it is defined as the difference, in any time period, between revenues and all cash expenses, including taxes.

Categorise

APM : A phase in the portfolio life cycle where the component projects and programmes may be grouped according to shared characteristics.

Causation

AACEi : An explanation or description of the facts and circumstances that produce a result, the cause and effect for which the contractor claims entitlement to compensation from the owner under the contract.

Cause And Effect Diagram

PMI : A decomposition technique that helps trace an sirable effect back to its root cause.

Cause Of Risk

AACEi : Syn.: Risk Drivers.

Central Tendency

PMI : property of the central limit theorem predicting that the data observations in a distribution will tend to group around a central location. The three typical measures of central tendency are the mean, median, and mode."

Certainty

AACEi : Unquestionable. Free of doubt. No risk involved.

Chain

AACEi : A series of elements joined together in sequence, such as a logical series of activities or occurrences.

Change

AACEi : Alteration or variation to a scope of work and/or the schedule for completing the work.

Change Control

AACEi :(1) Process of accepting or rejecting changes to the project's baselines. Lack of change control is one of the most common causes of scope creep.

(2) Process of implementing procedures that ensure that proposed changes are properly assessed and, if approved, incorporated into the project plan. Uncontrolled changes are one of the most common causes of delay and failure.

(3) Risk abatement process of accepting or rejecting changes to the project's baselines, based on predetermined criteria or "trigger points.”

APM:

The process through which all requests to change the baseline scope of a project, programme or portfolio are captured, evaluated and then approved, rejected or deferred. PMI:

A process whereby modifications to documents, deliverables, or baselines associated with the project are identified, documented, approved, or rejected.

Change Control Board (CCB)

PMI : A formally chartered group responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, and for recording and communicating such decisions.

PCI:

A formally constituted group of stakeholders responsible for approving or rejecting changes to the project baselines.

Change Control System

PMI : A set of procedures that describes how modifications to the project deliverables and documentation are managed and controlled.

Change Control Tools

PMI : Manual or automated tools to assist with change and/or configuration management. At a minimum, the tools should support the activities of the CCB.

Change Documentation/Log

AACEi : Records of changes proposed, accepted and rejected.

APM:

Change Register: A record of all proposed changes to scope.

Change Freeze

APM : A point after which no further changes to scope will be considered.

Change In Scope

AACEi :

A change in the defined deliverables or resources used to provide them. Syn.: Scope Change.

Change In Sequence

AACEi : A change in the order of work initially specified or planned by the contractor. If this change is ordered by the owner and results in additional cost to the contractor, the contractor may be entitled to recovery under the changes clause.

Change Log

PMI : A comprehensive list of changes made during the project. This typically includes dates of the change and impacts in terms of time, cost, and risk.

Change Management

AACEi : The formal process through which changes to the project plan are identified, assessed, reviewed, approved and introduced.

APM:

Change management is a structured approach to moving an organisation from the current state to the desired future state.

Change Notice

AACEi : The form that is used by the owner to communicate a change in scope or baseline to the contract.

PMI:

Requested Change: A formally documented change request that is submitted for approval to the integrated change control process.

Change Order

AACEi : A document requesting and/or authorizing a scope and/or baseline change or correction.

1. From the owner’s perspective, it is an agreement between the project team and higher authority approving a change in the project control baseline.

2. From a contractor’s perspective, it is an agreement between the owner and the contractor to compensate for a change in scope or other conditions of a contract. It must be approved by both the client and the contractor before it becomes a legal change to the contract.

Change Request

APM : A request to obtain formal approval for changes to the scope of work.

PMI:

A formal proposal to modify any document, deliverable, or baseline.

PCI:

Change requests may arise through changes in the business or issues in the project. Change requests should be logged, assessed and agreed on before a commitment to the project can be made. Changes may be needed to the scope, design, methods or planned aspects of a project.

Change, Cardinal

AACEi : Work that is beyond the scope of that specified in the contract and consequently unauthorized. The basic tests for a cardinal change are whether the type of work was within the contemplation of the parties when they entered into the contract and whether the job as modified is still the same basic job.

Change, Constructive

AACEi : An act or failure to act by the owner or the engineer that is not a directed change, but which has the effect of requiring the contractor to accomplish work different from that required by the existing contract documents.

Change, Unilateral

AACEi : Syn.: Modification, Unilateral.

Changed Conditions

AACEi : Syn.: Differing Site Conditions.

Chart Of Accounts

AACEi : Syn.: Code of Accounts(COA).

PCI :

Any numbering system, usually based on corporate chart of accounts of the primary performing organization, used to monitor project costs by category.

Charter

PMI : Project Charter: A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

Checksheets

PMI : A tally sheet that can be used as a checklist when gathering data.

Child

AACEi : A lower-level element in a hierarchical structure.

Child Activity

AACEi : Subordinate task belonging to a 'parent' task existing at a higher level in the work breakdown structure.

Chunk Chart

PCI : List of prioritized project work areas for a given case number and fiscal year as part of a Dept. of Energy (DOE) Defense programs (DP) Sector Project Data Document (PDD).

Claim

AACEi : A demand or assertion of rights by one party against another for damages sustained under the terms of a legally binding contract. Damages might include money, time, or other compensation to make the claimant whole.

PMI:

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.

Claim Administration

PMI : The process of processing, adjudicating, and communicating contract claims.

Client

AACEi :(1) Party to a contract who commissions the work. On capital projects, may also be referred to as the “owner”.

(2) Customer, principal, owner, promoter, buyer, or end user of the product or service created by the project.

Close Procurements

PMI : The process of completing each project procurement.

Closed Procurements

PMI : Project contracts or other procurement agreements that have been formally acknowledged by the proper authorizing agent as being finalized and signed off.

Closeout

AACEi : The completion of project work. The phase at the end of a project lifecycle just before the operations begins.

APM:

Closure: The formal end point of a project or programme, either because it has been completed or because it has been terminated early.

PMI :

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

PCI:

The completion of work on a project.

Closing Process Groups

PMI : Those processes performed to finalize all activities across all Process Groups to formally close a project or phase.

Code

AACEi : A referencing system typically applied to the elements of work and cost breakdown structures.

Code File

PCI : A file used in reporting that contains information associated with codes entered on an activity record.

Code Of Accounts (COA)

AACEi : A systematic coding structure for organizing and managing scope, asset, cost, resource, work, and schedule activity information. A COA is essentially an index to facilitate finding, sorting, compiling, summarizing, or otherwise managing information that the code is tied to. A complete code of accounts includes definitions of the content of each account. Syn.:Chart Of Accounts.

PMI : A numbering system used to uniquely identify each component of the work breakdown structure (WBS).

Coding

AACEi : The process of applying a code.

Collaborative Negotiation

APM : Negotiation that seeks to create a ‘win-win’ scenario where all parties involved get part or all of what they were looking for from the negotiation.

Colocation

PMI : 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.

Commissioning

AACEi : Activities performed to substantiate the capabilities of individual units and systems to function as designed. May include performance tests on mechanical equipment, water washing, flushing and drying of equipment and piping, control systems operability checks, checking of safety and fire protection devices, and operation of systems on inert fluids. Commissioning normally follows mechanical completion and ends with initial operation or startup.

Commitments

AACEi : The sum of all financial obligations made, including incurred costs and expenditures as well as obligations, which will not be performed until later.

PCI:

A binding financial obligation typically in the form of a purchase order. If commitments are entered as a budget, a forecast using the method Retain EAC can show the open commitments.

Committed Cost

AACEi : A cost which has not yet been paid, but an agreement, such as a purchase order or contract, has been made that the cost will be incurred.

APM:

Committed expenditure: Costs that have not yet been paid but cannot be cancelled.

PCI:

Costs that will still be incurred even if the project is terminated.

Commodity

AACEi : In price index nomenclature, a good and sometimes a service.

Communication

APM : The means by which information or instructions are exchanged.Successful communication occurs when the received meaning is the same as the transmitted meaning.

PCI:

The transmission of information so that the recipient understands what the sender intends.

Communication Constraints

PMI : Restrictions on the content, timing, audience, or individual who will deliver a communication usually stemming from specific legislation or regulation, technology, or organizational policies.

Communication Management Plan

PMI : A component of the project, program, or portfolio management plan that describes how, when, and by whom information about the project will be administered and disseminated.

Communication Methods

PMI : A systematic procedure, technique, or process used to transfer information among project stakeholders.

Communication Models

PMI : A description, analogy or schematic used to represent how the communication process will be performed for the project.

Communication Requirement Analysis

PMI : An analytical technique to determine the information needs of the project stakeholders through interviews, workshops, study of lessons learned from previous projects, etc.

Communication Technology

PMI : Specific tools, systems, computer programs, etc., used to transfer information among project stakeholders.

Communications Planning

PCI : Determining project stakeholders’ communication and information needs.

Communities Of Practice

APM : Groups of people who share a concern or passion for an aspect of P3 management and develop expertise through regular interaction.

Company

AACEi : Term used primarily to refer to a business first party, the purpose of which is to supply a product or service. In a capital project, typically refers to the contractor who is performing services for an owner or client.

Comparative Estimating

APM : An estimating technique based on the comparison with, and factoring from, the cost of similar, previous work.

Competence

APM : The combined knowledge, skill and behaviour that a person needs to perform properly in a job or work role.

Competence Framework

APM : A set of competences and competencies that may be used to define a role.

Competency

APM : A personal attribute of an individual.

Completed Activity

AACEi : An activity with an actual completion date and remaining duration of zero. An activity that is finished, ended and/or concluded in accordance with requirements.

Completion (Contract)

AACEi : When the entire work has been performed to the requirements of the contract, except for those items arising from the provisions of warranty, and is so certified.

Completion Date (Planned)

AACEi:

The calculated date for completion derived from estimating, planning and risk evaluation taking into account contingencies for identified risks.

PCI:

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

Complexity

APM : Complexity relates to the degree of interaction of all the elements that comprise P3 management and is dependent on such factors as the level of risk, range of stakeholders and degree of innovation.

Compliance

PMI : A general concept of conforming to a rule, standard, law, or requirement such that the assessment of compliance results in a binomial result stated as “compliant” or “noncompliant."

Composite Price Index

AACEi : An index which measures the price change of a range or group of commodities.

Compound Amount

AACEi : The future worth of a sum invested (or loaned) at compound interest.

Compound Amount Factor

AACEi :(1) The function of interest rate and time that determines the compound amount from a stated initial sum.

(2) A factor which when multiplied by the single sum or uniform series of payments will give the future worth at compound interest of such single sum or series.

Compound Interest

AACEi :(1) The type of interest that is periodically added to the amount of investment (or loan) so that subsequent interest is based on the cumulative amount.

(2) The interest charges under the condition that interest is charged on any previous interest earned in any time period, as well as on the principal.

Compound Risk

AACEi : Syn.: Risk (Impact) Compounding.

PCI:

A risk made up of a number of inter-related risks.

Compounding Period

AACEi : The time interval between dates at which interest is paid and added to the amount of an investment or loan. Designates frequency of compounding.

Compounding, Continuous

AACEi :(1) A compound interest situation in which the compounding period is zero and the number of periods infinitely great. A mathematical concept that is practical for dealing with frequent compounding and small interest rates.

(2) A mathematical procedure for evaluating compound interest factors based on a continuous interest function rather than discrete interest periods.

Concept Definition Document

AACEi : A document describing the concept selected for development and the results of investigating alternative system concepts. It is used to derive the system specifications and the statement of work. Syn.: System Concept Document.

Concept Phase

AACEi : First phase of a project in which need is examined, alternatives are assessed, the goals and objectives of the project are established and a sponsor is identified.

APM:

Concept is the first phase in the project or programme life cycle. During this phase the need, opportunity or problem is confirmed, the overall feasibility of the work is considered and a preferred solution identified.

Conceptual Estimate

AACEi : An estimate generally prepared based on very limited information.

Conceptual Schedule

AACEi : Similar to a proposal schedule except it is usually time-scaled and developed from the abstract or conceptual design of the project. Used primarily to give the client a general idea of the project scope and on overview of activities.

Concern

AACEi : In TCM risk management, something that worries stakeholders because it may give rise to a risk event or condition.

Concurrency

AACEi :

The method of counting concurrent delay events based purely on contemporaneous occurrence without regard to CPM principles.

Concurrent Activities

AACEi : Independent activities that may be, or are performed at the same time (fully or partially).

Concurrent Delays

AACEi :(1) Two or more delays that take place or overlap during the same period, either of which occurring alone would have affected the ultimate completion date. In practice, it can be difficult to apportion damages when the concurrent delays are due to the owner and contractor respectively.

(2) Concurrent delays occur when there are two or more independent causes of delay during the same time period. The “same” time period from which concurrency is measured, however, is not always literally within the exact period of time. For delays to be considered concurrent, most courts do not require that the period of concurrent delay precisely match. The period of “concurrency” of the delays can be related by circumstances, even though the circumstances may not have occurred during exactly the same time of period. [10]

(3) True concurrent delay is the occurrence of two or more delay events at the same time, one an employer risk event, the other a contractor risk event and the effects of which are felt at the same time. The term ‘concurrent delay’ is often used to describe the situation where two or more delay events arise at different times, but the effects of them are felt (in whole or in part) at the same time. To avoid confusion, this is more correctly termed the ‘concurrent effect’ of sequential delay events. [12]

(4) Concurrent delay occurs when both the owner and contractor delay the project or when either party delays the project during an excusable but non-compensable delay (e.g., abnormal weather). The delays need not occur simultaneously but can be on two parallel critical path chains.

(5) The condition where another delay-activity independent of the subject delay is affecting the ultimate completion of the chain of activities.

Concurrent Engineering

PCI : The systematic approach to the simultaneous, integrated design of products and their related processes, such as manufacturing, testing and supporting.

Condition (Risk Condition)

AACEi : Any specific identifiable circumstance that might affect the outcome of the project.

Conditional Branching

AACEi : Schedule analysis that allows for changes in schedule logic and/or durations depending on the occurrence of risk events or conditions.

Conditional Risk

AACEi : Risk that occurs under certain conditions or is accepted provided that certain conditions are met.

Conduct Procurement

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

Confidence Interval

AACEi : The probability that a result will be within a range.

Confidence Level

AACEi : The probability:

1. That results will be equal to or more favorable than the amount estimated or quoted; or

2. That the decision made will achieve the desired results; or

3. That the stated conclusion is true. Note: Confidence level may also be expressed as "equal to or less favorable". If that is the case, it should so be noted. Without such a note, the definition shown is assumed.

Configuration

AACEi : A collection of an item's descriptive and governing characteristics, which can be expressed:

1. In functional terms, i.e. what performance the item is expected to achieve; and

2. In physical terms, i.e. what the item should look like and consist of when it is completed.

APM:

Functional and physical characteristics of a product as defined in its specification.

PCI : The technical description needed to build, test, accept, operate install, maintain and support a system.

Configuration Control

AACEi : A system of procedures that monitors emerging project scope against the scope baseline. Requires documentation and management approval on any change to the baseline.

Configuration Item

PCI : A part a of configuration that has a set function and is designated for configuration management.

Configuration Librarian

PCI : Responsible for administering configuration management. The configuration librarian may be on a project team or have system responsibilities rather than project responsibilities.

Configuration Management

AACEi : Technical and administrative activities concerned with the creation, maintenance and controlled change of configuration throughout the life of the product. Configuration management is an integral part of life-cycle management.

APM :

Configuration management encompasses the administrative activities concerned with the creation, maintenance, controlled change and quality control of the scope of work.

PMI:

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."

PCI:

The process of defining the configuration items in a system, controlling the release and change of those items throughout the project, recording and reporting the status of configuration items, and verifying the completeness of configuration items.

Conflict

AACEi : Two or more parties having differing interests or perspectives that require resolution to achieve project goals. The state that exists when two groups have goals that will affect each other differently.

Conflict In Plans And Specifications

AACEi :

Statements or meanings in the contract documents (including drawings and specifications) that cannot be reconciled by reasonable interpretation on the part of the contractor and which may require the owner to provide an interpretation between alternatives.

Conflict Management

AACEi : Handling of conflicts between project participants or groups in order to create optimal project results.

APM:

The process of identifying and addressing differences that, if left unresolved, could affect objectives.

PMI:

Handling, controlling, and guiding a conflictual situation to achieve a resolution.

PCI:

The ability to manage conflict effectively.

Conformance

PMI : Within the quality management system, conformance is a general concept of delivering results that fall within the limits that define acceptable variation for a quality requirement.

Conformance Work

PMI : In the cost of quality framework, conformance work is done to compensate for imperfections that prevent organizations from completing planned activities correctly as essential first-time work. Conformance work consists of actions that are related to prevention and inspection.

Consent Of Surety

AACEi : An acknowledgement by a surety that its bond, given in connection with a contract, continues to apply to the contract as modified; or, at the end of a contract, permission from the surety to release all retainage to the contractor.

Consequence

AACEi : In risk management, the impact or effect of a risk event or condition. Syn.: Effect; Impact.

Constant Basket

AACEi : A set of goods and services with quantities fixed in relation to a given time period, used for computing composite price indexes.

Constant Basket Price Index

AACEi : A price index which measures price changes by comparing the expenditures necessary to provide the same set of goods and services at different points in time.

Constant Dollars

AACEi : Dollars of uniform purchasing power exclusive of general inflation or deflation. Constant dollars are tied to a reference year. Syn.: Real Dollars.

Constant Utility Price Index

AACEi : A composite price index which measures price changes by comparing the expenditures necessary to provide substantially equivalent sets of goods and services at different points in time.

Constraint

AACEi :(1) In planning and scheduling, any external factor that affects when an activity can be scheduled. A restriction imposed on the start, finish or duration of an activity. The external factor may be resources, such as labor, cost or equipment, or, it can be a physical event that must be completed prior to the activity being restrained. Constraints are used to reflect project requirements more accurately. Examples of date constraints are: Start-no-earlier-than, finish-no-later-than, mandatory start, and as-late-as-possible.

(2) In decision and risk management, something that limits the potential achievement of objectives.

PMI:

A limiting factor that affects the execution of a project, program, portfolio, or process.

PCI:

Applicable restrictions that will affect the scope of the project.

Constraint Date

AACEi : Syn.: Plug Date.

Constructability

AACEi :(1) A system (process) for achieving optimum integration of construction knowledge in the construction process, balancing various project and environmental constraints to achieve maximization of project goals and performance.

(2) Derived from early detailed construction planning that allows engineering and procurement to be scheduled to support construction in accordance with the overall optimized project schedule.

(3) The extent to which the design of a structure or system facilitates ease of construction, subject to the overall requirements for the completed form. The optimum use of construction knowledge and experience in planning, engineering, procurement and field operations to achieve the overall objective.

Construction Cost

AACEi : The sum of all costs, direct and indirect, inherent in converting a design plan for material and equipment into a project ready for start-up, but not necessarily in production operation; the sum of field labor, supervision, administration, tools, field office expense, materials, equipment, and subcontracts.

Construction Management

AACEi:

(1) Project management as applied to construction.

(2) A professional service that applies to effective management techniques to the planning, design, and construction of a project from inception to completion for the purpose of controlling time, cost, and quality.

Construction Progress

AACEi : Construction progress is monitored and reported as percent complete. Actual work units completed are measured against the planned work units for each applicable account in the bill of materials or quantities. Usually reported against individual accounts by area and total project, and summarized by area and total project.

Construction Progress Report

AACEi:

A report that informs management of overall construction progress (physical percent complete), costs, performance and manpower at a specific reporting cut-off date. Typically includes major accomplishments, objectives for the upcoming report period, areas of concern, and other pertinent information necessary for management and control.

Constructive Acceleration

AACEi:

An owner’s action or inaction, in absence of a specific direction to accelerate, that results in the contractor accelerating its work to maintain scheduled completion date(s). Case law has identified five elements normally required to establish a claim for constructive acceleration and include:

1. An excusable delay must exist;

2. Timely notice of the delay and a proper request for a time extension must have been given;

3. The time extension must have been postponed or refused;

4. Owner must have ordered (either by coercion, direction or some other manner) the project completed within its original performance period; and

5. Contractor must actually accelerate its performance, thereby incurring excess costs.

Constructive Change

AACEi:

An owner's action or inaction that impacts the contractor's working conditions and constitutes an unauthorized modification of contract intent.

Constructive Delay

AACEi:

An act or omission by the owner or its agent, which in fact delays completion of the work.

Consumable Resource

AACEi :

A type of resource that remains available until consumed (for example, a material).

APM : A type or resource that only remains available until consumed (for example a material).

Consumables

AACEi :

Supplies and materials used up during construction. Includes utilities, fuels and lubricants, welding supplies, worker's supplies, medical supplies, etc.

Consumers Price Index (CPI)

AACEi:

A measure of time-to-time fluctuations in the price of a quantitatively constant market basket of goods and services, selected as representative of a special level of living.

Context

APM : A collective term for the governance and setting of a project, programme or portfolio.

Context Diagram

PMI : A visual depiction of the product scope showing a business system (process, equipment, computer system, etc.), and how people and other systems (actors) interact with it.

Contigency Allowance

AACEi:

1. In earned value management (based upon the ANSI EIA 748 Standard), an amount held outside the performance measurement baseline for owner level cost reserve for the management of project uncertainties is referred to as contingency.

PMI :

A provision in the project management plan to mitigate cost and/or schedule risk. Often used with a modifier (e.g., management reserve, contingency reserve) to provide further detail on what types of risk are meant to be mitigated.

Contigency Reserve

PMI :

Budget within the cost baseline or performance measurement baseline that is allocated for identified risks that are accepted and for which contingent or mitigating responses are developed.

Contingency

AACEi:

(1) An amount added to an estimate to allow for items, conditions, or events for which the state, occurrence, or effect is uncertain and that experience shows will likely result, in aggregate, in additional costs. Typically estimated using statistical analysis or judgment based on past asset or project experience.

Contingency usually excludes:

1. Major scope changes such as changes in end product specification, capacities, building sizes, and location of the asset or project;

2. Extraordinary events such as major strikes and natural disasters;

3. Management reserves; and

4. Escalation and currency effects. Some of the items, conditions, or events for which the state, occurrence, and/or effect is uncertain include, but are not limited to, planning and estimating errors and omissions, minor price fluctuations (other than general escalation), design developments and changes within the scope, and variations in market and environmental conditions. Contingency is generally included in most estimates, and is expected to be expended. APM:

Resource set aside for responding to identified risks. PMI:

An event or occurrence that could affect the execution of the project that may be accounted for with a reserve.

PCI:

A Contingency is the planned allotment of time and cost for unforeseeable elements with a project. Including contingencies will increase the confidence of the overall project.

Contingency Plan

AACEi:

A risk response plan made to address identified residual risks if they occur. Syn.: Fallback Plan.

PCI : The development of a management plan that uses alternative strategies to ensure project success if specified risk events occur.

Contingent Response Strategies

PMI:

Responses provided which may be used in the event that a specific trigger occurs.

Contingent Risk Response

AACEi:

A planned alternative response to a risk that will be taken only in defined circumstances.

Contract

AACEi:

Legal agreement between two or more parties, which may be of the types enumerated below:

APM:

An agreement made between two or more parties that creates legally binding obligations between them. The contract sets out those obligations and the actions can be taken if they are not met.

PMI :

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.

PCI :

A mutually binding agreement in which the contractor is obligated to provide services or products and the buyer is obligated to provide payment for them. Contracts fall into three categories: fixed price, cost reimbursable or unit price.

Contract "Read As A Whole"

AACEi :

Reading an entire contract document, instead of reading each clause in the contract in isolation. If a clause is ambiguous and can be interpreted in more than one way, the meaning that conforms to the rest of the document is usually the accepted meaning.

Contract Budget Baseline (CBB)

AACEi :

In earned value management according to the ANSI EIA 748 standard, the budget for the project at the total contract level. The CBB reconciles with the project authorization documents from the owner. The CBB plus fee is the total contract value. CBB = Performance Measurement Baseline (PMB) + Management Reserve (MR) unless an Over Target Baseline (OTB) has been implemented.

PCI :

The negotiated contract cost value plus the estimated value of authorized but unpriced work.

Contract Change

AACEi :

An authorized modification to terms of a contract. May involve, but is not limited to:

1. A change in the volume or conditions of the work involved;

2. The number of units to be produced;

3. The quality of the work or units;

4. The time for delivery; and/or

5. The consequent cost involved.

Contract Change Control System

PMI :

The system used to collect, track, adjudicate, and communicate changes to a contract.

Contract Close-Out

PCI :

Settlement of a contract.

Contract Completion Date

AACEi :

The date established in the contract for completion of all or specified portions of the work. This date may be expressed as a calendar date or as a number of days after the date for commencement of the contract time is issued.

Contract Data Requirement List (CDRL)

PCI : An element of the contract that specifies the data submittal requirements.

Contract Dates

AACEi : The start, intermediate, or final dates specified in the contract that impact the project schedule.

Contract Documents

AACEi : The agreement, addenda (which pertain to the contract documents), contractor's bid (including documentation accompanying the bid and any post-bid documentation submitted prior to the notice of award) when attached as an exhibit to the agreement, the bonds, the general conditions, the supplementary conditions, the specifications and the drawings as the same are more specifically identified in the agreement, together with all amendments, modifications and supplements issued pursuant to the general conditions on or after the effective date of the agreement.

Contract Master Schedule

AACEi : The management summary schedule that shows the overall plan for the total contract.

Contract Performance Report (CPR)

PCI : The Contract Performance Report (CPR) presents the cost and schedule data for the current period as well as in a cumulative format. Costs are organised by WBS element at a level pre-determined by the HHS IT Investment team. Format 5, Variance Narrative, is a problem analysis and variance-oriented report. It provides explanations for cost and schedule variances that have exceeded thresholds. It provides a written explanation as to why the variance occurred, as well as written descriptions on how the contractor plans to resolve the cause of the variance. Examples of the CPR Forms 1-5 are provided in the CPIC guide.

Contract Plan

AACEi :

The conditions, methods, schedule, etc. for carrying out the work of the contract as agreed between the parties at the time of signing the contract.

Contract Price

AACEi :

The monies payable by the owner to the contractor under the contract documents as stated in the agreement.

Contract Target Cost (CTC)

PCI : The negotiated costs for the original definite contract and all contractual changes that have been definitized, but excluding the estimated cost of any authorized, unpriced changes. The CTC equals the value of the BAC plus management or contingency reserve.

Contract Target Price (CTP)

PCI : The negotiated estimated costs plus profit or fee.

Contract Time

AACEi : The date when the contract time commences to run and on which the contractor shall start to perform the contractor's obligations under the contract documents.

Contract Work Breakdown Structure (CWBS)

PCI :

A customer-prepared breakout or subdivision of a project typically down to level three which subdivides the investment into all its major hardware, software, and service elements, integrates the customer and contractor effort, provides a framework for the planning, control, and reporting.

Contract, Cost Plus Contracts

AACEi :

In cost plus contracts the contractor agrees to furnish to the client services and material at actual cost, plus an agreed upon fee for these services. This type of contract is employed most often when the scope of services to be provided is not well defined.

Contract, Cost Plus Contracts, Cost Plus Fixed Fee

AACEi : The client pays costs as defined in the contract document. Burden on reimbursable technical labor cost is considered in this case as part of cost. In addition to the costs and burden, the client also pays a fixed amount as the contractor's "fee".

Contract, Cost Plus Contracts, Cost Plus Fixed Sum

AACEi :

The client will pay costs defined by contract plus a fixed sum which will cover "non-reimbursable" costs and provide for a fee. This type of contract is used in lieu of a cost plus fixed fee contract where the client wishes to have the contractor assume some of the risk for items which would be reimbursable under a cost plus fixed fee type of contract.

Contract, Cost Plus Contracts, Cost Plus Percentage Burden And Fee

AACEi : The client will pay all costs as defined in the terms of the contract, plus "burden and fee" at a specified percent of the labor costs which the client is paying for directly. This type of contract generally is used for engineering services. In contracts with some governmental agencies, burden items are included in indirect cost.

Contract, Cost Plus Contracts, Cost Plus Percentage Fee

AACEi :

The client pays all costs, plus a percentage for the use of the contractor's organization.

Contract, Fixed Price Contracts

AACEi :

Fixed price types of contract are ones wherein a contractor agrees to furnish services and material at a specified price, possibly with a mutually agreed upon escalation clause. This type of contract is most often employed when the scope of services to be provided is well defined.

Contract, Fixed Price Contracts, Bonus-Penalty

AACEi :

A special contractual arrangement usually between a client and a contractor wherein the contractor is guaranteed a bonus, usually a fixed sum of money, for each day the project is completed ahead of a specified schedule and/or below a specified cost, and agrees to pay a similar penalty for each day of completion after the schedule date or over a specified cost up to a specified maximum either way. The penalty situation is sometimes referred to as liquidated damages.

Contract, Fixed Price Contracts, Guaranteed Maximum (Target Price)

AACEi : A contractor agrees to perform all services as defined in the contract document guaranteeing that the total cost to the client will not exceed a stipulated maximum figure. Quite often, these types of contracts will contain special share-of-the-saving arrangements to provide incentive to the contractor to minimize costs below the stipulated maximum.

Contract, Fixed Price Contracts, Lump Sum

AACEi :

Contractor agrees to perform all services as specified by the contract for a fixed amount. A variation of this type may include a turn-key arrangement where the contractor guarantees quality, quantity and yield on a process plant or other installation.

Contract, Fixed Price Contracts, Unit Price

AACEi :

Contractor will be paid at an agreed upon unit rate for services performed. For example, technical work-hours will be paid for at the unit price agreed upon. Often field work is assigned to a subcontractor by the prime contractor on a unit price basis.

Contractor

AACEi :

(1) A business entity that enters into contracts to provide goods or services to another party.

(2) A person or organization that undertakes responsibility for the performance of a contract. One that agrees to furnish materials or perform services at a specified price.

Control

AACEi :

(1) Management action, either preplanned to achieve the desired result or taken as a corrective measure prompted by the monitoring process.

(2) To take timely corrective action. Control occurs only if monitoring and forecasting activities indicate an undesirable final result is likely to occur and that a different final result is possible.

(3) Process of comparing actual performance with planned performance, analyzing the differences, and taking the appropriate corrective action.

APM :

Tracking performance against agreed plans and taking the corrective action required to meet defined objectives.

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

PCI :

Control is the process of comparing actual performance with planned performance, analyzing the differences, and taking the appropriate corrective action.

Control Account (CA)

AACEi : A management control point where earned value measurement takes place. It is the place where scope, schedule and budget, are integrated at the organizational level responsible for day to day management of a segment of the project. Syn.: Cost Account.

PMI : A management control point where scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement.

Control Account Manager (CAM)

AACEi :

The single person responsible for management of the scope, schedule, and budget of the control account. The CAM has control either through delegation or supervisory responsibility for all of the staff performing the control account work.

PCI : A member of the organization responsible for cost account performance, and for the management of resources to accomplish such tasks.

Control Account Plan (CAP)

PCI : Control Account Plans (CAPs) document the underlying work packages and provide the CAM with a source to evaluate his or her BCWS, ACWP, and BCWP (Earned Value) of each for the CAM's Control Accounts.

Control And Coordination

AACEi :

Control is the process of developing targets and plans; measuring actual performance and comparing it against planned performance and taking the steps to correct the situation. Coordination is the act of ensuring that work is being carried out in different organizations and places to fit together effectively in time, content and cost in order to achieve the project objectives effectively.

PCI :

Control Baseline

AACEi :

Syn.: Baseline.

Control Chart

PMI :

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

PCI :

Control charts display the results, over time, of a process. They are used to determine if the process is in need of adjustment.

Control Communication

PMI :

The process of monitoring and controlling communications throughout the entire project life cycle to ensure the information needs of the project stakeholders are met.

Control Cost

AACEi :

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

Control Gate

AACEi :

A major project milestone at which the project client has the opportunity to exercise a ‘go/no-go’ decision upon continuation into the succeeding phase.

Control Limits

PMI :

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

Control Procurement

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

Control Schedule

PMI :

The process of monitoring the status of project activities to update project progress and manage changes to the schedule baseline to achieve the plan.

Control Scope

PMI :

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

Control Stakeholder Engagement

PMI : The process of monitoring overall project stakeholder relationships and adjusting strategies and plans for engaging stakeholders.

Controlling Path

AACEi :

An alternate term used in place of ‘as-built critical path’ in order to technically preserve the use of the term critical path to denote only to activity paths identified by float calculation using early and late dates. By definition, as-built activities do not have early and late dates.

Controlling Relationship

AACEi :

In planning and scheduling, the predecessor activity logic tie to an activity, with multiple predecessors, which “controls” or “drives” that activity and establishes it’s latest early finish.

PCI : The early dates of an activity is controlled either by a target date on the activity or, more normally, by one of the predecessor relationships. In the latter case, the relationship is called the controlling relationship.

Coordinated Matrix

PCI : An organizational structure where the project leader reports to the functional manager and doesn’t have authority over team members from other departments.

Correction Period

AACEi :

The period of time within which the contractor shall promptly, without cost to the owner and in accordance with the owner's written instructions, either correct defective work, or if it has been rejected by the owner, remove it from the site and replace it with non-defective work, pursuant to the general conditions.

Corrective Action

PMI :

An intentional activity that realigns the performance of the project work with the project management plan.

PCI :

Changes made to bring future project performance into the plan.

Corrective Action Plan

PCI :

Corrective Action Plans are documents that allow Investment Managers to define the strategy that will be employed to improve the performance of their investments.

Correlation

AACEi :

The measure of the relationship between two or more quantitative elements.

Cost

AACEi : In project control and accounting, it is the amount measured in money, cash expended or liability incurred, in consideration of goods and/or services received. From a total cost management perspective, cost may include any investment of resources in strategic assets including time, monetary, human, and physical resources.

PCI :

Cost can be divided into internal and external expenses. External costs can be controlled by contracts and budgets for each phase of a project and for each deliverable or work product. Internal cost is the cost of project resources.

Cost Account

AACEi :

Syn.: Control Account (CA).

PCI : A cost account is usually defined as the intersection of the program's work breakdown structure (WBS) and organizational breakdown structure (OBS). In effect, each cost account defines what work is to be performed and who will perform it. Cost accounts are the focal point for the integration of scope, cost, and schedule. Another term for Cost Account is Control Account.

Cost Account Manager (CAM)

PCI :

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

Cost Account Plan (CAP)

PCI :

The management control unit in which earned value performance measurement takes place.

Cost Accounting

AACEi : The historical reporting of actual and/or committed disbursements (costs and expenditures) on a project. Costs are denoted and segregated within cost codes that are defined in a chart of accounts. In project control practice, cost accounting provides the measure of cost commitment and/or expenditure that can be compared to the measure of physical completion (or earned value) of an account.

Cost Aggregation

PMI : Summing the lower-level cost estimates associated with the various work packages for a given level within the project’s WBS or for a given cost control account.

Cost Analysis

AACEi :

A historical and/or predictive method of ascertaining for what purpose expenditures on a project were made and utilizing this information to project the cost of a project as well as costs of future projects. The analysis may also include application of escalation, cost differentials between various localities, types of buildings, types of projects, and time of year.

Cost Approach

AACEi :

One of the three approaches in the appraisal process. Underlying the theory of the cost approach is the principle of substitution, which suggests that no rational person will pay more for a property than the amount with which he/she can obtain, by purchase of a site and construction of a building without undue delay, a property of equal desirability and utility.

Cost At Completion (CAC)

AACEi :

The amount an activity or group of activities will cost when it has been completed. It is the sum of the cost expended to date and the estimated cost to complete.

Cost Avoidance

AACEi :

An action taken in the present designed to decrease costs in the future.

Cost Baseline

AACEi : A time-phased budget used to measure and monitor cost performance. It is developed by summing estimated costs by period and is usually displayed in the form of an S-curve.

PMI : The approved version of the time-phased project budget, excluding any management reserves, which can be changed only through formal change control procedures and is used as a basis for comparison to actual results.

Cost Breakdown Structure (CBS)

AACEi :

1. A hierarchical structure that divides budgeted resources into elements of costs, typically labor, materials and other direct costs. The lowest level, when assigned responsibility, typically defines a cost center.

2. Hierarchical breakdown of a project into cost elements or cost categories.

PCI :

A hierarchical structure that rolls budgeted resources into elements of costs, typically labor, materials and other direct costs.

Cost Budgeting

PCI :

Allocating cost estimates to individual project components.

Cost Category

AACEi : A specifically defined division in a system of classification for estimated and/or expended money for which costs are to be summarized.

Cost Center

AACEi :

The smallest unit of activity or area of responsibility against which costs are accumulated; defined sections in the corporate system, representing units of responsibility as well as accounting units.

Cost Codes

AACEi : Codes allocated to items or activities that allow costs to be consolidated according to the elements of the coding structure.

PCI : Code assigned to activities that allow costs to be consolidated according to the elements of a code structure.

Cost Control

AACEi :

The application of procedures to monitor expenditures and performance against progress of projects or manufacturing operations; to measure variance from authorized budgets and allow effective action to be taken to achieve minimum costs.

Cost Control Point

PCI :

The point within a program at which costs are entered and controlled. Frequently, the cost control point for a program is either the cost account or the work package.

Cost Control System

AACEi :

Any system of managing costs within the bounds of budgets or standards based upon work actually performed. Cost control is typically performed at designated levels in the work breakdown structure.

PCI :

Any system of keeping costs within the bounds of budgets or standards based upon work actually performed. Cost Control is typically a level in the budget element breakdown structure.

Cost Curve

AACEi :

A graph that plots cumulative cost (e.g., planned, expended, incurred, etc) against a time scale.

PCI : A graph plotted against a horizontal time scale and cumulative cost vertical scale.

Cost Distribution

AACEi :

Distribution or allocation of overhead (indirect) costs on some logical basis, e.g., the time or cost of all associated direct cost activities.

Cost Element

AACEi :

In earned value, a basic until of planning such as: labor, travel, material, subcontracts, and other direct costs as applicable.

Cost Engineer

AACEi : An engineer whose judgment and experience are utilized in the application of scientific principles and techniques to problems of estimation; cost control; business planning and management science; profitability analysis; project management; and planning and scheduling.

Cost Estimate

AACEi : A compilation of all the probable costs of the elements of a project or effort included within an agreed upon scope.

PMI : Estimate Costs: The process of developing an approximation of the monetary resources needed to complete project activities.

Cost Estimate Category

AACEi : A compilation of all the probable costs of the elements of a project or effort included within an agreed upon scope.

Cost Estimate Class

AACEi :

Syn.: Cost Eatimate Category; Cost Estimate Classification System; Cost Estimate Type.

Cost Estimate Classification System

AACEi :

There are numerous characteristics that can be used to categorize project cost estimate types. Some of these characteristics are: level of project definition, end usage of the estimate, estimating methodology, and the effort and time needed to prepare the estimate. AACE recommends that the primary characteristic used to define the classification category is the level of project. The other characteristics are considered secondary.

The level of project definition defines maturity, or the extent and types of input information available to the estimating process. Such inputs include project scope definition, requirements documents, specifications, project plans, drawings, calculations, lessons learned from past projects, reconnaissance data, and other deliverables and information that must be developed to define the project. Each industry will have a typical set of defining deliverables that are used to support the type of estimates used in that industry. The set of deliverables becomes more definitive and complete as the level of project definition (e.g., project engineering) progresses.

For projects, the estimate class designations that follow below are labeled Class 1, 2, 3, 4, and 5. A Class 5 estimate is based upon the lowest level of project definition, and a Class 1 estimate is closest to full project definition and maturity. This “countdown” approach considers that estimating is a process whereby successive estimates are prepared until a final estimate closes the process.

Cost Estimate Classification System, Class 1 Estimate

AACEi :(Typical level of project definition required: 65% to 100% of full project definition.)Class 1 estimates are generally prepared for discrete parts or sections of the total project rather than for the entire project. The parts of the project estimated at this level of detail will typically be used by subcontractors for bids, or by owners for check estimates. The updated estimate is often referred to as the current control estimate and becomes the new baseline for cost/schedule control of the project. Class 1 estimates may be prepared for parts of the project to comprise a fair price estimate or bid check estimate to compare against a contractor’s or vendor’s bid estimate, or to evaluate/dispute claims or change orders.

Cost Estimate Classification System, Class 2 Estimate

AACEi :(Typical level of project definition required: 30% to 75% of full project definition.)Class 2 estimates are generally prepared to form a detailed control baseline against which all project work is monitored in terms of cost and progress control. For contractors, this class of estimate is often used as the “bid” estimate to establish contract value.

Cost Estimate Classification System, Class 3 Estimate

AACEi :(Typical level of project definition required: 10% to 40% of full project definition.)Class 3 estimates are generally prepared to form the basis for budget authorization, appropriation, and/or funding. Class 3 estimates are typically prepared to support full project funding requests, and become the first of the project phase “control estimate” against which all actual costs and resources will be monitored for variations to the budget. They are used as the project budget until replaced by more detailed estimates. In many owner organizations, a Class 3 estimate may be the last estimate required and could well form the only basis for cost/schedule control.

Cost Estimate Classification System, Class 4 Estimate

AACEi :(Typical level of project definition required: 1% to 15% of full project definition.)Class 4 estimates are generally prepared based on limited information and subsequently have fairly wide accuracy ranges. They are typically used for project screening, determination of feasibility, concept evaluation, and preliminary (but generally not final) budget approval. Class 4 estimates are prepared for a number of purposes, such as but not limited to, detailed strategic planning, business development, project screening at more developed stages, alternative scheme analysis, confirmation of economic and/or technical feasibility, and preliminary budget approval or approval to proceed to next stage.

