PM 4

Fixed Costs

Costs that remain constant regardless of the volume of work.

Variable Costs

Costs that change in direct proportion to the volume of use.

Direct Costs

Costs directly linked to the project, like direct labor or other project-specific expenses.

Indirect Costs

Costs necessary for the organization but not tied to a specific project, e.g., executive salaries.

Recurring Costs

Costs that repeat as the project progresses, like coding or construction costs.

Nonrecurring Costs

Costs happening only once during a project, such as design development.

Regular

Progress made within normal work hours and agreements.

Expedited

Project completion faster than usual.

Estimate

Quantified likely amount assessment.

Reserve

Provision to mitigate cost or schedule risks.

Known knowns

Events that can be planned and managed with certainty.

Known unknowns

Risks identified but likelihood unknown, requiring mitigation strategies.

Unknown Unknowns

Risks hard to envision, covered by management reserves.

Unknown Knowns

Risks known to others but not to oneself.

DMAIC

Define, measure, analyze, improve, control - a process for managing improvement projects.

Analogous Estimating

Technique using past project data to estimate future activities.

Parametric Estimating

Technique using statistical relationships for estimates.

Bottom-up Estimating

Estimating based on detailed work elements aggregated into a total.

Three Point Estimating

Averages three estimates for more accurate estimation.

Risk Register

Document detailing identified risks, responses, and current status.

Contingency Reserve

Money allocated for identified risks with developed responses.

Management Reserves

Money for unknown possible costs controlled by senior management.

Risk Identification

Process of determining and documenting potential project risks.

SWOT Analysis

Detailed analysis of project strengths, weaknesses, opportunities, and threats.

Delphi Technique

Anonymously gathering expert opinions to avoid bias and groupthink.

Quality Management Plan

Describes quality standards, implementation, and objectives for the project.

PDCA

Plan, do, check, act - a model for process improvement.