Cost Estimate Classification System, Class 5 Estimate

AACEi :(Typical level of project definition required: >0% to 2% of full project definition.)Class 5 estimates are generally prepared based on very limited information, and subsequently have wide accuracy ranges. As such, some companies and organizations have elected to determine that due to the inherent inaccuracies, such estimates cannot be classified in a conventional and systemic manner. Class 5 estimates, due to the requirements of end use, may be prepared within a very limited amount of time and with little effort expended. Class 5 estimates are prepared for any number of strategic business planning purposes, such as but not limited to market studies, assessment of initial viability, evaluation of alternate schemes, project screening, project location studies, evaluation of resource needs and budgeting, long-range capital planning, etc.

Cost Estimate Resource

AACEi :

Cost estimate of physical resources needed to perform a specific construction activity which in turn drives an overall unit price. Typically includes labor resources, material resources, equipment resources, subcontractor costs and other costs. It is typically abbreviated Lmeso.

Cost Estimate Type

AACEi :

Syn.: Cost Estimate Category; Cost Estimate Class; Cost Estimate Classification System.

Cost Estimating

AACEi : Cost estimating is the predictive process used to quantify, cost, and price the resources required by the scope of an investment option, activity, or project. Cost estimating is a process used to predict uncertain future costs. In that regard, a goal of cost estimating is to minimize the uncertainty of the estimate given the level and quality of scope definition. The outcome of cost estimating ideally includes both an expected cost and a probabilistic cost distribution. As a predictive process, historical reference cost data (where applicable) improve the reliability of cost estimating. Cost estimating, by providing the basis for budgets, also shares a goal with cost control of maximizing the probability of the actual cost outcome being the same as predicted.

PCI : The process of predicting the costs of a project.

Cost Estimating Relationship (CER)

AACEi : In estimating, an algorithm or formula that is used to perform the costing operation. CERs show some resource (e.g., cost, quantity, or time) as a function of one or more parameters that quantify scope, execution strategies, or other defining elements. A CER may be formulated in a manner that, in addition to providing the most likely resource value, also provides a probability distribution for the resource value.

Cost Estimator (Project)

AACEi : Project cost estimators predict the cost of a project for a defined scope, to be completed at a defined location and point of time in the future. Cost estimators assist in the economic evaluation of potential projects by supporting the development of project budgets, project resource requirements, and value engineering. They also support project control by providing input to the cost control baseline. Estimators collect and analyze data on all of the factors that can affect project costs such as: materials, equipment, labor, location, duration of the project, and other project requirements.

Cost Incurred

PCI : Costs identified through the use of the accrued method of accounting or costs actually paid. Costs include direct labor, direct materials, and all allowable indirect costs.

Cost Index

AACEi : A number which relates the cost of an item at a specific time to the corresponding cost at some specified prior time.

Cost Loading

AACEi : In planning and scheduling, assigning an estimated or actual cost to an activity. The estimated cost may be only direct costs, or may include indirect costs. However, the CPM (Critical Path Method) must be developed using only one cost loading method.

Cost Management

PMI :

A component of a project or program management plan that describes how costs will be planned, structured, and controlled.

PCI : The effective financial control of the project through evaluating, estimating, budgeting, monitoring, analyzing, forecasting and reporting the cost information.

Cost Of Capital

AACEi :

A term, usually used in capital budgeting, to express as an interest rate percentage the overall estimated cost of investment capital at a given point in time, including both equity and borrowed funds.

Cost Of Living Index

AACEi :

In modern usage, a price index based on a constant utility concept as opposed to a constant basket concept.

Cost Of Lost Business Advantage

AACEi :

The cost associated with loss of repeat business and/or the loss of business due to required resources and costs.

Cost Of Money

PCI : A form of indirect cost incurred by investing capital in facilities employed on government contracts.

Cost Of Ownership

AACEi :

The cost of operations, maintenance, follow-on logistical support, and end item and associated support systems.

Cost Of Quality

AACEi :

(1) Consists of the sum of those costs associated with:

(a) Cost of quality conformance;

(b) Cost of quality nonconformance; and

(c) Cost of lost business advantage.

(2) Cost incurred or expended to ensure quality, including those associated with the cost of conformance and nonconformance.

PMI : 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 nonconformance) include costs to rework products, components, or processes that are non-compliant, costs of warranty work and waste, and loss of reputation.

PCI : The cost of Quality Planning, Control, Assurance and Rework.

Cost Of Quality Conformance

AACEi :

The cost associated with the quality management activities of appraisal, training, and prevention.

Cost Of Quality Nonconformance

AACEi : The cost associated with deviations involving rework and/or the provision of deliverables that are more than required.

Cost Overrun

PCI : The amount by which a contractor exceeds or expects to exceed the estimated costs, and/or the final limitations (the ceiling) of a contract.

Cost Performance Index/Indicator (CPI)

AACEi : The ratio of earned value to actual costs (CPI = BCWP/ACWP). A value greater than 1 indicates that costs are running under budget. A value less than 1 indicates that costs are running over budget. Often used to predict magnitude of a possible cost overrun by dividing it into the original cost estimate (original cost estimate/CPI = projected cost at completion).

PMI : A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost.

PCI : 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 (CPR)

AACEi : A common report used to report earned value management (EVM) information to an owner.

PCI : A monthly cost report generated by the performing contractor to reflect cost and schedule status information for management.

Cost Plus Award Fee Contracts (CPAF)

PMI : A category of contract that involves payments to the seller for all legitimate actual costs incurred for completed work, plus an award fee representing seller profit.

Cost Plus Fixed Fee Contracts (CPFF)

PMI : 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).

PCI : A type of contract where the buyer reimburses the seller for the seller’s allowable costs plus a fixed fee.

Cost Plus Incentive Fee Contracts (CPIF)

PMI : 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.

PCI : A type of Contract where the buyer reimburses the seller for the seller's allowable costs and the seller earns a profit if defined criteria are met.

Cost Schedule Status Report

PCI : The low-end cost and schedule report generally imposed on smaller value contracts, not warranting full C/SCSC.

Cost To Complete

AACEi :

The amount that an in-progress activity or group of activities will cost to complete.

Cost Variance

AACEi :

The difference between the earned value and actual cost. Cost variance (CV) = budgeted cost of work performed (BCWP)-actual cost of work performed (ACWP). A negative cost variance indicates that the activity(ies) is running over budget.

PMI : The amount of budget deficit or surplus at a given point in time, expressed as the difference between the earned value and the actual cost.

PCI : The difference between the budgeted and actual cost of work performed.

Cost-Benefit Analysis

PMI : A financial analysis tool used to determine the benefits provided by a project against its costs.

PCI : The analysis of the potential costs and benefits of a project to allow comparison of the returns from alternative forms of investment.

Cost-Reimbursable Contract

PMI : 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.

PCI : A category of contracts based on payments to a contractor for allowable estimated costs, normally requiring only a "best efforts" performance standard from the contractor. Risk for all growth over the estimated value rests with the project owner.

Cost/Schedule Control System Criteria (C/SCSC)

AACEi :

A standard method of earned value management used on US Government projects. C/SCSC combined time and cost measures to better measure performance in an integrated way. This standard was superseded by a government earned value management system (EVMS) standard.

PCI : Thirty-five defined standards which have been applied against private contractor management control systems since 1967 in order to insure the government that cost reimbursable and incentive type contracts are managed properly.

Cost/Schedule Planning And Control Specification (C/SPCS)

PCI : The United States Air Force initiative in the mid-1960's which later resulted in the C/SCSC.

Costing

AACEi :(1) The application of cost and resources to a quantified scope.

(2) A process of determining actual costs from actual expenditures. The way costs are estimated and the way money is spent are rarely the same, making it necessary to analyze and redistribute actual expenditures to arrive at cost data that is useful for future estimating purposes.

Costing, Activity Based (ABC)

AACEi :

Costing in a way that the costs budgeted to an account truly represent all the resources consumed by the activity or item represented in the account.

CPM

AACEi :

Syn.: Critical Path Method (CPM).

Crash Costs

AACEi :

The cost of reducing an activity to its crash duration.

Crash Duration

AACEi : When needing to shorten a network critical path, activities may be 'crashed'. This represents drastic action to reduce the duration of a critical activity and should only taken in exceptional circumstances due to a dramatic increase in resource consumption.

Crashing

AACEi :

Action to decrease the duration of an activity or project by increasing the expenditure of resources.

PMI : A technique used to shorten the schedule duration for the least incremental cost by adding resources.

PCI : The process of reducing the time it takes to complete an activity by adding resources.

Crew

AACEi :

A set of workers and work equipment designated to perform an activity.

Crew Hour

AACEi : An hour of effort for a crew of workers. For example, if a crew has 2 workers, a crew hour includes 2 labor hours.

Crew Rate

AACEi : Labor cost per crew hour for a given crew. The labor cost may include only wages or wages plus benefits, burdens, and other markups. The labor cost may also include an allowance for the costs of tools and equipment used by the crew -in performance of their work.

Criteria

PMI : 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

AACEi :

An activity on the project’s critical path. A delay to a critical activity causes a corresponding delay in the completion of the project. Although some activities are “critical,” in the dictionary sense, without being on the critical path, this meaning is seldom used in the project context.

PMI : Critical Path Activity: Any activity on the critical path in a project schedule.

PCI : An activity is termed critical when it has zero or negative float.

Critical Chain

AACEi : That set of tasks which determines the overall duration of a project, after considering resource capacity. It is typically regarded as the constraint or leverage point of a project.

APM :

A networking technique that identifies paths through a project based on resource dependencies, as well as technical dependencies.

Critical Chain Method

AACEi : Differentiated from the critical path method, this project planning and management technique considers resources that constrain the work, not only the precedence of activities. The method determines the longest-duration sequence of resource-constrained activities through a project network—thus, the shortest-possible project duration—the critical chain. Algorithms for application of the method are both deterministic and stochastic. Time buffers are included to protect completion dates and provide adequate solutions, since contingency is removed from durations of individual activities.

PMI :

A schedule method that allows the project team to place buffers on any project schedule path to account for limited resources and project uncertainties.

Critical Element

AACEi :

A cost element or a profit element which, due to its potential variability, can change the bottom-line, either favorably or unfavorably, by an amount equal to or greater than its critical variance.

Critical Path

AACEi : The longest continuous chain of activities  be more than one path) which establishes the minimum overall project duration. A slippage or delay in completion of any activity by one time period will extend final completion correspondingly. The critical path by definition has no “float.”

APM : A sequence of activities through a network diagram from start to finish, the sum of whose durations determines the overall duration. There may be more than one such path.

PMI : The sequence of activities that represents the longest path through a project, which determines the shortest possible duration.

PCI : Series of consecutive activities that represent the longest path through the project.

Critical Path Analysis

AACEi :

Procedure for calculating the critical path and floats in a network.

APM : The procedure for calculating the critical path and floats in a network diagram.

Critical Path Method (CPM)

AACEi :(1) Technique used to predict project duration by analyzing which sequence of activities has least amount of scheduling flexibility. Early dates are figured by a forward pass using a specific start date and late dates are figured by using a backward pass starting from a completion date.

(2) Network scheduling using activity durations and logic ties between activities to model the plan to execute the work. CPM scheduling is the method of choice for managing projects of long duration, complex technical integration, or the need to coordinate fast or early completion of the work. Syn.: CPM.

PMI : A method used to estimate the minimum project duration and determine the amount of scheduling flexibility on the logical network paths within the schedule model.

PCI : The Critical Path Method (Calculate Schedule) is a modeling process that defines all the project's critical activities which must be completed on time. The Calc tool bar button on the Gantt and PERT (found in most GUI-based PM software) windows calculates the start and finish dates of activities in the project in two passes. The first pass calculates early start and finish dates from the earliest start date forward. The second pass calculates the late start and finish activities from the latest finish date backwards. The difference between the pairs of start and finish dates for each task is the float or slack time for the task (see FLOAT). Slack is the amount of time a task can be delayed without delaying the project completion date. A great advantage of this method is the fine-tuning that can be done to accelerate the project. Shorten various critical path activities, then check the schedule to see how it is affected by the changes. By experimenting in this manner, the optimal project schedule can be determined.

A technique used to predict project duration by analyzing which sequence of activities has the least amount of scheduling flexibility. Early dates are figured by a forward pass using a specific start date and late dates are figured by using a backward starting from a completion date.

Critical Relationship

AACEi :

A driving relationship between two critical activities, thus defining which activity influences the final completion of the project.

Critical Sequence

AACEi :

Sequence of activities having zero float after resource limits are taken into account in calculating float.

Critical Sequence Analysis

AACEi :

A process of calculating a critical sequence of activities while taking into account resource limits that reflects an activity's flexibility.

Critical Task

AACEi : A task that must finish on time for the entire project to finish on time. If a critical task is delayed, the project completion date is also delayed. A critical task has zero slack time. A series of critical tasks make up the project’s critical path.

Critical Variance

AACEi :

A percentage of the bottom-line used to identify critical elements. The percentage is a function of the class of estimate (Class 1 or 2 vs. Class 3, 4, or 5) and the type of bottom-line (cost or profit). If necessary, the percentage can be increased to a maximum of twice its base value in order to reduce the number of qualifying elements to an acceptable number (typically 20 or so) in order to avoid introducing iatrogenic risk.

Criticality

AACEi : A measure of the significance or impact of failure of a product, process, or service to meet established requirements.

APM : Used in Monte Carlo analysis, the criticality index represents the percentage of calculations that resulted in the activity being placed on the critical path.

Criticality Index

AACEi :

Describes how often a particular task was on the critical path during the quantitative risk analysis (e.g., Monte Carlo computer simulation). Expressed as a factor between 0 and 1 or as a percentage. Tasks with a high criticality index appear more frequently on the critical path. When combined with the duration sensitivity, it determines the cruciality index.

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

Cruciality

AACEi : The degree that a change in a risk model element produces a change in the overall outcome (i.e., strong risk drivers have high cruciality). In schedule risk, cruciality of an activity increases with its criticality (i.e., sometimes referred to as the product of sensitivity and criticality).

Crude Materials

AACEi : Includes products entering the market for the first time which have not been fabricated or manufactured but will be processed before becoming finished goods (e.g., steel scrap, wheat, raw cotton). Syn.: Raw Materials.

Current Cost Accounting (CCA)

AACEi : a methodology prescribed by the Financial Accounting Board to compute and report financial activities in constant dollars.

Current Date Line

AACEi :

A vertical line in a Gantt chart, resource graph, or other charts with dates on one axis, indicating the current date.

Current Dollars

AACEi :

Dollars of purchasing power in which actual prices are stated, including inflation or deflation. In the absence of inflation or deflation, current dollars equal constant dollars.

Current Finish Date

AACEi :

The current estimate of the calendar date when an activity will be completed.

Current Period (Of A Given Price Index)

AACEi : Period for which prices are compared to the base period prices.

Current Schedule

AACEi :

Schedule update, which reflects actual progress to date, plus forecast progress going forward and is accepted/used for monitoring and controlling the work.

Current Start Date

AACEi :

The current estimate of the calendar date when an activity will begin.

Current Status

AACEi :

In project control, a report that compares actual progress with planned progress as of the last reporting date.

Custom In The Industry

AACEi : An established practice in a particular industry in the general area. It may be used to show the practice to be followed in a particular circumstance.

Customer

AACEi : The ultimate consumer, user, client, beneficiary or second party who will be responsible for acceptance of the project's deliverables.

PMI : Customer is the person(s) or organization(s) that will pay for the project’s product, service, or result. Customers can be internal or external to the performing organization.

PCI : Any person who defines needs or wants, justifies or pays for part or the entire project, or evaluates or uses the results.

Customer Furnished Equipment (CFE)

AACEi : Equipment provided to the contractor doing the project by the customer for the project and typically specified in the contract. Also referred to as owner furnished material/equipment (OFM/OFE).

Customer Satisfaction

PMI : Within the quality management system, a state of fulfillment in which the needs of a customer are met or exceeded for the customer’s expected experiences as assessed by the customer at the moment of evaluation.

Cutoff Date

AACEi :

The ending date in a reporting period.

Cybernatic Control

APM : The form of control that deals with routine progress tracking and corrective action using a feedback loop.

Cycle Time

AACEi : The time duration that it takes to create a deliverable. Includes time for both direct effort on the deliverable and time spent on other activities, projects or processes that intentionally or unintentionally add to the duration.

Daily Crew Output

AACEi : The amount of work accomplished by a crew in one day (typically 8 hours). This is a special form of production rate.

Damages, Actual

AACEi :

The increased cost to one party resulting from another party's acts or omissions affecting the contract but not incorporated into a contract modification.

Damages, Liquidated

AACEi : An amount of money stated in the contract as being the liability of a contractor for failure to complete the work by the designated time(s). Liquidated damages ordinarily stop at the point of substantial completion of the project or beneficial occupancy by the owner. Also can apply to contract defined output performance. Syn.: Liqaidated Damages

Damages, Ripple

AACEi : Syn.: Impact Cost.

Dangle

AACEi :

An activity in a network that has neither predecessors nor successors.

PCI : An activity or network which has either no predecessors or no successors. If neither, referred to as an isolated activity.

Data Date

AACEi :(1) The date on which the schedule has been updated to reflect actual progress (percent complete, remaining durations, new activities and changed logic, etc. input into schedule) and projects a new completion date.

(2) The calendar date that separates actual (historical) data from scheduled data. Scheduling software uses the data date to base its network calculations.

PMI : A point in time when the status of the project is recorded.

Data Gathering And Representation Techniques

PMI : Techniques used to collect, organize, and present data and information.

Data Item Description (DID)

PCI : Data Item Description contains the format and content preparation instructions for the data product generated by the specific and discrete task requirements as delineated in the contract.

Date Constraint

AACEi : A fixed date imposed on an activity to force it to start or finish by or on a certain date in a schedule model. A date constraint overrides the logic of the schedule and can, if improperly used, cause unintended results.

Date Of Acceptance

AACEi : Date on which the client agrees to final acceptance of the project. Commitments against the authorized funds usually cease at this time. This is an event.

Day Work Account

AACEi : A method of payment for work not included in the scope of the contract that the construction contractor is obliged to perform at the request or direction of the owner or its agent. Generally, such day work account is paid for on unit-price or cost-plus terms.

De-Escalate

AACEi : A method to convert present-day costs or costs of any point in time to costs at some previous date via applicable indexes.

De-Scope

AACEi : For earned value, project scope removed with a separate contractual action. It is scope with schedule and budget that is returned to the owner for other uses. The net result is the total project budget is reduced, and the overall duration of the project may also be reduced. Alternately, the amount of project scope removed may be kept in Undistributed Budget/Schedule Margin until returned to the owner.

Deceleration

AACEi : The opposite of acceleration. A direction, either expressed or implied, to slow down job progress.

Decision Analysis (DA)

AACEi : A systematic and typically quantitative process for selecting the optimum of two or more alternatives in order to address a problem or opportunity.

Decision Basis

AACEi : Refers to the definition of the components or criteria on which a decision is based. Generally includes defined alternatives, information, and preferences.

Decision Driver

AACEi : Variables in a decision model that influence decision outcomes.

Decision Event

AACEi : State in the progress of a project when a decision is required before the start of any succeeding activity. The decision determines which of a number of alternative paths is to be followed.

Decision Framing

AACEi : Methods to identify, define, layout or frame the decision to be addressed during the structuring step of decision analysis.

Decision Implementation

AACEi : In decision analysis, this refers to the process step for implementing the selected alternative and performing continuous improvement.

Decision Model

AACEi : A quantitative model that that provides a base methodology that supports objective, consistent and appropriate decision making by an organization considering all agreed model inputs and outputs.

Decision Policy

AACEi : Definitive position of an organization on how investment or project decisions will be made. Establishes the basis for decision models. Provides a basis for consistent and appropriate decision making and defines authority and accountability within the organization.

Decision Quality Chain

AACEi : A generally recognized quality management model for decision analysis. It includes the following elements:

a. Appropriate frame

b. Creative, doable alternatives

c. Meaningful, reliable information

d. Clear values and trade-offs

e. Logically correct reasoning and

f. Commitment to action.

Decision Tree

AACEi : A graphical representation of the decision process. Sequential decisions are drawn in the form of branches of a tree, stemming from an initial decision point and extending all the way to final outcomes. Each path through branches of the tree represents a separate series of decisions and probabilistic events.

PMI:

Decision Tree Analysis : A diagramming and calculation technique for evaluating the implications of a chain of multiple options in the presence of uncertainty.

Decisions Under Certainty

AACEi : Simple decisions that assume complete information and no uncertainty connected with the analysis of the decisions.

Decisions Under Risk

AACEi : A decision problem in which the analyst elects to consider several possible futures, the probabilities of which can be estimated.

Decisions Under Uncertainty And Risk

AACEi : A decision for which the analyst elects to consider several possible futures, the probabilities of which cannot be estimated.

Declining Balance Depreciation

AACEi : Method of computing depreciation in which the annual charge is a fixed percentage of the depreciated book value at the beginning of the year to which the depreciation applies. Syn.: Percent On Diminishing Value.

Decomposition

AACEi : Separation of the scope of work and requirements into smaller, component packages, so that work effort can be more effectively monitored and controlled.

PMI:

A technique used for dividing and subdividing the project scope and project deliverables into smaller, more manageable parts.

Defect

AACEi : A deviation of a severity sufficient to require corrective action.

PMI:

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

PMI : An intentional activity to modify a nonconforming product or product component.

Defect, Latent

AACEi : A defect in the work which cannot be observed by reasonable inspection.

Defect, Patent

AACEi : A defect in the work which can be observed by reasonable inspection.

Defective

AACEi : An adjective which, when modifying the work, refers to work that is unsatisfactory, faulty or deficient, or does not conform to the contract documents, or does not meet the requirements of any inspection, reference standard, test or approval referred to in the contract documents, or has been damaged prior to the engineer's recommendation of final payment (unless responsibility for the protection thereof has been assumed by the owner at substantial completion in accordance with the contract documents).

Defective Specifications

AACEi : Specifications and/or drawings which contain errors, omissions, and/or conflicts, which affect or prevent the contractor's performance of the work.

Defined

APM : The third level of a typical maturity model where processes are documented and standardised.

Definition (Project)

AACEi : Process of quantifying performance and interface requirements during system decomposition and elaboration phase of a project.

APM:

The second phase of a project or programme life cycle where requirements are refined, the preferred solution is identified and ways of achieving it are identified.

Definition Phase

AACEi : An early phase in the project life cycle when the scope is defined. Syn.: Development Phase; Front End; Planning Phase.

APM:

Define :The phase of a portfolio life cycle where the projects, programmes and change to business-as-usual required to meet strategic objectives are identified and evaluated.

Definitive Estimate

AACEi : An estimate generally involving a high degree of deterministic estimating methods. It is generally prepared in great detail.

Deflation

AACEi : A persistent decrease in the level of consumer prices, or a persistent increase in the purchasing power of money caused by a decrease in available currency and credit relative to the proportion of available goods and services (i.e., negative inflation).

Delay

AACEi : To cause the work or some portion of the work to start or be completed later than planned or later than scheduled.

Delay, Compensable

AACEi :(1) Delays that are caused by the owner's actions or inactions. Contractor is entitled to a time extension and damage compensation for extra costs associated with the delay.

(2) If the delay is deemed compensable the party will be entitled to additional compensation for the costs of delay, as well as additional time for contract performance. However, it is possible for a delay to be compensable without extending the contract performance time. Generally speaking, a delay that could have been avoided by due care of one party is compensable to the innocent party suffering injury or damage as a result of the delay’s impact. [10]

(3) A contractor is entitled to recover for delay costs and a time extension provided that three conditions are satisfied: 1) The delay is caused by the owner or is within the owner’s control; 2) The delay results in additional costs to the contractor; and 3) The contractor has not assumed the risk of delay. Because this entitlement is implied in every contract, it does not need to be expressly stated in the contract.

Delay, Concurrent

AACEi : Two or more delays in the same time frame or which have an independent effect on the end date. The owner/engineer and the contractor may each be responsible for delay in completing the work. This may bar either party from assessing damage against the other. This may also refer to two or more delays by the same party during a single time period.

Delay, Excusable

AACEi : Any delay beyond the control and without the fault or negligence of the contractor or the owner, caused by events or circumstances such as, but not limited to, acts of God or of the public enemy, acts of interveners, acts of government other than the owner, fires, floods, epidemics, quarantine restrictions, freight embargoes, hurricanes, tornadoes, labor disputes, etc. Generally, a delay caused by an excusable delay to another contractor is compensable when the contract documents specifically void recovery of delay costs.

Delay, Inexcusable

AACEi : Any delay caused by events or circumstances within the control of the contractor, such as inadequate crewing, slow submittals, etc, which might have been avoided by the exercise of care, prudence, foresight, or diligence on the part of the contractor.

Delay, Nonprejudicial

AACEi : Any delay impacting a portion of the work within the available total float or slack time, and not necessarily preventing completion of the work within the contract time.

Delay, Pacing

AACEi :(1) Deceleration of the project work, by one of the parties to the contract, due to a delay to the end date of the project caused by the other party, so as to maintain steady progress with the revised overall project schedule.

(2) A delay resulting from a conscious and contemporaneous decision to pace progress of an activity against another activity experiencing delay due to an independent cause.

(3) The consumption of float created by another delay, in performing work on an activity not directly dependent on the progress of the work experiencing the other delay.

Delay, Parent

AACEi : The alleged owner-caused delay that created or increased the relative total float consumed by the pacing delay. The parent delay must start or exist prior to the pacing delay. Also the parent delay must be on the critical path or have a lower float value than the paced activity prior to pacing.

Delay, Prejudicial

AACEi : Any excusable or compensable delay impacting the work and exceeding the total float available in the progress schedule, thus preventing completion of the work within the contract time unless the work is accelerated.

Delaying Resource

AACEi : In resource planning and scheduling, inadequate availability of one or more resources may require that completion of an activity be delayed beyond the date on which it could otherwise be completed. The delaying resource is the first resource on an activity that causes the activity to be delayed.

PCI:

In resource scheduling, inadequate availability of one or more resources may require that the completion of an activity be delayed beyond the date on which it could otherwise be completed. The delaying resource is the first resource on an activity that causes the activity to be delayed.

Delegation

APM : The practice of giving a person or group the authority to perform the responsibilities of, or act on behalf of, another.

PCI:

Deligating :The process by which authority and responsibility is distributed from Project Manager to subordinates.

Deliverable

AACEi :(1) A report or product of one or more tasks that satisfy one or more objectives and must be delivered to satisfy contractual requirements.

(2) Another name for products, services, processes, or plans created as a result of doing a project. A project typically has interim as well as final deliverables

APM:

A product, set of products or package of work that will be delivered to, and formally accepted by, a stakeholder.

PMI:

Any unique and verifiable product, result, or capability to perform a service that is required to be produced to complete a process, phase, or project.

PCI:

A report or product that must be completed and delivered to ensure satisfaction of contractual requirements.

Delivery

AACEi :

Transfer or handover of a product from one party to another. Syn.: Turnover.

Delphi Technique

AACEi : A forecasting technique that seeks expert consensus by sharing their opinions with each other anonymously after each round of forecasts. Based on the array of anonymous expert opinions then shared, panel participants rethink and reforecast for the next round. When forecasts are congruent or nearly so, the forecasting process is complete.

PMI:

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.

PCI:

A process where a consensus view is reached by consultation with experts. Often used as an estimating technique.

Demand Factor

AACEi :(1) The ratio of the maximum instantaneous production rate to the production rate for which the equipment was designed.

(2) The ratio between the maximum power demand and the total connected load of the system.

Deming Cycle

AACEi : Syn.: Plain-Do-Check-Act (PDCA) Cycle.

Demobilisation

APM : The controlled dispersal of personnel and disposal of assets when they are no longer needed on a project, programme or portfolio.

Demurrage

AACEi : A charge made on cars, vehicles, or vessels held by or for consignor or consignee for loading or unloading, for forwarding directions or for any other purpose.

Dependencies

AACEi : Relationships between products or tasks. For example, one product may be made up of several other 'dependent' products or a task may not begin until a 'dependent' task is complete.

Dependency

AACEi : A relation between activities, such that one requires input from the other.

APM:

A relationship between activities in a network diagram.

PMI:

Logical Relationship: A dependency between two activities, or between an activity and a milestone.

PCI:

Dependencies are relationships between products or tasks. For example, one product may be made up of several other ‘dependent’ products or a task may not begin until a ‘dependent’ task is complete.

Dependency Determination

PMI : A technique used to identify the type of dependency that is used to create the logical relationships between predecessor and successor activities.

Dependency Links

PCI : Different types of links connecting activities in a precedence network.

Dependent Variable

AACEi:

An event or condition whose impact or probability of occurrence depends on another variable.

Depletion

AACEi :(1) A form of capital recovery applicable to extractive property (e.g., mines). Depletion can be on a unit-of-output basis related to original or current appraisal of extent and value of the deposit. (Known as percentage depletion.)

(2) Lessening of the value of an asset due to a decrease in the quantity available. Depletion is similar to depreciation except that it refers to such natural resources as coal, oil, and timber in forests.

Depreciated Book Value

AACEi : The first cost of the capitalized asset minus the accumulation of annual depreciation cost charges.

Depreciation

AACEi :(1) Decline in value of a capitalized asset.

(2) A form of capital recovery applicable to a property with a life span of more than one year, in which an appropriate portion of the asset's value is periodically charged to current operations.

Descriptive

AACEi : Portrayal of content in words, either orally or written. When applied to instructions, implies information concerning how something is to be done, rather than step by step details of what is to be done, i.e. prescriptive.

Design & Development Phase

AACEi : Definition phase in a generic project life cycle that encompasses detailed technical, commercial and organizational decisions. There is often substantial opportunity to optimize these decisions without expenditure of significant resources by modeling, prototyping and testing. Management approval gates are necessary where major decisions will be made. In some industries, this phase is dealt with as two separate phases with a management gate between the two. This allows design to be matured before approval is given for significant resource expenditure on full design/development. Equally, the gate may be required before major procurement decisions and commitments are made after initial design but prior to full design/development.

PCI:

The time period in which production process and facility and production processes are developed and designed.

Design Development

AACEi : Process of identifying and verifying technical solutions to meet requirements of conceptual design. Takes conceptual design to next level of detail, but not as detailed as the detailed design stage. Depending on size and nature of project, it may be a separate stage in the project life cycle.

Design Of Experiments

PMI : A statistical method for identifying which factors may influence specific variables of a product or process under development or in production.

Design Review

AACEi : A formal, documented, comprehensive and systematic examination of a design to evaluate design requirements and capability of the design to meet these requirements and to identify problems and propose solutions.

Desirable Logic

AACEi : Network logic that is desirable for the contractor (but not necessarily for the client), based on some preference or advantage. Desirable logic may impose unnecessary conditions that preclude an optimum solution.

Detail(Ed) Schedule

AACEi :(1) A schedule used to communicate the day-to-day activities to working levels on the project. The detailed schedule would typically cover activities up to at least the next major milestone. The detailed schedule supports and is consistent with the master schedule.

Detailed Engineering

AACEi : The detailed design, drafting, engineering, and other related services necessary to purchase equipment and materials and construct a facility.

Detailed Requirement

AACEi : A requirement that describes the specific function that a particular product provides at a level of detail sufficient to support execution of the work.

Detailed Resourse Plan

PCI : A plan implemented when it’s necessary to plan and control a certain major activity within a stage. The plan sets costs and resource usage that correspond to the detailed technical plan.

Detailed Technical Plan

PCI : A plan used to give a specific breakdown of major activities. It exists in all but the smallest projects.

Determine Budget

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

Deterministic Estimate

AACEi : An estimate where none of the variables are probabilistic and that is developed using deterministic methods (i.e., not subject to significant conjecture). In some usage, this term is synonymous with Base Estimate (even if the base estimate is developed using stochastic methods).

Deterministic Network/Model

AACEi :(1) A network with no facilities to accommodate probabilistic dependencies. Precedence networks are said to be deterministic.

(2) A deterministic model, as opposed to a stochastic model, contains no random elements and for which, therefore, the future course of the system is determined by its state at present (and/or in the past).

Develop Project Charter

PMI : The process of developing a document that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.

Develop Project Management Plan

PMI : The process of defining, preparing, and coordinating all subsidiary plans and integrating them into a comprehensive project management plan.

Develop Project Team

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

Develop Schedule

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

Development

AACEi : Process of working out and extending theoretical, practical, and/or useful application of an idea, concept, or preliminary design.

Development Costs

AACEi : Those costs specific to a project, either capital or expense items, which occur prior to commercial sales and which are necessary in determining the potential of that project for consideration and eventual promotion. Major cost areas     include process, product, and market research and development.

Development Phase

AACEi : Syn.: Definition Phase; Front End; Planning Phase.

Deviation

AACEi :(1) A departure from established requirements. Deviations occur when the work product either fails to meet or unnecessarily exceeds the requirements. The change (positive or negative) may be considered potential or it may already be in the process of actually occurring. The deviation is used to provide a detailed description and detailed estimate (or ROM estimate) of change impacts that are the result of design developments, productivity, omissions, errors, price fluctuation, supplier changes, etc., or anything else that changes the forecast cost and schedules. Deviations are documented by project controls and communicated to the project manager. A deviation provides the project team with an opportunity to mitigate an adverse impact or to optimize the outcome and is used primarily as a communication tool. Note: Deviation as used herein refers to a single point variance. Trend refers to a pattern of a data group.

(2) In systems engineering, a deviation in the work product may be classified as an imperfection, nonconformance, or defect.

Deviation Costs

AACEi : The sum of those costs, including consequential costs such as schedule impact, associated with the rejection or rework of a product, process, or service due to a departure from established requirements. Also may include the cost associated with the provision of deliverables that are more than required.

Diagramming (Schedule)

AACEi : Syn.: Scheduling.

PMI:

Diagramming Techniques: Approaches to presenting information with logical linkages that aid in understanding.

Dictatorship

PMI : A group decision-making technique in which one individual makes the decision for the group.

Differing Site Conditions

AACEi : Subsurface or latent physical conditions at the site differing materially from those conditions indicated in the contract documents or unknown physical conditions at the site, of an unusual nature, differing materially from conditions normally encountered and generally recognized as inherent in work of the nature provided for in the contract.

Direct And Manage Project Work

PMI : The process of leading and performing the work defined in the project management plan and implementing approved changes to achieve the project’s objectives.

Direct Costs

AACEi : Costs of completing work that are directly attributable to its performance and are necessary for its completion.

1. In construction, the cost of installed equipment, material, labor and supervision directly or immediately involved in the physical construction of the permanent facility.

2. In manufacturing, service, and other non-construction industries: the portion of operating costs that is readily assignable to a specific product or process area. Syn.: Capital ,Direct.

PCI:

Those costs (labor, material, and other direct costs) that can be consistently related to work performed on a particular project. Direct costs are best contrasted with indirect costs that cannot be identified to a specific project.

Direct Pacing

AACEi : When the paced event has a logical relationship to the parent delay.

Disbenefit

APM : A consequence of change perceived as negative by one or more stakeholders.

Discipline

AACEi :(1) Area of technical expertise or specialty. [8]

(2) A discrete area of study and endeavor where only specialized education and experience enable the full comprehension of the content of the subject matter and its appropriate application.

Discontinuous Activity

AACEi : An activity in which the interval between start and finish dates is allowed to exceed its duration in order to satisfy start-to-start and finish-to-finish relationships with other activities.

Discontinuous Processing

PCI : This option assigns the discontinuous attribute to all activities for a time analysis session, except where overridden by a specific activity type.

Discount Factor

AACEi : A multiplicative number (calculated from a discount formula for a given discount rate and interest period) that is used to convert costs and benefits occurring at different times to a common time.

Discount Rate

AACEi : The rate of interest reflecting the investor's time value of money, used to determine discount factors for converting benefits and costs occurring at different times to a base time. The discount rate may be expressed as nominal or real.

Discounted Cash Flow

AACEi :(1) The present worth of a sequence in time of sums of money when the sequence is considered as a flow of cash into and/or out of an economic unit.

(2) An investment analysis which compares the present worth of projected receipts and disbursements occurring at designated future times in order to estimate the rate of return from the investment or project. Also called discounted cash flow rate of return, interest rate of return, internal rate of return, investor's method or profitability index. Syn.: Investor's Method.

Discounted Payback Period (DPP)

AACEi : The time required for the cumulative benefits from an investment to pay back the investment cost and other accrued costs considering the time value of money.

Discounting

AACEi : A technique for converting cash flows that occur over time to equivalent amounts at a common time.

Discrete Effort

AACEi : Tasks that have a specific measurable end product or end result. Discrete tasks are ideal for earned value measurement.

PMI : An activity that can be planned and measured and that yields a specific output. [Note: Discrete effort is one of three earned value management (EVM) types of activities used to measure work performance.]

Discrete Milestone

AACEi : A milestone that has a definite scheduled occurrence.

Discrete Task

AACEi : A measurable activity with an output.

Discretionary Dependency

AACEi : Dependency defined by preference, rather than necessity. These are typically employed in preferential or soft logic.

PMI : A relationship that is established based on knowledge of best practices within a particular application area or an aspect of the project where a specific sequence is desired.

Disinflation

AACEi : A decrease in the rate of inflation (for example, a change in the rate of inflation from 4% to 2%). Differs from, but may portend deflation.

Dispatching

AACEi : The selecting and sequence of jobs to be run at individual work stations and the assignment of these jobs to workers. In many companies, dispatching is done by the actual shop line supervisor, set-up worker or lead worker. A dispatcher is usually a representative of the production control department which handles this job assignment task.

Dispute

AACEi : A disagreement between the owner and the contractor as to a question of fact or contract interpretation which cannot be resolved to the mutual satisfaction of the parties.

Disruption

AACEi : An interference (action or event) with the orderly progress of a project or activity(ies). Disruption has been described as the effect of change on unchanged work and manifests itself primarily as adverse labor productivity impacts. If such disruption is caused by owner or engineer action (or failure to act), the contractor may be entitled to recover any resulting costs.

Distributables

AACEi : The portion of a project’s cost that can not be associated with any specific direct account. In construction, this includes the field non-manual staff, field office, office supplies, temporary construction, utilities, small tools, construction equipment, weather protection, snow removal, lost time, labor burden, etc. When completion cost reports are prepared, the distributable costs may be distributed across the direct accounts for fixed asset accounting.

Do Nothing Option

APM : The result or consequence of not proceeding with the project or programme. Usually explained in the business case.

Document

AACEi :(1) (noun) Words or images assembled for a communicative purpose within a bounded physical medium—typically on sheets of paper or in digital memory files.

(2) (verb) To record communications, events, actions, or circumstances within a bounded physical medium.

Document Analysis

PMI : An elicitation technique that analyzes existing documentation and identifies information relevant to the requirements.

Documentation Reviews

PMI : The process of gathering a corpus of information and reviewing it to determine accuracy and completeness.

Drawdown

APM : The removal of funds from an agreed source resulting in a reduction of available funds.

Drawings, Plans

AACEi : The drawings, plans or reproductions thereof, which show location, character, dimensions, and details of the work to be performed and which are referred to in the contract documents.

Driving Activity

AACEi : The predecessor activity(ies) that determines another activity's early start.

Driving Relationship

AACEi : A relationship between two activities in which the start or completion of the predecessor activity determines the early dates for the successor activity with multiple predecessors.

Dummy Activity

AACEi : Used only in activity on arrow (AOA) networks to create logic relationships between activities denoting a dependency, but not an action. Dummies are “activities” with zero duration, but are not milestones. Dummy activities are typically drawn as dotted lines.

Dummy Start Activity

AACEi : An activity entered into the network for the sole purpose of creating a single start for the network.

Durable Goods

AACEi : Generally, any producer or consumer goods whose continuous serviceability is likely to exceed three years (e.g., trucks, furniture).

Duration

AACEi : The amount of time estimated to complete an activity in the time scale used in the schedule (hours, days, weeks, etc.). Planned production rates and available resources will define the duration used in a given schedule. The following four types of duration are used:

1. Original duration: Duration input by the planner;

2. Current duration: Duration based on latest progress date for in-progress activities. Calculated rate of progress provides a new completion estimate;

3. Actual duration: Duration based on activity's actual start and actual finish. Applies only to completed activities; and

4. Remaining duration: The expected time required to complete an activity. It is calculated as the difference between the data date and the expected finish date for in-progress activities. (Equal to the original duration for non-progressed activities. Equal to zero for completed activities.)

PMI : 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.

PCI : Duration is the length of time needed to complete an activity.

Duration Compression

AACEi : Shortening project schedule without reducing project scope. Duration compression is not always possible and often requires an increase in project cost.

PCI : Often resulting in an increase in cost, duration compression is the shortening of a project schedule without reducing the project scope.

Duration Sensitivity

AACEi : The measure of the correlation between the duration of a task and the duration of a project. When combined with the criticality index, it determines the cruciality index.

Dynamic Risk Analysis

AACEi : Risk analysis which addresses dynamic risks. May employ elements of systems dynamics.

Dynamic Risk

AACEi : Risk for which the characteristics, probability and/or impact change over time or with the occurrence of preceding events.

Earliest Expected Completion Date

AACEi : The earliest calendar date on which the completion of an activity work package or summary item occurs.

Early Bar

AACEi : An activity bar shown on the bar chart starting at the earliest date its predecessors’ completion will allow it to begin.

Early Dates

AACEI : Calculated in the forward pass of time analysis, early dates are the earliest dates on which an activity can start and finish.

Early Event Time (EET)

AACEi : The earliest time at which an event may occur.

Early Finish (EF)

AACEi : The earliest date or time an activity may finish as calculated by the schedule during the forward pass. Equal to the early start of the activity plus its remaining duration.

PMI :

Early Finish Date (EF): In the critical path method, the earliest possible point in time when the uncompleted portions of a schedule activity can finish based on the schedule network logic, the data date, and any schedule

constraints.

Early Start (ES)

AACEi : The earliest date or time an activity may start as calculated by the schedule during the forward pass.

PMI : Early Start Date (ES): In the critical path method, the earliest possible point in time when the uncompleted portions of a schedule activity can start based on the schedule network logic, the data date, and any schedule constraints.

Early Work Schedule

AACEi : Predicated on the parameters established by the proposal schedule and any negotiated changes, the early work schedule defines reportable pieces of work within major areas. The format is developed into a logic network including engineering drawings, bid inquiries, purchase orders, and equipment deliveries, and can be displayed as a time-phased network. The detail of this schedule concentrates on projected engineering construction issue drawings released and equipment deliveries. The activities of the early part of construction are more defined than in the proposal or milestone schedule.

Earned Hours (EH)

AACEi : The time in standard hours credited as a result of the completion of a given task or a group of tasks.

Earned Schedule (ES)

AACEi :(1) The number of whole plus partial project planned value (PV) time increments that equates to the earned value accrued.

(2) An extension of Earned Value Management (EVM) practices that develops counterparts to conventional EVM metrics calculated and expressed in terms of duration (time) instead of monetary value. These metrics are differentiated from their EVM counterparts by listing their time dependence (e.g., the ES metrics for schedule variance and schedule performance index are SV(t) and SPI(t) respectively). This distinction is often emphasized by labeling the cost dependence of conventional cost-based earned value metrics (e.g., the traditional EVM metrics schedule variance and schedule performance index are SV($) and SPI($) respectively). The use of the monetary denotation for conventional EVM metrics tends to be used only in discussions when ES and EVM are discussed together.

Earned Value (EV)

AACEi : Measure of the value of work performed so far, also called the Budgeted Cost of Work Performed (BCWP). The “value” of the work earned at the date of analysis (data date). The cost of the work that has been accomplished in terms of the BCWS. Represents the budget value of work performed, rather than the actual cost of the work performed. In comparison to Planned Value (PV), provides a measure of performance taking into account both time and cost expended.

APM : The value of completed work expressed in terms of the budget assigned to that work. A measure of progress which may be expressed in cost or labour hours.

PMI :

The measure of work performed expressed in terms of the budget authorized for that work.

PCI : EV quantifies the amount or volume of work completed to date, and is commonly known as the Budgeted Cost of Work Performed (BCWP). When compared to the planned value (Budgeted Cost of Work Scheduled) and its actual cost (Actual Cost of Work Performed), EV provides an objective measure of schedule and cost performance.

Earned Value Concept

AACEi : In general (non-EVMS) terms, the objective measurement at any time of work accomplished (performed) in terms of budgets planned for that work, and the use of these data to indicate contract cost and schedule performance.

Earned Value Management (EVM)

PCI : EVM is a methodology that integrates a programme's work scope, schedule, and resources to enable government and contractor management to objectively track programme progress throughout the project's life cycle.

Earned Value Management Implementation Guide (EVIG)

PCI : The EVMIG provides guidance for understanding earned value management concepts, defines objective criteria for earned value management systems and provides guidance in interpreting those criteria for use on large, risky, cost based government programmes. Procedural aspects for Government personnel for specifying and using earned value management systems and for evaluating those systems are also provided.

Earned Value Management [System] (EVM[S])

AACEi : A project progress control system that integrates work scope, schedule, and resources to enable objective comparison of the earned value to the actual cost and the planned schedule of the project.

APM : A project control process, based on a structured approach to planning, cost collection and performance measurement. It facilitates the integration of project scope, time and cost objectives and the establishment of a baseline plan of performance measurement.

PMI : A methodology that combines scope, schedule, and resource measurements to assess project performance and progress.

PCI : EVMS is the integrated set of processes, applications, and practices that follow the globally accepted guidelines that describe the attributes of an effectively integrated cost, schedule, and technical performance management system.

Earned Value Reports

AACEi : Cost and schedule performance reports that are part of the performance measurement system. These reports make use of the earned value concept of measuring work accomplishment.

Earnings Value

AACEi : The present worth of an income producer's probable future net earnings, as prognosticated on the basis of recent and present expense and earnings and the business outlook.

Economic Costs

AACEi : A valuation measure used in decision making that combines accounting costs and opportunity costs.

Economic Evaluation Methods

AACEi : A set of economic analysis techniques that considers all relevant costs associated with a project investment during its study period, comprising such techniques as life-cycle cost, benefit-to-cost ratio, savings-to-investment ratio, internal rate of return, and net savings.

Economic Life (Cycle)

AACEi : Syn.: Life Cycle, Asset Life Cycle.

Economic Return

AACEi : The profit derived from a project or business enterprise without consideration of obligations to financial contributors and claims of others based on profit.

Economic Value

AACEi : The value of property in view of all its expected economic uses, as distinct from its value in view of any particular use. Also, economic value reflects the importance of a property as an economic means to an end, rather than as an end in itself.

Economy

AACEi : The cost or profit situation regarding a practical enterprise or project as in economy study, engineering economy, and project economy.

Effect

AACEi :

Syn.: Consequence; Impact.

Effective Date Of The Agreement

AACEi : The date indicated in the agreement on which it becomes effective, but if no such date is indicated, the date on which the agreement is signed and delivered by the last of the two parties to sign and deliver.

Effective Interest

AACEi : The true value of interest rate computed by equations for compound interest rate for a 1-year period.

Efficiency

AACEi : Syn.: Productivity.

Efficiency Factor

AACEi : A measure of overall performance used in a work measurement system. It is calculated by dividing the standard time to perform the work by the actual time.

Effort

AACEi : The number of labor units necessary to complete work. Effort is usually expressed in staff hours, staff days or staff weeks and should not be confused with duration.

PMI :

The number of labor units required to complete a schedule activity or work breakdown structure component, often expressed in hours, days, or weeks.

Effort Remaining

AACEi : Estimate of effort remaining to complete an activity. A far more useful measure of progress than percentage complete.

Effort-Driven Activity

AACEi : An effort-drive activity provides the option to determine activity duration through resource usage. The resource requiring the greatest time to complete the specified amount of work on the activity will determine its duration.

Eighty-Hour Rule

AACEi : Method of breaking down each project activity or task into work packages that require no more than 80 hours of effort to complete.

Eighty-Twenty Rule

AACEi : A statistical principle named after Italian economist Vilfredo Pareto, who observed that 80% of the wealth in Italy was controlled by 20% of the population. In cost management, it is commonly used to describe the situation where a small subset of cost items, activities, and so on, are the source of most of the total cost, duration, etc. Syn.: Pareto's Law.

Elementary Commodity Groups (Elementary Groups)

AACEi : The lowest level of goods and services for which a consistent set of value weights is available.

Emergent Risk

AACEi : Occurred risk whose occurrence was not proactively anticipated.

Emotional Intelligence

PMI : The capability to identify, assess, and manage the personal emotions of oneself and other people, as well as the collective emotions of groups of people.

End Activity

AACEi : An activity with no logical successors.

End Event (Of A Project)

AACEi : Event with preceding, but no succeeding activities. There may be more than one end event.

End Item

AACEi : A final combination of end products components, parts or materials that is ready for its intended use.

End Network Event

AACEi : The event that signifies the end of a network.

Ending Node Of Network (ADM)

AACEi : A node where no activities begin, but one or more activities end.

Endowment

AACEi : A fund established for the support of some project or succession of donations or financial obligations.

Engineer (In Contracts)

AACEi : The individual, partnership, corporation, joint venture, or any combination thereof, named as the engineer in the agreement who will have the rights and authority assigned to the engineer in the contract documents. The term "the engineer" means the engineer or the engineer's authorized representative.

Engineered Items

AACEi : Items that are purchased to be used for a particular purpose and are engineered to unique specifications, as opposed to commodity materials. This typically includes tagged items and materials that require detailed engineering data sheets.

Engineering Change Notice (ECN)

AACEi : The formal release of an engineering change.

Engineering Change Proposal (ECP)

AACEi : A proposal submitted by the seller in response to a buyer request for an ECP to change the existing contract effort. Only the buyer can initiate the request for an engineering change proposal. This activity is usually preceded by a request for change. The user, buyer, or the seller can initiate a request for change to the contract. It is an exploratory activity.

Engineering Change Request (ECR)

AACEi : Request to consider a technical change to the technical baseline submitted to client or its agent.

Enhance

AACEi : In TCM risk management, a response strategy for opportunities that involves increasing the probability and/or impact of risk.

APM : A response to an opportunity that increases its probability, impact or both.

Enterprise

AACEi :(1) A business organization involved in economic activity and taking risks for purposes of profit.

(2) In total cost management, any endeavor, business, government, group, individual or other entity that owns, controls, or operates strategic assets.

Enterprise Environment Factors

AACEi : Conditions, not under the immediate control of the team, that influence, constrain, or direct the project, program, or portfolio.

Enterprise Project Management

AACEi : Application of project management discipline throughout an enterprise. A concept based on principle that prosperity depends on adding value to business, and that value is added by systematically implementing new projects, i.e. projects of all types across the organization.

APM :

Enterprise project management office: An organisation that is responsible for the governance infrastructure of P3 management.

Enterprise Resource Planning (ERP)

AACEi : Program/project resource planning of activities, supported by multi-module application software and processes to help an enterprise manage key parts of its business which may include product planning, maintaining inventories, supply chain processes, providing customer services, human resources planning, etc. It may include other system involving any kind of resource consumption that can benefit from integration of information across many functional areas.

Enterprise Risk Management

AACEi : The risk management process applied to the overall enterprise, portfolio and program level objectives, not to just a single business unit, asset or project.

Environment

AACEi : The circumstances and conditions within which the project, programme or portfolio must operate.

Equitable Adjustment

AACEi : A contract adjustment in price or time under, certain contract clauses, or both, to compensate the contractor expense incurred due to actions of the owner or to compensate the owner for contract reductions. An equitable adjustment includes an allowance for profit. Certain contract clauses provided for adjustments, excluding profit, and are not considered “equitable adjustments.”

Equivalent Sets Of Commodities

AACEi : Sets of commodities which provide the same total satisfaction to a given group of consumers (without necessarily being identical).

Equivalent Uniform Annual Value

AACEi : Syn.: Annual Value; Annual Worth.

Equivalent Units Technique

AACEi : An earned value technique that assigns a pre-assigned equal weight to a unit of completion (e.g. drawings complete).

Errors And Omissions

AACEi : Deficiencies, usually in design or drafting, in the plans and specifications that must be corrected in order for the facility to operate properly. Errors in plans and specifications are normally items that are shown incorrectly, while omissions are normally items that are not shown at all.

Escalation

AACEi : A provision in costs or prices for uncertain changes in technical, economic, and market conditions over time. Inflation (or deflation) is a component of escalation.

APM :

The process by which issues are drawn to the attention of a higher level of management.

Escalator Clause

AACEi : Clause contained in collective agreements or purchase orders, providing for an automatic price adjustment based on changes in specified indices.

Estimate

AACEi : A prediction or forecast of the resources (i.e., time, cost, materials, etc) required to achieve or obtain an agreed upon scope (i.e., for an investment, activity, project, etc.).

APM :

An approximation of time and cost targets, refined throughout the life cycle.

PMI :

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).

Estimate Activity Duration

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

Estimate Activity Resources

PMI : The process of estimating the type and quantities of material, human resources, equipment, or supplies required to perform each activity.

Estimate At Completion (EAC)

AACEi : An estimate of the total cost an activity or group of activities will accumulate upon final completion.

PMI : The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete.

PCI : A value expressed in either dollars and /or hours, to represent the projected final costs of work when completed. The EAC is calculated as ETC + ACWP.

Estimate At Completion [EAC(T)]

AACEi : The estimated project duration in time increments.

Estimate Backup

AACEi : Basic data, project objectives, scope, drawings, quotes, estimating data, qualifications and assumptions used in preparing the estimate and supporting the basis.

Estimate To Complete (ETC)

AACEi :(1) In general terms, the estimated resources (i.e., work hours, costs, time, and/or materials) required to complete a scope of work.

(2) In earned value management, an estimate of the remaining costs required to complete an activity or group of activities. ETC = Estimate At Completion (EAC) - Actual cost (AC), is often used to calculate the estimated cost to complete the project or program under discussion.

PMI : The expected cost to finish all the remaining project work.

PCI : The value expressed in either dollars or hours developed to represent the cost of the work required to complete a task. Cobra calculates the ETC by subtracting the budgeted cost of work performed from the budget at complete. The ETC is calculated as BAC - BCWP.

Estimated Actual Costs

AACEi : In earned value management according to the ANSI EIA 748 standard, these are cost added to cost from the accounting system to create the appropriate Actual Cost of Work Performed (ACWP). Estimated actuals are sometimes necessary to ensure the ANSI EIA 748 requirement that Budgeted Cost of Work Performed (BCWP) is on the same basis as the reported ACWP. The basis for estimated actuals is documented and reversed which in the cost is accrued in the accounting books of record. Example of records may include invoices received, material purchase orders, submitted journal vouchers.

Estimated Completion Date

AACEi : The predicted date at which all requirements for a defined task will be completed.

Estimating

APM : The use of a range of tools and techniques to produce estimates.

Estimating Funnel

APM : A representation of the increasing levels of estimating accuracy that can be achieved through the phases of the life cycle.

Ethics Framework

APM : Sets recognized standards of conduct and behavior within the P3 profession.

Event

AACEi :(1) A point in time when certain conditions have been fulfilled, such as the start or completion of one or more activities. Graphically, it is represented by a node. An event occurs only when all work preceding it has been completed. It has zero duration.

(2) In risk management (i.e. risk event), an incident or occurrence whose nature or result could be a threat or opportunity to the outcome of the project. Syn.: Risk Event.

Event Driven

APM : Control actions or reports that are triggered by a specific event are referred to as ‘event-driven’.

Event Name

AACEi : An alphanumeric description of an event.

Event Number

AACEi : A numerical description of an event for computation and identification.

Event Oriented

AACEi : Planning approach focusing on events rather than activities.

Event Slack

AACEi :

The difference between the latest allowable date and the earliest date for an event.

Event Times

AACEi :

Time information generated through the network analysis calculation, which identifies the start and finish times for each event in the network.

Exception Report

AACEi : A report that lists exceptions to the expected norm as progress and forecast information is compared against the plan.

Exceptions

AACEi : Those occurrences that cause deviation from a plan, such as issues, change requests and risks. Exceptions can also refer to items that the cost variance and schedule variance exceed predefined thresholds.

Exclusive Or Relationship

AACEi : Logical relationship indicating that only one of the possible activities can be undertaken.

Excusable Compensable Delays

AACEi : Delays that are caused by the owner's actions or in actions. Contractor is entitled to a time extension and damage compensation for extra costs associated with the delay.

Excusable Delays

AACEi : Delays not attributable to contractor's action or inactions. Excusable delays when founded, entitle contractor to a time extension if the completion date is affected.

Excusable Non-Compensable Delays

AACEi : Delays that are neither contractor's nor owner's fault. The contractor is entitled to a time extension but not to damage compensation. Non-excusable delays, i.e. delays that are caused by the contractor's or its subcontractor's actions or inactions. Consequently, the contractor is not entitled to a time extension or delay damages. On the other hand, owner may be entitled to liquidated or other damages.

Execute/Executing

AACEi : Accomplish a preconceived objective by directing and implementing activities.

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

Executing Process Groups

PMI : Those processes performed to complete the work defined in the project management plan to satisfy the project specifications.

Exempt Employees

AACEi : Employees exempt from overtime compensation by federal wage and hours guidelines.

Exit Criteria

AACEi : Conditions that must be satisfied before the process element is considered complete.

Expansion

AACEi : Any increase in the capacity of a plant facility or unit, usually by added investment. The scope of its possible application extends from the elimination of problem areas to the complete replacement of an existing facility with a larger one.

Expected Begin Date

AACEi :

Syn.: Target Start Date.

Expected Duration

AACEi : The length of time anticipated for a particular activity in the PERT method or in Arrow or Precedence Diagramming Methods (ADM, PDM).

Expected Monitory Value (EMV) Analysis

PMI : 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.

Expected Value

AACEI : In risk analysis, the product of probability times impact; i.e., a risk weighted measure of impact. In statistical usage, synonymous with the mean.

Expected Value Method

AACEi : In quantitative risk analysis and contingency estimating, a method that employs the product of a risk’s probability times its impact as the primary approach to quantifying risks.

Expense

AACEi : Expenditures of short-term value, including depreciation, as opposed to land and other fixed capital.

Expert Judgment

AACEi :(1) Opinions, advice, recommendations, or commentary proffered, usually upon request, by a person or persons recognized, either formally or informally, as having specialized knowledge or training in a specific area. [8]

(2) Deliberate discernment of a situation or proposed course of action by those whose knowledge, skills, and abilities are developed from specialized education and experience, which enable them to better understand the situation or propose an optimal course of action than could those whose professional backgrounds are not so specialized.

PMI : 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.

Exploit

AACEi : In TCM risk management, a response strategy for opportunities that involves taking steps that increase the probability that the opportunity will occur.

APM : A response to an opportunity that maximises both its probability and impact.

Exposure

AACEi : In risk management, refers to the potential or actual impact of one or more risk events or conditions.

Exposure Window

AACEi : In risk management, refers to the time during which there is a potential or actual impact of one or more risk events or conditions. Syn.: Risk Impact Window.

Extended Life Cycle

APM : A life cycle model that includes the operation of outputs and realisation of benefits.

External Constraint

AACEi : A constraint from outside the project network.

External Dependency

PMI : A relationship between project activities and non-project activities.

Facilitated Workshops

PMI : An elicitation technique using focused sessions that bring key cross-functional stakeholders together to define product requirements.

Facility

AACEi : In project work, this term usually refers to the constructed environment, e.g., buildings, structures, infrastructure, plant and equipment.

Factory Expense

AACEi : Syn.: Plant Overhead.

Failure Mode And Effect Analysis (FMEA)

PMI : 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 quired 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.

Fair Value

AACEi : That estimate of the value of a property that is reasonable and fair to all concerned, after every proper consideration has been given due weight.

Fallback Plan

AACEi : Syn.: Contingency Plan.

PCI : Fallback plans include an alternative set of actions and tasks available in the event that the primary plan needs to be abandoned because of issues, risks, or other causes.

Fast-Track(Ing)

AACEi : Scheduling activities to run simultaneously instead of consecutively as much as possible, in order to speed work completion. Fast-tracked activities thus typically begin before the predecessor activity is finished.

PMI : A schedule compression technique in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration.

Fault Tree Analysis (FTA)

AACEi : A risk analysis method used to evaluate risk threats employing a deductive logic tree linking a parent event to the combinations of sub-events that could cause it.

Fee

AACEi : The charge for the use of one's services to the extent specified in the contract.

PMI : Represents profit as a component of compensation to a seller.

Field Cost

AACEi : Engineering and construction costs associated with the construction site rather than with the home office.

Field Indirects

AACEi : Refers to costs necessary to support the direct work. These generally include: 1) Temporary construction and consumables; 2) Field supervision and field office costs; and 3) Construction equipment and tools.

Field Labor Overhead

AACEi : The sum of the cost of payroll burden, temporary construction facilities, consumables, field supervision, and construction tools and equipment.

Field Order

AACEi : A written order issued by the engineer to the contractor which orders minor changes in the work but which does not involve an adjustment in the contract price or the contract time.

Field Supervision

AACEi : Project site supervisory and support staff personnel (excluding general foreman).

Field Supervision Costs

AACEi : The cost of salaries and wages of all field supervision personnel (excluding general foreman), plus associated payroll burdens, home office overhead, living and travel allowances, and field office operating costs.

Fifo (First In, First Out)

AACEi : A method of determining the cost of inventory used in a product. In this method, the costs of materials are transferred to the product in chronological order. Also used to describe the movement of materials.

Financial Life

AACEi : Syn.: Venture Life.

Financial Management

APM : The process of estimating and justifying costs in order to secure funds, controlling expenditure and evaluating the outcomes.

Finish Date

AACEi : Actual or estimated time associated with an activity's completion.

PMI : 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 Float

AACEi : Amount of excess time an activity has between its early finish and late finish dates. This may be referred to as slack time. All floats are calculated when a project has its schedule computed.

Finish-To-Finish (FT)

AACEi : A relationship in which the successor activity depends upon and can finish only after the predecessor activity finishes. The predecessor must finish first and then the successor can finish.

APM : A dependency in an activity-on-node network. It indicates that one activity cannot finish until another activity has finished.

PMI : A logical relationship in which a successor activity cannot finish until a predecessor activity has finished.

Finish-To-Finish Lag

AACEi : The minimum amount of time that must pass between the finish of one activity and the finish of its successor(s). All lags are calculated when a project has its schedule computed. Finish-to-finish lags are often used with start-to-start lags.

Finish-To-Start (FS)

AACEi : A relationship in which the successor activity can start only after the predecessor activity finishes. This is the most common relationship used.

APM : A dependency in an activity-on-node network. It indicates that one activity cannot start until another activity has finished.

PMI : A logical relationship in which a successor activity cannot start until a predecessor activity has finished.

Finish-To-Start Lag

AACEi : The minimum amount of time that must pass between the finish of one activity and the start of its successor(s). The default finish-to-start lag is zero. All lags are calculated when a project has its schedule computed. In most cases, finish-to-start lags are not used with other lag types.

Finished Goods

AACEi : Commodities that will not undergo any further processing and are ready for sale to the user (e.g., apparel, automobiles, bread).

Firm-Fixed-Price Contract (FTP)

PMI : 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.

First Cost

AACEi : Costs incurred in placing a facility into service, including but not limited to costs of planning, design, engineering, site acquisition and preparation, construction, purchase, installation, property taxes paid and interest during the construction period, and construction-related fees. Syn.: Initial Cost; Initial Investment Cost.

First Event Number

AACEi : The number of the first event in time for a work package or summary item. This event number defines the beginning of the work package or summary item in relation to the network.

Fishbone Diagram

PMI : A decomposition technique that helps trace an sirable effect back to its root cause.

Fixed Cost

AACEi : Those costs independent of short term variations in output of the system under consideration. Includes such costs as maintenance; plant overhead; and administrative, selling and research expense. For the purpose of cash flow calculation, depreciation is excluded (except in income tax calculations). In construction this includes general and administrative costs.

Fixed Date

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

Fixed Formula Method

PMI : An earned value method for assigning a specified percentage of budget value for a work package to the start milestone of the work package with the remaining budget value percentage assigned when the work package is complete.

Fixed Price Contract

PMI : An agreement that sets the fee that will be paid for a defined scope of work regardless of the cost or effort to deliver it.

Fixed Price With Economic Price Adjustment Contracts (FP-EPA)

PMI : A fixed-price contract, but with a special provision allowing for predefined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decreases) for specific commodities.

Fixed Start

AACEi : Syn.: Imposed Start Date.

Fixed-Duration Scheduling

AACEi : A scheduling method in which, regardless of the number of resources assigned to the task, the duration remains the same.

Fixed-Price-Incentive-Fee Contract

PMI : 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

AACEi :(1) In manufacturing, the amount of material in a system or process, at a given point in time, that is not being directly employed or worked upon.

(2) In projects, the amount of time that an activity may slip in its start and completion before becoming critical.

APM : A term used to describe the flexibility with which an activity may be re scheduled. There are various types of float, such as total float and free float.

PMI : Also called slack. See total float and free float.

Float Path

AACEi : A theoretical sequence of activities that share the same float and thus act as a unit when considering project completion. The concept of float paths allows for summarization and simplification of work packages by allowing management or other stakeholders to visualize larger work packages than those used at the base work level.

Float Trend Charts

AACEi : A chart showing the progressive change over time in schedule float values.

Flow Diagram

AACEi : A graphic representation that utilizes symbols, labels, and arrows as to depict the details and sequence of operation of a procedure or process system.

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

Focus Groups

PMI : An elicitation technique that brings together prequalified stakeholders and subject matter experts to learn about their expectations and attitudes about a proposed product, service, or result.

Follow-On Work

AACEi : Work that is expected to flow the result of current work. This may be a subsequent project, an enhancement, or the maintenance of the product of the current project.

Forecast

AACEi :(1) An estimate and prediction of future conditions and events based on information and knowledge available at the time of the forecast.

(2) When in respect to resource requirements, considering future conditions and events, it is a synonym for an estimate.

APM : Forecast expenditure: The estimated and predicted use of money.

PMI : Schedule 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.

Forecasting

AACEi :(1) The work performed to estimate or predict future conditions and events. Forecasting establishes the range of possibilities within which one can come to focus on the objectives one will commit to achieve. Forecasting is the work involved in anticipating future events, while establishing objectives is the work necessary to commit oneself to accomplish predetermined results.

(2) When in respect to resource requirements, considering future conditions and events, it is a synonym for cost estimating. Forecasting and cost estimating are often confused with budgeting, which is a definite allocation of resources and not a prediction or estimate.

Formal Reprogramming

AACEi : In earned value, a term referring to restructuring the earned value performance measurement baseline (PMB). It may include an over-target schedule and or cost and may include a program single point adjustment.

Forward Pass

AACEi :(1) In projects, network calculations that determine the earliest start/earliest finish time (date) of each activity, and establishes the critical path.

(2) In manufacturing, often referred to as forward scheduling, a scheduling technique where the scheduler proceeds from a known start date and computes the completion date for an order usually proceeding from the first operation to the last.

PMI : A critical path method technique for calculating the early start and early finish dates by working forward through the schedule model from the project start date or a given point in time.

Fragnet

AACEi :(1) A subnet of the overall project network schedule. A fragnet is typically made up of related work activities to allow greater detail and better control of the work.

(2) A portion or fragment of a CPM network usually used to illustrate changes to the whole network.

Free Float

AACEi : Maximum amount by which an activity can be delayed beyond its early dates without delaying any successor activity beyond its early dates.

PMI : The amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint.

Free Haul

AACEi : The distance every cubic yard of excavated material is entitled to be moved without an additional charge for haul.

Free Slack

AACEi : For a task without successors, this is the amount of time the task can be delayed without delaying the finish date of the project.

Fringe Benefits

AACEi : Employee welfare benefits, i.e., expenses of employment such as holidays, sick leave, health and welfare benefits, retirement fund, training, supplemental union benefits, etc.

Front End

AACEi : Syn.: Definition Phase; Development Phase; Planing Phase.

Front End Loading (FLE)

AACEi : Defining the project scope and plans in a way that assures the best practical level of definition is achieved as needed to support a project decision gate.

Front End Schedule

AACEi : Usually, a bar chart schedule that is used to provide a project work schedule and a status reporting system early in the work. Definition and planning are generally still under way on the CPM schedule of activities. It is considered a project level schedule.

Function

AACEi : An expression of conceptual relationships useful in model formulations (e.g., productivity is a function of hours worked).

Functional Manager

PMI : 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

PMI : 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.

Functional Replacement Cost

AACEi : The current cost of acquiring the same service potential as embodied by the asset under consideration.

Functional System

AACEi : An assembly of parts or components and/or subsystems having one primary end use in the project. It should be noted that secondary and tertiary uses for functional systems are common.

Functional Use Area

AACEi : The net usable area of a building or project exclusive of storage, circulation, mechanical, and similar types of space.

Functional Worth

AACEi : The lowest overall cost for performing a function. four type are as follows:

Functional Worth, Cost Value

AACEi : The monetary sum of labor, material, burden, and all other elements of cost required to produce an item or provide a service.

Functional Worth, Exchange Value

AACEi : The monetary sum at which a product or service can be traded.

Functional Worth, Use Value

AACEi : The monetary measure of the necessary functional properties of a product or service that contribute to performance.

Functional Worth,Esteem Value

AACEi : The monetary measure of the properties of a product or service, which contribute to desirability or salability but not to required functional performance.

Funding

APM : The means by which the capital required to undertake a project, programme or portfolio is secured and then made available as required.

Funding Limit Reconsilation

PMI : The process of comparing the planned expenditure of project funds against any limits on the commitment of funds for the project to identify any variances between the funding limits and the planned expenditures.

Future Value

AACEi : The value of a benefit or a cost at some point in the future, considering the time value of money. Syn.: Future Worth.

Future Worth

AACEi : Syn.: Future Value.

Gantt Chart

AACEi : A time-scaled bar chart named after Henry L. Gantt.

APM : A graphical representation of activity against time. Variations may include information such as ‘actual vs. planned’, resource usage and dependencies.

PMI : A bar chart of schedule information where activities are listed on the vertical axis, dates are shown on the horizontal axis, and activity durations are shown as horizontal bars placed according to start and finish dates.

Gate

APM : The point between phases, gates and/or tranches where a go/no go decision can be made about the remainder of the work.

General & Administrative Costs (G&A)

AACEi : The fixed cost incurred in the operation of a business. G&A costs are also associated with office, plant, equipment, staffing, and expenses thereof, maintained by a contractor for general business operations. G&A costs are not specifically applicable to any given job or project. Syn.: Administrative Cost.

General Requirements

AACEi : Non-technical specifications defining the scope of work, payments, procedures, implementation constraints, etc. pertaining to the contract.

General Terms And Conditions

AACEi :(1) That part of a contract, purchase order, or specification that is not specific to the particular transaction but applies to all transactions.

(2) General definition of the legal relationships and responsibilities of the parties to the contract and how the contract is to be administered. They are usually standard for a corporation and/or project.

Generally Accepted Accounting Principles (GAAP)

AACEi : Principles established by a Financial Accounting Standards Board that provide a foundation for 'acceptable' accounting practices. The GAAP represent a set of guidelines and, as a practical matter, necessitate subjectivity in their application.

Given Year

AACEi : The year or period selected for comparison, relative to the base year or base period.

Global Calendar

AACEi :

Calendar which sets typical workweek, workdays and holidays. It is the default calendar used for activities.

Go/No Go

APM : A form of control where a decision is made whether or not to continue with the work.

Governance

APM : The set of policies, regulations, functions, processes, procedures and responsibilities that define the establishment, management and control of projects, programmes or portfolios.

Grade

PMI : 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).

Graphical Evaluation And Review Technique (GERT)

AACEi : Network analysis technique that allows for conditional and probabilistic treatment of logical relationships (i.e., some activities may not be performed).

Gross Area

AACEi : Generally, the sum of all the floor or slab areas of a project that are enclosed by the exterior skin of the building.

Gross Concurrency

AACEi : The method of counting concurrent delay events based purely on contemporaneous occurrence without regard to CPM principles.

Gross National Product (GNP)

AACEi : The total national output of goods and services at the market prices for the stated year.

Ground Rules

PMI : Expectations regarding acceptable behavior by project team members.

Group Creativity Techniques

PMI : Techniques that are used to generate ideas within a group of stakeholders.

Group Decision Making Techniques

AACEi : Techniques to assess multiple alternatives that will be used to generate, classify, and prioritize product requirements.

Guideline

AACEi : A recommended or customary method of working to accomplish an objective. A guideline is not enforced but is generally followed.

PMI : An official recommendation or advice that indicates policies, standards, or procedures for how something should be accomplished.

Hammock Activity

AACEi : An aggregate or summary activity. All related activities are tied as one summary activity and reported at the summary level. It has no duration of its own but derives one from the time difference between the two points to which it is connected. The hammock activity does not affect schedule dates of the activities it spans.

APM : A group of related schedule activities aggregated and displayed as a single activity.

Handower

APM : The point in the life cycle where deliverables are handed over to the sponsor and users.

Hanger

AACEi : An unintended break in a network path.

Hard Logic

PMI : A relationship that is contractually required or inherent in the nature of the work.

Haul Distance

AACEi :

The distance measured along the center line or most direct practical route between the center of mass of excavation and the center of mass finally placed. It is the average distance material is moved by a vehicle.

Health And Safety Management

APM : The process of identifying and minimizing threats to workers and those affected by the work throughout the project, programme or portfolio life cycle.

Hedge

AACEi :

In master production scheduling, a quantity of stock used to protect against uncertainty in demand. The hedge is similar to safety stock, except that a hedge has the dimension of timing as well as amount.

Heuristic

AACEi :

An experience-based technique used as a general way of solving a problem, e.g., Rule of Thumb.

Hierarchical Coding Structure

AACEi :

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.

Hierarchical Planning

AACEi :

Planning approach where each managerial level breaks planning tasks down into those activities that must be done at that level. Typically, upper-level planning establishes the objectives for the next lower-level manager's planning.

Hierarchy (Hierarchical)

AACEi :

A ranking of items according to their logical relationships.

Highest And Best Use

AACEi : The valuation concept that requires consideration of all appropriate purposes or uses of the subject property in order to determine the most profitable likely utilization.

Histogram

PMI : A special form of bar chart used to describe the central tendency, dispersion, and shape of a statistical distribution.

Historic Records

AACEi : Documentation from past projects that can be used to predict trends, analyze feasibility and highlight problem areas/pitfalls on future similar projects.

Historical Database

AACEi : Records accumulating past project experience stored as data for use in planning, estimating, forecasting and predicting future events. Often includes data that has been processed so as to facilitate planning and other purposes such as validation and benchmarking (e.g., metrics, etc).

Historical Information

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

Holding Time

AACEi :

Time that an item is not operational so that it may be serviced.

Holiday

AACEi :

An otherwise valid working day that has been designated as exempt. Holidays typically occur on a yearly basis. In the US, holidays may include New Years’ Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas.

Home Office Cost

AACEi : Those necessary costs, typically not incurred at the project site, involved in the conduct of everyday business, which can be directly assigned to specific projects, processes, or end products, such as engineering, procurement, expediting, legal fees, auditor fees inspection, estimating, cost control, taxes, travel, reproduction, communications, etc.

Host Organization

APM : The organisation that provides the strategic direction of the project, programme or portfolio and will be the primary recipient of the benefits.

Human Resourse Management

APM :

Managing people-related activities within an organisation to meet its strategic goals.

PMI : Project Human Resource Management: Project Human Resource Management includes the processes that organize, manage, and lead the project team.

Human Resourse Management Plan

PMI : A component of the project management plan that describes how the roles and responsibilities, reporting relationships, and staff management will be addressed and structured.

Hypercritical

AACEi : A condition when an imposed date has been set such that the critical path leading to that point is too long to finish by that date. The critical path then becomes hypercritical and possesses negative float.

Hypercritical Activities

AACEi : Activities on the critical path with negative float. This can be achieved through the imposition of constraints such as target dates.

I-J Notation

AACEi : A system of numbering nodes in an activity-on-arrow network. The I-node is always the beginning of the activity, while the J-node is always the finish.

I-Node

AACEi :

In an activity on arrow (AOA) schedule, the node at the beginning of the activity arrow.

Iatrogenic Risk

AACEi :

In a risk analysis, an understatement of true risk caused by faulty risk analysis practices including, but not limited to: failing to identify significant threats risks and/or opportunities, assigning probability density functions to too many elements in a Monte Carlo Analysis or range estimate, incorrectly assuming independence between input elements for risk analysis simulations, and failing to adequately quantify the ranges of input elements. Syn.: Analyst-Caused Risk; Analyst-Induced Risk.

Idea/Mind Mapping

PMI : Technique used to consolidate ideas created through individual instorming sessions into a single map to reflect commonality and differences in understanding and to generate new ideas.

Identifier

AACEi :

An alphanumeric code depicting a name or hierarchy.

Identify Stakeholders

PMI : The process of identifying the people, groups, or organizations that could impact or be impacted by a decision, activity, or outcome of the project; and analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success.

Idle Equipment Cost

AACEi :

The cost of equipment that remains on site ready for use but is placed in a standby basis. Ownership or rental costs are still incurred while the equipment is idle.

Idle Time

AACEi :

A time interval during which either the worker, the equipment or both do not perform useful work.

Immediate Activity

AACEi : An activity that can be forced to start on its earliest feasible date by resource scheduling, even if that means overloading a resource.

Impact

AACEi : Syn.: Consequence; Effect.

Impact Cost

AACEi :

Added expenses due to the indirect results of a changed condition, delay, or changes that are a consequence of the initial event. Examples of these costs are premium time, lost efficiency, and extended field and home office overhead. Syn.: Damages, Ripple.

Impact Versus Probability Rating

AACEi :

Syn.: Risk Matrix.

Imperfect Information

AACEi : Information or data for which there exists some uncertainty.

Imperfection

AACEi : A deviation that does not affect the use or performance of the product, process, or service. In practice, imperfections are deviations that are accepted as-is.

Imposed Date

AACEi :(1) A predetermined calendar date set (usually externally) without regard to logical considerations of the network.

(2) A date externally assigned to an activity that establishes the earliest or latest date in which the activity is allowed to start or finish.

PMI : 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.

Imposed Finish Date

AACEi : A predetermined calendar date set without regard to logical considerations of the network, fixing the end of an activity and all other activities preceding that ending node.

Imposed Start Date

AACEi : A start date imposed on an activity by an external constraint. Syn.: Fixed Start.

Impossibility

AACEI :

An inability to meet contract requirements because it was in fact physically impossible to do so (actual impossibility).

Impracticability

AACEi : Inability to perform because of extreme and unreasonable difficulty, expense, injury, or loss involved. This is sometimes considered practical impossibility.

Imputation (Of Price Movement)

AACEi :

The assignment of known price changes to a certain commodity on the basis of the assumed similarity of price movement.

In-Place Value

AACEi :

Value of a physical property, e.g., market value plus costs of transportation to site and installation.

In-Progress Activity

AACEi :

An activity that has been started but not completed on a given reporting/data date.

In-Progress Inventory

AACEi :

Syn.: Work-In-Process.

Incentive Fee

PMI : A set of financial incentives related to cost, schedule, or technical performance of the seller.

Inclusive Or Relationship

AACEi : Logical relationship indicating that at least one, but not necessarily all, of the activities have to be undertaken.

Income

AACEi :

Used interchangeably with profit. Avoid using income instead of sales revenue.

Incremental Cost (Benefit)

AACEi :

The additional cost (benefit) resulting from an increase in the investment in a project. Syn.: Marginal Cost (Benefit). [1]

Incremental Life Cycle

PMI : A project life cycle where the project scope is generally determined early in the project life cycle, but time and cost estimates are routinely modified as the project team’s understanding of the product increases. Iterations develop the product through a series of repeated cycles, while increments successively add to the functionality of the product.

Incremental Milestone Technique

AACEi :

An earned value technique that pre-assigns budget to technical milestone completions. When the milestone is completed 100% of the budgeted “weight” assigned to the milestone is earned.

Independent Estimate

PMI : A process of using a third party to obtain and analyze information to support prediction of cost, schedule, or other items.

Independent Estimate At Completion (IEAC)

AACEi : In terms of earned value, a calculation of the final estimated cost for a project usually through EVM efficiency rates (e.g., CPI and SPI). Usually a range of estimates at completion are calculated from distinct equations that allow for an enhanced capability (often described as a statistical forecast) to analyze the project's performance throughout its life-cycle.

Independent Estimate At Completion [IEAC(T)]

AACEi : In terms of earned schedule, the difference between the baseline project duration and the estimated project duration in time increments.

Independent Event

AACEi :

An event which in no way affects the probability of the occurrence of another event.

Independent Float

AACEi : The degree of flexibility that an activity has which does not affect the float available on any preceding or succeeding activities.

Independent Variable

AACEi : An event or condition whose impact or probability is not certain, but which does not depend in any way on the value or probability of any other event or condition.

Indicated Total Cost

AACEi : An estimated final cost of a project, program or endeavor based on current progress and forecast effort to complete.

Indirect Costs

AACEi : Costs not directly attributable to the completion of an activity, which are typically allocated or spread across all activities on a predetermined basis.

Indirect Pacing

AACEi :

When the paced event does not have a logical relationship to the parent delay. The fact that the indirect pacing delay and the parent delay occur during the same period is merely a function of schedule timing, not mandatory logic.

Individual Price Index

AACEi :

An index which measures the price change for a particular commodity and which may be computed as the ratio of its prices at two points in time.

Individual Work Plan

AACEi :

The lowest level of the technical plan that defines the tasks and responsibilities of an individual team member.

Inefficiency

AACEi :

The state of being less productive or efficient that expected or planned. Syn.: Loss Of Productivity/Efficiency.

Inexcusable Delays

AACEi : Project delays those are attributable to negligence on the part of the contractor, which lead in many cases to penalty payments.

Inflation

AACEi :

A persistent increase in the level of consumer prices, or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.

Influence Diagram

AACEi : A graphical display of the relationships among factors influencing a decision. The diagram shows the influencing relationships among controllable decisions, uncertain conditions, objective variables, and dependent variables.

PMI : A graphical representation of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes.

Influencing

APM :

The act of affecting the behaviours and actions of others.

Information Gathering Techniques

PMI : Repeatable processes used to assemble and organize data across a spectrum of sources.

Information Management

APM : The collection, storage, dissemination, archiving and destruction of information. It enables teams and stakeholders to use their time, resource and expertise effectively to make decisions and to fulfill their roles.

PMI :

Information Management System: Facilities, processes, and procedures used to collect, store, and distribute information between producers and consumers of information in physical or electronic format.

Infrastructure

APM :

Provides support for projects, programmes and portfolios, and is the focal point for the development and maintenance of P3 management within an organisation.

Inherent Risk

AACEi :

A risk that exists (but may or may not be identified) due to the very nature of the asset, project, task, element, or situation being considered.

Initial

APM : The first level of a typical maturity model where processes are typically ad hoc and occasionally chaotic.

Initial Cost

AACEi :

Syn.: First Cost; Initial Investment Cost. [1]

Initial Investment Cost

AACEi :

Syn.: First Cost; Initial Cost. [1]

Initiation

AACEi :

The process of preparing for, assembling resources and getting work started. May apply to any level, e.g., program, project, phase, activity, task.

PMI : Initiating Process Group :Those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase.

Input

PMI : Any item, whether internal or external to the project that is required by a process before that process proceeds. May be an output from a predecessor process.

Input Milestones

AACEi :

Imposed target dates or target events that are to be accomplished, and which control the plan with respect to time.

Input-Output Analysis

AACEi :

A matrix which provides a quantitative framework for the description of an economic unit. Basic to input-output analysis is a unique set of input-output ratios for each production and distribution process. If the ratios of input per unit of output are known for all production processes, and if the total production of each end product of the economy, or of the section being studied is known, it is possible to compute precisely the production levels required at every intermediate stage to supply the total sum of end products. Further, it is possible to determine the effect at every point in the production process of a specified change in the volume and mix of end products.

Inspection

PMI : Examining or measuring to verify whether an activity, component, product, result, or service conforms to specified requirements.

Inspection And Audits

PMI : A process to observe performance of contracted work or a promised product against agreed-upon requirements.

Intangibles

AACEi :(1) In economy studies, conditions or economy factors that cannot be readily evaluated in quantitative terms as in money.

(2) In accounting, the assets that cannot be reliably evaluated (e.g., goodwill).

Integrated Assurance

APM : The coordination of assurance activities where there are a number of assurance providers.

Integrated Baseline Review (IBR)

PCI : An IBR is intended to verify the technical content and realism of the related performance budgets, resources, and schedules. It should provide a mutual understanding of the inherent risks in the offerors'/ contractors' performance plans and the underlying management control systems, and it should formulate a plan to handle these risks.

Integrated Change Control

AACEi :

The process of reviewing all change requests, approving changes and controlling changes to deliverables and organizational process assets.

Integrated Cost/Schedule Reporting

AACEi :

The development of reports that measure actual versus budget, S-curves, BCWS, BCWP, and ACWP.

Integrated Master Schedule (IMS)

PCI : The IMS is developed for the certain IT Investment so that tasks and milestones are clearly defined. It is updated regularly to identify IT investment elements that are behind as well as those ahead of schedule. The IMS maps directly to the CWBS enabling the investment management team a single point of reference for all activities.

Integrated Product Teams (IPT)

AACEi :

An organizational element responsible for a segment of the work breakdown structure (WBS). Typically they are cross functional and assigned a charter of responsibility to function as an organizational breakdown structure (OBS) manager in earned value terminology.

Integrative Management

APM : The application of management processes that integrate some or all fundamental components of scope, schedule, cost, risk, quality and resources.

Interdependent Event

AACEi :

Not subject to a reciprocal relationship.

Interest Rate

AACEi :

The ratio of the interest payment to the principal for a given unit of time and is usually expressed as a percentage of the principal.

Interest Rate Of Return

AACEi :

Syn.: Profitability Index (PI).

Interest Rate, Compound

AACEi :

The rate earned by money expressed as a constant percentage of the unpaid balance at the end of the previous accounting period. Typical time periods are yearly, semiannually, monthly, and instantaneous.

Interest Rate, Effective

AACEi :

An interest rate for a stated period (per year unless otherwise specified) that is the equivalent of a smaller rate of interest that is more frequently compounded.

Interest Rate, Nominal

AACEi :

The customary type of interest rate designation on an annual basis without consideration of compounding periods. A frequent basis for computing periodic interest payments.

Interest

AACEi :(1) Financial share in a project or enterprise.

(2) Periodic compensation for the lending of money.

(3) In economy study, synonymous with required return, expected profit, or charge for use of capital.

(4) The cost for the use of capital. Sometimes referred to as the time value of money.

Interface Activity

AACEi :

An activity connecting a node in one sub-net with a node in another sub-net, representing logical interdependence. The activity identifies points of interaction or commonality between the project activities and outside influences.

Interface Management

AACEi :

The management of communication, coordination and responsibility across a common boundary between two organizations, phases, or physical entities, which are interdependent.

Interface Node

AACEi :

A common node for two or more subnets representing logical interdependence.

Interface

AACEi :

A common physical or functional boundary between different organizations or contractor's products. It is usually defined by an interface specification and managed by a system integration organization.

Interference

AACEi :

Conduct that interrupts the normal flow of operations and impedes performance. A condition implied in every construction contract is that neither party will do anything to hinder the performance of the other party.

Interim Dates

AACEi :

Dates established which designate the start or the completion of designated facilities or features of a facility. Also referred to as intermediate access or intermediate completion dates.

Interim Deliverables

AACEi :

Intermediate deliverables that will be produced as precursors to the final deliverable.

Intermediate Events

AACEi :

Detailed events and activities, the completion of which are necessary for and lead to the completion of a major milestone.

Intermediate Materials

AACEi :

Commodities that have been processed but require further processing before they become finished goods (e.g., fabric, flour, sheet metal).

Intermediate Node

AACEi :

A node where at least one activity begins and one activity ends.

Internal Rate Of Return (IRR)

AACEi :

The compound rate of interest that, when used to discount study period costs and benefits of a project, will make their time-values equal.

Interpersonal Skills

APM : The means by which people relate to, and interact with, other people.

PMI : Ability to establish and maintain relationships with other people.

Interrelationship Digraphs

PMI : A quality management planning tool, the interrelationship digraphs provide a process for creative problem-solving in moderately complex scenarios that possess intertwined logical relationships.

Interruption

AACEi :

A stopping or hindering of the normal process or flow of an activity.

Interviews

PMI : A formal or informal approach to elicit information from stakeholders by talking to them directly.

Inventory

AACEi :

Raw materials, products in process, and finished products required for plant operation or the value of such material and other supplies, e.g., catalysts, chemicals, spare parts.

Investment Appraisal

APM :

A collection of techniques used to identify the attractiveness of an investment.

Investment Cost

AACEi :

Includes first cost and later expenditures that have substantial and enduring value (generally more than one year) for upgrading, expanding, or changing the functional use of a facility, product, or process. [1]

Investment

AACEi :

The sum of the original costs or values of the items that constitute the enterprise; used interchangeably with capital; may include expenses associated with capital outlays such as mine development.

Investor's Method

AACEi :

Syn.: Discounted Cash Flow.

Invitation For Bid (IFB)

PMI : Generally, this term is equivalent to request for proposal. However, in some application areas, it may have a narrower or more specific meaning.

Irrefutable Logic

AACEi :

Network logic that is rational and compelling and cannot be disputed on the basis of reason.

Ishikawa Diagram

AACEi :

Diagram used to illustrate how various causes and sub-causes create a specific effect. Named after its developer Kaoru Ishikawa. Also called cause-and effect diagram or fishbone diagram. [8]

Issue Log

PMI :

A project document used to document and monitor elements under discussion or in dispute between project stakeholders.

Issues Management

AACEi :

Management of issues that remain unresolved because they are either in dispute, are uncertain, lack information, or lack authority or commitment for their resolution.

Issue

AACEi :

In risk management, a risk that has occurred or an unplanned question or decision that needs to be addressed by a process other than risk management.

APM : A formal issue occurs when the tolerances of delegated work are predicted to be exceeded or have been exceeded. This triggers the escalation of the issue from one level of management to the next in order to seek a solution.

PMI : A point or matter in question or in dispute, or a point or matter that is not settled and is under discussion or over which there are opposing views or disagreements.

Iterative Life Cycle

J-Node

AACEi :

In an activity on arrow (AOA) schedule, the node at the end of the activity arrow.

Job

AACEi :

A group of contiguous operations related by similarity of functions that can be completed by one or more workers without interference or delay.

Joint Surveillance

PCI : Programme surveillance conducted by the company and customer together in the same review.

Judgmental Sampling

AACEi :

A procedure of selecting the sample which is based on specific criteria established by sample designers. The selection of priced items and outlets is not a probability sample that is, it is not based on random chance.

Junior Float

AACEi :

The lowest free float of all preceding activities.

Just-In-Time

AACEi :

A 'pull' logistical system driven by actual demand. The goal is to produce, provide or deliver parts or supplies just in time for the next operation. The approach reduces stock inventories or storage costs, but leaves no room for error. As much a managerial philosophy as it is an inventory system.

Key Activity

AACEi : An activity that is considered of major significance. A key activity is sometimes referred to as a milestone activity.

Key Event Schedule

AACEi : A schedule comprised of key events or milestones. These events are generally critical accomplishments planned at time intervals throughout the project and used as a basis to monitor overall project performance. The format may be either network or bar chart and may contain minimal detail at a highly summarized level. This is often referred to as a milestone schedule.

Key Events

AACEi : Major events the achievement of which that are deemed to be critical to the execution of the project. A key event is sometimes referred to as a milestone.

Key Performance

AACEi :

Performance that is critical to the project or a project system.

Key Performance Indicators (KPI)

AACEi :

Indicators that: 1) Are determined at process/project initiation and listed in order of priority; 2) Reflect directly on key process/project objectives [goals]; and 3) Provide basis for trade-off decisions made during execution. At process/project completion these KPIs: 1) Will be the most relevant measures to confirm process/project acceptability and its product by the process/project's stakeholders as being "successful"; and 2) Can be reasonably measured in some way, at some time, on some scale with some level of confidence. Syn.: Key Success Indicators (KSI).

Key Success Indicators (KSI)

AACEi :

Syn.: Key Performance Indicators (KPI).

Knowledge Management

APM :

The systematic management of information and learning. It turns personal information and experience into collective knowledge that can be widely shared throughout an organisation and a profession.

Known

AACEi : A quantity or condition characterized by certainty.

Known-Unknown

AACEi : An identifiable quantity or value having variability or an identifiable condition lacking certainty.

Labor

AACEi : Effort expended by people for wages or salary. Generally classified as either direct or indirect. Direct labor is applied to meeting project objectives and is a principal element used in costing, pricing, and profit determination; indirect labor is a component of indirect cost, such as overhead or general and administrative costs. [8]

Labor Burden

AACEi :

Fringe benefits plus taxes and insurances the employer is required to pay by law based on labor payroll, on behalf of or for the benefit of labor. (In some countries, these include government retirement benefits, unemployment insurance tax, and worker's compensation). Syn.: Payroll Burden.

Labor Cost, All In Labor

AACEi :

Gross direct wages paid to the worker, plus labor burden, plus field indirects, plus general & administrative cost, plus profit.

Labor Cost, Bare Labor

AACEi : Gross direct wages paid to the worker.

Labor Cost, Burdened Labor

AACEi : Gross direct wages paid to the worker, plus labor burden.

Labor Efficiency Variance

AACEi :

A cost variance can be broken into efficiency and rate variance elements. Efficiency is calculated as: (budgeted cost of work performed rate) X (budgeted cost of work performed hours.

Labor Hour

AACEi :

A worker hour of effort. Syn.: Work-Hour.

Labor Norm

AACEi : Syn.: Labor Productivity Norm.

Labor Norm Preamble

AACEi : A narrative to precisely describe the content (inclusion and exclusions), the normal conditions, the unit of measurement and method of measurement of an activity and its applicable labor norm.

Labor Productivity

AACEi : A measure of production output relative to labor input. In economics, industrial engineering, and earned value management, quantity/work hour measures are common (higher values reflect higher productivity or efficiency). In cost estimating, inverse measures such as work hours/quantity or unit hours are common (where lower values reflect higher productivity or efficiency). Regardless of the measure used, labor productivity (or efficiency) is improved by increasing production for a given work hour or decreasing work hours for a given production.

Labor Productivity Factor

AACEi : A value by which a labor productivity measure for a reference project or activity is multiplied to obtain an adjusted productivity measure for the same of similar project or activity under a different set of conditions. Proper factor use requires that the user ascertain the type of labor productivity measure it will be applied against (e.g., consider whether the labor productivity measure to be factored is expressed in the form of work hours/quantity or quantity/work hours). Syn.: Productivity Factor.

Labor Productivity Norm

Labor Rate

AACEi : Labor cost expressed on a per unit of labor effort basis (e.g., labor costs/labor hour).

Labor Rate Variance

AACEi : A cost variance can be broken into efficiency and rate variance elements. Rate variance is calculated as: (budgeted cost of work performed hours) X (budgeted cost of work performed rate – actual cost of work performed rate).

Ladder

AACEi : In planning and scheduling, a sequence of parallel activities connected at their starts or finishes, or both. The start and finish of each succeeding activity are linked only to the start and finish of the preceding activity by lead and lag activities, which consume only time.

Ladder Activity

AACEi : A type of activity identified in network scheduling. An arrangement in which two or more series of activities progress concurrently but in lockstep because of dependent links between the same rungs of each ladder.

Laddering

AACEi : A method of showing the logic relationship of a set of several parallel activities with the arrow technique.

Lag

AACEi : Time that an activity follows, or is delayed from the start or finish of its predecessor(s). Sometimes called an offset. A lag may have a negative value tied to the finish of a previous activity, reflecting a fast track approach. However, the use of negative lags when building baseline schedule models is poor technique and often prohibited by specification.

PMI : The amount of time whereby a successor activity is required to be delayed with respect to a predecessor activity.

Lag Relationship

AACEi : A duration by which a given task must be completed before the succeeding activity can begin.

Lag Relationship

AACEi : The four basic types of lag relationships between the start and/or finish of a work item and the start and/or finish of another work item are:

1. Finish-to-start (FS);

2. Start-to-finish (SF);

3. Finish-to-finish (FF); and

4. Start-to-start (SS).

Lag Time

AACEi : The amount of time delay between the completion of one task and the start of its successor task.

Late Dates

AACEi : Calculated in the backward pass of time analysis, late dates are the latest dates on which an activity can start and finish without delaying a successor activity.

Late Event Date

AACEi : Calculated from backward pass, it is the latest date an event can occur.

Late Finish (LF)

AACEi : The latest date or time an activity may finish as calculated by the backward pass.

PMI:

Late Finish Date (LF): In the critical path method, the latest possible point in time when the uncompleted portions of a schedule activity can finish based on the schedule network logic, the project completion date, and any schedule constraints.

Late Start

AACEi : The latest time at which an activity can start without lengthening the project.

Late Start (LS)

AACEi : The latest date or time an activity may start so the project may be completed on time as calculated during the backward pass.

PMI:

Late Start Date(LS):In the critical path method, the latest possible point in time when the uncompleted portions of a schedule activity can start based on the schedule network logic, the project completion date, and any schedule constraints.

Latent Condition

AACEi : A concealed, hidden, or dormant condition that cannot be observed by a reasonable inspection.

Latest Event Time (LET)

AACEi : The latest time an event may occur without increasing the project's scheduled completion date.

Latest Revised Estimate

AACEi : In earned value, the sum of the actual incurred costs plus the latest estimate-to-complete for a work package or summary item as currently reviewed and revised, or both (including applicable overhead where direct costs are specified).

Latin Hypercube Method

AACEi : A stratified random sampling technique similar to the Monte Carlo method, which converges with fewer samples.

Laws And Regulations

AACEi : Laws, rules, regulations, ordinances, codes and/or orders.

APM:

Law: The relevant legal duties, rights and processes that should be applied to projects, programmes and portfolios.

PMI:

Regulation: Requirements imposed by a governmental body. These requirements can establish product, process, or service characteristics, including applicable administrative provisions that have government-mandated compliance.

Lead

AACEi : Time that an activity precedes the start of its successor(s). Lead is the opposite of Lag.

PMI:

The amount of time whereby a successor activity can be advanced with respect to a predecessor activity.

Lead Duration/Lead Time

AACEi : A duration or time by which a given task must be started before the succeeding activity can begin.

Leadership

APM : The ability to establish vision and direction, to influence and align others towards a common purpose, and to empower and inspire people to achieve success.

Learning And Development

APM : The continual improvement of competence at all levels of an organisation.

Learning Curve

AACEi : A graphic representation of the progress in production effectiveness as time passes. Learning curves are useful planning tools, particularly in the project oriented industries where new products and workers are phased in rather frequently. The basis for the learning curve calculation is the fact that workers will be able to perform work more quickly after they get used to performing it.

Lessons Learned

AACEi : A project team's learning, usually defined during close out. Should be limited to capturing/identifying work process improvements. A ‘finding’ that established policies or procedures were not followed is not a valid lessons learned.

APM : Documented experiences that can be used to improve the future management of projects, programmes and portfolios.

PMI:

The knowledge gained during a project which shows how project events were addressed or should be addressed in the future with the purpose of improving future performance.

Lessons Learned Knowledge Base

PMI : A store of historical information and lessons learned about both the outcomes of previous project selection decisions and previous project performance.

Letter Of Credit

AACEi : A vehicle that is used in lieu of retention and is purchased by the contractor from a bank for a predetermined amount of credit that the owner may draw against in the event of default in acceptance criteria by the contractor. Also applies when an owner establishes a line of credit in a foreign country to provide for payment to suppliers of contractors for goods and services supplied.

Level Finish/Schedule (FS)

AACEi : The date when the activity is scheduled to be completed using the resource allocation process.

Level Float

AACEi : The difference between the level finish and the late finish date.

Level Of Detail

AACEi : All projects need to determine the level of detail requirements for estimates, accounting reports, cost reports, scheduling reports, and types of schedules. The level of detail is generally constrained by the level of scope definition. Determining the level of detail should consider requirements to execute the project and meet historical data requirements.

Level Of Effort (LOE)

AACEi :(1) Support effort (e.g., supervision) that does not readily lend itself to measurement of discrete accomplishment. It is generally characterized by a uniform rate of activity over a specific period of time.

(2) An earned value technique used to estimate progress of work that is generally not measurable. Support effort (e.g. management, security, project controls) that does not lend itself to measurement of discrete accomplishment. LOE work is characterized by a planned and sometimes level of support over a specific period of time. Performance is claimed by the passage of time and may not accurately reflect the amount of work that is actually accomplished.

PMI:

An activity that does not produce definitive end products and is measured by the passage of time. [Note: Level of effort is one of three earned valued management (EVM) types of activities used to measure work performance.]

Level Start/Schedule (SS)

AACEi : The date the activity is scheduled to begin using the resource allocation process. This date is equal to or later in time than early start.

Leveling

AACEi : Syn.: Resource Leaving; Resource Optimization.

PMI:

A technique in which start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resources with the available supply.

Levelized Fixed-Charge Rate

AACEi : The ratio of uniform annual revenue requirements to the initial investment, expressed as a percent.

Levels Of Schedules

AACEi : The level of schedule is differentiated by the degree of detail in the schedules. The three main levels of scheduling are the following: Management Summary, Project Level, and Control Level.

Levels Of Schedules, Control Level Schedule (Level 3 Schedule)

AACEi : Represents detail and individual work tasks, which summarize at the project level II activities and deliverables. Clearly, shows work by discipline or responsibility, and usually presented in bar chart or tabular form. Maintained by each discipline/contractor in the engineering phase and by superintendents and contractors in the construction phase. Immediate term schedules, also referred to as weekly work schedules, and should provide enough detail to manage work at the foreman level.

Levels Of Schedules, Management Summary Schedule (Level 1 Schedule)

AACEi : The level of schedule containing the least amount of detail, typically including major functions, milestone objectives, master schedules, and bar chart summaries of project status. Used by management and the client to monitor all aspects of the project. It is a roll up of the project level schedule (level 2).

Levels Of Schedules, Project Level Schedule (Level 2 Schedule)

AACEi : An activity- and deliverable-centered schedule containing a middle amount of detail in time-scaled network diagrams or bar charts. It integrates the project’s engineering, procurement, and construction activities by network logic, identifies critical path and key project dates, and provides measurement of accomplishments against established objectives. The CPM (critical path method) scheduling technique is used to develop the project level schedule. The status of the detail activities summarizes to the management summary schedule (level 1 schedule).

Leverage (Trading On Equity)

AACEi : The use of borrowed funds or preferred stock in the intent of employing these "senior" funds at a rate of return higher than their cost in order to increase the return upon the investment of the residual owners.

Life Cycle

AACEi : The stages, or phases that occur during the lifetime of an object or endeavor. A life cycle presumes a beginning and an end with each end implying a new beginning. In life cycle cost or investment analysis, the life cycle is the length of time over which an investment is analyzed (i.e., study period). The following are typical life cycles:

APM:

The inter-related phases of a project, programme or portfolio and provides a structure for governing the progression of work.

PMI:

Project Life Cycle: The series of phases that a project passes through from its initiation to its closure.

Life Cycle Cost (LCC) Method

AACEi : A technique of economic evaluation that sums over a given study period the costs of initial investment (less resale value), replacements, operations (including energy use), and maintenance and repair of an investment decision (expressed in present or annual value terms). [1]

Life Cycle Costing

AACEi : Consideration of all costs when designing a project’s product, including costs from concept, through implementation and startup, to dismantling. It is typically used for making decisions between alternatives.

Life Cycle Value Analysis (LCVA)

AACEi : A methodology that analyzes the impacts on valuation of a project or asset over their life cycle and identifies opportunities for improved outcomes.

Life Cycle, Asset Life Cycle

AACEi : The stages, or phases of asset existence during the life of an asset. Asset life cycle stages typically include ideation, creation, operation, modification, and termination. Syn.: Economic Life(Cycle).

Life Cycle, Project Life Cycle

AACEi : The stages or phases of project progress during the life of a project. Project life cycle stages typically include ideation, planning, execution, and closure. Syn.: Project Life.

Life Cycle,Product Life Cycle

AACEi : Complete history of a product through its concept, definition, production, operation, and obsolescence or disposal phases. The distinction between product life cycle and project life cycle is that the latter does not include the last two phases.

Life, Physical

AACEi : That period of time after which a machine or facility can no longer be repaired in order to perform its design function properly.

Life, Service

AACEi : The period of time that a machine or facility will satisfactorily perform its function without a major overhaul.

LIFO (Last In, First Out)

AACEi : A method of determining the cost of inventory used in a product. In this method, the costs of material are transferred to the product in reverse chronological order. LIFO is used to describe the movement of goods.

LIMIT (Lot Size Inventory Management Interpolation Technique)

AACEi : A technique for looking at the lot sizes for groups of products to determine what effect economic lot sizes will have on the total inventory and total setup costs.

Line Of Balance (LOB)

AACEi : A graphical display of scheduled units versus actual units over a given set of critical schedule control points on a particular day. The line of balance technique is oriented towards the control of production activities.

APM:

A scheduling technique for delivery of repetitive products that shows how resource teams move from product to product rather than the detail of individual activities.

Line Of Credit

AACEi : Generally an informal understanding between the borrower and the bank as to the maximum amount of credit that the bank will provide the borrower at any one time.

Linear Programming

AACEi : Mathematical techniques for solving a general class of optimization problems through minimization (or maximization) of a linear function subject to linear constraints. For example, in blending aviation fuel, many grades of commercial gasoline may be available. Prices and octane ratings, as well as upper limits on capacities of input materials which can be used to produce various grades of fuel are given. The problem is to blend the various commercial gasolines in such a way that:

1. Cost will be minimized (profit will be maximized);

2. A specified optimum octane rating will be met; and

3. The need for additional storage capacity will be avoided.

Linear Responsibility Chart

AACEi : A special type of matrix in which the rows list the series of functions, activities, or tasks in some logic sequence, such as the project life cycle, and the adjacent columns identify the positions, titles or people involved. At the intersection of each adjacent column and its line item is placed a distinguishing symbol representing the level or type of responsibility involved by that person.

Linear Scheduling Method (LSM)

AACEi : Scheduling method that may be used on horizontal projects (pipelines, highways, etc.) Highly repetitive tasks make up the majority of the work. LSM schedules use ‘velocity’ diagrams representing each activity. LSM scheduling is not widely used.

Linear Sequential Model

APM : A type of life cycle where phases are sequential.

Link

AACEi : A dependency between tasks that specifies when a task begins or ends relative to another task.

Linked Bar Chart

AACEi : A bar chart drawn to show dependency links between activities/tasks.

Linked Projects

AACEi : Multiple related projects connected at interface points. Often depicted by use of a bar chart showing dependency links between activities on different projects.

Linking Procedure

AACEi : A procedure by which a ‘new’ series of indexes is connected to an ‘old’ series in a given link period, generally because of a change in baskets. Actually, indexes of the new series with link period as time base are multiplied by the old index for the link period as the given period.

Liquidated Damages

AACEi : Syn.: Damages, Liquidated.

Lmeso

AACEi : Syn.: Cost Estimate Resource

Load Factor

AACEi :(1) A ratio that applies to physical plant or equipment average load/maximum demand, usually expressed as a percentage. It is equivalent to percent of capacity operation if facilities just accommodate the maximum demand.

(2) The ratio of average load to maximum load.

Load Leveling

AACEi : The technique of averaging, to a workable number, the amount or number of people working on a given project or in a given area of a project at a particular point in time. Load leveling is a benefit of most scheduling techniques and is necessary to insure a stable use of resources. Syn.: Work Power Leaving.

Local Cost

AACEi : The cost of local labor, equipment taxes, insurance, equipment, and construction materials incorporated in a construction project, with local currencies. This includes the finishing of imported goods using local labor and materials, the cost of transforming imported raw or semi-finished products using local labor and plant facilities, and the marketing of locally produced products.

Location Factor

AACEi : An instantaneous (current has no escalation or currency exchange projection) overall total project factor for translating the summation of all project cost elements of a defined construction project scope of work, from one geographical location to another. Location factors include given costs, freights, duties, taxes, field indirects, project administration, and engineering and design. Location factors do not include the cost of land, scope/design differences for local codes and conditions, and the cost for various operating philosophies.

Log

PMI : A document used to record and describe or denote selected items identified during execution of a process or activity. Usually used with a modifier, such as issue, quality control, action, or defect.

Logic

AACEi : Relationship describing the interdependency of starts and finishes between activities or events. Every activity should have a predecessor (except for the initial activity or event), and every activity should have a successor (except for the ending activity or event). Activity logic is determined by need to meet competing constraints defined by contract requirements, physical capabilities of trades performing work, safety concerns, resource allocations, and preferential activity relationships.

Logic Constraint

AACEi : A restraint inserted in an Activity of Arrow (AOA) network, which defines dependent relationships between two activities.

Logic Diagram

AACEi : Graphic diagram of a network schedule showing the relationships between a particular activity and its predecessors and successors. Syn.: Logic Network Diagram;Network Diagram.

Logic Network

AACEi : Syn.: Network

Logic Network Diagram

AACEi : Syn.: Logic Diagram; Network Diagram.

Logic Restraint

AACEi :(1) A dummy, which defines the dependency of one part of the network on another part of it.

(2) A dummy arrow or constraint connection that is used as a logical connector but that does not represent actual work items. It is usually represented by a dotted line, and is sometimes called a dummy because it does not represent work. It is an indispensable part of the network concept when using the arrow diagramming method of CPM scheduling.

Logic Sequencing

AACEi : The arranging of project activities in to a self-evident or reasoned and progressive series.

Logic, Dynamic (Conditional)

AACEi : A logic structure which allows for changes in schedule logic depending on the occurrence of risk events or conditions (typically includes conditional branching.)

Logic, Hard

AACEi :(1) Mandatory logic.

(2) Clearly understood work scope allows one to define work activities and logic with precision. The opposite of soft logic.

Logic, Soft

AACEi : Activity(ies) and logic that with current knowledge cannot be modeled in detail. As design and construction evolves, soft logic is transformed into detailed or hard logic, with activities being split into component parts and logic ties refined.

PMI:

A relationship that is established based on knowledge of best practices within a particular application area or an aspect of the project where a specific sequence is desired.

Logic, Static (Fixed)

AACEi : A logic structure which does not allow for changes in schedule logic depending on the occurrence of risk events or conditions (typically excludes conditional branching).

Long Lead Items

AACEi : Those components of a system or piece of equipment for which the times to design and fabricate are the longest and for which an early commitment of funds may be desirable or necessary in order to meet the earliest possible date of system completion.

Long Lead Procurement

AACEi : Early procurement of material or parts to accommodate early use or long procurement spans. Contractors may choose to seek buyer-approved pre-award commitments of funds to meet long lead requirements.

Longest Path (LP)

AACEi : Longest continuous path of activities through a project, which controls project early completion. It is possible for otherwise defined critical path activities to not be on the longest path and longest path activities to not show calculated critical float. The longest path analysis is unaffected by activity calendars. The longest path is determined by the string of activities, relationships, and lags that push the project to its latest, early finish date. The longest path is calculated by first performing a CPM ‘forward pass’ to determine driving relationships and the project’s latest, early finish date. The activity (or activities) with the latest, early finish dates are then identified and all predecessor driving relationships traced back to the project start date. These activities constitute the project's longest path. The longest path depends upon relationships driving the timing of activity starts, thus use of constraints and resource leveling can interrupt and invalidate longest path analysis. Use of interruptible activities can also result in false longest path indications. For complete accuracy, longest path analysis should take place absent of constraints, resource leveling, and/or interruptible activities.

Longest Path Value

AACEi : A numerical calculation assigned to every activity in a CPM schedule that determines how near that activity is to being considered a member of the longest path. It is expressed in the same time units as the total float for that activity. A longest path float value of zero would indicate that the activity is on the longest path.

Look-Ahead Schedule

AACEi : A short period (two or three weeks) schedule, typically presented in bar chart format showing what needs to be accomplished to keep the project on schedule. Look-ahead schedules are often discussed at weekly project meetings to coordinate and control the following week’s work.

Loop/Logic Loop

AACEi : A circular sequence of dependency links between activities in a network. Creates an error in network logic resulting from successor activities also being a predecessor to the activity in question. Also known as circular logic. Logic loops can be very frustrating and time consuming to eliminate in complex network schedules.

Loss Of Productivity/Efficiency

AACEi : Syn.: Inefficiency.

Lost Productivity

AACEi :

Syn.: Inefficiency. (April)

Lot Batch

AACEi : A definite quantity of some product manufactured under conditions of production that are considered uniform.

Lot Size

AACEi : The number of units in the lot.

Lowest Management Level (LML)

AACEi : A term used in the dynamic baseline model hierarchy in which a project may be positioned and is the control point for a project. It represents the level at which the project must be managed on an on-going basis in order to deal effectively with the dynamic issues below the LSB.a) For a production project the LML is the supervisor level. A supervisor is the lowest management level with sufficient capacity and authority to deal effectively with a dynamic procedures baseline.

b) For a construction project the LML is the manager level. A manager is the lowest management level with sufficient capacity and authority to deal effectively with a dynamic construction baseline.

c) For a development project the LML is the director level. A director is the lowest management level with sufficient capacity and authority to deal effectively with a dynamic requirements baseline.

d) For an evolution project the LML is the owner level. The project owner is the lowest management level with sufficient capacity and authority to deal effectively with a dynamic objectives baseline.

Lowest Static Baseline (LSB)

AACEi : Using the flow down of organizational objectives from corporate values to project objectives to functional requirements to product design, the LSB is the lowest level that is relatively fixed for a given project in the hierarchy and is therefore readily "baseline-able". A term used in the dynamic baseline model hierarchy in which a project may be positioned. A project can only be expected to meet its LSB, and therefore success or failure should only realistically be measured relative to that baseline.

Lump-Sum

AACEi :

The complete in-place cost of a system, a subsystem, a particular item, or an entire project.

Maintenance And Repair Cost

AACEi : The total of labor, material, and other related costs incurred in conducting corrective and preventative maintenance and repair on a facility, on its systems and components, or on both. Maintenance does not usually include those items that cannot be expended within the year purchased. Such items must be considered as fixed capital. [2]

Major Components

AACEi : Part of the aggregation structure of a price index (e.g., a CPI can be subdivided into major components of food, housing, clothing, transportation, health and personal care, recreation, reading and education, tobacco and alcohol).

Major Milestone

AACEi : The most significant milestones in the project's life or duration, representing major accomplishments or decision points; usually associated with the first breakdown level in the work breakdown structure. [4]

Major System Acquisition Projects

AACEi : Those projects that are directed at and are critical to fulfilling a mission, entail the allocation of relatively large resources, and warrant special management attention.

Majority

PMI : Support from more than 50 percent of the members of the group.

Make-Or-Buy Analysis

PMI : The process of gathering and organizing data about product requirements and analyzing them against available alternatives including the purchase or internal manufacture of the product.

Make-Or-Buy Decisions

PMI : Decisions made regarding the external purchase or internal manufacture of a product.

Manage Communication

PMI : The process of creating, collecting, distributing, storing, retrieving, and the ultimate disposition of project information in accordance with the communications management plan.

Manage Project Team

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

Manage Stakeholder Engagement

PMI : The process of communicating and working with stakeholders to meet their needs/expectations, address issues as they occur, and foster appropriate stakeholder engagement in project activities throughout the project life cycle.

Managed

APM : The fourth level of a typical capability maturity model where metrics are gathered on process performance and used to control future performance.

Management By Exception

AACEi : Issuance of management reports only when action is called for. Helps avoid wading through voluminous reports where progress is going according to plan. However, system may require subjective judgment by someone who is not as well placed to do so as the manager himself. Exception reports tend to be harbingers of bad news, lacking good news and hence seen as detrimental rather than beneficial.

Management By Methods (MBM)

AACEi : Level 2 of a five level dynamic baseline model in which those proficient in MBR build on their knowledge base, level 1 (MBR) with customized project management processes and procedures. At this level practitioners get acquainted with, and become proficient in the use of, standard project management tools, frameworks and templates. The work breakdown structure, the responsibility assignment matrix, scheduling techniques, cost/schedule performance control and monitoring and configuration management are the hallmarks of level 2 learning. At this level, an employee has the capacity to use the tools to analyze project performance data and to make recommendations for corrective actions accordingly.

Management By Objectives (MBO)

AACEi : A management theory that calls for managing people based on documented work statements mutually agreed to by manager and subordinate. Progress on these work statements is periodically reviewed, and in a proper implementation, compensation is tied to MBO performance. Level 3 of a five level dynamic baseline model structure in which establishing and maintaining the project objectives as the reference point and managing and manipulating the methods at level 2 (MBM) and the rules at level 1 (MBR) as appropriate to that horizon.

Management By Politics (MBP)

AACEi : A potential level 5 of a five level dynamic baseline model structure. This is an extrapolation of the model, which would lead to a management approach where the essential values of the corporation are a dynamic baseline. This would entail dealing with some higher order issues wherein project managers would contend with harmonizing various corporate agendas in a politicized environment. A level 5 MBP would be dealing with an intangible product with a focus on governance issues. The LML at level 5 would be in essence a politician.

Management By Rules (MBR)

AACEi : Level 1 of a five level dynamic baseline model structure at which behavior is the first level of learning. MBR is indoctrination into the official operations for an organization. Employees are encouraged to develop a strong sense of affiliation with the organization’s institutional framework rules, regulations, policies, procedures, directives, laws, acts, etc. At this level of learning, an employee is taught how to apply existing rules to conduct business, and on occasions, to interpret rules in some new way for the purpose of addressing project issues not readily covered in the existing framework.

Management By Values (MBV)

AACEi : Level 4 of a five level dynamic baseline model structure in which an employee has the capacity to manipulate and evolve the objective throughout the project life cycle as appropriate to the overarching corporate values. MBV practitioners are expected to revisit and adjust project objectives with their attention focused on the corporate values horizon. In turn, this requires the capacity to manipulate the tools and the rules with the knowledge and experience to understand the implications as per level 3 (MBO).

Management By Walking Around (MBWA)

AACEi : Part of the Hewlett Packard legacy and popularized by management theorist Tom Peters. MBWA works on the assumption that a manager must circulate to fully understand the team's performance and problems. The best managers, according to Peters, spend 10 percent of their time in their offices, and 90 percent of their time talking and working with their people, their customers, and their suppliers.

Management control point

AACEi : A point in the project life cycle, usually separating major phases or stages, at which senior management has the opportunity to confirm or deny continuation into the next phase or stage.

Management Control Systems

AACEi : The systems (e.g., planning, scheduling, budgeting, estimating, work authorization, cost accumulation, performance measurement, etc) used by owners, engineers, architects, and contractors to plan and control the cost and scheduling of work. [4]

Management Plan

APM : A plan that sets out the policies and principles that will be applied to the management of some aspects of a project, programme or portfolio. Examples include a risk management plan, a communication management plan and a quality management plan

Management Reserve

AACEi :(1) An amount added to an estimate to allow for discretionary management purposes outside of the defined scope of the project, as otherwise estimated. May include amounts that are within the defined scope, but for which management does not want to fund as contingency or that cannot be effectively managed using contingency. Syn.: Reserve; Reserve Allowance.

(2) In earned value management according to the ANSI EIA 748 standard, an amount held outside the performance measurement baseline to handle unknown contingency at the total program level. Management reserve has no scope, is not identified to specific risks, and is not time-phased. It is typically not estimated or negotiated and is created in the budget development process.

APM : A sum of money held as an overall contingency to cover the cost impact of some unexpected event.

PMI : An amount of the project budget withheld for management control purposes. These are budgets reserved for unforeseen work that is within scope of the project. The management reserve is not included in the performance measurement baseline (PMB).

PCI : A portion of the Contract Budget Base that is held for management control purposes by the contractor to cover the expense of unanticipated programme requirements. It is not a part of the Performance Measurement Baseline. Another term for Management Reserve is Contingency.

Management Schedule Reserve (MSR)

AACEi : A designated amount of time to account for risks that cannot be quantified and/or managed with contingency, or to allow time for management discretionary purposes and the use of management reserve generally requires a formal baseline change. Management reserves are generally not related to schedule contingency.

Management Science

AACEi : The application of methods and procedures including sophisticated mathematical techniques to facilitate decision making in the handling, direction, and control of projects and manufacturing operations.

Management Skills

PMI : The ability to plan, organize, direct, and control individuals or groups of people to achieve specific goals.

Mandatory Dependency

AACEi : Dependency inherent in the nature of the work being done, such as a physical limitation. Used in hard logic. [8]

PMI : A relationship that is contractually required or inherent in the nature of the work.

Manpower Loading Chart

AACEi : Histogram showing the allocation of labor by period.

Manpower Planning

AACEi : Process of forecasting an organization's manpower needs over time, in terms of numbers and skills, and obtaining the human resources required to match an organization’s needs.

Manufacturing Cost

AACEi : The total of variable and fixed or direct and indirect costs chargeable to the production of a given product, usually expressed in cents or dollars per unit of production, or dollars per year. Transportation and distribution costs, and research, development, selling and corporate administrative expenses are usually excluded.

Mapi Method

AACEi :(1) A procedure for replacement analysis sponsored by the Machinery and Allied Products Institute.

(2) A method of capital investment analysis which has been formulated by the Machinery and Allied Products Institute. This method uses a fixed format and provides charts and graphs to facilitate calculations. A prominent feature of this method is that it explicitly includes obsolescence.

Marginal Analysis

AACEi : An economic concept concerned with those incremental elements of costs and revenue which are associated directly with a specific course of action, normally using available current costs and revenue as a base and usually independent of traditional accounting allocation procedures.

Marginal Cost (Benefit)

AACEi : Syn.: Incremental Cost (Benefit).

Mark-Up

AACEi : As variously used in construction estimating, includes such percentage applications as general overhead, profit, and other indirect costs. When mark-up is applied to the bottom of a bid sheet for a particular item, system, or other construction price, any or all of the above items (or more) may be included, depending on local practice.

Market Value

AACEi : The monetary price upon which a willing buyer and a willing seller in a free market will agree to exchange ownership, both parties knowing all the material facts but neither being compelled to act. The market value fluctuates with the degree of willingness of the buyer and seller and with the conditions of the sale. The use of the term market suggests the idea of barter. When numerous sales occur on the market, the result is to establish fairly definite market prices as the basis of exchanges.

Marketing

AACEi : The broad range of activities concerned primarily with the determination of consumer or user demands or desires, both existing and potential; the satisfaction of these demands or desires through innovation or modification; and the building of buyer awareness of product or service availability through sales and advertising efforts.

Marketing Cost Analysis

AACEi : The study and evaluation of the relative profitability or costs of different marketing operations in terms of customer, marketing units, commodities, territories, or marketing activities. Typical tools include cost accounting.

Marketing Research

AACEi : The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services. Such research may be undertaken by impartial agencies or by business firms, or their agents. Marketing research is an inclusive term which includes various subsidiary types:

PMI:

The process of gathering information at conferences, online reviews, and a variety of sources to identify market capabilities.

Marketing Research, Consumer Research

AACEi : Of which motivation research is a type which is concerned chiefly with the discovery and analysis of consumer attitudes, reactions, and preferences.

Marketing Research, Market Analysis

AACEi : Of which product potential is a type, which is the study of size, location, nature, and characteristics of markets.

Marketing Research, Sales Analysis (Or Research)

AACEi : Which is the systematic study and comparison of sales (or consumption) data along the lines of market areas, organizational units, products or product groups, customers or customer groups, or such other units as may be useful. Typical analyses would include:

a) Promotion Evaluation;

b) Quota Assignment; and

c) Territory Assignment.

Master Production Schedule (MPS)

AACEi : In manufacturing, for selected items, a statement of what the company expects to manufacture. It is the anticipated build schedule for those selected items assigned to the master scheduler. The master scheduler maintains this schedule and, in turn, it becomes a set of planning numbers which "drives" MRP. It represents what the company plans to produce expressed in specific configurations, quantities, and dates. The MPS should not be confused with a sales forecast, which represents a statement of demand. The master production schedule must take forecast plus other important considerations (backlog, availability of material, availability of capacity, management policy and goals, etc.) into account prior to determining the best manufacturing strategy.

Master Schedule

AACEi : A consolidated schedule incorporating multiple, related projects or parts of a project so that they may be monitored and controlled as a unit.

PMI : A summary-level project schedule that identifies the major deliverables and work breakdown structure components and key schedule milestones.

Master Schedule Item

AACEi : In manufacturing, a part number selected to be planned by the master scheduler. The item would be deemed critical in terms of its impact on lower level components and/or resources such as skilled labor, key machines, dollars, etc. A master schedule item may be an end item, a component, a pseudo number, or a planning bill of material.

Master Scheduler

AACEi : The person who manages the master project or production schedule.

Material

PMI : The aggregate of things used by an organization in any undertaking, such as equipment, apparatus, tools, machinery, gear, material, and supplies.

Material Cost

AACEi : The cost of everything of a substantial nature that is essential to the construction or operation of a facility, both of a direct or indirect nature. Generally includes all manufactured equipment as a basic part.

Material Difference

AACEi : A change that is important to the performance of the work or that will have a measurable influence or effect on the time, cost of, or procedures for the work under the contract.

Material Requirements Planning (MRP)

AACEi : A system which uses bills of material, inventory and open order data, and master production schedule information to calculate requirements for materials. It makes recommendations to release replenishment orders for material. Further, since it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Syn.: MRP.

Matrix Diagram

PMI : A quality management and control tool used to perform data analysis within the organizational structure created in the matrix. The matrix diagram seeks to show the strength of relationships between factors, causes, and objectives that exist between the rows and columns that form the matrix.

Matrix Organization

PMI : Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of persons assigned to the project.

Maturity Model

APM : An organisational model that describes a number of evolutionary stages through which an organisation improves its management processes.

Maximum Out-Of-Pocket Cash

AACEi : The highest year-end negative cash balance during project life.

Means And Methods

AACEi : Syn.: Method Of Performance.

Mechanical Completion

AACEi : Unit is essentially complete for startup operation and test run. All major work is completed. Minor work not interfering with operation may not be completed, such as punch list and minor touchup work. Acceptance letter will have been submitted to the client. Precise definition may vary and is usually a contractual provision. Client custody may commence. It is important that this definition be clearly defined in the contract.

Merge Bias

AACEi : In PERT and other deterministic schedule analysis methods, a bias that is introduced because the method does not recognize that parallel slack paths can contribute to risk at the merge points

Merge Node

AACEi : In a network diagram, a node at which two or more activities precede the start of subsequent activity.

Merit Shop

AACEi : Syn.: Open Shop.

Metalanguage (Risk)

AACEi : In risk identification, a structured description of cause, risk and effect. For example: “Due to , there is a threat/opportunity that may occur, which may lead to .”

Method Of Measurement

AACEi : The procedure, usually standardized, according to which the quantities of work expressed in a bill of quantities (BOQ) shall be measured.

Method Of Performance

AACEi : Manner in which the specified product or objective is accomplished, which is left to the discretion of the contractor unless otherwise provided in the contract. If the owner orders the contractor to modify the construction procedure, this constitutes a change in method. If the imposition of this modification results in additional cost to the contractor, the contractor may be entitled to recovery under the changes clause. Syn.: Means And Methods.

Methodology

PMI : A system of practices, techniques, procedures, and rules used by those who work in a discipline.

Micro-Scheduling

AACEi : Scheduling of activities with a duration less than one day (in minutes, hours or fractional days).

Milestone

AACEi : A zero duration activity or event which is used to denote a particular point in time for reference or measurement. Milestones are not true activities in that they do not consume time or resources. Often used for management summary reporting. A milestone should be capable of validation by meeting all of the items prescribed in a defining checklist as agreed with the stakeholders.

APM : A key event selected for its importance in the schedule.

PMI : A significant point or event in a project, program, or portfolio.

Milestone Dictionary

AACEi : A description of exactly what is required to satisfy each milestone.

Milestone Flag

AACEi : A numeric code that may be entered on an event to flag the event as a milestone.

Milestone Level

AACEi : The level of management at which a particular event is considered to be a key event or milestone.

Milestone List

PMI : A list identifying all project milestones and normally indicates whether the milestone is mandatory or optional.

Milestone Plan

AACEi : A plan containing only milestones that highlight key activities or events of the project.

Milestone Report

AACEi : An output report at a specified level showing the latest allowable date, expected date, schedule completion date, and the slack for the successor event contained on each activity or event name flagged as a milestone at the level specified.

Milestone Schedule

AACEi : A schedule comprised of key events or milestones selected as a result of coordination between the client's and the contractor's project management. These events are generally critical accomplishments planned at time intervals throughout the project and used as a basis to monitor overall project performance. The format may be either network or bar chart and may contain minimal detail at a highly summarized level.

PMI : A summary-level schedule that identifies the major schedule milestones.

Milestone, Payment

AACEi : Those milestones on which payments fall due.

Misrepresentation

AACEi : Inaccurate factual information furnished by either party to a contract, even if done unintentionally. Syn.: Superior Knowledge.

Mitigation

AACEi : A risk response strategy for threats intended to reduce consequences and/or the probability of occurrence. In contracting, refers to the affirmative obligation of each party to a contract to take action to decrease, lessen or minimize damages (time and money) to the other party.

Mitigation Of Damages

AACEi : To take all possible measures to avoid damage and delay and, if not avoidable, to reduce or lessen the extra costs incurred due to occurrence of the event.

Mobilization

APM : Ensures that the project, programme or portfolio has appropriate organisational and technical infrastructures and mechanisms for putting resources in place.

Model Pricing

AACEI : The techniques of using verbal, symbolic, or analog models to depict cost relationships, and the form which they take. Mathematics and computers are basic analytical tools for model pricing.

Modeling

AACEi : Creation of a physical representation or mathematical description of an object, system or problem that reflects the functions or characteristics of the item involved. Model building may be viewed as both a science and an art. Cost estimate and CPM schedule development should be considered modeling practices and not exact representations of future costs, progress and outcomes.

Modification, Bilateral

AACEi : An agreement negotiated by and entered into by both parties for a modification of the existing contract terms of a mutually agreed time or price adjustment.

Modification, Unilateral

AACEi : A modification to the contract issued by the owner without the agreement of the contractor as to the time or price adjustment.

Monetary Equivalents

AACEi : The expression or valuation of various objectives and requirements of the enterprise (e.g., environmental, safety, etc.) in terms of monetary units to provide a single measure to be used in decision modeling.

Monitor and Control Project Work

PMI : The process of tracking, reviewing, and reporting the progress to meet the performance objectives defined in the project management plan.

Monitoring

AACEi : Periodic gathering, validating and analyzing various data on contract status to determine any existing or potential problems. Usually one accomplishes this through use of the data provided in contractor reports on schedule, labor, cost and technical status to measure progress against the established baselines for each of these report areas. However, when deemed necessary, on-site inspection and validation and other methods can be employed.

PMI : Collect project performance data with respect to a plan, produce performance measures, and report and disseminate performance information.

Monitoring And Controlling Process Group

PMI : Those processes required to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes.

Monte Carlo Simulation

AACEi : A computer sampling technique based on the use of “pseudo-random numbers” that selects samples for a simulation of a range of possible outcomes.

APM:

A technique used to estimate the likely range of outcomes from a complex process by simulating the process under randomly selected conditions a large number of times.

PMI:

A process which generates hundreds or thousands of probable performance outcomes based on probability distributions for cost and schedule on individual tasks. The outcomes are then used to generate a probability distribution for the project as a whole.

Month-To-Month Price Index

AACEi : A price index for a given month with the preceding month as the base period.

Monthly Guide Schedule

AACEi : A detailed two-month schedule used to detail the sequence of activities in an area for analysis or to plan work assignments. This schedule is usually prepared on an "as needed" basis or within a critical area. Syn.: Short-Term Activities.

Most Likely Time

AACEi : The most realistic time estimate for completing an activity under normal conditions. Used in probabilistic scheduling.

PMI:

An estimate of the most probable activity duration that takes into account all of the known variables that could affect performance.

Most Likely Value

AACEi : In risk analysis, usually refers to the mode of a distribution. If the distribution is multimodal, uniform or complex, this may express the estimator’s judgment.

Moving Average

AACEi : Smoothing a time series by replacing a value with the mean of itself and adjacent values.

MRP

AACEi : Syn.: Material Requirements Planning (MRP).

MRP II

AACEi : Syn.: Manufacturing Resource Planning (MRP II)

Multi-Criteria Decision Analysis

PMI :"This technique utilizes a decision matrix to provide a systematic analytical approach for establishing criteria, such as risk levels, uncertainty, and valuation, to evaluate and rank many ideas."

Multi-Project Scheduling

AACEi : Technique used to consolidate multiple projects’ CPM schedules into a master schedule. The technique is used to monitor and control an overall program.

Multiple Finish Network

AACEi : A network that has more than one finish activity or finish event.

Multiple Start Network

AACEi : A network that has more than one start activity or event.

Multiple Straight-Line Depreciation Method

AACEi : A method of depreciation accounting in which two or more straight line rates are used. This method permits a predetermined portion of the asset to be written off in a fixed number of years. One common practice is to employ a straight line rate which will write off 3/4 of the cost in the first half of the anticipated service life; with a second straight line rate to write off the remaining 1/4 in the remaining half life.

Must Finish

AACEi : Date an activity must finish by. It is a constraint date.

Must Finish By Date

AACEi : Date used by scheduling software to calculate the final completion status of the project. Without the imposition of a must finish by date, the end of the project would float out to its natural completion.

Must Start

AACEi : Date an activity must start by. It is a constraint date.

Near-Critical Activity

AACEi : A schedule activity with minimal total float as compared with the critical path(s), and for which there is some risk of delay that will cause the near-critical activity to become critical. The amount of float that management perceives to be near-critical is project-dependent and open to professional judgment.

PMI:

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.

Near-Critical Path

AACEi : An activity or set of activities that are almost critical or are at risk of becoming critical if delayed past their expected completion times. Inclusion in this list may be made by using total float, longest path value, or multiple critical paths. The value associated with these near-critical path activities typically are approximately one half of the reporting period’s duration or less.

Near-Term Activities

AACEi : Activities that are planned to begin, be in process, or be completed during a relatively short period, such as 30, 60, or 90 days.

Negative Float

AACEi :(1) The amount of time by which the early date of an activity exceeds its late date. It is how far behind an activity is from its planned early start/finish date.

(2) Time by which the duration of an activity or path has to be reduced in order to permit a limiting imposed date to be achieved.

Negative Lag

AACEi : A lag that has a negative value. In general, negative lags should be avoided.

Negligence

AACEi : Failure to exercise that degree of care in the conduct of professional duties that should be exercised by the average, prudent professional, practicing in the same community under similar circumstances. Under this concept, an architect/engineer is not liable for errors of judgment, but only for a breach of duty to exercise care and skill.

Negotiated Settlements

AACEi : The process of reaching final equitable settlement of all outstanding issues, claims, and disputes through negotiation.

Negotiation

APM : A discussion between two or more parties aimed at reaching agreement.

PMI:

The process and activities to resolving disputes through consultations between involved parties.

Net Area

AACEi : When used in building construction, it is the area, exclusive of encroachments by partitions, mechanical space, etc, which is available for circulation or for any other functional use within a project.

Net Benefits (Savings)

AACEi : The difference between the benefits and the costs.

Net Present Value

AACEi : Syn.: Present Value; Present Worth.

Net Profit, Percent Of Sales

AACEi : The ratio of annual profits to total sales for a representative year of capacity operations. An incomplete measure of profitability, but a useful guidepost for comparing similar products and companies.

Net Purchases (Concept Of)

AACEi : According to this concept, any proceeds from the sale in the reference year of a used commodity belongs to a given elementary group and are subtracted from the expenditure reported on commodities in that elementary group.

Network

AACEi : The series of activities required to complete a project. Typically includes a logic diagram of a project consisting of the activities and events that must be accomplished to reach the objectives, showing their required sequence of accomplishments and interdependencies. Syn.: Logic Network.

PMI:

A graphical representation of the logical relationships among the project schedule activities.

Network Analysis

AACEi : Process of identifying early and late start and finish dates for activities by use of a forward and backward pass through the CPM model. Syn.: Project Network Analysis.

APM:

A collective term for the different ways in which a network diagram may be analysed including for example, critical path  analysis, program evaluation and review technique and critical chain.

PMI:

The technique of identifying early and late start dates, as well as early and late finish dates, for the uncompleted portions of project schedule activities.

Network Diagram

AACEi : Syn.: Logic Diagram; Logic Network Diagram.

APM:

A model of activities and their dependencies comprising nodes and links.

Network Float

AACEi : The total float values that exist on the various chains of activities within the CPM network. Distinguish from project float.

Network Interface

AACEi : Activity or event common to two or more network diagrams.

Network Logic

AACEi : The collection of activity dependencies that make up a project network diagram.

PMI:

The collection of schedule activity dependencies that makes up a project schedule network diagram.

Network Open End

AACEi : A condition where at least one CPM network activity other than the first has no predecessor or other than the last has no successor.

Network Path

AACEi : Any continuous series of connected activities in a project network diagram.

PMI:

Any continuous series of schedule activities connected with logical relationships in a project schedule network diagram.

Network Planning

AACEi : Goods whose serviceability is generally limited to a period of less than three years (such as perishable goods and semi-durable goods).

Network Scheduling

AACEi : Method of planning and scheduling a project where activities are arranged based on predecessor and successor relationships. Network calculations determine when activities may be performed and which activities are critical or have float.

Networking

PMI : Establishing connections and relationships with other people from the same or other organizations.

Node

AACEi : In an activity on arrow (AOA) schedule, the event marking the start (I-node) or finish (J-node) of an activity. Nodes are typically represented graphically as a circle.

PMI : One of the defining points of a schedule network; a junction point joined to some or all of the other dependency lines.

Nominal Discount Rate

AACEi : The rate of interest reflecting the time value of money stemming both from inflation and the real earning power of money over time. This is the discount rate used in discount formulas or in selecting discount factors when future benefits and costs are expressed in current dollars. [1]

Nominal Group Technique

PMI : A technique that enhances brainstorming with a voting process used to rank the most useful ideas for further brainstorming or for prioritization.

Non-Cash

AACEi : A term frequently used for tangible commodities to be used from inventory and not replaced.

Non-Critical Activities Or Work Items

AACEi : Activities or work items that have positive float. i.e. within defined limits, can take longer to complete than planned without affecting total project duration.

Non-Durable Goods

AACEi : Goods whose serviceability is generally limited to a period of less than three years (such as perishable goods and semi-durable goods).

Non-Excusable Delays

AACEi :(1) Delays that are caused by the contractor's or its subcontractor's actions or inactions. Consequently, the contractor is not entitled to a time extension or delay damages. On the other hand, owner may be entitled to liquidated or other damages.

(2) A non-excusable delay is one for which the party assumes the risk of the cost and consequences, not only for itself but possibly for the resulting impact on others as well. The concept of non-excusability is used primarily as a defense to requests for time extensions or claims for delay. [10]

Non-Exempt Employees

AACEi : Employees not exempt from overtime compensation by federal wage and hours guidelines.

Non-Splittable Activity

AACEi : An activity that, once started, has to be completed to plan without interruption. Resources should not be diverted from a non-splittable activity.

Non-Work Unit

AACEi : A calendar-specified time unit during which work will not be scheduled.

Nonconformance Work

PMI : In the cost of quality framework, nonconformance work is done to deal with the consequences of errors and failures in doing activities correctly on the first attempt. In efficient quality management systems, the amount of nonconformance work will approach zero.

Normal Weather

AACEi : Weather that is expected for a period of time based upon the historical weather conditions of a particular locale. Normal weather includes weather that is and is not adverse as would be expected for a particular location.

Normalization

AACEi : In database management, a process used to modify data so that it conforms to a standard or norm (e.g., conform to a common basis in time, currency, location, etc.)

Not Earlier Than

AACEi : A restriction on an activity that indicates that it may not start or end earlier than a specified date.

Not Later Than

AACEi : A restriction on an activity that indicates that it may not start or end later than a specified date.

Notice Of Award

AACEi : The written notice of acceptance of the bid by the owner to a bidder stating that upon compliance by the bidder with the conditions precedent enumerated therein, within the time specified, the owner will sign and deliver the agreement.

Notice To Proceed (NTP)

AACEi : Formal notification to a contractor or supplier, requesting the start of the work or a defined phase of work. May be in the form of a limited NTP (LNTP), which authorizes only limited areas of a program or project to begin within stated boundaries in anticipation of a subsequent NTP.

Objective

AACEi : Something one wants to get done. A specific statement of quality, quantity and time values. In contract/procurement management, to define the method to follow and the service to be contracted or resource to be procured for the performance of work. In time management, a predetermined result, toward which effort is directed.

APM:

Predetermined results towards which effort is directed. Objectives may be defined in terms of outputs, outcomes and/or benefits.

PMI:

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

Objective Event

AACEi : An event that signifies the completion of a path through the network. A network may have more than one objective event.

Observations

PMI : A technique that provides a direct way of viewing individuals in their environment performing their jobs or tasks and carrying out processes.

Obsolescence

AACEi :(1) The condition of being out of date. A loss of value occasioned by new developments which place the older property at a competitive disadvantage. A factor in depreciation.

(2) A decrease in the value of an asset brought about by the development of new and more economical methods, processes, and/or machinery.

(3) The loss of usefulness or worth of a product or facility as a result of the appearance of better and/or more economical products, methods or facilities.

Occurred Risk

AACEi : A risk event or condition that was identified during risk assessment and that actually occurred.

Offsites

AACEi : General facilities outside the battery limits of all process units, such as field storage, service facilities, utilities, main electric substation, administrative buildings, rail tracks and storage yard, etc.

Omission

AACEi : Any part of a system, including design, construction and fabrication, that has been left out, resulting in a deviation. An omission requires an evaluation to determine what corrective action is necessary.

On-Stream Factor

AACEi : The ratio of actual operating days to calendar days per year.

Open Shop

AACEi : An employment or project condition where either union or non-union contractors or individuals may be working. Open shop implies that the owner or prime contractor has no union agreement with workers. Syn.: Merit Shop.

Open-Ended Activities

AACEi : CPM activities that do not have a predecessor or a successor may be said to be “open-ended.” Aside from the one activity starting the CPM network and the last activity in that network, open-ended activities “break” the logical network and may not exhibit correct float calculations.

Operating Cost

AACEi : The expenses incurred during the normal operation of a facility, or component, including labor, materials, utilities, and other related costs. Includes all fuel, lubricants, and normally scheduled part changes in order to keep a subsystem, system, particular item, or entire project functioning. Operating costs may also include general building maintenance, cleaning services, taxes, and similar items.

Operation

AACEi : Ongoing endeavor, or activities that utilize strategic assets for a defined function or purpose.

Operation Management

APM : The management of those activities that create the core services or products provided by an organisation.

Operation Phase

AACEi : Period when the completed deliverable is used and maintained in service for its intended purpose. The operation phase is part of the asset or product life cycle as distinct from the project life cycle.

Operations Research (OR)

AACEi : Quantitative analysis of industrial and administrative operations with intent to derive an integrated understanding of the factors controlling operational systems and in view of supplying management with an objective basis to make decisions. OR frequently involves representing the operation or the system with a mathematical model.

Opportunity

AACEi : Uncertain event that could improve the results, or improve the probability that the desired outcome will happen.

APM:

A positive risk event that, if it occurs, will have a beneficial effect on achievement of objectives.

PMI:

A risk that would have a positive effect on one or more project objectives.

Opportunity Cost Of Capital

AACEi : The rate of return available on the next best available investment of comparable risk. [1]

Opportunity Costs

AACEi : The value of a lost opportunity of an alternative that is not selected.

Optimising

APM : The fifth and last level of a typical maturity model where continuous process improvement is enabled by quantitative feedback from the process and from piloting innovative ideas and technologies.

Optimistic Duration

AACEi : The shortest of the three durations in the three duration technique or PERT.

Optimistic Time Estimate

AACEi : The minimum time in which the activity can be completed if everything goes exceptionally well.

PMI:

An estimate of the shortest activity duration that takes into account all of the known variables that could affect performance.

Optimum Plant Size

AACEi : The plant capacity which represents the best balance between the economics of size and the cost of carrying excess capacity during the initial years of sales.

Order Of Magnitude Estimate

AACEi : An estimate prepared based on little or no project definition.

Organization

APM : The management structure applicable to the project, programme or portfolio and the organisational environment in which it operates.

Organization Breakdown Structure (OBS)

AACEi : A hierarchical relationship of the organization, including subcontractors, responsible for managing a designated scope of work within the work breakdown structure (WBS).

PMI:

A hierarchical representation of the project organization that illustrates the relationship between project activities and the organizational units that will perform those activities."

PCI:

A hierarchical structure designed to pinpoint the area of an organisation responsible for each part of an investment.

Organizational Codes

AACEi : Numerical or alphabetized characters that the user specifies for the system to associate with a particular activity for sorting purposes.

Organizational Process Assets

PMI : Plans, processes, policies, procedures, and knowledge bases that are specific to and used by the performing organization.

Organizational Project Management Maturity

PMI : The level of an organization’s ability to deliver the desired strategic outcomes in a predictable, controllable, and reliable manner."

Original Duration

AACEi : First estimate of work time/duration needed to execute an activity. The most common units of time are hours, days and weeks.

Out-Of-Sequence Progress

AACEi : Progress that has been reported even though activities that have been deemed predecessors in project logic have not been completed. Scheduling software may include a “switch” to turn on or off how the calculations deal with out-of-sequence progress.

Outcome

APM : The changed circumstances or behaviour that results from the use of an output.

Outlier

AACEi : A value on the outer range of all values for a sample or population.

Output

AACEi : Goods, services, or other results created by a process.

APM:

The tangible or intangible product typically delivered by a project.

PMI:

A product, result, or service generated by a process. May be an input to a successor process.

Over Target Baseline (OTB)

AACEi : In earned value management according to the ANSI EIA 748 standard, under unusual circumstances a performance measurement baseline (PMB) may no longer be reasonable for performance measurement. Typically this is when there is a significant difference between estimate at completion (EAC) and budget at completion (BAC) at the total project level. An OTB is when the estimate to complete (ETC) is planned for the future as the baseline, resulting in a performance measurement baseline (PMB) value that may exceed the contract budget base (CBB). An OTB may be in conjunction with an over target schedule (OTS) and/or a single point adjustment.

Over Target Schedule (OTS)

AACEi : In earned value management according to the ANSI EIA 748 standard, under unusual circumstances, a performance measurement baseline (PMB) may no longer be reasonable for performance measurement. Typically this is when there is a significant difference between the forecast finish and the baseline finish at the total project level. An OTS is when the schedule is baselined to a date that exceeds the contract requirements.

Overhaul

AACEi : The distance in excess of that given as the stated haul distance to transport excavated material.

Overhead

AACEi : A cost or expense inherent in the performing of an operation, (e.g., engineering, construction, operating, or manufacturing) which cannot be charged to or identified with a part of the work, product or asset and, therefore, must be allocated on some arbitrary base believed to be equitable, or handled as a business expense independent of the volume of production.

Overload

AACEi : In planning and scheduling and resource planning, an amount by which the resource required exceeds its resource limit.

Overplan (Underplan)

AACEi : The planned cost to date minus the latest revised estimate of cost to date. When planned cost exceeds latest revised estimate, a projected underplan condition exists. When latest revised estimate exceeds planned cost, a projected overplan condition exists.

Overrun (Underrun)

AACEi : The actual costs for the work performed to date minus the estimate or value for that same work. If the actual costs are greater, it is an overrun; if the actual costs are less, it is an underrun.

Owner

AACEi : Entity, public body or authority, corporation, association, firm or person with whom the contractor has entered into the agreement and for whom the work is to be provided.

Owner Furnished Fixtures & Equipment (OFFE)

AACEi : That items the responsibility of the owner to furnish that become incorporated into the contractor’s work. The timing, interface and quality of OFFE are often the subject of dispute, delaying and affecting the contractor’s work.

P3 Assurance

AACEi : The process of providing confidence to stakeholders that projects, programmes and portfolios will achieve their scope, time, cost and quality objectives, and realise their benefits.

P3 Management

APM : The collective term for project, programme and portfolio management.

P3 Management Team

APM : A collective term for those involved in the sponsorship and day-to-day management of a project, programme or portfolio.

Parallel Activities

AACEi : Two or more activities than can be done at the same time. Allows a project to be completed faster than if activities were arranged sequentially.

Parallel Lifecycle

APM : A life cycle where phases are conducted in parallel

Parametric Estimate

AACEi : In estimating practice, describes estimating algorithms or cost estimating relationships that are highly probabilistic in nature (i.e., the parameters or quantification inputs to the algorithm tend to be abstractions of the scope). Typical parametric algorithms include, but are not limited to, factoring techniques, gross unit costs, and cost models (i.e., algorithms intended to replicate the cost performance of a process of system). Parametric estimates can be as accurate as definitive estimates.

APM : An estimating technique that uses a statistical relationship between historic data and other variables to calculate an estimate.

PMI : An estimating technique in which an algorithm is used to calculate cost or duration based on historical data and project parameters.

Parametric Risk Analysis

AACEi : Methods using parametric estimating wherein the input parameters are risk drivers and the outputs are a quantification of risk. Typically applied for systemic risks.

Parent

AACEi : A higher-level element in a hierarchical structure.

Parent Activity

AACEi : Task within the work breakdown structure that embodies several subordinate child tasks.

Pareto Diagram

AACEi : A histogram, arranged by frequency of occurrence, which shows how many results were generated by each identified cause.

PMI : A histogram, ordered by frequency of occurrence, that shows how many results were generated by each identified cause.

Pareto’s Law

AACEi : Syn.: Eighty-Twenty Rule.

Partial Utilization

AACEi : Placing a portion of the work in service for the purpose for which it is intended (or a related purpose) before reaching substantial completion for all the work.

Path

AACEi : A continuous chain of activities within a network.

Path Convergence

AACEi : A condition where multiple CPM activities precede a shared event.

PMI : A relationship in which a schedule activity has more than one predecessor.

Path Divergence

AACEi : A condition where multiple CPM activities succeed a shared event.

PMI : A relationship in which a schedule activity has more than one successor.

Path Float

AACEi : Syn.: Float; Slack.

Payback Method

AACEi : A technique of economic evaluation that determines the time required for the cumulative benefits from an investment to recover the investment cost and other accrued costs.

Payment Systems

PMI : The system used to provide and track supplier’s invoices and payments for services and products.

Payoff (Payback) Period

AACEi : Syn.: Payout Time.

Payout Time

AACEi : The time required to recover the original fixed investment from profit and depreciation. Most recent practice is to base payout time on an actual sales projection. Syn.: Payoff (Payback) Period.

Payroll Burden

AACEi : Syn.: Labor Burden.

PDM

AACEi : Syn.: Precedence Diagramming Method (PDM).

PDM Arrow

AACEi : A graphical symbol in PDM networks used to represent the lag describing the relationship between work items.

PDM Finish To Finish Relationship

AACEi : This relationship restricts the finish of the work item until some specified duration following the finish of another work item.

PDM Finish To Start Relationship

AACEi : The standard node relationship, where a successor activity starts after the predecessor finishes. Routinely used in ADM

PDM Start To Finish Relationship

AACEi : The relationship restricts the finish of the work item until some duration following the start of another work item.

PDM Start To Start Relationship

AACEi : This relationship restricts the start of the work item until some specified duration following the start of the preceding work item.

Percent Complet

AACEi : An estimate of the percentage complete for an element as of a particular data date. Percent complete is calculated differently in different context:

1)In scheduling, this term means completed duration over total duration.

2)In earned value, a comparison of the technical work completed compared with the current project of total work required. It is not based on resources expended but rather technical scope completed. In other words, technical accomplishment (earned value) percent complete is work accomplished divided by total scope.

3)In earned value, overall earned value (EV) percent complete can be calculated as Budgeted Cost of Work Performed /Budget at Completion (or BCWP/BAC).

4)In earned value, percent complete as spent is Actual Cost of Work Performed/Estimate at Completion (or ACWP/EAC).

PMI : An estimate expressed as a percent of the amount of work that has been completed on an activity or a work breakdown structure component.

Percent On Diminishing Value

AACEi :

Syn.: Declining Balance Depreciation.

Perfect (And Imperfect) Information

AACEi : Perfect information is information or data that is known to be absolutely correct (i.e., there is no uncertainty associated with it). Imperfect information is information or data for which there exists uncertainty.

Perform Integrated Change Control

PMI : The process of reviewing all change requests; approving changes and managing changes to deliverables, organizational process assets, project documents, and the project management plan; and communicating their disposition.

Performance Based Management System (PBMS)

PCI : Performance Based Management System incorporates performance measures and metrics with careful investment planning to effectively manage investments, programmes, and projects.

Performance Measurement Baseline (PMB)

AACEi :(1) The time-phased budget plan against which contract performance is measured.

(2) In earned value management according to the ANSI EIA 748 standard, the assignment of budgets to scheduled segments of work produces a plan against which actual performance can be compared. The PMB is the time-phased project execution plan against which performance is measured. It includes direct and indirect costs and all cost elements. It also contains undistributed budget. PMB + management reserve (MR) = contract budget base (CBB) unless an over target baseline (OTB) has been implemented.

PMI : An approved, integrated scope-schedule-cost plan for the project work against which project execution is compared to measure and manage performance. The PMB includes contingency reserve, but excludes management reserve.

PCI : The PMB is the time-phased budget plan against which contract performance is measured. It is formed by the budgets assigned to scheduled cost accounts and the applicable indirect budgets. It equals the total budget less management reserve and undistributed budget. Once the PMB is frozen or established, cost and schedule changes must be processed through formal change control procedures. Authorised changes must then be incorporated into the PMB in a timely manner and reflected in both budgets and schedules.

Performance Measurement System

AACEi :(1) An organization’s defined processes for monitoring and updating project and/or organization progress at a detailed level over time.

(2) A quantitative tool (for example, rate, ratio, index, percentage) that provides an indication of an organization's performance in relation to a specified process or outcome.

Performance Reporing

PMI : The physical or electronic representation of work performance information compiled in project documents, intended to generate decisions, actions, or awareness

Performance Reviews

PMI : A technique that is used to measure, compare, and analyze actual performance of work in progress on the project against the baseline.

Performing Organization

PMI : An enterprise whose personnel are most directly involved in doing the work of the project or program.

Pert (Program (Or Project) Evaluation And Review Technique)

AACEi : Along with CPM, PERT is a probabilistic technique for planning and evaluating progress of complex programs. Attempts to determine the time required to complete each element in terms of pessimistic, optimistic, and best-guess estimates.

Pert Analysis

AACEi : A process by which you evaluate a probable outcome based on three scenarios: 1) Best-case; 2) Expected-case; and 3) Worst-case. The outcome in question may be duration of a task, its start date, or its finish date.

APM : A network analysis technique that calculates standard deviations for the schedule based on three-point estimates of activity durations.

PMI : A technique for estimating that applies a weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates.

Pert Chart

AACEi : A flowchart that shows all tasks and task dependencies. Tasks are represented by boxes and task dependencies are represented by lines connecting the boxes. In this instance, a PERT chart is not based on PERT probabilistic activity durations.

Pessimistic Time Estimate

AACEi : The maximum time required for an activity under adverse conditions. It is generally held that an activity would have no more than one chance in a hundred of exceeding this amount of time.

PMI : Pessimistic Duration: Estimate of the longest activity duration that takes into account all of the known variables that could affect performance

Phantom Float

AACEi : The difference between the “theoretical remaining” total float and the “actual remaining” total float.

Phase

AACEi : A major period in the life of an asset or project. A phase may encompass several stages.

APM : The major subdivision of a life cycle.

PMI : A collection of logically related project activities that culminates in the completion of one or more deliverables.

Phase Gate

PMI : A review at the end of a phase in which a decision is made to continue to the next phase, to continue with modification, or to end a project or program.

Phased Constructio

AACEi : Implies that construction of a facility or system or subsystem commences before final design is complete. Phased construction is used in order to achieve beneficial use at an advanced date.

Physical Percentage Complete

AACEi : Percentage of technical work scope of an activity or project achieved as of a particular date. Physical completion of any activity represents the most accurate, unbiased measure or appraisal, tempered with judgment and experience. Physical completion is not linked to work hours budgeted or expended.

Physical Progress

AACEi : The status of a task, activity, or discipline based on pre-established guidelines related to the amount or extent of work completed.

Physical Restraint

AACEi : A situation in which a physical activity or work item must be completed before the next activity or work items in the sequence can begin (e.g., concrete must harden before removing formwork).

Plan

AACEi :(1) Formalized, written method of accomplishing a project task.

(2) An intended future course of action.

(3) The basis for project controls.

(4) A generic term used for a statement of intentions whether they relate to time, cost or quality in their many forms.

(5) A predetermined course of action over a specified period of time which represents a projected response to an anticipated environment in order to accomplish a specific set of adaptive objectives.

Plan Communication Management

PMI : The process of developing an appropriate approach and plan for project communications based on stakeholder’s information needs and requirements and available organizational assets.

Plan Cost Management

PMI : The process that establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.

Plan Human Resourse Management

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

Plan Procurement Management

PMI : The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

Plan Quality Management

PMI : The process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with quality requirements.

Plan Risk Management

PMI : The process of defining how to conduct risk management activities for a project.

Plan Risk Responses

PMI : The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.

Plan Schedule Management

PMI : The process of establishing the policies, procedures, and documentation for planning, developing, managing, executing, and controlling the project schedule.

Plan Scope Management

PMI : The process of creating a scope management plan that documents how the project scope will be defined, validated, and controlled.

Scope Management Plan : A component of the project or program management plan that describes how the scope will be defined, developed, monitored, controlled, and verified.

Plan Stakeholder Management

PMI : The process of developing appropriate management strategies to effectively engage stakeholders throughout the project life cycle, based on the analysis of their needs, interests, and potential impact on project success.

Stakeholder Management Plan :The stakeholder management plan is a subsidiary plan of the project management plan that defines the processes, procedures, tools, and techniques to effectively engage stakeholders in project decisions and execution based on the analysis of their needs, interests, and potential impact.

Plan-Do-Check-Act (PDCA) Cycle

AACEi :(1) Universal improvement methodology, advanced by W. Edwards Deming and based on the work of Walter Shewart, designed to continually improve processes by which an organization produces a product or delivers a service.

(2) The foundation for the Total Cost Management (TCM) process.

Planned Adverse Weather Day

AACEi : Expressed as the number of days within a period of time (typically specified month) that a project can be expected to be affected by adverse weather. The number of planned adverse weather days is calculated by a review of historical weather data obtained from a reliable weather source supplemented or validated by actual experience at or near the work site.

Planned Cost

AACEi : The approved estimated cost for a work package or summary item. This cost when totaled with the estimated costs for all other work packages results in the total cost estimate committed under the contract for the program or project.

Planned Duration (PD)

AACEi : The planned project schedule duration in time increments

Planned Duration Of Work Remaining (PDWR)

AACEi : The unearned portion of the project planned duration.

Planned Value (PV)

AACEi : Measure of the amount of money budgeted to complete the scheduled work as of the data date. PV changes are subject to baseline control restrictions. Syn.: Budgeted Cost Of Work Schedule (BCWS).

PMI:

The authorized budget assigned to scheduled work

PCI:

The assignment of the budget for each reporting period for each work component. Also called BCWS.

Planner

AACEi : In project control, a team member with the responsibility for planning, scheduling and tracking of projects. They are often primarily concerned with schedule, progress and manpower resources.

Planning

AACEi :(1) The determination of a project's objectives with identification of the activities to be performed, methods and resources (cost, hours, time, materials, etc.) to be used for accomplishing the tasks, assessment of both value and risks, assignment of responsibility and accountability, and establishment of an integrated plan to achieve completion as required.

(2) In planning and scheduling, the identification of the project objectives and the ordered activity necessary to complete the project (the thinking part) and not to be confused with scheduling; the process by which the duration of the project task is applied to the plan. It involves answering the questions: 1) What must be done in the future to reach the project objective?; 2) How it will be done?; 3) Who will do it?; and 4) When it will be done?

APM:

Determines what is to be delivered, how much it will cost, when it will be delivered, how it will be delivered and who will carry it out.

Planning Horizon

AACEi : In an MRP system, the span of time from the current to some future date for which material plans are generated. This must cover at least the cumulative purchasing and manufacturing lead time and is usually substantially longer to facilitate MRP II.

Planning Package

AACEi : A logical aggregation of work within a cost account, normally the far term effort that can be identified and budgeted in early baseline planning, but which will be further defined into work packages, level of effort (LOE), or apportioned effort.

PMI:

A work breakdown structure component below the control account with known work content but without detailed schedule activities.

Planning Phase

AACEi : Syn.: Definition Phase; Development Phase; Front End.

Planning Process Group

PMI : Those processes required to establish the scope of the project, refine the objectives, and define the course of action required to attain the objectives that the project was undertaken to achieve.

Planning Session

AACEi : A meeting of the principal members of the project team for the purpose of establishing a consistent scope basis for control by defining manageable segments that meet the specific needs of the project.

Plant Overhead

AACEi : Those costs in a plant that are not directly attributable to any one production or processing unit and are allocated on some arbitrary basis believed to be equitable. Includes plant management salaries, payroll department, local purchasing and accounting, etc. Syn.: Factory Expense.

Plug Date

AACEi : A date assigned externally to an activity that establishes the earliest or latest date when the activity is scheduled to start or finish. Syn.: Constraint Date.

Plurality

PMI : Decisions made by the largest block in a group, even if a majority is not achieved.

Point Estimate

AACEi : Syn.: Base Estimate; Single Point Estimate.

Policy

AACEi : Definitive position of an organization on a specific issue. A policy provides a basis for consistent and appropriate decision making and defines authority and accountability within the organization.

PMI:

A structured pattern of actions adopted by an organization such that the organization’s policy can be explained as a set of basic principles that govern the organization’s conduct.

Portfolio

AACEi : An array of assets—projects, programs, or other valuable and often revenue-producing items—that are grouped for management convenience or strategic purpose. When strategically combined, the portfolio assets serve to create synergies among and otherwise complement one-another.

APM:

A grouping of an organisation’s projects, programmes. Portfolios can be managed at an organisational or functional level.

PMI:

Projects, programs, subportfolios, and operations managed as a group to achieve strategic objectives.

Portfolio Management

AACEi :(1) Direction and oversight of an array of assets grouped together for strategic purpose or convenience.

(2) In total cost management (TCM), this is considered an aspect of strategic asset management (SAM).

APM:

The selection, prioritisation and control of an organisation’s projects and programmes in line with its strategic objectives and capacity to deliver.

PMI:

The centralized management of one or more portfolios to achieve strategic objectives.

Positive Float

AACEi : Amount of time available to complete non-critical activities or work items without affecting the total project duration.

Practice

PMI : A specific type of professional or management activity that contributes to the execution of a process and that may employ one or more techniques and tools.

Precedence Diagramming Method (PDM)

AACEi :(1) A notation of a network that places the activity on a single node. A superset of the activity on node (AON) method, which allows additional precedent relationships along with lead and lag times.

(2) An activity oriented system in which activities are displayed in uniform boxes complete with activity number, start duration and finish dates. The logical relation between activity boxes is shown by logic connector lines. Lead and lag times can also be shown. The display is more effective than arrow diagramming and is also easier to revise, update, and program on computer.

PMI:

A technique used for constructing a schedule model in which activities are represented by nodes and are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed.

Precedence Network

APM : A network diagram in which activities are represented by rectangles (nodes) and their dependencies are represented by arrows.

Precedence Relationship

PMI : The term used in the precedence diagramming method for a logical relationship. In current usage, however, precedence relationship, logical relationship, and dependency are widely used interchangeably, regardless of the diagramming method used.

Preceding Event

AACEi : Syn.: Beginning Event; Predecessor Event; Starting Event.

Precision

PMI : Within the quality management system, precision is a measure of exactness.

Preconstruction CPM

AACEi : A plan and schedule of the construction work developed during the design phase preceding the award of contract.

Predecessor

AACEi : An activity that immediately precedes another activity.

Predecessor Activity

AACEi :(1) An activity that must necessarily be completed before its successor activity may start.

(2) Any activity that exists on a common path with the activity in question and occurs before the activity in question.

PMI:

An activity that logically comes before a dependent activity in a schedule.

Predecessor Event

AACEi : Syn.: Beginning Event; Preceding Event; Starting Event.

Predictive Life Cycle

PMI : A form of project life cycle in which the project scope, and the time and cost required to deliver that scope, are determined as early in the life cycle as possible."

Preferential Logic

AACEi :(1) Contractor's approach to sequencing work over and above those sequences indicated in or required by contract documents. Examples include equipment restraints, crew movements, form reuse, special logic (lead/lag) restraints, etc., factored into the progress schedule instead of disclosing the associated float times.

(2) Modeling execution work flow in a CPM schedule using logic ties, constraints and other mechanisms contrary to the expected norm for that type of effort. May or may not be an attempt at float suppression, float ownership, or necessary to model the expected means and methods actually used in this instance more accurately. The term preferential logic normally has a negative connotation.

PMI:

A relationship that is established based on knowledge of best practices within a particular application area or an aspect of the project where a specific sequence is desired."

Preferred Logic

PMI : A relationship that is established based on knowledge of best practices within a particular application area or an aspect of the project where a specific sequence is desired."

Preliminary CPM Plan

AACEi : CPM analysis of the construction phase made before the award of contracts to determine a reasonable construction period.

Preliminary Engineering

AACEi : Includes all design-related services during the evaluation and definition phases of a project.

Prescriptive

AACEi : Laid down as a guide, direction, or rule of action specified. Usually implies instructions that are given step-by-step in some detail and that are to be followed without questioning, i.e. what is to be done, rather than how it is to be done, i.e. descriptive.

Present Value

AACEi : The value of a benefit or cost found by discounting future cash flows to the base time. Also, the system of comparing proposed investments, which involves discounting at a known interest rate (representing a cost of capital or a minimum acceptable rate of return) in order to choose the alternative having the highest present value per unit of investment. This technique eliminates the occasional difficulty with profitability index of multiple solutions, but has the troublesome problem of choosing or calculating a "cost of capital" or minimum rate of return. Syn.: Net Present Value; Present Worth. [2]

Present Value Factor

AACEi :(1) The discount factor used to convert future values (benefits and costs) to present values.

(2) A mathematical expression also known as the present value of an annuity of one.

(3) One of a set of mathematical formulas used to facilitate calculation of present worth in economic analysis involving compound interest.

Present Worth

AACEi : Syn.: Net Present Value; Present Value.

Present Worth Factor

AACEi : Syn.: Present Value Factor.

Prevention

AACEi : Quality activities employed to avoid deviations; includes such activities as quality systems development, quality program development, feasibility studies, quality system audits, contractor/subcontractor evaluation, vendors/suppliers of information/materials evaluation, quality orientation activities, and certification/qualification.

Preventive Action

PMI : An intentional activity that ensures the future performance of the project work is aligned with the project management plan.

Price

AACEi : The amount of money asked or given for a product (e.g., exchange value). The chief function of price is rationing the existing supply among prospective buyers.

Price Index

AACEi : A number which relates the price of an item at a specific time to the corresponding price at some specified time.

Pricing

AACEi : In estimating practice, after costing an item, activity, or project, the determination of the amount of money asked in exchange for the item, activity, or project. Pricing determination considers business and other interests (e.g., profit, marketing, etc.) in addition to inherent costs. The price may be greater or less than the cost depending on the business or other objectives. In the cost estimating process, pricing follows costing and precedes budgeting.

Pricing, Forward

AACEi : An estimation of the cost of work prior to actual performance. It is also known as prospective pricing. Pricing forward is generally used relative to the pricing of proposed change orders.

Pricing, Retrospective

AACEi : The pricing of work after it has been accomplished.

Primary Classification

AACEi : The classification of commodities by "commodity type."

Prime Contractor

AACEi : The principal (or only) contractor performing a contract for an owner.

Prince2

APM : A project management methodology. It is an acronym standing for Projects in Controlled Environments.

Prioritise

APM : The phase of a portfolio life cycle where priorities are set by strategic objective, return on investment or any other chosen metric.

Prioritization Matrices

PMI : A quality management planning tool used to identify key issues and evaluate suitable alternatives to define a set of implementation priorities.

Proactive

AACEi : Acting in anticipation of future problems, needs, or changes.

Probabilistic Dependencies

AACEi : Dependencies between activities that indicate alternative sequences of logic that have probabilities attached to them.

Probabilistic Network

AACEi : Network containing alternative paths with which probabilities are associated rather than deterministic relationships between activities.

Probabilistic Risk Assessment

AACEi : A quantitative process used to evaluate risks in a way that provides probabilistic information.

Probability And Impact Matrix

PMI : A grid for mapping the probability of each risk occurrence and its impact on project objectives if that risk occurs."

Probability Of Underrun (Or Overrun)

AACEi : In risk analysis and contingency estimating, the chance that the cost or time will be less (underrun) or more (overrun) than a given cost or time from the distribution of outcomes of the risk analysis model.

Procedure

AACEi : A prescribed method for performing specified work.

PMI:

An established method of accomplishing a consistent performance or result, a procedure typically can be described as the sequence of steps that will be used to execute a process.

Process

AACEi : Set of steps or activities required to achieve an output.

PMI:

A systematic series of activities directed towards causing an end result such that one or more inputs will be acted upon to create one or more outputs."

Process Analysis

PMI : A process analysis follows the steps outlined in the process improvement plan to identify needed improvements."

Process Control

AACEi : Managing a process to a proven standard.

Process Decision Program Charts (PDPC)

PMI : The PDPC is used to understand a goal in relation to the steps for getting to the goal.

Process Design

AACEi : Design of a process, which may be a management process either as required in corporate management, or technical as in commercial or industrial engineering.

Process Improvement Plan

PMI : A subsidiary plan of the project management plan. It details the steps for analyzing processes to identify activities that enhance their value.

Procurement

AACEi : A process for establishing contractual relationships to accomplish project objectives. Typically, the acquisition (and directly related matters) of equipment, material, and non-personal services (including construction) by such means as purchasing, renting, leasing (including real property), contracting, or bartering, but not by seizure, condemnation, or donation. Includes preparation of inquiry packages, requisitions, and bid evaluations; purchase order award and documentation; plus expediting, in-plant inspection, reporting, and evaluation of vendor performance. The assembly, tendering and award of contracts or commitment documents. Specific procedures should be established for the procurement process.

APM : Procurement is the process by which products and services are acquired from an external provider for incorporation into the project, programme or portfolio.

Procurement Audits

PMI : The review of contracts and contracting processes for completeness, accuracy, and effectiveness.

Procurement Documents

PMI : The documents utilized in bid and proposal activities, which include the buyer’s Invitation for Bid, Invitation for Negotiations, Request for Information, Request for Quotation, Request for Proposal, and seller’s responses.

Procurement Management Plan

PMI : A component of the project or program management plan that describes how a project team will acquire goods and services from outside the performing organization.

Procurement Performance Reviews

PMI : A structured review of the seller’s progress to deliver project scope and quality, within cost and on schedule, as compared to the contract.

Procurement Statement Of Work

PMI : Describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results.

Product

AACEi : The output from a process in tangible or intangible form. Examples include the project brief as an output from the planning phases, or the completed facility as an output from the producing phases.

APM:

A tangible or intangible component of a project’s output. Synonymous with deliverable.

PMI:

An artifact that is produced, is quantifiable, and can be either an end item in itself or a component item. Additional words for products are material and goods. Contrast with result.

Product Analysis

PMI : For projects that have a product as a deliverable, it is a tool to define scope that generally means asking questions about a product and forming answers to describe the use, characteristics, and other the relevant aspects of what is going to be manufactured."

Product Breakdown Structure (PBS)

AACEi : Structure that identifies the products that are required and that must be produced. It displays the system in a hierarchic way.

Product Life Cycle

PMI : The series of phases that represent the evolution of a product, from concept through delivery,growth, maturity, and to retirement."

Product Scope

PMI : The features and functions that characterize a product, service, or result.

Product Scope Description

PMI : The documented narrative description of the product scope.

Production Plan

AACEi : The agreed upon strategy that comes from the production planning function.

Production Planning

AACEi : The function of setting the overall level of manufacturing or construction output. Its prime purpose is to establish production rates that will achieve management's objective, while usually attempting to keep the production force relatively stable.

Production Rate

AACEi : The amount of work, which may be accomplished in a given unit of time. (April)

Production Schedule

AACEi :(1) In manufacturing, a plan which authorizes the factory to manufacture a certain quantity of a specific item. Usually initiated by the production planning department.

(2) In projects, a short-interval schedule used to plan and coordinate a group of activities.

Productivity

AACEi : A measure of output relative to input. Productivity (or efficiency) is improved by increasing output for a given input, or decreasing input for a given output. If the input is specifically work hours, the term commonly used is labor productivity. Syn.:Efficiency.

Productivity Factor

AACEi : Syn.: Labor Productivity Factor.

Professionalism

APM : The application of expert and specialised knowledge within a specific field and the acceptance of standards relating to that profession.

Profit Element

AACEi : A quantified element of a profitability model whose change in value produces a favorable change in the bottom line. Syn.: Profit Item.

Profit Item

AACEi : Syn.: Profit Element.

Profit Margin

AACEi : A ratio of profit to either total cost or total revenue. Usage often varies depending on the type of company. Retail companies generally use the profit to revenue ratio. Wholesale companies and contractors generally use the profit to cost ratio.

Profit, Gross Profit

AACEi : Earnings from an on-going business after direct and project indirect costs of goods sold have been deducted from sales revenue for a given period.

Profit, Net Profit

AACEi : Earnings or income after subtracting miscellaneous income and expenses (patent royalties, interest, capital gains) and federal income tax from operating profit.

Profit, Operating Profit

AACEi : Earnings or income after all expenses (selling, administrative, depreciation) have been deducted from gross profit.

Profitability

AACEi : A measure of the excess income over expenditure during a given period of time.

Profitability Analysis

AACEi : The evaluation of the economics of a project, manufactured product, or service within a specific time frame.

Profitability Index (PI)

AACEi : The rate of compound interest at which the company's outstanding investment is repaid by proceeds for the project. All proceeds from the project, beyond that required for interest, are credited, by the method of solution, toward repayment of investment by this calculation. Also called discounted cash flow, interest rate of return, investor's method, internal rate of return. Although frequently requiring more time to calculate than other valid yardsticks, PI reflects in a single number both the dollar and the time values of all money involved in a project. In some very special cases, such as multiple changes of sign in cumulative cash position, false and multiple solutions can be obtained by this technique.

Program

AACEi :(1) A grouping of related projects usually managed using a master schedule.

(2) A set of projects with a common strategic goal.

(3) In Europe and elsewhere, the term 'program' or ‘programme’ may be used to mean a network schedule.

APM:

A group of related projects and change management activities that together achieve beneficial change for an organisation.

PMI:

A group of related projects, subprograms, and program activities managed in a coordinated way to obtain benefits not available from managing them individually.

PCI:

A planned effort to achieve an outcome, the progress toward which is discretely measurable.

Program Management

AACEi : Management of a series of related projects designed to accomplish broad goals, to which the individual projects contribute, and typically executed over an extended period of time.

APM : The coordinated management of projects and change management activities to achieve beneficial change.

PMI:

The application of knowledge, skills, tools, and techniques to a program to meet the program requirements and to obtain benefits and control not available by managing projects individually.

Program Manager

AACEi : An official in the program division who has been assigned responsibility for accomplishing a specific set of program objectives. This involves planning, directing and controlling one or more projects of a new or continuing nature, initiation of any acquisition processes necessary to get project work under way, monitoring of contractor performance and the like.

Programme Surveiillance

PCI : The process of reviewing an individual programme's application of the company's approved EVMS processes.

Progress

AACEi :(1) Development to a more advanced stage. Progress relates to a progression of development and therefore shows relationships between current conditions and past conditions.

(2) Partial completion of a project, or a measure of it. Also, the act of entering current progress update information into project management software.

Progress Date

AACEi : Date used in order to calculate the progress of the project. All estimates to complete or remaining durations should be assessed in accordance with the progress date.

Progress Line

AACEi : A visual representation of the progress of a project, displayed on the Gantt chart. For a given progress date, the progress line connects in-progress tasks, thereby creating a graph on the Gantt chart with peaks pointing to the left for work that is behind schedule and peaks pointing to the right for work that is ahead of schedule. The distance of a peak from the vertical line indicates the degree to which the task is ahead of or behind schedule at the progress date.

Progress Measurement

AACEi : Measurement of the current amount of work completed for purposes of assessing progress of the project or contract, as well as for determining amounts due under contract agreements.

Progress Milestones

AACEi : Those project milestones identified as the basis for earning progress and/or making progress payments.

Progress Override

AACEi : One of two types of scheduling software logic used to handle activities that occur out of sequence. When specified, it treats an activity with out-of-sequence progress as though it has no predecessor constraints; its remaining duration is scheduled to start immediately, rather than wait for the activities predecessors to complete.

Progress Report

AACEi : A report that informs management of overall project progress (physical percent complete), costs, performance and manpower at a specific reporting cut-off date. Includes major accomplishments, objectives for the upcoming report period, areas of concern, and other pertinent information necessary for management and control.

Progress Trend

AACEi : Syn.: Trend.

Progressive Elaboration

PMI : The iterative process of increasing the level of detail in a project management plan as greater amounts of information and more accurate estimates become available.

Project

AACEi : A temporary endeavor with a specific objective to be met within the prescribed time and monetary limitations and which has been assigned for definition or execution.

APM:

A unique, transient endeavour undertaken to achieve planned objectives.

PMI:

A temporary endeavor undertaken to create a unique product, service, or result.

Project Boundary

AACEi : Boundary that defines how project interacts with other projects and non-project activity both within and outside the organization.

Project Calendar

AACEi : Calendar that defines global project working and non-working periods.

PMI:

A calendar that identifies working days and shifts that are available for scheduled activities.

Project Code

AACEi : Set of symbols assigned to a set of cost classes or sub-divisions of the scope of work in a project. The code reflects a systematic (or hierarchic) sub-division of scope.

Project Communication Management

PMI : Project Communications Management includes the processes that are required to ensure timely and appropriate planning, collection, creation, distribution, storage, retrieval, management, control, monitoring, and the ultimate disposition of project information.

Project Control

AACEi : A management process for controlling the investment of resources in an asset where investments are made through the execution of a project. Project control includes the general steps of:

1. Project planning including establishing project cost and schedule control baselines;

2. Measuring project performance;

3. Comparing measurement against the project plans; and

4. Taking corrective, mitigating, or improvement action as may be determined through forecasting and further planning activity.

Project Cost Management

PMI : Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.

Project Definition

AACEi : Process of exploring thoroughly all aspects of proposed project and to explore relations between required performance, development time and cost.

Project Duration

AACEi :(1) The elapsed duration from project start date through project finish date.

(2) The overall duration a project within which it is scheduled to be completed. Contractual requirements may impose a given project duration for successful completion, from which the schedule is developed to achieve.

Project Finish Date (Schedule)

AACEi : The latest scheduled calendar finish date of all activities on the project.

Project Float

AACEi : The time that exists between the early finish of the last activity of a CPM network and the contractual completion date of the project. Project float can be internalized into the network and become network float.

Project Funding Requirements

PMI : Forecast project costs to be paid that are derived from the cost baseline for total or periodic requirements, including projected expenditures plus anticipated liabilities.

Project Governance

PMI : The alignment of project objectives with the strategy of the larger organization by the project sponsor and project team. A project’s governance is defined by and is required to fit within the larger context of the program or organization sponsoring it, but is separate from organizational governance.

Project Initiation

PMI : Launching a process that can result in the authorization of a new project.

Project Integration Management

PMI : Project Integration Management includes the processes and activities needed to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups.

Project Life

AACEi : Syn.: Life Cycle, Project Life Cycle.

Project Management

AACEi :(1) The utilization of skills and knowledge in coordinating the organizing, planning, scheduling, directing, controlling, monitoring and evaluating of prescribed activities to ensure that the stated objectives of a project, manufactured product, or service, are achieved.

(2) The art and science of managing a project from inception to closure as evidenced by successful product delivery and transfer.

APM : The application of processes, methods, knowledge, skills and experience to achieve the project objectives.

PMI : The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

Project Management Body Of Knowledge

PMI : An inclusive term that describes the sum of knowledge within the profession of project management. As with other professions, such as law, medicine, and accounting, the body of knowledge rests with the practitioners and academics that apply and advance it. The complete project management body of knowledge includes proven traditional practices that are widely applied and innovative practices that are emerging in the profession. The body of knowledge includes both published and unpublished materials. This body of knowledge is constantly evolving. PMI’s PMBOK® Guide identifies a subset of the project management body of knowledge that is generally recognized as good practice.

Project Management Information System

PMI : An information system consisting of the tools and techniques used to gather, integrate, and disseminate the outputs of project management processes. It is used to support all aspects of the project from initiating through closing, and can include both manual and automated systems.

Project Management Knowledge Area

PMI : An identified area of project management defined by its knowledge requirements and described in terms of its component processes, practices, inputs, outputs, tools, and techniques.

Project Management Plan

APM : The output of the definition phase of a project or programme.

PMI : The document that describes how the project will be executed monitored, and controlled.

Project Management Process Group

PMI : A logical grouping of project management inputs, tools and techniques,and outputs. The Project Management Process Groups include initiating processes, planning processes, executing processes, monitoring and controlling processes, and closing processes. Project Management Process Groups are not project phases.

Project Management Software

AACEi : A class of computer applications specifically designed to aid with planning and controlling project resources, costs and schedules.

Project Management Staff

PMI : The members of the project team who perform project management activities such as schedule, communications, risk management, etc.

Project Management System

PMI : The aggregation of the processes, tools, techniques, methodologies, resources, and procedures to manage a project.

Project Management Team

PMI : The members of the project team who are directly involved in project management activities. On some smaller projects, the project management team may include virtually all of the project team members.

Project Manager

AACEi : An individual who has been assigned responsibility and authority for accomplishing a specifically designated unit of work effort or group of closely related efforts established to achieve stated or anticipated objectives, defined tasks, or other units of related effort on a schedule for performing the stated work funded as a part of the project. The project manager is responsible for the planning, controlling, and reporting of the project. [4]

PMI :

The person assigned by the performing organization to lead the team that is responsible for achieving the project objectives.

Project Network Analysis

AACEi : Syn.: Network Analysis.

Project Office

AACEi : The organization responsible for administration of the project management system, maintenance of project files and documents, and staff support for officials throughout the project life cycle.

PMI : Project Management Office (PMO): An organizational structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques.

Project Organization Chart

PMI : A document that graphically depicts the project team members and their interrelationships for a specific project.

Project Phases

AACEi : The main elements of a project life cycle. For engineering and construction projects, they typically include preplanning, design, procurement, construction, start-up, operation, and final disposition.

PMI : Project Phase: A collection of logically related project activities that culminates in the completion of one or more deliverables.

Project Plan

AACEi : The primary document for project activities. It covers the project from initiation through completion.

Project Procurement Management

PMI : Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.

Project Quality Management

PMI : Project Quality Management includes the processes and activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken.

Project Scope Statement

PMI : The description of the project scope, major deliverables, assumptions, and constraints.

Project Start Date

AACEi : The date a project is scheduled to start. Scheduling software uses the project start date as the starting date for all network calculations until a data date is used for calculating updated progress.

Project Team

PMI : A set of individuals who support the project manager in performing the work of the project to achieve its objectives.

Project Team Directory

PMI : A documented list of project team members, their project roles, and communication information.

Project Time

AACEi : The time dimension in which the project is being planned.

Project Time Management

PMI : Project Time Management includes the processes required to manage the timely completion of the project.

Project Work Breakdown Structure (PWBS)

AACEi : A summary WBS tailored by project management to the specific project, and identifying the elements unique to the project.  2016)

Project-Based Organizations (PBOs)

PMI : A variety of organizational forms that involve the creation of temporary systems for the performance of projects. PBOs conduct the majority of their activities as projects and/or provide project over functional approaches.

Projected Finish Date

AACEi : The current estimate of the calendar date when an activity or project will be completed.

Projected Start Date

AACEi : The current estimate of the calendar date when an activity or project will begin.

Projection

AACEi : An extension of a series, or any set of values, beyond the range of the observed data.

Projectized Organization

PMI : Any organizational structure in which the project manager has full authority to assign priorities, apply resources, and direct the work of persons assigned to the project.

Prompt List

AACEi : A Risk Breakdown Structure (RBS) or similar document used as a checklist during risk identification, monitoring and other risk management process steps.

Proposal Evaluation Technique

PMI : The process of reviewing proposals provided by suppliers to support contract award decisions.

Proposal Schedule

AACEi : The first schedule issued on a project; accompanies either the client's request or the contractor's proposal.

Proposed Base Contract Price

AACEi : The sum total of the individual total price amounts for items of work designated as base bid items listed on the schedule of prices on the bid form (excluding alternates, if any).

Proposed Change Order

AACEi : The form furnished by the owner or the engineer which is to be used: 1) By the owner, when signed by the owner, as a directive authorizing addition to, deletion from, or revision in the work, or an adjustment in contract price or contract time, or any combination thereof; 2) By the owner, when unsigned, to require that the contractor figure the potential effect on contract price or contract time of a proposed change, if the proposed change is ordered upon signing by the owner; 3) By the contractor, to notify the owner that in the opinion of the contractor, a change is required as provided in the applicable provisions of the contract documents. When signed by the owner, a proposed change order may or may not fully adjust contract price or contract time, but is evidence that the change directed by the proposed change order will be incorporated in a subsequently issued change order following negotiations as to its effect, if any, on contract price or contract time. When countersigned by the contractor, a proposed change order is evidence of the contractor's acceptance of the basis for contract adjustments provided, except as otherwise specifically noted.

Proposed Combined Contract Price

AACEi : The sum total of bidder's proposed base contract price and all of the individual total price amounts for items of work designated as alternate bid items listed on the schedule of prices for alternate bid items on the bid form (excluding all additional alternates, if any).

Prototypes

PMI : A method of obtaining early feedback on requirements by providing a working model of the expected product before actually building it.

Provider

APM : A person or company that provides goods or services.

Provider Selection Management

AACEi : The processes of identifying and selecting management providers through the P3 life cycle.

Punchlist

AACEi: A list generated by the owner, architect, engineer, or contractor of items yet to be completed by the contractor. Sometimes called a "but" list ("but" for these items the work is complete)

Pure Price Change

AACEi: Change in the price of a particular commodity which is not attributable to change in its quality or quantity.

Qualification Submittals

AACEi : Data pertaining to a bidder's qualifications which shall be submitted as set forth in the instructions to bidders.

Qualifications & Assumptions

AACEi : Items that are not completely defined in the project documents for which the estimator is required to use judgment in developing the estimate.

PMI : Perform Qualitative Risk Analysis: The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.

Quality

AACEi :

Conformance to established requirements (not a degree of goodness). APM : The fitness for purpose or the degree of conformance of the outputs of a process or the process itself.

PMI : The degree to which a set of inherent characteristics fulfills requirements.

Quality Acceptance Criteria

AACEi : Specified limits placed on characteristics of a product, process, or service defined by codes, standards, or other requirement documents.

Quality Activities

AACEi : Those activities directly associated with appraisal, training, and prevention.

Quality Appraisal

AACEi : Quality activities employed to determine whether a product, process, or service conforms to established requirements, including: design review, specification review, other documentation review, constructability review, materials inspection/tests, personnel testing, quality status documentation, and post project reviews.

Quality Assurance

AACEi : All those planned or systematic actions necessary to provide adequate confidence that a product, process, or service will conform to established requirements.

PMI : Perform Quality Assurance: The process of auditing the quality requirements and the results from quality control measurements to ensure that appropriate quality standards and operational definitions are used.

Quality Audit

AACEi : A formal, independent examination with intent to verify conformance with established processes and acceptance criteria. An audit does not include surveillance or inspection for the purpose of process control or product acceptance.  (2016)

PMI : A quality audit is a structured, independent process to determine if project activities comply with organizational and project policies, processes, and procedures.

Quality Checklist

PMI : A structured tool used to verify that a set of required steps has been performed.

Quality Conformance

AACEi : Quality management activities associated with appraisal, training, and prevention adapted to achieve zero deviations from the established requirements.

Quality Control

AACEi :

Inspection, test, evaluation or other necessary action to verify that a product, process, or service conforms to established requirements and specifications.

PMI : Control Quality: The process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.

Quality Control Measurement

PMI : The documented results of control quality activities.

Quality Control Measurement

PMI : A set of tools used to define the quality requirements and to plan effective quality management activities. They include, but are not limited to: brainstorming, force field analysis, nominal

group techniques and quality management and control tools.

Quality Corrective Action

AACEi : Measures taken to rectify conditions adverse to quality and, where necessary, to preclude repetition. Corrective action includes rework and remedial action for nonconformance deviations.

Quality Function Deployment (QFD)

PMI : A facilitated workshop technique that helps to determine critical characteristics for new product development.

Quality Management

AACEi : Concerns the optimization of the quality activities involved in producing a quality product, process or service. As such, it includes appraisal, training, and prevention activities.

APM : A discipline for ensuring the outputs, benefits and the processes by which they are delivered, meet stakeholder requirements and are fit for purpose.

Quality Management And Control Tools

AACEi : They are a type of quality planning tools used to link and sequence the activities identified.

Quality Management Costs

AACEi : The sum of those costs associated with appraisal, training, and prevention activities.

Quality Management Plan

PMI : A component of the project or program management plan that describes how an organization’s quality policies will be implemented.

Quality Management System

PMI : The organizational framework whose structure provides the policies, processes, procedures, and resources required to implement the quality management plan. The typical project quality management plan should be compatible to the organization’s quality management system.

Quality Metrics

PMI : A description of a project or product attribute and how to measure it.

Quality Nonconformance

AACEi : A deviation that occurs with a severity sufficient to consider rejection of the product, process, or service. In some situations the product, process, or service may be accepted as is; in other situations, it will require corrective action. It also may involve the provision of deliverables that are more than required.

Quality Performance Tracking System

AACEi : A management tool providing data for the quantitative analysis of certain quality-related aspects of projects by systematically collecting and classifying costs of quality.

Quality Policy

PMI : A policy specific to the Project Quality Management Knowledge Area, it establishes the basic principles that should govern the organization’s actions as it implements its system for quality management.

Quality Requirement

PMI : A condition or capability that will be used to assess conformance by validating the acceptability of an attribute for the quality of a result.

Quantification

AACEi : In estimating practice, an activity to translate project scope information into resource quantities suitable for costing. In the engineering and construction industry, a take-off is a specific type of quantification that is a measurement and listing of quantities of materials from drawings.

Quantitative Risk Analysis

AACEi : Risk analysis used to estimate a numerical value (usually probabilistic) on risk outcomes wherein risk probabilities of occurrence and impact values are used directly rather than expressing severity narratively or by ranking as in qualitative methods.

PMI : Perform Quantitative Risk Analysis: The process of numerically analyzing the effect of identified risks on overall project objectives.

Quantitative Risk Analysis And Modelling Techniques

PMI : Commonly used techniques for both event-oriented and project-oriented analysis approaches.

Quantity Survey

AACEi : In traditional terms means using standard methods of measuring all labor and material required for a specific project, building, or a structure, and itemizing these detailed quantities in a book or bill of quantities.

Quantity Surveying

AACEi : A formalized method of periodically (typically monthly) detailing the actual progress accomplished on individual activities and the units of work performed or put in place. This is usually done in accordance with an established method of measurement against a bill of quantities. Often used on unit price contracts and on international civil works projects.

Quantity Surveyor

AACEi : In the United Kingdom and elsewhere, contractors bidding a job receive a document called a bill of quantities, in addition to plans and specifications, which is prepared by a quantity surveyor, according to well-established rules. In many countries, the quantity surveyor has to undergo extensive technical training and must pass a series of professional examinations. In the United Kingdom and elsewhere a quantity surveyor establishes the quantities for all bidders, and is professionally licensed to do so.

Questionnaires And Surveys

PMI : Written sets of questions designed to quickly accumulate information from a large number of respondents.

Raci

AACEi : Acronym for a chart or matrix indicating which individuals on a team responsible, accountable, consulted and informed are regarding identified project deliverables.

PMI :

A common type of responsibility assignment matrix that uses responsible, accountable, consult, and inform statuses to define the involvement of stakeholders in project activities.

Racsi

AACEi : Acronym for a chart or matrix indicating which individuals responsible, accountable, consulted, supporting and informed are regarding identified project deliverables.

Ramp

AACEi : Acronym for risk analysis and management for projects

Range

AACEi : The absolute difference between the maximum and minimum (or some stated confidence interval) values in a set of values; the simplest measure of the dispersion of a distribution.

Range Estimating

AACEi :(1) A formalized risk analysis technology that synergistically combines Pareto’s law to identify the relatively few critical elements, heuristics governing the assignment of probabilistic ranges to such elements, and Monte Carlo Simulation to provide decision making information quickly and at reasonable effort.

(2) A generic term variously used to define: a) estimating a variable in the form of a probabilistic range; b) application of Monte Carlo Simulation based on a set of probabilistic ranges applied to model variables; c) a synonym for stochastic or probabilistic estimating.

Range Of Accuracy

AACEi : Syn.: Accuracy Range.

Rate Of Return

AACEi : Syn.: Profitability Index (PI).

Raw Materials

AACEI : Syn.: Crude Materials.

Re-Baselining

AACEi : Process whereby the project's costs, time scale or resources have to be replanned (usually in an integrated way) due to changes in objectives, deliverables to meet requirements, and/or original scope and the baseline plan is now obsolete. A need to re-baseline often results from poor project definition and/or project control (i.e., re-baselining is not a valid substitute for best practices). Reassessment of the project control process going forward is typically an element of re-baselining.

Re-Usable Resource

APM : A resource that when no longer needed becomes available for other uses. Accommodation, machines, test equipment and people are re-usable.

Real Discount Rate

AACEi : The rate of interest reflecting that portion of the time value of money related to the real earning power of money over time. This is the discount rate used in discount formulas or in selecting discount factors when future benefits and costs are expressed in constant dollars. [1]

Real Dollars

AACEi : Syn.: Constant Dollars.

Real Estate

AACEi : This refers to the physical land and appurtenances, including structures affixed thereto. In some states, by statute, this term is synonymous with real property.

Real Property

AACEi : Refers to the interests, benefits, and rights inherent in the ownership of physical real estate. It is the bundle of rights with which the ownership of real estate is endowed.

Reasonableness Standard

AACEi : Costs that do not exceed the amount incurred by a prudent contractor or those costs which are generally accepted. Some factors on which reasonableness is based are recognition of the costs as ordinary and necessary and restraints imposed by law, contract terms, or sound business practices.

Rebasing

AACEi : Conversion of a price index from one time base to another.

Records Management System

PMI : A specific set of processes, related control functions, and tools that are consolidated and combined to record and retain information about the project.

Recovery Schedule

AACEi : A special schedule showing special efforts to recover time lost compared to the master schedule. Often a contract requirement when the projected finish date is no longer showing timely completion.

Recycle

AACEi : Revisiting partially or fully completed activities to perform additional work due to a change.

Reduce

AACEi : In risk management, a response strategy for threats that involves mitigating key drivers to reduce probability and/or impact.

APM : A response to a threat that reduces its probability, impact or both.

Regression Analysis

PMI : An analytic technique where a series of input variables are examined in relation to their corresponding output results in order to develop a mathematical or statistical relationship.

Reject

APM : A response to an opportunity where no action is taken.

Relationship

AACEi : A logical connection between two activities.

Relationship Float

AACEi : Relationship free float is the amount by which lag on that relationship would have to be increased in order to delay the successor activity. Relationship total float is the amount by which it would have to be increased in order to cause a delay in the completion of the project as a whole (or the violation of a late target).

Relative Total Float

AACEi : The difference between the total float calculation on any activity or path and another activity or path, regardless of whether those activities or paths are logically linked.

Remaining Available Resources

AACEi : The difference between the resource availability pool and the level schedule resource requirements. It is computed from the resource allocation process.

Remaining Duration

AACEi : Estimated remaining amount of time necessary to complete an in-progress activity. Should not be based solely on activity percent complete.

Remaining Float (RF)

AACEi : The difference between the early finish and the late finish.

Remeasurement

AACEi : A type of contract (usually used in Europe) that provides for the use of quantity surveys to measure progress. Contractor’s periodic payment is from a detailed survey of the actual work in place and not on milestone payments or other methods. Places a larger degree of cost risk on the owner than lump sum or milestone based compensation schemes.

Rental (Leased) Equipment Cost

AACEi : The amount which the owner of the equipment (lessor) charges to a lessee for use of the equipment. The best evidence of such costs is rental invoices that indicate the amount paid for leasing such equipment.

Repeatable

APM : The second level of a typical maturity model where basic processes are established and the necessary discipline is in place to repeat earlier successes.

Replacement

AACEi : A facility proposed to take the place of an existing facility, without increasing its capacity, caused either by obsolescence or physical deterioration.

Replacement Cost

AACEi :(1) The cost of replacing the productive capacity of existing property by another property of any type, to achieve the most economical service, at prices as of the date specified.

(2) Facility component replacement and related costs, included in the capital budget, that are expected to be incurred during the study period.

Replacement Value

AACEi : That value of an item determined by repricing the item on the basis of replacing it, in new condition, with another item that gives the same ability to serve, or the same productive capacity, but which applies current economic design, adjusted for the existing property's physical deterioration.

Replanning

AACEi : A change in the original plan necessitating reevaluation and changes. There are two types of replanning effort:

Replanning, External Replanning

AACEi : Customer-directed changes to the contract in the form of a change order that calls for a modification in the original plan. Replanning is subject to baseline change control.

Replanning, Internal Replanning

AACEi : A change in the original plan that remains within the scope of the authorized contract, caused by a need to compensate for cost, schedule, or technical problems which have made the original plan unrealistic;

Reporing System

PMI : Facilities, processes, and procedures used to generate or consolidate reports from one or more information management systems and facilitate report distribution to the project stakeholders.

Reports

APM : 1.The presentation of information in an appropriate format (e.g. Management Report).

2.A written record or summary, a detailed account or statement, or a verbal account.

Reproduction Cost

AACEi : The cost of reproducing substantially the identical item or facility at a price level as of the date specified.

Reprogramming

AACEi : A comprehensive replanning of the efforts remaining in the contract resulting in a revised total allocated budget which exceeds the contract budget base. (Also defined as an over target baseline.)

Repudiation

AACEi : Syn.: Anticipatory Breach.

Request For Information (RFI)

PMI : A type of procurement document whereby the buyer requests a potential seller to provide various pieces of information related to a product or service or seller capability.

Request For Proposal

PMI : A type of procurement document used to request proposals from prospective sellers of products or services. In some application areas, it may have a narrower or more specific meaning.

Request For Quotation (RFQ)

PMI : A type of procurement document used to request price quotations from prospective sellers of common or standard products or services. Sometimes used in place of request for proposal and, in some application areas, it may have a narrower or more specific meaning.

Required Completion Date

AACEi : The required date of completion assigned to a specific activity or project.

Required Return

AACEi : The minimum return or profit necessary to justify an investment. It is often termed interest, expected return or profit, or charge for the use of capital.

Requirement

AACEi :(1) An established requisite characteristic of a product, process, or service. A characteristic is a physical or chemical property, a dimension, a temperature, a pressure, or any other specification used to define the nature of a product, process, or service.

(2) A negotiated set of measurable customer wants and needs.

PMI : A condition or capability that is required to be present in a product, service, or result to satisfy a contract or other formally imposed specification.

Requirement Documentation

PMI : A description of how individual requirements meet the business need for the project.

Requirement Management

APM: The process of capturing, assessing and justifying stakeholders’ wants and needs.

Requirement Management Plan

PMI : A component of the project or program management plan that describes how requirements will be analyzed, documented, and managed.

Requirements Traceability Matrix

PMI : A grid that links product requirements from their origin to the deliverables that satisfy them.

Resale Value

AACEi : The monetary sum expected from the disposal of an asset at the end of its economic life, its useful life, or at the end of the study period.

Reschedule

AACEi :(1) In construction, the process of changing the duration and/or dates of an existing schedule in response to externally imposed conditions or progress.

(2) In manufacturing, the process of changing order or operation due dates, usually as a result of their being out of phase with when they are needed.

Research Expense

AACEi : hose continuing expenses required to provide and maintain the facilities to develop new products and improve present products.

Reserve

AACEi : Syn.: Management Reserve; Reserve Allowance.

Reserve Allowance

AACEi : Syn.: Management Reserve; Reserve.

Reserve Analysis

AACEi : An analytical technique to determine the essential features and relationships of components in the project management plan to establish a reserve for the schedule duration, budget, estimated cost, or funds for a project.

Reserve Stock

AACEi : Syn.: Safety Stock.

Resident Engineer

AACEi : The authorized representative of the engineer who is assigned to the site or any part thereof whose duties are ordinarily set forth in the contract documents and/or the engineer's agreement with the owner.

Residual Risk

AACEi : That portion of risks that remain after risk responses are implemented in full or in part.

PMI : A risk that remains after risk responses have been implemented.

Resource

AACEi : Any consumable, except time, required to accomplish an activity. From a total cost and asset management perspective, resources may include any real or potential investment in strategic assets including time, monetary, human, and physical. A resource becomes a cost when it is invested or consumed in an activity or project.

APM : All those items required to undertake work including people, finance and materials.

PMI : Skilled human resources (specific disciplines either individually or in crews or teams), equipment, services, supplies, commodities, material, budgets, or funds.

Resource Aggregation

AACEi : Summation of the requirements for each resource, and for each time period.

Resource Allocation

APM : The process by which resources are attributed to activities.

Resource Allocation Plan (RAP)

AACEi : Scheduling of activities in a network with knowledge of certain resource constraints and requirements. This process adjusts activity level start and finish dates to conform to resource availability and use.

Resource Availability Date

AACEi : Calendar date when a resource pool becomes available for a given resource.

Resource Availability Pool

AACEi : The extent to which resources are available to meet the project's needs.

APM : Resource Avalibility : The level of availability of a resource, which may vary over time.

Resource Breakdown Structure

PMI : A hierarchical representation of resources by category and type.

Resource Calendar

AACEi : 1) Calendar or database used to model available resources, which is then used by project management software for resource leveling analysis.

2. Calendar denoting when a resource or resource pool is available for work on a project.

PMI : A calendar that identifies the working days and shifts on which each specific resource is available.

Resource Code

AACEi:

Code used to identify a given resource type.

Resource Constraint

AACEi : The limitations on available resources.

Resource Description

AACEi : The longest chain of activities in the schedule when limited resources are taken into consideration in addition to CPM duration and logic considerations. This may be accomplished by adding preferential “soft” logic, manual or automatic resource leveling, or just physically practiced on the field without prior planning.

Resource Description

AACEi : The actual name or identification associated with a resource code.

Resource Driven Task Duration

AACEi : Task duration that is driven by constrained resources.

Resource Group

AACEi : A set of resources that share some characteristics and that is categorized by a group name, such as job function, skill or contractor.

Resource Histogram

AACEi : A graphic display of the amount of resource required as a function of time on a graph. Individual, summary, incremental, and cumulative resource curve levels can be shown. Syn.: Resource Plot.

PMI : A bar chart showing the amount of time that a resource is scheduled to work over a series of time periods. Resource availability may be depicted as a line for comparison purposes. Contrasting bars may show actual amounts of resources used as the project progresses.

Resource Level

AACEi : A specified quantity of resource units required by an activity per time unit.

Resource Leveling

AACEi : Any form of network analysis in which scheduling decisions are driven by resource management concerns (e.g., limited resource availability or difficult to manage changes in resource levels). Syn.: Leveling; Resource Optimization.

APM : A scheduling calculation that delays activities such that resource usage is kept below specified limits. It is also known as resource limited scheduling.

PMI : A technique in which start and finish dates are adjusted based on resource constraints with the goal of balancing demand for resources with the available supply.

Resource Limited Scheduling

AACEi : A schedule of activities so that a pre-imposed resource availability level (constant or variable) is not exceeded in any given project time unit.

Resource Loading/Resource Allocation

AACEi : The process of allocating or defining, through the use of resource calendars, the resources to be used on given activities.

Resource Optimization

AACEi : Syn.: Leveling; Resource Leveling.

PMI : Resource Optimization Technique : A technique that is used to adjust the start and finish dates of activities that adjust planned resource use to be equal to or less than resource availability.

Resource Planning

AACEi : The process of ascertaining future resource requirements for an organization or a scope of work and developing plans to meet those requirements.

Resource Plot

AACEi : Syn.: Resource Histogram.

Resource Requirements Planning

AACEi : In manufacturing, the process of converting the production plan and/or the master production schedule into the impact on key resources, such as labor, machine hours, storage, standard cost dollars, shipping dollars, inventory levels, etc.

Resource Smoothing

AACEi : Process of rescheduling activities such that the requirement for resources does not exceed resource limits. Smoothing is a type of resource leveling, except that the project completion date may not be delayed. Activities may only be delayed within their float.

PMI : A technique which adjusts the activities of a schedule model such that the requirement for resources on the project do not exceed certain predefined resource limits.

Resource Thresholds

AACEi : In resource-limited scheduling it is possible to specify that a particular resource may be exceeded, if necessary, by an amount not to exceed the specified threshold for that resource.

Resourse Management

AACEi : The acquisition and deployment of the internal and external resources required to deliver the project, programme or portfolio.

Resourse Scheduling

APM : A collection of techniques used to calculate the resources required to deliver the work and when they will be required.

Responsibility

AACEi : Originates when one accepts the assignment to perform assigned duties and activities. The acceptance creates a liability for which the assignee is held answerable for and to the assignor. It constitutes an obligation or accountability for performance.

PMI : An assignment that can be delegated within a project management plan such that the assigned resource incurs a duty to perform the requirements of the assignment.

Responsibility Assignment Matrix (RAM)

AACEi : Depicts the intersection of the WBS and the OBS. The OBS relates the Work Breakdown Structure (WBS) element to the organization and the named individual who is responsible for the assigned scope of a control account.

APM : A diagram or chart showing assigned responsibilities for elements of work. It is created by combining the work breakdown structure with the organisational breakdown structure.

PMI : A grid that shows the project resources assigned to each work package.

PCI : The RAM correlates the work required by a Contract Work Breakdown Structure (CWBS) element to the functional organisation responsible for accomplishing the assigned tasks. The responsibility assignment matrix is created by intersecting the CWBS with the programme organisational Breakdown Structure (OBS). This intersection identifies the cost account.

Responsibility Code

AACEi : System of applying an alphanumeric tag to an activity for grouping, sorting and summarization purposes. The responsibility code generally identifies the entity responsible for performing the coded activities.

Responsible Organization

AACEi : The organization responsible for management of a work package.

Rest Day

AACEi : A day where no work is schedule on an activity or the project.

Restraint

AACEi : Syn.: Constraint.

Result

PMI : An output from performing project management processes and activities. Results include outcomes (e.g., integrated systems, revised process, restructured organization, tests, trained personnel, etc.) and documents (e.g., policies, plans, studies, procedures, specifications, reports, etc.). Contrast with product. See also deliverable.

Retainage

AACEi : Syn.: Retention.

Retained Logic

AACEi : One of two types of logic used to handle activities that occur out of sequence. When used, scheduling software schedules the remaining duration of an out-of-sequence activity according to current network logic after its predecessors.

Retention

AACEi : Usually refers to a percent of contract value retained by the purchaser until work is finished and testing of equipment is satisfactorily completed. Syn.: Retainage.

Retirement Of Debt

AACEi : The termination of a debt obligation by appropriate settlement with the lender. It is understood to be in full amount unless partial settlement is specified.

Return On Average Investment

AACEi : The ratio of annual profits to the average book value of fixed capital, with or without working capital. This method has some advantages over the return-on-original-investment method. Depreciation is always considered; terminal recoveries are accounted for. However, the method does not account for the timing of cash flow and yields answers that are considerably higher than those obtained by the return-on-original-investment and profitability index methods. Results may be deceiving when compared, say, against the company's cost of capital.

Return On Original Investment

AACEi : The ratio of expected average annual after tax profit (during the earning life) to total investment (working capital included). It is similar in usefulness and limitations to payoff period.

Return On Rate Base

AACEi : For a public utility, that monetary sum established by the proper regulatory authority as a basis for determining the charges to customers and the "fair return" to the owners of the utility.

Reverse Scheduling

AACEi : Method in which project completion date is fixed and task duration and dependency information is used to compute corresponding project start date.

Reviews

APM : A review is a critical evaluation of a deliverable, business case or P3 management process.

Revision

AACEi : In the context of planning and scheduling, a change in the network logic, activity duration, resources availability or resources demand which requires network recalculation and drawing correction(s).

Rework

AACEi :(1) Correction of defective work. May take place before, during or after inspection or testing.

(2) Action taken to ensure that a defective or nonconforming item complies with requirements or specifications.

PMI:

Action taken to bring a defective or nonconforming component into compliance with requirements or specifications.

Ripple Effect

AACEi : The multiplying effect of change(s) and/or productivity impacts to upstream work that may have an adverse impact on the subsequent work to be performed. (April)

Risk

AACEi :(1) An ambiguous term that can mean any of the following: a) All uncertainty (threats + opportunities); or b) Undesirable outcomes (uncertainty = risks + opportunities); or c) The net impact or effect of uncertainty (threats opportunities). The convention used should be clearly stated to avoid misunderstanding.

(2) Probability of an undesirable outcome.

(3) In total cost management, an uncertain event or condition that could affect a project objective or business goal.

APM:

The potential of an action or event to impact on the achievement of objectives.

PMI:

An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.

Risk (Impact) Compounding

AACEi : The concept that the combined impact of multiple risk events or condition occurrence differs from the impact of their individual occurrence. The risk events may be dependent or independent. Syn.: Compound Risk.

Risk Acceptance Criteria

AACEi : Criteria used to help define when the risk profile of a project or business initiative is acceptable to the decision makers and consequently risk treatment can cease.

PMI:

Risk Acceptance: A risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs."

Risk Allocation

AACEi : In risk treatment, the process of transferring threats or sharing opportunities between parties, most commonly expressed in association with the contracting process.

Risk Analysis

AACEi : A risk management process step (part of risk assessment) and methodology for qualitatively and/or quantitatively screening, evaluating and otherwise analyzing risks to support risk treatment and control.

APM : An assessment and synthesis of risk events to gain an understanding of their individual significance and their combined impact on objectives.

Risk Appetite

AACEi : A component of the risk management plan that expresses the risk management objective in terms of a confidence interval or level for selected outcome measures.

APM:

The tendency of an individual or group to take risk in a given situation.

PMI:

The degree of uncertainty an entity is willing to take on, in anticipation of a reward.

Risk Assessment

AACEi : In TCM, a risk management process step, which includes the identification and analysis of risks.

Risk Attitude

APM : The response of an individual or group to a given uncertain situation.

Risk Audits

PMI : Examination and documentation of the effectiveness of risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process.

Risk Averse

AACEi : Having little or no risk tolerance.

Risk Based Inspection

AACEi : Risk management as applied to maintenance projects with a focus on risk-base planning of inspections.

Risk Breakdown Structure (RBS)

AACEi : A framework or taxonomy to aid risk identification and for organizing and ordering risk types throughout the risk management process. Syn.: Rbs; Risk Taxonomy;

PMI:

A hierarchical representation of risks according to their risk categories.

Risk Categorization

PMI : Organization by sources of risk (e.g., using the RBS), the area of the project affected (e.g., using the WBS), or other useful category (e.g., project phase) to determine the areas of the project most exposed to the effects of uncertainty.

Risk Containment

AACEi : Syn.: Risk Safeguard.

Risk Context

APM : Describes the institutional and individual environment, attitudes and behaviours that affect the way risk arises and the way it should be managed.

Risk Control

AACEi : A risk management process step which includes the implementation of the risk response plan.

PMI:

Control Risk : The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

Risk Data Quality Assessment

PMI : Technique to evaluate the degree to which the data about risks is useful for risk management.

Risk Drivers

AACEi : Events or circumstances that may influence or cause uncertainty in asset or project performance. Syn.: Risk Factors.

Risk Efficiency

APM : The principle of risk-taking to achieve the minimum level of exposure to risk for a given level of expected return.

Risk Event

AACEi : Syn.: Event.

APM : An uncertain event or set of circumstances that would, if it occurred, have an effect on the achievement of one or more objectives.

Risk Factors

AACEi : Syn.: Risk Drivers.

Risk Identification

AACEi : A risk management process step (part of risk assessment) for identifying and describing risks for risk analysis and subsequent steps.

PMI:

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

Risk Impact Window

AACEi : Syn.: Exposure Window.

Risk Management

AACEi : A process for managing asset and project risks. In TCM, the process includes risk planning, risk assessment, risk treatment and risk control.

APM:

A process that allows individual risk events and overall risk to be understood and managed proactively, optimising success by minimising threats and maximising opportunities.

PMI:

Project Risk Management : Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project.

Risk Management Audit

AACEi : An independent and documented quality assurance process to measure and assess compliance with risk management requirements and plans.

Risk Management Maturity

AACEi : Refers to the state of development and competency an organization has in risk management strategies, processes, methods, and tools.

Risk Management Plan

AACEi : The plan established by the asset planning or project team for carrying out risk assessment, risk treatment and risk control efforts.

PMI:

A component of the project, program, or portfolio management plan that describes how risk management activities will be structured and performed.

Risk Management Team

AACEi : A select group of project team members that will be responsible for the completion and acceptance of the qualitative analysis once risks are identified. (April)

Risk Matrix

AACEi : A method used in qualitative risk analysis to rate or rank the severity of risks in terms of their combined impact (or consequence) to some output measure that is at risk and the risk’s probability of occurrence. The matrix has impact on one axis and probability on the other with each intersecting node given predetermined severity rating designations (e.g., high, moderate, low). Syn.: Impact Versus Probability Rating.

Risk Mitigation

AACEi : A somewhat ambiguous term that typically includes any risk treatment action to reduce, transfer or eliminate a threat.

PMI : A risk response strategy whereby the project team acts to reduce the probability of occurrence or impact of a risk.

Risk Owner

AACEi : A person(s) or entity charged with planning and implementing a specific risk response.

Risk Perception

AACEi : Subjective attitudes, judgments and biases of an asset or project stakeholder concerning the characteristics, probability and/or impact of a risk. This affects the establishment or expression of more objective risk policy, appetite and/or tolerances.

Risk Planning

AACEi : In TCM, a process for planning risk management throughout the asset or project life cycle.

Risk Policy

AACEi : In decision making, refers to the enterprise’s or decision maker’s established and preferably documented risk tolerance and general approach to treatment of risk in decision analysis.

Risk Profile

AACEi : A general term that refers to either qualitative or quantitative measures or indicators that describe the risk exposure and/or severity associated with an asset or project alternative or business initiative.

Risk Reassessment

PMI : Risk reassessment is the identification of new risks, reassessment of current risks, and the closing of risks that are outdated.

Risk Register

AACEi : A formal record of identified risks, typically including additional summary information as regards assessment, treatment and control of the risks. The content may be qualitative, quantitative or both.

APM:

A document listing identified risk events and their corresponding planned responses.

PMI:

A document in which the results of risk analysis and risk response planning are recorded.

Risk Response

AACEi : Strategies or actions identified and planned in the risk treatment process to address risks.

APM :

An action or set of actions to reduce the probability or impact of a threat, or to increase the probability or impact of an opportunity.

Risk Safeguard

AACEi : An existing attribute or condition of an enterprise, asset or project scope (physical, planning or procedural) that may have risk treatment functionality. Syn.: Risk Containment.

Risk Screening

AACEi : In risk assessment, steps to prioritize identified risks for risk treatment and/or quantitative risk analysis (e.g., ranking by score or impact versus probability matrix).

Risk Sources

AACEi : A somewhat ambiguous term to describe categories used in risk identification and risk breakdown structures to describe process steps, stakeholders, organizational entities, environments, or other origins of risk causation.

PMI:

Risk Category: A group of potential causes of risk.

Risk Taxonomy

AACEi : Syn.: Rbs; Risk Breakdown Structure (RBS).

Risk Techniques

APM : Used to identify, assess and plan responses to individual risks and overall risk.

Risk Threshold

AACEi : A risk impact measure or indicator beyond which a risk response must be planned or a contingent response taken.

PMI :

Measure of the level of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. Above that risk threshold, the organization will not tolerate the risk.

Risk Tolerance

AACEi : Refers to the ability or willingness of an asset or project stakeholder to accept potential risk impacts; the evaluation of risk tolerance guides risk treatment planning.

PMI :

The degree, amount, or volume of risk that an organization or individual will withstand.

Risk Transference

PMI : A risk response strategy whereby the project team shifts the impact of a threat to a third party, together with ownership of the response.

Risk Treatment

AACEi : In TCM, a risk management process for identifying, evaluating, and selecting responses to identified risks.

Risk Trigger

AACEi : A measurable or observable event or condition that is a precursor to or indicator of a risk’s occurrence. Typically leads to initiation of a planned risk response.

Risk Types

AACEi : A means of characterizing risk for use in risk assessment by the type of risk.

Risk Urgency Assessment

PMI : Review and determination of the timing of actions that may need to occur sooner than other risk items.

Risk, External

AACEi : A risk taxonomy designation for a risk that is not caused by and/or not in the direct control of the stakeholders or project team.

Risk, Internal

AACEi : A risk taxonomy designation for a risk that is caused by and/or in the direct control of the stakeholders or project team.

Risk, Project-Specific

AACEi : A risk taxonomy designation used to classify project risks for the purposes of selecting a quantification method (i.e., contingency determination). Project-specific risks are uncertainties (threats or opportunities) related to events, actions, and other conditions that are specific to the scope of a project. (e.g., weather, soil conditions, etc.). The impacts of project-specific risks are more or less unique to a project. In this taxonomy usage, it is the opposite of “systemic” risks.

Risk, Systemic

AACEi : A risk taxonomy designation used to classify project risks for the purposes of selecting a quantification method (i.e., contingency determination). Systemic risks are uncertainties (threats or opportunities) that are an artifact of an industry, company or project system, culture, strategy, complexity, technology, or similar over-arching characteristics. In this taxonomy usage, it is the opposite of “project-specific” risks.

Risk-Adjusted Critical Path

AACEi : Undeveloped theory that proposes using non-deterministic activity durations when considering the determination of the critical path.

Role

PMI : A defined function to be performed by a project team member, such as testing, filing, inspecting, or coding.

Rolling Wave Planning

AACEi : Refers to the process of maintaining detail short work packages for the near term and planning packages for the longer term. Typically this is accomplished for set periods (e.g. every 6 months) or to the next program level significant milestone. The purpose is to always have a discrete plan for the near term.

APM :

The process whereby short term work is planned in detail and longer term work is planned in outline only.

PMI :

An iterative planning technique in which the work to be accomplished in the near term is planned in detail, while the work in the future is planned at a higher level."

Root Cause Analysis

PMI : An analytical technique used to determine the basic underlying reason that causes a variance or a defect or a risk. A root cause may underlie more than one variance or defect or risk.

Royalties

AACEi : payments a company receives to allow others to use a design or concept the company has researched and developed to commercialization. Generally, one of two types:

1. Paid-up royalties where a lump sum payment is made; and

2. Running royalties where continuous payments are made, usually based on actual production or revenues.

Rubber Baseline

AACEi : An ambiguous term meaning a non-stable performance measurement baseline (PMB) plan. In a negative context it can refer to:

1. A baseline that is frequently single point adjusted to eliminate earned value management variances.

2. A baseline that is frequently changed to avoid variances rather than for technical performance reasons.

Rules Of Credit

AACEi : In project control, a procedure according to which the progress on project activities shall be measured.

S-Curve

AACEi :(1) In the context of risk management, a cumulative distribution of the probability of values in a defined range produced by quantitative risk analysis.

(2) In the context of project control, a cumulative distribution of costs, labor hours, progress, or other quantities plotted against time.

APM:

A graphic display of cumulative costs, labour hours or other quantities, plotted against time.

Safety Stock

AACEi : The average amount of stock on hand when a replenishment quantity is received. Its purpose is to protect against the uncertainty in demand and in the length of the replenishment lead time. Safety stock and cycle stock are the two main components of any inventory. Syn.: Reserve Stock.

Safety Time

AACEi : In a time series planning system, material is frequently ordered to arrive ahead of the forecast requirement date to protect against forecast error. The difference between the forecast requirement date and the planned in-stock date is safety time.

Sales

AACEi : Orders booked by customers.

Sales Forecast

AACEi : A prediction or estimate of sales, in dollars or physical units, for a specified future period under a proposed marketing plan or program and under an assumed set of economic and other forces outside the unit for which the forecast is made. The forecast may be for a specified item of merchandise or for an entire line.

Sales Price

AACEi : The revenue received for a unit of a product. Gross sales price is the total amount paid. Net sales are gross sales less returns, discounts, freight and allowances. Plant netbacks are net sales less selling, administrative and research expenses. Syn.: Selling Price.

Sales Profile

AACEi : The growth or decline of historical or forecast sales volume, by years.

Sales Revenue

AACEi : Revenue received as a result of sales, but not necessarily during the same time period.

Salvage Value

AACEi :(1) The market value of a machine or facility at any point in time (normally an estimate of an asset's net market value at the end of its estimated life).

(2) The value of an asset, assigned for tax computation purposes, which is expected to remain at the end of the depreciation period.

Savings-To-Investment Ratio (SIR)

AACEi : Either the ratio of present value savings to present value investment costs, or the ratio of annual value savings to annual value investment costs. [1]

Scaling Factor

AACEi : Syn.: Capacity Factor; Capacity Utilization Factor.

Scatter Diagram

PMI : A correlation chart that uses a regression line to explain or to predict how the change in an independent variable will change a dependent variable.

Scenario

AACEi : A description of specific events and conditions and their probable outcomes. Usually limited to likely or probable scenarios versus all possible ones. Frequently, “most likely,” “best case,” and “worst case” scenarios are used to define the most probable outcome and the range of outcomes.

Scenario Analysis

AACEi : Methods to assess a range or events, conditions, and outcomes employing specific scenarios. An alternative to simulation methods for assessing ranges.

Schedule

AACEi :(1) A description of when each activity in a project can be accomplished and must be finished so as to be completed timely. The simplest of schedules depict in bar chart format the start and finish of activities of a given duration. More complex schedules, general in CPM format, include schedule logic and show the critical path and floats associated with each activity.

(2) A time sequence of activities and events that represent an operating timetable. The schedule specifies the relative beginning and ending times of activities and the occurrence times of events. A schedule may be presented on a calendar framework or on an elapsed time scale.

APM:

A timetable showing the forecast start and finish dates for activities or events within a project, programme or portfolio.

PMI:

Project Schedule: An output of a schedule model that presents linked activities with planned dates, durations, milestones, and resources.

Schedule Baseline

AACEi : In earned value, the baseline start and completion dates used for integration with work authorization and costs. It is considered the time element of the performance measurement baseline (PMB).

PMI:

The approved version of a schedule model that can be changed only through formal change control procedures and is used as a basis for comparison to actual results.

Schedule Buffer

AACEi : Syn.: Schedule Contingency.

Schedule Compression

AACEi : A method of schedule analysis used to shorten the critical path of the schedule. This may be accomplished by re-sequencing work, employing greater resources to accomplish more work in a given time, or otherwise reducing the duration of critical path activities. The need for schedule compression may come about because of the owner’s desire to complete early, make up for delays, or to accommodate added work.

PMI:

Techniques used to shorten the schedule duration without reducing the project scope.

Schedule Contingency

AACEi :(1) Duration added to a schedule activity to allow for the probability of possible or unforeseen events. Use in this manner is not recommended as the contingency is hidden and may be misused.

(2) A unique activity used to model specific float available to a project phase. Used in this manner gives ownership of float to those activities and or responsibility entity.

(3) The amount of time added to specific activities of a project (or program) schedule to mitigate (dampen/buffer) the effects of risks or uncertainties identified or associated with specific elements of that schedule. Syn.: Schedule Buffer.

Schedule Data

PMI : The collection of information for describing and controlling the schedule.

Schedule Decompression

AACEi : The opposite of schedule compression and results in lengthening the critical path. The need to reduce costs, work within limited resource constraints, and eliminate the use of overtime are some of the reasons for schedule decompression.

Schedule Graphics

AACEi : Presentation charts and images used to communicate schedule progress and highlight areas of concern. Usually supplements the schedule report. Schedule graphics can include bar charts, time scaled logic diagrams, fragnets, etc.

Schedule Management

APM : The process of developing, maintaining and communicating schedules for time and resource.

Schedule Management Plan

PMI : A component of the project management plan that establishes the criteria and the activities for developing, monitoring, and controlling the schedule.

PCI:

The Schedule Management Plan defines scope, purpose, and policy; participant roles and responsibilities; objectives; processes and procedures; organisational responsibilities and relationships; tools; reporting requirements; and related documents. It guides the overall implementation of schedule development and management over time.

Schedule Margin (SM)

AACEi : Schedule margin or schedule reserve are interchangeable terms meaning duration added to a schedule activity to allow for the probability of possible or unforeseen events. It is typically based on a schedule risk assessment and is measured in the unit of the schedule (typically days). For earned value management, schedule margin is usually limited to logical end points within the schedule. Schedule margin acts as a buffer between the baseline activities and the project end date. It may be considered management reserve (MR) in time units. Syn.:Schedule Reserve.

Schedule Model

AACEi : A mathematical representation of a schedule that can be used in modeling. A CPM schedule network is the most common schedule model.

PMI :

A representation of the plan for executing the project’s activities including durations, dependencies, and other planning information, used to produce a project schedule along with other scheduling artifacts.

Schedule Network Templates

PMI : A set of activities and relationships that have been established that can be used repeatedly for a particular application area or an aspect of the project where a prescribed sequence is desired.

Schedule Of Values

AACEi : A detailed statement furnished by a construction contractor, builder, or others, apportioning the contract value into work packages. It is used as the basis for submitting and reviewing progress payments.

Schedule Percent Complete

AACEi : The proportion of an activity or all the project’s activities that has been completed.

PMI :

A measure of schedule efficiency expressed as the ratio of earned value to planned value.

PCI : Ratio of work accomplished versus work planned, for a specified time period. The SPI is an efficiency rating for work accomplishment, comparing work accomplished to what should have been accomplished.

Schedule Performance Index [SPI(T)]

AACEi : A time-based performance index determined by earned schedule (the accomplished value in time increments) divided by the actual time increments that have elapsed.

Schedule Refinement

AACEi : Rework, redefinition or modification of the logic or data that may have previously been developed in the planning process as required to properly input milestones, restraints and priorities.

Schedule Report

AACEi : A periodic report outlining progress, highlighting significant progress of activities on the critical path and areas of concern that may require corrective action. A schedule report typically includes a narrative, tabular listings by various sorts, and time scaled CPM diagrams.

Schedule Reserve

AACEi : Syn.: Schedule Margin (SM).

Schedule Revision

AACEi : In the context of scheduling, a change in the network logic or in resources which requires redrawing part or the entire network.

Schedule Risk

AACEi : The risks (threats, opportunities, or both) the team might encounter in meeting the deadlines for the final deliverable or affecting any activity, milestone or element of the schedule plan.

Schedule Sensitivity

AACEi : Identifies and ranks the tasks most likely to influence the project duration/finish.

Schedule Slip

AACEi : Slippage in the final completion date of a project.

Schedule Traceability

AACEi : A broad term meaning the coding necessary in the schedule to show integration with work authorization, budgeting, accounting, and other earned value management components. Traceability demonstrates the completeness of the schedule content.

Schedule Update

AACEi : Process of updating progress as of a data date and reporting that progress.

Schedule Variance (SV)

AACEi :(1) Difference between projected start/finish dates and actual or revised start/finish dates.

(2) The difference between the earned value and scheduled value. Schedule variance = budgeted cost of work performed (BCWP) - budgeted cost of work scheduled (BCWS). A negative cost variance indicates that the activity(ies) is running behind schedule.

PMI :

A measure of schedule performance expressed as the difference between the earned value and the planned value.

PCI :

The difference between the budgeted cost of work performed and the budgeted cost of work scheduled at any point in time (BCWP-BCWS).

Schedule Variance [SV(T)]

AACEi : The time difference between the earned schedule (the accomplished value in time increments through a planned period) and the actual time increments that have elapsed.

Schedule Work Unit

AACEi : A calendar time unit when work may be performed on an activity.

Scheduled Completion Date

AACEi :

A date assigned for completion of activity or accomplishment of an event for purposes of meeting specified schedule requirements.

Scheduled Dates

AACEi : The start, intermediate, or final dates imposed by contract or other means that impact the project schedule.

Scheduled Event Time

AACEi : In PERT, an arbitrary schedule time that can be introduced at any event but is usually only used at a certain milestone or the last event.

Scheduling

AACEi :(1) Assignment of desired start and finish times to each activity in the project within overall time cycle required for completion according to plan.

(2) Process of converting a general or outline plan for a project into a time-based schedule based on available resources and time constraints.

Syn.: Diagramming (Schedule).

Scheduling Rules

AACEi : Basic rules that are spelled out ahead of time so that they can be used consistently in a scheduling system.

Scheduling Techniques

AACEi : Systems and processes available for determination and presentation (modeling) of a project plan. Examples include, arrow diagramming, logic networks, bar charts, PERT, trending, etc. using a variety of software.

Scheduling Tool

PMI : A tool that provides schedule component names, definitions, structural relationships, and formats that support the application of a scheduling method.

Scope

AACEi : The sum of all that is to be or has been invested in and delivered by the performance of an activity or project. In project planning, the scope is usually documented (i.e., the scope document), but it may be verbally or otherwise communicated and relied upon. Generally limited to that which is agreed to by the stakeholders in an activity or project (i.e., if not agreed to, it is “out of scope”). In contracting and procurement practice, includes all that an enterprise is contractually committed to perform or deliver. Syn.: Project Scope.

APM :

The totality of the outputs, outcomes and benefits and the work required to produce them.

PMI : Project Scope: The work performed to deliver a product, service, or result with the specified features and functions.

Scope: The sum of the products, services, and results to be provided as a project.

Scope Baseline

PMI : The approved version of a scope statement, work breakdown structure (WBS), and its associated WBS dictionary, that can be changed only through formal change control procedures and is used as a basis for comparison.

Scope Change

AACEi : Syn.: Change In Scope.

PMI :

Any change to the project scope. A scope change almost always requires an adjustment to the project cost or schedule.

Scope Creep

AACEi : Gradual progressive change (usually additions to) of the project's scope such that it is not noticed by project management team or customer. Typically occurs when the customer identifies additional, sometimes minor, requirements that, when added together, may collectively result in a significant scope change, resulting in cost and schedule overruns. [8]

PMI :

The uncontrolled expansion to product or project scope without adjustments to time, cost, and resources.

Scope Definition

AACEi :

Division of the major deliverables into smaller, more manageable components to:

1. Improve the accuracy of cost, time, and resource estimates;

2. Define a baseline for performance measurement and control; and

3. Facilitate clear responsibility assignments.

PMI :

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

Scope Management

AACEi : The process whereby outputs, outcomes and benefits are identified, defined and controlled.

PMI :

Project Scope Management: Project Scope Management includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.

Seasonal Commodities

AACEi : Commodities which are normally available in the market-place only in a given season of the year.

Seasonal Variation

AACEi : That movement in many economics series which tends to repeat itself within periods of a year.

Secondary Float (SF)

AACEi : Same as total float, except that it is calculated from a schedule date upon an intermediate event.

Secondary Risks

AACEi : Risks that occur from actions taken to treat other risks.

Secular Trend

AACEi : The smooth or regular movement of a long-term time series trend over a fairly long period of time.

Security

APM : The identification, assessment and mitigation of the risks posed to information, assets and people.

Selected Sellers

PMI : The sellers which have been selected to provide a contracted set of services or products.

Seller

PMI : A provider or supplier of products, services, or results to an organization.

Seller Proposal

PMI : Formal responses from sellers to a request for proposal or other procurement document specifying the price, commercial terms of sale, and technical specifications or capabilities the seller will do for the requesting organization that, if accepted, would bind the seller to perform the resulting agreement.

Selling Expense

AACEi : The total expense involved in marketing the products in question. This normally includes direct selling costs, advertising, and customer service.

Selling Price

AACEi :

Syn.: Sales Price.

Sensitivity

AACEi : The relative magnitude of the change in one or more elements of an engineering economy, estimate, schedule, risk or other planning analysis that will reverse a decision among alternatives. More generally, it is the degree to which a change in an element of a model affects the outcome.

Sensitivity Analysis

AACEi : A test of the outcome of an analysis by altering one or more parameters from an initially assumed value(s). [1]

PMI :

A quantitative risk analysis and modeling technique used to help determine which risks have the most potential impact on the project. It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values. The typical display of results is in the form of a tornado diagram.

Sentimental Value

AACEi : A value associated with an individual's personal desire, usually related to a prior personal relationship.

PMI :

Sequence Activities: The process of identifying and documenting relationships among the project activities.

Sequence

Service Worth Value

AACEi : Earning value, assuming the rates and/or prices charged are just equal to the reasonable worth to customers of the services and/or commodities sold.

Serviceability

AACEi : A measure of the degree to which servicing of an item will be accomplished within a given time under specified conditions.

Servicing

AACEi : The replenishment of consumables needed to keep an item in operating condition, but not including any other preventive maintenance or any corrective maintenance.

Setting

APM : The relationship of the project, programme or portfolio with its host organisation.

Seven Basic Quality Tools

PMI : A standard toolkit used by quality management professionals who are responsible for planning, monitoring, and controlling the issues related to quality in an organization.

Severe Weather

AACEi : A weather event, which is in itself severe and can be of violent nature. If the average weather over time is significantly different from the normal then it is said to be other than normal. In either case, if such weather affects the job and causes a delay, it may be excusable and form the basis for a contract adjustment for time and possibly money once all relevant contract clauses are considered.

Shall

AACEi : Use of the word 'shall' in contract language means that 'you must', as opposed to ‘may’.

AACEi : In TCM risk management, a risk response strategy for opportunities that involves sharing the risk with a third party who is better able to manage it.

APM :

A response to an opportunity that increases its probability, impact or both by sharing the risk with a third party.

Shifting Base

AACEi : Changing the point of reference of an index number series from one time reference period to another.

Shop Drawings

AACEi : All drawings, diagrams, illustrations, schedules and other data which are specifically prepared by or for the contractor to illustrate some portion of the work and all illustrations, brochures, standard schedules, performance charts, instructions, diagrams and other information prepared by a supplier and submitted by the contractor to illustrate material or equipment for some portion of the work.

Shop Order Number

AACEi : Syn.: Account number.

Shop Planning

AACEi : The coordination of material handling, material availability, the setup and tooling availability so that a job can be done on a particular machine.

Short-Term Activities

AACEi : Syn.: Monthly Guide Schedule.

Shutdown Point

AACEi : The production level at which it becomes less expensive to close the plant and pay remaining fixed expenses out-of-pocket rather than continue operations; that is, the plant cannot meet its variable expense.

Significant Variances

AACEi : Those differences between planned and actual performance which exceed established thresholds and which require further review, analysis and action.

Simple Interest

AACEi :(1) Interest that is not compounded is not added to the income-producing investment or loan.

(2) The interest charges under the condition that interest in any time period is only charged on the principal.

Simple Payback Period (SPP)

AACEi : The time required for the cumulative benefits from an investment to pay back the investment cost and other accrued costs, not considering the time value of money. [1]

Simulation

AACEi : Application of a physical or mathematical model to observe and predict probable performance of the actual item or phenomenon to which it relates.

PMI :

A simulation uses a project model that translates the uncertainties specified at a detailed level into their potential impact on objectives that are expressed at the level of the total project. Project simulations use computer models and estimates of risk, usually expressed as a probability distribution of possible costs or durations at a detailed work level, and are typically performed using Monte Carlo analysis.

Single Point Estimate

AACEi : Syn.: Base Estimate; Point Estimate.

Sinking Fund

AACEi :(1) A fund accumulated by periodic deposits and reserved exclusively for a specific purpose, such as retirement of a debt or replacement of a property.

(2) A fund created by making periodic deposits (usually equal) at compound interest in order to accumulate a given sum at a given future time for some specific purpose.

Site Preparation

AACEi : An act involving grading, landscaping, drainage, installation of roads and siding, of an area of ground upon which anything previously located had been cleared so as to make the area free of obstructions, entanglements or possible collisions with the positioning or placing of anything new or planned.

Slack

AACEi : Syn.: Float; Path Float.

Slack Paths

AACEi : The sequences of activities and events that do not lie on the critical path or paths.

Slack Time

AACEi : The difference in calendar time between the scheduled due date for a job and the estimated completion date. If a job is to be completed ahead of schedule, it is said to have slack time; if it is likely to be completed behind schedule, it is said to have negative slack time. Slack time can be used to calculate job priorities using methods such as the critical ratio. In the critical path method, total slack is the amount of time a job may be delayed in starting without necessarily delaying the project completion time. Free slack is the amount of time a job may be delayed in starting without delaying the start of any other job in the project.

Slip Chart

AACEi : A pictorial representation of the predicted completion dates of milestones. Also referred to as trend chart.

APM : A pictorial representation of the predicted completion dates of milestones or activities compared to their planned completion dates.

Slippage

AACEi : Amount of time a task has been delayed from its original baseline plan. Slippage is the difference between scheduled start or finish date for a task and baseline start or finish date. Slippage can occur when a baseline plan is set and actual dates subsequently entered for tasks are later than baseline dates, or actual durations are longer than baseline durations.

Smoothing

AACEi : In resource-scheduling, refers to an option that modifies the way time-limited (and resource-limited with thresholds) scheduling works. Objective is to minimize the extent that each resource availability is exceeded. Standard algorithm gives itself the maximum flexibility to achieve this by making use of any excess already incurred. Smoothing option modifies this so that it will not use excess for a particular activity unless necessary in order to schedule that activity within its total float.

Solutions Development

APM : The process of determining the best way of satisfying requirements.

Source Selection Criteria

PMI : A set of attributes desired by the buyer which a seller is required to meet or exceed to be selected for a contract.

Specification Limit

PMI : The area, on either side of the centerline, or mean, of data plotted on a control chart that meets the customer’s requirements for a product or service. This area may be greater than or less than the area defined by the control limits.

Specification Tree

AACEi : A graphic portrayal arranged to illustrate interrelationships of hardware and/or software performance/design requirements specifications. Normally, this portrayal is in the form of a “family tree” subdivision of specifications, with each lower level specification applicable to a hardware/software item that is part of a higher level item. [7]

Specification(S)

AACEi :(1) A detailed, exact statement of particulars, especially a statement prescribing materials, dimensions, and quality of work for something to be built, installed, or manufactured.

(2) A document that prescribes the requirements with which the product or services has to conform.

PMI :

A document that specifies, in a complete, precise, verifiable manner, the requirements, design, behavior, or other characteristics of a system, component, product, result, or service and the procedures for determining whether these provisions have been satisfied. Examples are: requirement specification, design specification, product specification, and test specification.

Specification, Design

AACEi : A design specification providing a detailed written and/or graphic presentation of the required properties of a product, material, or piece of equipment, and prescribing the procedure for its fabrication, erection, and installation.

Specification, Performance

AACEi : A statement of required results, verifiable as meeting stipulated criteria, and generally free of instruction as to the method of accomplishment.

Spiral Life Cycle

APM : A life cycle model that combines features of both iterative development and the waterfall method.

Split Task

AACEi : A task divided into two or more portions, with time gaps between one portion and another that indicate an interruption in work on the task.

Splittable Activity

AACEi : Activity that can be interrupted in order to allow temporary transfer of its resources to another activity.

Splitting

AACEi :

Dividing (i.e., splitting) an activity of stated scope, description and schedule into two or more activities which are rescoped and rescheduled. The sum of the split activities is normally the total of the original.

Sponsoring Organization

PMI : The entity responsible for providing the project’s sponsor and a conduit for project funding or other project resources.

Sponsorship

APM : An important senior management role. The sponsor is accountable for ensuring that the work is governed effectively and delivers the objectives that meet identified needs.

PMI : Sponsor: A person or group who provides resources and support for the project, program, or portfolio and is accountable for enabling success.

Spot Market Price Index

AACEi : Daily index used as a measure of price movements of sensitive basic commodities whose markets are to be presumed to be among the first to be influenced by changes in economic conditions. It serves as one early indicator of impending changes in business activity.

Sprint

APM : A regular repeatable work cycle in Agile development. Also known as an ‘iteration’.

Staffing Management Plan

PMI : A component of the human resource plan that describes when and how project team members will be acquired and how long they will be needed.

Stage

APM : A sub-division of the development phase of a project created to facilitate approval gates at suitable points in the life cycle.

Stage Of Processing

AACEi : A commodity's intermediate position in the value-added channel of production.

Stakeholder

AACEi :

Decision makers, people or organizations that can affect or be affected by a decision.

APM : The organisations or people who have an interest or role in the project, programme or portfolio, or are impacted by it.

PMI :

An individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.

Stakeholder Analysis

AACEi : A process used to determine the degree of interest, influence and attitude of stakeholders toward a particular asset, project or business objective.

PMI:

A technique of systematically gathering and analyzing quantitative and qualitative information to determine whose interests should be taken into account throughout the project.

Stakeholder Management

APM : The systematic identification, analysis, planning and implementation of actions designed to engage with stakeholders.

PMI:

Project Stakeholder Management: Project Stakeholder Management includes the processes required to identify all people or organizations impacted by the project, analyzing stakeholder expectations and impact on the project, and developing appropriate management strategies for effectively engaging stakeholders in project decisions and execution.

Stakeholder Register

PMI : A project document including the identification, assessment, and classification of project stakeholders.

Stand Alone

AACEi : A system that performs its function requiring little or no assistance from interfacing systems.

Standard

AACEi : A specific statement of the rules and constraints governing the naming, contents, and operations of deliverables. The rules and constraints are designed to support specific objectives.

PMI:

A document that provides, for common and repeated use, rules, guidelines, or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context.

Standard Network Diagram

AACEi : A predefined network intended to be used more than one time in any given project.

Standard Operating Procedure

AACEi : Detailed step-by-step instructions for repetitive operations. Examples are aircraft takeoff and landing procedures.

Standard Time

AACEi : A measure of the time it should take a qualified worker to perform a particular task.

Start Date

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

Start Event Of A Project

AACEi : Event with succeeding, but no preceding activities. There may be more than one start event.

Start Float

AACEi : Amount of excess time an activity has between its early start and late start dates.

Start-To-Finish (SF)

AACEi : A relationship in which the successor activity depends upon and can finish only after the predecessor activity starts. The predecessor must start first and then the successor can finish.

APM:

A dependency in an activity-on-node network. It indicates that one activity cannot finish until another activity has started.

PMI:

A logical relationship in which a successor activity cannot finish until a predecessor activity has started.

Start-To-Start (SS)

AACEi : A relationship between activities in which the start of a successor activity depends on the start of its predecessor. The predecessor must start prior to the successor starting.

APM:

A dependency in an activity-on-node network. It indicates that one activity cannot start until another activity has started

PMI:

A logical relationship in which a successor activity cannot start until a predecessor activity has started.

Start-To-Start Lag

AACEi : Minimum amount of time that must pass between the start of one activity and the start of its successor(s). May be expressed in terms of duration or percentage.

Starting Event

AACEi : Syn.: Beginning Event; Preceding Event; Predecessor Event.

Startup

AACEi : The project activities (or phase) that take place between commissioning and the achievement of steady-state operation. In some usage, the term startup may include both commissioning (i.e., testing after mechanical completion) and startup (it may then be referred to as ‘startup and testing’); one must take care to ascertain what the user of this term means. Production may not be at planned capacity or quality at the end of the phase.

Startup Costs

AACEi :

Extra operating costs to bring the plant on stream incurred between the completion of construction and beginning of normal operations. In addition to the difference between actual operating costs during that period and normal costs, it also includes employee training, equipment tests, process adjustments, salaries and travel expense of temporary labor, staff and consultants, report writing, post-startup monitoring and associated overhead. Additional capital required to correct plant problems may be included. Startup costs are sometimes capitalized.

Statement Of Work (SOW)

AACEi :

A narrative description of the work to be performed.

APM:

An annex to the main body of a contract that defines the detail of deliverables, timescales and management procedures.

PMI:

A narrative description of products, services, or results to be delivered by the project.

PCI:

A description of product and service to be procured under contract; a statement of requirements.

Static Risk

AACEi : Risk for which the characteristics, probability and/or impact do not change over time or with the occurrence of preceding events.

Statistical Sampling

PMI : Choosing part of a population of interest for inspection.

Status Date

AACEi : The date that the schedule is statused through, earned value is calculated through, and actual costs are integrated with. In earned value, is also the date that variance analysis and baseline control is maintained against.

Status Line

AACEi : A vertical line on a time-scaled schedule indicating the point in time (date) on which the status of the project is reported. Often referred to as the time now line.

Status Report

AACEi :(1) Description of where the project currently stands; part of the performance reporting process.

(2) Formal report on the input, issues, and actions resulting from a status meeting.

Statusing

AACEi : Indicating on the schedule the most current project status.

Status

AACEi :(1) Comparison of actual progress against the plan to determine variance and corrective action.

(2) An instantaneous snapshot of the then current conditions.

Stock And Bond Value

AACEi : A special form of market value for enterprises, which can be owned through possession of their securities. Stock and bond value is the sum of: 1) The par values in dollars of the different issues of bonds multiplied by the corresponding ratios of the market price to the par value; and 2) The number of shares of each issue of stock multiplied by the corresponding market price in dollars per share.

Stop Work Order

AACEi : Request for interim stoppage of work due to non-conformance, or funding or technical limitations.

Straight-Line Depreciation

AACEi : Method of depreciation whereby the amount to be recovered (written off) is spread uniformly over the estimated life of the asset in terms of time periods or units of output .

Strategic Asset

AACEi : Any unique physical or intellectual property that is of long term or ongoing value to the enterprise. As used in total cost management, it most commonly includes capital or fixed assets, but may include intangible assets. Excludes cash and purely financial assets. Strategic assets are created by the investment of resources through projects.

Strategic Asset Management

AACEi : A subprocess of the total cost management (TCM) process that includes the management of the total life cycle cost investment of resources in an enterprise’s portfolio of strategic assets. Excludes, but integrated with, the project control process.

Strategic Management

APM : The identification, selection and implementation of an organisation’s long term goals and objectives.

Strategic Risk

AACEi :(1) A risk for which the potential impact threatens a project objective, even if the probability of occurrence is low or risk matrix severity rating is within screening thresholds. In projects, these risks are generally funded through management reserves.

(2) A risk that has a significant potential impact on enterprise, portfolio or other higher objectives or plans beyond the project level.

Strategy

AACEi : Action plan to set the direction for the coordinated use of resources through programs, projects, policies, procedures, and organizational design and establishment of performance standards. [8]

Stretching

AACEi : In resource scheduling it is possible to specify that an activity duration may be stretched if this results in an earlier scheduled finish date. This means that the specified duration may be increased, while the specified resource profile is reduced proportionally.

Study Period

AACEi : The length of time over which an investment is analyzed. Syn.: Time Horizon.

Subcontract

AACEi : A contract that assigns some of the obligations of a prior contract to another party.

Subcontractor

AACEi : One that enters into a subcontract and assumes some of the obligations of the primary contractor.

Subindex

AACEi : A price index for a sub-aggregate of a given basket of commodities.

Subject Matter Expert (SME)

PCI : The Subject Matter Expert is the individual(s) who exhibits the highest level of expertise in performing a specialised job, task, or skill within the organisation.

Subnetwork

AACEi : Syn.: Fragent.

PMI : A subdivision (fragment) of a project schedule network diagram, usually representing a subproject or a work package. Often used to illustrate or study some potential or proposed schedule condition, such as changes in preferential schedule logic or project scope.

Subnetwork Float

AACEi : Total float on a fragnet when it is extracted from the overall network. This is relevant in dealing with delay issues particular to a certain subcontractor or a supplier responsible for only a part of the overall project.

Subproject

AACEi :(1) A smaller project within a larger one. Often used to segregate into components that are more manageable.

(2) Component of a project. Often contracted out to an external enterprise or another functional unit in the performing organization. [8]

APM:

A group of activities represented as a single activity in a higher level of the same project.

PMI:

A smaller portion of the overall project created when a project is subdivided into more manageable components or pieces.

Substantial Completion

AACEi :(1) Work (or a specified part thereof) which has progressed to the point where in the opinion of the engineer, as evidenced by the engineer's definitive certificate of substantial completion, it is sufficiently complete, in accordance with the contract documents, so that the work (or specified part) can be utilized for the purposes for which it is intended; or if there be no such certificate issued, when final payment is due in accordance with the general conditions. Substantial completion of the work, or specified part thereof, may be achieved either upon completion of pre-operational testing or startup testing, depending upon the requirements of the contract documents. The terms substantially complete and substantially completed as applied to any work refer to substantial completion thereof.

(2) For an activity, when the work is generally completed with the exception of minor remedial work, thus allowing any successor activities to start unimpeded. For a project this is the point where the work is complete and the owner can start using the project for its intended purpose. The only remaining work would be categorized as punch list work.

(3) The time when the facility is available to operate safely for the intended purpose.

Substantial Performance

AACEi : Considered to be reached when:

1. The work or a substantial part of it is ready for use or is being used for the purpose intended;

2. The work to be done under the contract can be completed or corrected at a cost of not more than, say, 1% to 3% of the contract price depending on the size of the contract; and

3. Is so certified by a certificate of substantial performance issued by client or its consultant.

Subsystem

AACEi : An aggregation of component items (hardware and software) performing some distinguishable portion of the function of the total system of which it is a part. Normally, a subsystem could be considered a system in itself if it were not an integral part of the larger system.

Subtask

AACEi : Portion of a task or work element. [8]

Success Criteria

APM : The qualitative or quantitative measures by which the success of P3 management is judged.

Success Factors And Maturity

APM : Management practices that, when implemented, will increase the likelihood of success of a project, programme or portfolio. The degree to which these practices are established and embedded within an organisation indicates its level of maturity.

Success Tree Analysis (STA)

AACEi : A risk analysis method used to evaluate risk opportunities employing a success tree which shows the combination of successful events leading to the success of parent event.

Successor

AACEi : An activity that immediately succeeds another activity.

Successor Activity

AACEi : An activity, which logically follows the accomplishment of part or all of a given activity.

PMI:

A dependent activity that logically comes after another activity in a schedule.

Successor Event

AACEi : The event that signifies the completion of an activity.

Sum-Of-Digits Method

AACEi : A method of computing depreciation in which the amount for any year is based on the ratio: (years of remaining life)/(1+2+3+...+n), where n is the total anticipated life. Syn.: Sum-Of-The-Years-Digits Method.

Sum-Of-The-Years-Digits Method

AACEi : Syn.: Sum-Of-Digits Method.

Summary Activity

PMI : A group of related schedule activities aggregated and displayed as a single activity.

Summary Item

AACEi : An item appearing in the work breakdown structure.

Summary Level Planning Package (SLPP)

AACEi : An optional budget level above the control account and below the reporting level to the owner. SLPPs have scope, schedule, and budget and are limited to significant outer year periods. They are allocated to control accounts and converted to planning packages at the earliest opportunity.

Summary Network

AACEi : A summarization of the CPM network for presentation purposes. This network is not computed.

Summary Number

AACEi : A number that identifies an item in the work breakdown structure.

Summary Schedule

AACEi : A single page, usually time-scaled, project schedule. Typically included in management level progress reports. In earned value, it can be reconciled with the performance measurement baseline (PMB) schedule.

Summary Task

AACEi : A task that consists of a logical group of tasks, called subtasks. Primarily used for reporting purposes.

Sunk Cost

AACEi : A cost that has already been incurred and which should not be considered in making a new investment decision. [2]

APM:

Costs that are un avoidable, even if the remaining work is terminated.

Super-Critical Activity

AACEi : An activity that is behind schedule is considered to be super-critical. It has been delayed to a point where its float is calculated to be a negative value.

Superior Knowledge

AACEi : Syn.: Misrepresentation.

Supplementary Conditions

AACEi : The part of the contract documents which amends or supplements the general conditions.

Supplier

AACEi : A manufacturer, fabricator, distributor or vendor.

PCI:

An organisation or entity, either internal to a company or external to it, from which goods or services are required to complete a programme. Typically, suppliers are subcontractors or sub-tier contractors.

Surety

AACEi : A bonding company licensed to conduct business which guarantees the owner that the contract will be completed (performance bond) and that subcontractors and suppliers will be paid (payment bond).

Surveillance

AACEi : A term used in an earned value management system (e.g. EVMS or C/SCSC) to mean the monitoring of continued compliance with an approved/validated management control system.

Suspension Of Work, Constructive

AACEi : An act or failure to act by the owner, or the owner's representative, which is not a directed suspension of work or work stoppage, but which has the effect of delaying, interrupting, or suspending all or a portion of the work.

Suspension Of Work, Directed

AACEi : Actions resulting from an order of the owner to delay, interrupt, or suspend any or all portions of the work for a given period of time, for the convenience of the owner.

Sustainability

APM : An environmental, social and economically integrated approach to development that meets present needs without compromising the environment for future generations.

Swot

AACEi : Acronym for a qualitative risk identification and assessment technique that reviews strengths, weaknesses, opportunities and threats.

PMI:

Analysis of strengths, weaknesses, opportunities, and threats of an organization, project, or option.

System Concept Document

AACEi : Syn.: Concept Definition Document.

System Surveillance

PCI : Cross-program EVMS surveillance used to assess the capability to achieve the earned value guidelines. Note: System surveillance may be a summarisation of the programme's surveillance results rather than separate surveillance reviews.

Systems Dynamics

AACEi : Methods for studying the behavior of complex systems with feedback loops (e.g., chains of cause and effect).

Systems Studies

AACEi : The development and application of methods and techniques for analyzing and assessing programs, activities and projects to review and assess efforts to date and to determine future courses and directions. These studies include cost/ benefit analysis, environmental impact analysis, assessment of the likelihood of technical success, forecasts of possible futures resulting from specific actions, and guidance for energy program planning and implementation.

Tactical Risk

AACEi : Risk for which the potential impact does not significantly threaten an overall project objective or have a significant potential impact on enterprise, portfolio or other higher objectives or plans beyond the project level.

Tailor

PMI : The act of carefully selecting process and related inputs and outputs contained within the PMBOK® Guide to determine a subset of specific processes that will be included within a project’s overall management approach.

Take-Off

AACEi : A take-off is a specific type of quantification that is a measurement and listing of quantities of materials from drawings in order to support the estimate costing process and/or to support the material procurement process.

Tangibles

AACEi : Things that can be quantitatively measured or valued, such as items of cost and physical assets.

Target

AACEi : A target is a measurement set for performance. In a project management sense it typically refers to a project goal expressed in time or cost.

Target Date

AACEi : Date imposed on an activity or project by the user or client that constrains or otherwise modifies the network analysis. There are two types: Target Start Dates, and Target Finish Dates.

Target Finish Date

AACEi : A target date where the date imposed is on the finish date.

Target Plan

AACEi : The target plan prioritized by critical total float taken from the current schedule.

Target Reporting

AACEi : A method of reporting the current schedule against some established base line schedule and the computations of variances between them.

Target Schedule

AACEi : A schedule devised or selected as an objective measure against which actual performance can be gauged.

Target Start Date

AACEi : A target date where the date imposed is on the start date.

Task

AACEi :(1) A cohesive, individual unit of work that is part of the total work needed to accomplish a project.

(2) Well-defined component of project work; a discrete work item. There are usually multiple tasks for one activity. [8]

Task Monitor

AACEi : The individual assigned the monitoring responsibility for a major effort within the program.

Task Types

AACEi : Characterization of task by resource requirement, responsibility, discipline, jurisdiction, function, etc.

Taxes Payable

AACEi : Tax accruals due within a year.

Technical Performance Measurement

AACEi : A general term referring to the technical plan measurements of the program/project. Examples include Software Engineering Institute (SEI) metrics, technical plans, and specifications. These may be used in earned value as the integration points with the schedule.

Technique

PMI : A defined systematic procedure employed by a human resource to perform an activity to produce a product or result or deliver a service, and that may employ one or more tools.

Template

AACEi :(1) A guideline for a document outline and its contents. A template is used to record the work activities, discussions, findings, and specification to help achieve a common understanding. In addition it is used to provide a consistent look and feel to the project documentation. [8] Care must be taken with the use of templates to ensure that normal planning and schedule quality analysis and control processes are not bypassed or shortchanged.

(2) A document whose required content is predetermined and format is pre-structured, usually in some measure of detail, in order to speed its completion to a higher level of accuracy and uniformity.

PMI : A partially complete document in a predefined format that provides a defined structure for collecting, organizing, and presenting information and data.

Temporary Construction Cost

AACEi : Includes costs of erecting, operating, and dismantling non-permanent facilities, such as offices, workshops, etc, and providing associated services such as utilities.

Termination

AACEi : Actions by the owner, in accordance with contract clauses, to end, in whole or in part, the services of the contractor. Termination may be for the convenience of the owner or for default by the contractor.

APM : The decommissioning and disposal of a deliverable at the end of its useful life.

Terms Of Payment

AACEi : Defines a specific time schedule for payment of goods and services and usually forms the basis for any contract price adjustments on those contracts that are subject to escalation.

Theory Of Constraints (TOC)

AACEi : A four-step management philosophy developed by Dr. Eli Goldratt that involves: 1) Identifying the system's constraints; 2) Working to exploit those constraints (either through strengthening the constraint or getting maximum performance out of the key constraint); 3) Subordinating everything else to the above decision (given the key constraint, all operational decisions involve improving the processes as much as possible relative to this controlling constraint, e.g., a bottleneck in a production process); and 4) Working to elevate the constraint (improve or eliminate the bottleneck and then reexamine the system). Once the critical constraint is eliminated, a new constraint will arise to take its place. So the process continues until the smallest level constraint is identified that can impact on the whole system. In project management, the key constraint (using TOC ideas) is the critical path of the project since it determines the length of the project and hence is the key constraint. TOC is used in the critical chain approach as an alternative to CPM or PERT for determining the length of a project by using critical resource control and application.

Third Party Claim

AACEi : In TCM risk management, an uncertainty that, if it occurs, will have an adverse or downside impact on an objective or objectives. In some usage (but not all), risks are considered synonymous with threats.

APM : A negative risk event; a risk event that if it occurs will have a detrimental effect on the objectives.

PMI : A risk that would have a negative effect on one or more project objectives.

Three-Point Estimate

APM : An estimate in which optimistic, most likely and pessimistic values are given.

PMI :

A technique used to estimate cost or duration by applying an average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates.

Threshold

PMI : A cost, time, quality, technical, or resource value used as a parameter, and which may be included in product specifications. Crossing the threshold should trigger some action, such as generating an exception report.

Tied Activity

AACEi : An activity that must start within a specified time or immediately after its predecessor's completion or start.

Time And Material Contract (T&M)

PMI : A type of contract that is a hybrid contractual arrangement containing aspects of both cost-reimbursable and fixed-price contracts. Time and material contracts resemble cost-reimbursable type arrangements in that they have no definitive end, because the full value of the arrangement is not defined at the time of the award. Thus, time and material contracts can grow in contract value as if they were cost-reimbursable type arrangements. Conversely, time and material arrangements can also resemble fixed-price arrangements. For example, the unit rates are preset by the buyer and seller, when both parties agree on the rates for the category of senior engineers.

Time Box

APM : Control actions or reports that are triggered by the passage of a defined interval (e.g. monthly) are referred to as ‘time-driven’.

Time Chainage

APM : A form of graphical schedule that shows activity in relation to physical location as well as time.

Time Extension

AACEi : An increase in contract time by modification or change order to complete an item of work. An excusable delay generally entitles a contractor to a time extension. Depending upon contract terms, the time extension may or may not be compensate.

Time Horizon

AACEi : Syn.: Study Period.

Time Is Of The Essence

AACEi : Contract requirement that completion of the work within the time limits in the contract is essential. Failure to do so is a breach for which the injured party is entitled to damages.

Time Line

AACEi : Schedule line showing key dates and planned events.

Time Now

AACEi : Current calendar date from which a network analysis, report, or update is being made.

Time Now Line

AACEi : The point in time that the network analysis is based upon. May or may not be the data date.

Time Phasing

AACEi : Strategic pacing of project and overlapping between different activities or blocks of activities. For example, with the decision on whether or not to use rapid application development prototyping, concurrent engineering,

simultaneous design, fast track, phased hand-over, etc. Phasing and overlapping of activities is also an important aspect of management team's skills. Properly done, it can have a significant positive impact on performance.

Time Scheduling

APM : A collection of techniques used to develop and present schedules that show when work will be performed.

Time Unit

AACEi : A unit of measure used in a scheduling calendar when modeling an activity duration, usually expressed in hours, days or weeks, but can also be shifts or even minutes.

Time Value Of Money

AACEi :(1) The time-dependent value of money stemming both from changes in the purchasing power of money (that is, inflation or deflation), and from the real earning potential of alternative investments over time.

(2) The cumulative effect of elapsed time on the money value of an event, based on the earning power of equivalent invested funds.

(3) The expected interest rate that capital should or will earn.

Time-Constrained Scheduling

AACEi : The network schedule calculations are constrained by the time allowed to complete the project as opposed to the resources available to do the work.

Time-Driven

APM : Control actions or reports that are triggered by the passage of a defined interval (e.g. monthly) are referred to as ‘time-driven’.

Time-Limited Resource Scheduling

AACEi : Production of scheduled dates in which resource constraints may be relaxed in order to avoid any delay in project completion.

Time-Limited Scheduling

AACEi : The scheduling of activities so predetermined resource availability pools are not exceeded unless the further delay will cause the project finish to be delayed. Activities can be delayed only until their late start date. However, activities will begin when the late start date is reached, even if resource limits are exceeded. Networks with negative total float time cannot be processed by time-limited scheduling.

Time-Scaled CPM

AACEi : A plotted or drawn representation of a CPM network where the length of the activities indicates the duration of the activity as drawn to a calendar scale. Float is usually shown with a dashed line as are dummy activities.

Time-Scaled Logic/Network Drawing (Or Diagram)

AACEi : Any project network diagram drawn in such a way that the positioning of the activity represents its expected start and finish date. Essentially, a Gantt chart that includes depiction of network logic.

Time-Scaled Schedule Network Diagram

PMI : Any project schedule network diagram drawn in such a way that the positioning and length of the schedule activity represents its duration. Essentially, it is a bar chart that includes schedule network logic.

To Complete Performance Index (TCPI)

AACEi : A metric that calculates the future efficiency necessary to meet a target. When compared with the cost performance index (CPI) it provides and assessment of the realism of obtaining the target. Absolute value variances of .1 or higher between the TCPI and the CPI indicate the target is not achievable. There are two variations of TCPI:

1. Budgeted Base = (budget at completion - budgeted cost of work performed)/(budget at completion - actual cost of work performed). This ratio is very limited and unrealistic when the estimate at completion (EAC) is not equal to the budget at completion (BAC). This calculates the efficiencies needed to meet the BAC.

2. EAC Base (more common) = (budget at completion - budgeted cost of work performed)/(estimate at completion - actual cost of work performed). This calculates the efficiencies necessary to achieve the EAC. This ratio is comparable with the CPI.

PMI :

A measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal, expressed as the ratio of the cost to finish the outstanding work to the remaining budget.

Tolerance

APM : A permissible variation in performance parameters.

PMI :

The quantified description of acceptable variation for a quality requirement.

Tool

PMI : Something tangible, such as a template or software program, used in performing an activity to produce a product or result.

Tornado Chart

AACEi : In risk management, a graphical bar chart of quantitative risk analysis data that ranks the key risk drivers in descending order of impact or severity.

PMI : Tornado Diagram: A special type of bar chart used in sensitivity analysis for comparing the relative importance of the variables.

Total Allocated Budget (TAB)

AACEi : The TAB is the total budget for the project. In earned value management according to the ANSI EIA 748 standard, it is always equal to performance measurement baseline (PMB) + management reserve (MR). In the absence of an over target baseline (OTB), TAB will equal the contract budget base (CBB).

Total Cost Bidding

AACEi : A method of establishing the purchase price of movable equipment. The buyer is guaranteed that maintenance will not exceed a set maximum amount during a fixed period and that the equipment will be repurchased at a set minimum price when the period ends

Total Cost Management (TCM)

AACEI : The effective application of professional and technical expertise to plan and control resources, costs, profitability and risks. Simply stated, it is a systematic approach to managing cost throughout the life cycle of any enterprise, program, facility, project, product, or service. This is accomplished through the application of cost engineering and cost management principles, proven methodologies and the latest technology in support of the management process. Can also be considered the sum of the practices and processes that an enterprise uses to manage the total life cycle cost investment in its portfolio of strategic assets.

Total Float (TF)

AACEi :(1) The maximum number of work periods by which an activity can be delayed without delaying project completion or violating a target (milestone) finish date.

(2) The number of work periods the start or finish of an activity can be delayed without affecting the project finish date. Float is measured in hours, days, weeks, or months depending on the project's planning unit, and can have negative, zero, or positive values. [14]

(3) The amount of time a task can be delayed without delaying the finish date of the project. [15]

APM :

Time by which an activity may be delayed or extended without affecting the overall duration or violating a target finish date

PMI : The amount of time that a schedule activity can be delayed or extended from its early start date without delaying the project finish date or violating a schedule constraint.

Total Quality Management (TQM)

AACEi : The consistent integrated orchestration of the total complex of an organization's work processes and activities to achieve continuous improvement in the organization's processes and products.

Traceability

AACEI : In earned value, traceability consists of two required relationships in the schedule; horizontal and vertical traceability. These are defined as follows:

Traceability, Horizontal Traceability

AACEi : A scheduling term indicating that tasks at lower levels will be shown consistent with higher levels. All tasks at the lowest schedule level should be consistent with the higher level schedule timeframes. Typically this is insured with relationships or specific integration milestones.

Tracking

AACEi : Form of monitoring applied.

Tranche

APM : A sub-division of the delivery phase of a programme created to facilitate approval gates at suitable points in the life cycle.

Transfer

AACEi : In TCM risk management, a risk response strategy that involves transferring a threat(s) to a competent third party who is better able to manage it.

APM :

A response to a threat that reduces its probability, impact or both by transferring the risk to a third party.

Transfer Price

AACEi : A term used in economic analysis in the mineral processing industries. Used to assign a value to raw materials when the same company does the mining and processing, Usually equal to the fair market value.

Tree Diagram

PMI : A systematic diagram of a decomposition hierarchy used to visualize as parent-to-child relationships a systematic set of rules.

Trend

AACEi : In project control, a general tendency of events, conditions, performance, etc. In a change management system, a trend is the first indication of potential change that must be tracked and properly dealt with. A trend may later be identified as a deviation (not normally reimbursable) or a change (which is typically reimbursable in time and or money). Syn.: Progress Trend.

Trend Analyses

AACEi : Mathematical methods for studying trends based on past project history allowing for adjustment, refinement or revision to predict cost. Regression analysis techniques can be used for predicting cost/schedule trends using historical data.

PMI :

An analytical technique that uses mathematical models to forecast future outcomes based on historical results. It is a method of determining the variance from a baseline of a budget, cost, schedule, or scope parameter by using prior progress reporting periods’ data and projecting how much that parameter’s variance from baseline might be at some future point in the project if no changes are made in executing the project.

Trend Line

AACEi : A line on a schedule or chart showing the pattern of progress that is being set over time, i.e. from measurement period to measurement period.

Trend Monitoring

AACEi : A system for tracking estimated cost-schedule-resources of a project vs. those planned.

Trend Reports

AACEi : Indicators of variations of project control parameters or measures against planned objectives or measures.

Trending

AACEi : A review of current progress compared to last reported progress which, when displayed graphically, shows whether a course correction is necessary to achieve the baseline plan.

Trigger Condition

PMI : An event or situation that indicates that a risk is about to occur.

Turnover

AACEi: Syn.: Delivery.

Turnover Ratio

AACEi : The ratio of annual sales to investment. Inclusion of working capital is preferable, but not always done. Turnover ratio is considered by some to be reasonable basis for a guesstimate of facilities cost, for new products similar to existing products. It ranges around 1.0 for many chemical plants. The product of turnover ratio and profit margin on sales gives a return-on-investment measure.

Unanimity

PMI : Agreement by everyone in the group on a single course of action.

Unbalancing

AACEi : A technique used in the pricing process to allocate estimated costs to accounts whose definitions do not fully reflect the nature of the cost being allocated. The purpose of unbalancing is to achieve a desired business result such as improved cash flow. For example, a disproportionate amount of overhead costs may be allocated in a contract bid to early project activities so that early income is maximized.

Uncertainty

AACEi :(1) The total range of events that may happen and produce risks (including both threats and opportunities) affecting a project. (Uncertainty = Threats + Opportunities.)

(2) All events, both positive and negative whose probabilities of occurrence are neither 0% nor 100%. Uncertainty is a distinct characteristic of the project environment.

Underground Facilities

AACEi : All pipelines, conduits, ducts, cables, wires, utility access-ways, vaults, tanks, tunnels or other such facilities or attachments, and any encasements containing such facilities which have been installed underground to furnish any of the following services or materials: electricity, gases, steam, liquid petroleum products, telephone or other communications, cable television, sewage and drainage removal, traffic or other control systems or water.

Undistributed Budget (UB)

AACEi : In earned value management according to the ANSI EIA 748 standard, it is the amount of budget temporary held before distribution to lower levels of the performance measurement baseline (PMB). UB is a part of the PMB and held for changes not able to be adequately planned at the control account or summary planning package levels. UB is not scheduled however has scope, schedule and budget integration.

PCI : Budget applicable to contract effort which has not yet been identified to specific cost accounts or work packages.

Union

AACEi : An organization of wage earners formed for the purpose of serving the members’ interests with respect to compensation and working conditions.

Unit Cost

AACEi : The cost of a given unit of a product or service.

Unit Hours

AACEi : Work hours per unit of production.

Unjust Enrichment Doctrine

AACEi : The belief in law that one person should not be allowed to profit or enrich himself or herself unfairly at the expense of another person.

Unknown-Unknown

AACEi : A quantity, value or condition that cannot be identified or foreseen, otherwise referred to as unknowable.

Unlimited Schedule

AACEi : Infinite schedule, schedule produced without resource constraint.

Unusually Adverse Weather Day

AACEi : Expressed as the number of days of actual adverse weather that stopped or impacted a project above what was originally planned prior to the start of the project. From a contractual delay analysis standpoint, those days are compared to the number of days originally planned for in the schedule to identify excusable time extensions; i.e.: weather that negatively affects the project production in excess of the expected normal or adverse weather.

Update

AACEi : To revise the estimate, schedule or other planning deliverable to reflect the most current information on the project.

Update Date

AACEi : Syn.: As-Of Date; Data Date.

Updating

AACEi : The regular review, analysis, evaluation, and reporting of progress of the project, including recomputation of an estimate or schedule.

Useful Life

AACEi : The period of time over which an investment is considered to meet its original objective. [1]

User

AACEi : The consumer of a service or product, sometimes but not always a project owner.

PMI : The group of people who are intended to receive benefits or operate outputs.

Validate Scope

PMI : The process of formalizing acceptance of the completed project deliverables.

Validated Deliverables

PMI : Deliverables that are result of executing quality control process to determine correctness.

Validation

AACEi : Testing to confirm that a product or service satisfies user or stakeholder needs. Note difference from verification.

PMI : 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.

Valuation Or Appraisal

AACEi : The art of estimating the fair-exchange value of specific properties.

APM :

Value: A standard, principle or quality considered worthwhile or desirable. In value management terms value is defined as the ratio of ‘satisfaction of requirements’ over ‘use of resources’.

Value Added By Distribution

AACEi : The portion of the value of a product or service to the consumer or user which results from distribution activities. This value includes such components as time utility and place utility.

Value Added By Marketing

AACEi : That portion of the value of a product or service to the consumer or user which results from marketing activities. This value includes such components as price reduction through economies of scale and buyer awareness of more desirable innovations in products or services.

Value Effective

AACEi : Generally used to describe decisions which have a cost impact; value-effective decisions tend to optimize the value received for the decision made and to maximize return on investments.

Value Engineering

AACEi : A practice function targeted at the design itself, which has as its objective the development of design of a facility or item that will yield least life-cycle costs or provide greatest value while satisfying all performance and other criteria established for it.

APM : Concerned with optimising the conceptual, technical and operational aspects of deliverables.

PMI : An approach used to optimize project life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more effectively.

Value Engineering Cost Avoidance

AACEi : A decrease in the estimated overall cost for accomplishing a function.

Value Engineering Cost Reduction

AACEi : A decrease in the committed and/or established overall cost for accomplishing a function.

Value Engineering Job Plan

AACEi : An aid to problem recognition, definition, and solution. It is a formal, step-by-step procedure followed in carrying out a value engineering study.

Value For Money Ratio

APM : The ratio of monetary and non-monetary benefits to the investment made of resources committed.

Value Management

APM : A structured approach to defining what value means to the organisation. It is a framework that allows needs, problems or opportunities to be defined and then enables review of whether these can be improved to determine the optimal approach and solution.

Value Of Perfect Information

AACEi : In decision or risk analysis, a measure of what a decision maker should be willing to invest to reduce the amount of uncertainty associated with one or more decision or risk drivers.

Value Of Work Performed To Date

AACEi : The planned cost for completed work.

Value Tree

APM : A graphical representation of the relationship between different factors that drive value.

Variable Costs

AACEi : Those costs that are a function of production, e.g., raw materials costs, by-product credits, and those processing costs that vary with plant output (such as utilities, catalysts and chemical, packaging, and labor for batch operations).

Variance

AACEi : The difference between what was originally expected and what actually happened.

PMI:

A technique for determining the cause and degree of difference between the baseline and actual performance.

Variance Analysis

AACEi : Analysis of the following:

(1) Cost Variance = BCWP – ACWP;

(2) Percent over/under = 100 x (ACWP – BCWP)/BCWP;

(3) Unit variance analysis;

(4) Labor rate;

(5) Labor hours/units of work accomplished;

(6) Material rate;

(7) Material usage; and

(8) Schedule Variance = BCWP – BCWS.

PMI : A technique for determining the cause and degree of difference between the baseline and actual performance.

Variance At Completion (VAC)

AACEi : The schedule or budget at completion less the estimate at completion. A negative result indicates that the project is exceeds schedule or budget contractual obligations.

PMI:

A projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion and the estimate at completion.

PCI:

Variance at Complete is the algebraic difference between Budget at Complete and Estimate at Complete.

Variance At Completion [VAC(T)]

AACEi : The difference between the baseline project duration and the estimated project duration in time increments.

Variance Threshold

AACEi : In earned value, it is the schedule, cost, and at-complete variance amounts at which formal variance analysis and typically a variance analysis report (VAR) is required. Below the threshold is typically not reportable.

Variation

PMI : An actual condition that is different from the expected condition that is contained in the baseline plan.

Variation In Estimated Quantity

AACEi : The difference between the quantity estimated in the bid schedule and the quantity actually required to complete the bid item. Negotiation or adjustment for variations is generally called for when an increase or decrease exceeds 15 percent.

Velocity

PMI : A measure of a team’s productivity rate at which the deliverables are produced, validated, and accepted within a predefined interval. Velocity is a capacity planning approach frequently used to forecast future project work.

Velocity Diagram

AACEi : A graphical presentation of production schedules, which shows the relationship of the output of work crews/equipment spreads as a function of time.

Venture Life

AACEi : The total time span during which expenditures and/or reimbursements related to the venture occur. Venture life may include the research and development, construction, production and liquidation periods. Syn.: Financial Life.

Venture Worth

AACEi : Present worth of cash flows above an acceptable minimum rate, discounted at the average rate of earnings.

Verification

AACEi : Testing to confirm that a product or service meets specifications.

PMI:

The evaluation of whether or not a product, service, or system complies with a regulation, requirement, specification, or imposed condition. It is often an internal process. Contrast with validation.

Vertical Event Numbering

AACEi : Assigning event numbers in vertical order.

Voice Of Customer

PMI : A planning technique used to provide products, services, and results that truly reflect customer requirements by translating those customer requirements into the appropriate technical requirements for each phase of project product development.

Wage Rate

AACEi : Syn.: Labor Cost.

Watch List

AACEi : In risk control, a list of risk triggers and/or risks to be tracked or monitored. May refer to one usage of a risk register.

Waterfall Method

APM : A type of life cycle where phases are sequential.

WBS Dictionary

AACEi : A document that describes each element in the work breakdown structure (WBS) including a statement of work (SOW), describing work content of each WBS element, and a basis of estimate (BOE), documenting each element’s budget. Additional information may include responsible organization, contract number, etc. The WBS dictionary will often result in a project or contract statement of work (SOW).

PMI:

A document that provides detailed deliverable, activity, and scheduling information about each component in the work breakdown structure.

Weather Day

AACEi : A work day that was stopped and/or had appreciably hindered work progress due to a weather event.

Weather Event

AACEi : A storm or significant weather condition that stops or appreciably hinders work until it has passed or the effects of the weather condition have dissipated. This may include rain, rising water, snow, ice, extreme cold, high winds, extreme heat and/or high humidity, or other weather related occurrence. The weather event may not be localized at the site as in the case of flood water from an upstream rain event or preparations for a hurricane that does not actually pass through the site.

Weather Preparation Day

AACEi : A day where planned work progress ceases going forward or is significantly impeded while the project makes preparation for an upcoming weather event, e.g. boarding up windows before a hurricane, making the site safe by securing loose materials and unfinished structures and dismantling or securing cranes from expected high winds to mitigate any potential damage to the work.

Weather Recovery Day

AACEi : A day where a project is unable to resume work due to the after-effects of a weather event such as excessive flooding and mud after a rain storm. This would also include the time necessary to duplicate the status just prior to the weather event.

Weighted Milestone Method

PMI : An earned value method that divides a work package into measurable segments, each ending with an observable milestone, and then assigns a weighted value to the achievement of each milestone.

Weights

AACEi : Numerical modifiers used to infer importance of commodities in an aggregative index.

What-If Scenario Analysis

PMI : The process of evaluating scenarios in order to predict their effect on project objectives.

Work

AACEi : Any and all obligations, duties, responsibilities, labor, materials, equipment, temporary facilities, and incidentals, and the furnishing thereof necessary to complete the construction which are assigned to, or undertaken by the contractor, pursuant to contract documents. In addition, the entire completed construction or various separately identifiable parts thereof required to be furnished under the contract documents. Work results from performing services, furnishing labor, and furnishing and incorporating materials and equipment into the construction, all as required by contract documents.

Work Authorization

PMI : A permission and direction, typically written, to begin work on a specific schedule activity or work package or control account. It is a method for sanctioning project work to ensure that the work is done by the identified organization, at the right time, and in the proper sequence.

Work Authorization Document

PCI : The Work Authorisation Document (WAD) is a document produced by the contractor and used internally. It is not a deliverable item. Included in the WAD are details concerning the task work to be performed, a detailed list of task outputs, CDRL items, and other task-specific deliverables. It also includes the associated budget for the task and authorising signatures that confirm that the staff member is authorised to work on the task. It should not include the number of hours that may be charged. The Government IBR team evaluates the WAD to ensure that the work documented is truly representative of the work to be performed, that the proper signatures are present, and that the deliverables listed are complete and accurate

Work Authorization System

PMI : A subsystem of the overall project management system. It is a collection of formal documented procedures that defines how project work will be authorized (committed) to ensure that the work is done by the identified organization, at the right time, and in the proper sequence. It includes the steps, documents, tracking system, and defined approval levels needed to issue work authorizations.

Work Breakdown Structure (WBS)

AACEi :(1) Framework for organizing and ordering the activities that makes up a project. Systematic approach to reflect a top-down product oriented hierarchy structure with each lower level providing more detail and smaller elements of the overall work.

(2) A product-oriented family tree division of hardware, software, facilities and other items which organizes, defines and displays all of the work to be performed in accomplishing the project objectives. Some variations include the following:

PMI:

Create WBS: The process of subdividing project deliverables and project work into smaller, more manageable components. WBS: A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables."

Work Breakdown Structure (WBS), Contract Work Breakdown Structure (CWBS)

AACEi : A work breakdown structure of the products or services to be furnished under contract. It is comprised of selected PWBS (program / project WBS) elements specified in the contractual document and the contractor’s lower level extensions of those elements. [7]

Work Breakdown Structure (WBS), Project Work Breakdown Structure (PWBS)

AACEi : A summary WBS tailored by project management to the specific project with the addition of the elements unique to the project.

Work Breakdown Structure Element

AACEi : Any one of the individual items or entries in the WBS hierarchy, regardless of level.

Work Breakdown Structure Levels

AACEi : The arrangement or configuration of a work breakdown structure, which establishes an indenture of projects to programs, systems to projects, subsystems to systems, etc. [7]

Work Category

AACEi : A division of work according to some distinct characteristics, such as the trade involved, e.g., mechanical, electrical, etc.

Work Directive Change

AACEi : A written directive to the contractor, issued on or after the effective date of the agreement and signed by the owner and recommended by the engineer ordering an addition, deletion or revision in the work, or responding to differing or unforeseen physical conditions or emergencies under which the work is to be performed as provided in the general conditions. A work directive change may not change the contract price or the contract time, but is evidence that the parties expect that the change directed or documented by a work directive change will be incorporated in a subsequently issued change order following negotiations by the parties as to its effect, if any, on the contract price or contract time.

Work Flow

AACEi : Relationship of the activities from start to finish. Work flow takes into consideration all types of activity relationships.

Work Item

AACEi :(1) The precedence notation equivalent of an activity.

(2) A portion of the project that can be clearly identified and isolated.

Work Package

AACEi :(1) A segment of effort or work scope required to complete a specific job which is within the responsibility of a single unit within the performing organization.

(2) In earned value management, it is the level at which EV (or BCWP) is assessed and schedule variance is calculated. A work package has schedule, and resources.  2016)

APM:

A group of related activities that are defined at the same level within a work breakdown structure.

PMI:

The work defined at the lowest level of the work breakdown structure for which cost and duration can be estimated and managed.

Work Pattern

AACEi : An established and recognizable flow of work.

Work Performance Data

PMI : The raw observations and measurements identified during activities being performed to carry out the project work.

Work Performance Information

PMI : The performance data collected from various controlling processes, analyzed in context and integrated based on relationships across areas.

Work Performance Report

PMI : The physical or electronic representation of work performance information compiled in project documents, intended to generate decisions, actions, or awareness.

Work Power Leveling

AACEi : Syn.: Load Leveling.

Work Sampling

AACEi : A direct method of measuring and monitoring labor productivity so that labor resources can be minimized and wasted effort eliminated from work processes. Work sampling provides information about the work process (i.e., how work is done) in a way that supports statistical assessment of such processes in order to optimize productivity.

Work Site

AACEi : The area designated in the contract where the facility is to be constructed.

Work Unit

AACEi : A unit of time used to estimate the duration of activities.

Work-In-Process

AACEi :(1) In manufacturing, product in various stages of completion throughout the factory, including raw material that has been released for initial processing and completely processed material awaiting final inspection and acceptance as finished product or shipment to a customer. Many accounting systems also include semi-finished stock and components in this category.

(2) In projects, product or deliverables in various stages of completion throughout the duration of a project.

Syn.: In-Progress Inventory.

Workaround

AACEi :(1) An alternative solution to a potential problem. An unplanned response (that requires its own plan) to a negative event that may be accomplished in less than optimal conditions leading to productivity losses.

(2) Ad hoc action to overcome an unexpected condition or situation that would otherwise delay completion, in order to enable the work to be timely finished or finished sooner than could occur without the action.

PMI:

A response to a threat that has occurred, for which a prior response had not been planned or was not effective.

Workday

AACEi : Any days when work can be scheduled (i.e., that are not rest days or holidays).

Worker

AACEi : A definition of the behavior and responsibilities of an individual. The worker represents a role played by individuals on a project, and defines how they carry out work.

Workhour

AACEi : Syn.: Labor Hour.

Workhour Analysis

AACEi : An analysis of planned versus actual staffing of the project used to determine work progress, productivity rates, staffing of the project, etc.

Working Calendar

AACEi : The total calendar dates that cover all project activities, from start to finish.

Workload Factor

AACEi : The amount of work assigned to or expected from a worker during a specified time period expressed as a multiplier of the ‘standard’ crew’s productivity with 1.0 equal to the same productivity; and 2.0 equal to one half of the standard productivity.

Workweek

AACEi : The calendar that describes the number of workdays in a typical week.

Worth

AACEi : The worth of an item or groups of items, as in a complete facility, is determined by the return on investment compared to the amount invested. The worth of an item is dependent upon the analysis of feasibility of the entire item or group or items under discussion (or examination).

Written Amendment

AACEi : A written amendment of the contract, executed by the parties on or after the effective date of the agreement and normally dealing with the non-engineering or non-technical rather than strictly work-related aspects of the contract.

Yield

AACEi : The ratio of return or profit over the associated investment, expressed as a percentage or decimal usually on an annual basis.

Zero Float

AACEi : A condition where there is no excess time between activities. An activity with zero float is considered a critical activity. If the duration of any critical activity is increased (the activity slips), the project finish date will slip. An activity has zero float when the early and late start/finish dates equal each other. Activities with zero float are considered to be on the critical path(s) of the project even when there are activities with negative float.

5

50/50 Technique

AACEi :

A

Acceleration

AACEi :

Accept/Acceptance

AACEi :(1) The formal process of accepting delivery of a product or a deliverable.

(2) The act of taking custody based on satisfactory verification.

(4) In TCM risk management, a response strategy for both threats and opportunities.

APM : A response to a threat where no course of action is taken.

PCI :(1) The formal process of accepting delivery of a product or a deliverable.

(2) The act of taking custody based on satisfactory verification.

(4) In TCM risk management, a response strategy for both threats and opportunities.

Acceptance Criteria

AACEi :

APM :

The requirements and essential conditions that have to be achieved before a deliverable is accepted.

PMI :

A set of conditions that is required to be met before deliverables are accepted.

Acceptance Deliverables

Acceptance, Final (Partial)

Accepted Risk

AACEi : Risks that are identified, but for which no other risk response is taken in the risk treatment process (e.g., avoid, reduce, transfer).

Access To The Work

Account Code Structure

AACEi : System used to assign summary numbers to elements of the work breakdown and account numbers to individual work packages.

Account Number

AACEi : An alphanumeric identification of a work package. An account number may be assigned to one or more activities. Syn.: Shop Order Number.

Accountability

AACEi : Answerable, but not necessarily charged personally with doing the work. Accountability cannot be delegated but it can be shared.

Accounting

Accounts Payable

AACEi : The value of goods and services rendered on which payment has not yet been made.

Accounts Receivable

Accrual

Accuracy

PMI : Within the quality management system, accuracy is an assessment of correctness.

Accuracy Range

Acquire Project Team

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

Acquisition

Action

AACEi : A measure taken or implemented that is intended to influence the course of the project.

Action Item

AACEi : Something agreed to be done as a meeting outcome and usually recorded in meeting minutes.

Action Owner

AACEi : In TCM risk management, the party charged with implementing a risk response.

Action Plan

AACEi : A plan that describes what needs to be done and by when. Project plans are action plans.

Activity

APM : 1. A task, job, operation or process consuming time and possibly other resources.

2. The smallest self-contained unit of work in a project.

PMI :

A distinct, scheduled portion of work performed during the course of a project.

Activity Attributes

Activity Bar

AACEi : A rectangle representing an activity on the bar chart. Its length is scaled according to the time scale.

Activity Calendar

Activity Code

Activity Cost

PMI :

Activity Definition

AACEi : Process of identifying specific activities that must be performed to produce project deliverables.

PMI : Define Activity: The process of identifying and documenting the specific actions to be performed to produce the project deliverables.

Activity Description

Activity Duration

AACEi :(1) Length of time from start to finish of an activity, estimated or actual, in working or calendar time units.

APM : The length of time that it takes to complete an activity.

PMI : The time in calendar units between the start and finish of a schedule activity.

Activity Duration Estimating

AACEi : Estimation of the number of work periods that will be needed to complete the activity.

PMI :

A quantitative assessment of the likely amount or outcome for the duration of an activity.

Activity File

PCI : A file containing all data related to the definition of activities on a particular project.

Activity Identifier

AACEi : Syn.: Activity Code; Activity Number.

PCI : Activity Id: A unique code identifying each activity in a project.

Activity List

Activity Network Diagram

PMI : Project schedule network diagram: A graphical representation of the logical relationships among the project schedule activities.

Activity Number

AACEi : Syn.: Activity Code; Activity Identifier.

Activity On Arrow (AOA)

Activity On Node (AON)

APM :

A network diagram where the activities are represented by the nodes.

PCI : A network where activities are represented by a box or a node linked by dependencies.

Activity Relationship

AACEi : Activity relationships determine how activities relate to one another and establish schedule logic.

Activity Resource Requirement

PMI : The types and quantities of resources required for each activity in a work package.

Activity Sequencing

AACEi : The process of identifying and documenting dependencies among schedule activities.