Comprehensive Project Management Terminology Guide

ACCEPT

A decision to take no action against a threat. Project teams typically accept risks when they fall below risk thresholds or when the team thinks it is best to act only if and when a threat occurs.

ACCEPTANCE CRITERIA

The specific requirements expected of project deliverables. The deliverables must meet all acceptance criteria to be formally accepted.

ACQUISITION PROCESS

The process of obtaining the personnel and resources necessary for project work. Acquisitions are closely coordinated with project budgets and schedules.

ACTION ITEM

An activity or task that must be completed.

ACTIVITY

The smallest unit of work necessary to complete a project work package (multiple activities). Time, resources, and finances are required to complete each activity.

ACTIVITY CODE

An alphanumeric value by which activities can be grouped and filtered, wherein a code is assigned to each activity.

ACTIVITY IDENTIFIER

A unique alphanumeric value by which an individual activity can be distinguished wherein an activity identifier is assigned to each activity.

ACTIVITY LABEL

A short descriptor for an activity. This may be placed below arrows representing activities in activity-on-arrow (AOA) diagrams.

ACTIVITY LIST

This documents all the activities necessary to complete a project. Each activity is accompanied by its activity identifier and a description of the work it entails.

ACTIVITY-ON-ARROW (AOA)

In this network diagram, arrows represent activities and nodes represent events or milestones. This diagram can only indicate finish-to-start relationships.

ACTIVITY-ON-NODE (AON)

In a network diagram of this nature, nodes represent activities and arrows illustrate logical relationships between activities. This diagram can illustrate four relationship types: start-to-start, start-to-finish, finish-to-start, and finish-to-finish.

Actual cost of work performed (ACWP)

This represents the total cost incurred for work done in a given period of time.

Actual duration

The length of time taken to complete an activity.

Actual effort

The amount of labor performed to complete an activity. It is expressed in person-hours or similar units of work.

Actual expenditure

The sum of costs paid from a budget.

Actual progress

This measures the amount of work completed on a project. It is used to assess the comparison between project progress and project baselines and is usually stated as a percentage.

Adaptive project framework (APF)

An approach to project management that rejects traditional, linear project management and instead accepts changing requirements and allows projects to be affected by external business environments.

Administrative closure

This refers to the set of formal requirements fulfilled to end a project. Among other things, it involves documenting the formal acceptance of deliverables and ensuring that all relevant information is sent to a project's sponsor and stakeholders.

Aggregate planning

This strategy uses demand forecasts to manage scheduling and planning for project activities between three and 18 months in advance, so that the necessary resources and personnel can be efficiently acquired or assigned.

Agile

A family of methodologies is a superset of iterative development approaches aimed at meeting ever-changing customer requirements.

Agile project management

Draws from concepts of agile software development. Agile approaches focus on teamwork, collaboration, and stakeholder involvement, as well as the use of iterative development methods.

Agile software development

Originates from the Agile Manifesto, a set of principles that emphasizes meeting changing requirements through collaborative development and making ongoing improvements through iteration.

Reactive to rapid changes

Stresses the importance of being responsive to quick shifts in external environments.

Alternative analysis

The evaluation of possible courses of action for project work in order to find the most suitable course of action.

Analogous estimating

This technique uses historical project data to prepare time and cost estimates. It is considered the most inaccurate estimation technique.

Analytical estimating

This technique computes total project time and cost estimates by preparing estimates for each project activity and adding them together. Analytical estimating is considered the most accurate estimation technique.

Application area

The specific project category of which the project is a part. Application areas can be defined on the basis of project products' characteristics or applications or by the projects' customers or stakeholders.

Apportioned effort

Project work associated with components of a work breakdown structure and performed in proportion, with discrete effort. It cannot be considered separately from discrete effort.

Approach analysis

During the project planning phase, this type of analysis is used to examine the various methods by which a project's goals may be achieved.

Arrow diagramming method (ADM)

A method of constructing a network diagram that uses arrows to represent activities and nodes to represent events or milestones.

Artifact

Items that support software development, including project plans and items used to support actual aspects of development, such as use cases and requirements.

Assignment contouring

The process of assigning people to project work for changing numbers of hours per day as the project moves through different stages.

Assumption

Factors deemed to be true during the project planning process, though proof of their validity is not available.

Authorization

The power to make decisions that management grants, varying on a case-by-case basis.

Authorized work

Work that management or others in authority approve.

Avoid

A response to a negative risk that seeks to ensure the risk does not occur or protect the project objectives from the negative risk's impact.

Backward pass

Calculates late-start and finish dates for project activities by working backwards from the project end date.

Balance

A phase in the portfolio life cycle that involves balancing a portfolio's components based on risk, costs, and use of resources.

Balanced scorecard

A concept or tool used to assess whether an organization's activities are correlated with its general vision and objectives.

Bar chart

A diagrammed calendar schedule of project activities' start and end dates in logical order.

Benefits realization

Focuses on ensuring that project results give customers and stakeholders the benefits they expect.

Blueprint

A document that explains what a program means to accomplish and describes a program's contribution to organizational objectives.

BOSCARD

This method details and considers the background, objectives, scope, constraints, assumptions, risks, and deliverables of new projects.

Bottom-Up estimating

This calculation computes total time and cost estimates for projects by preparing individual estimates for each of a project's activities and adding them together.

Brief

This refers to the document produced during a project's concept phase. It is the primary document outlining requirements.

Budget

The sum of money allocated for a project. The term may also refer to a comprehensive list of revenues and expenses.

Budgeted cost of work performed (BCWP)

The portion of the budget allocated to scheduled work actually performed in a period of time.

Budgeted cost of work scheduled (BCWS)

The portion of the budget allocated to work scheduled to be performed in a period of time.

Burn down chart

A graph that shows the relationship between the number of tasks to be completed and the amount of time left to complete these tasks.

Change control

Change control is the process of identifying, evaluating, approving, and implementing changes to a project.

Change control board

An appointed group of stakeholders who evaluate proposed changes and decide when and whether to make them.

Change control system/process

The process by which changes to the project are evaluated before approval, implemented, and documented.

Change freeze

The point at which scope changes to a project are no longer permissible.

Change management plan

A Change management plan details the change control process. It is created to ensure all changes are managed according to procedure.

Change request

A formal document submitted to the change control board that requests changes to the finalized project management plan.

Client/Customer

The people who will directly benefit from a project. A team executes a project with specific attention to a client's requirements.

Closing phase

The final phase of the project management life cycle, in which all aspects of the project are officially completed and closed.

Code of accounts

An alphanumeric system used to assign unique identifiers to all work breakdown structure components.

Collaborative negotiation

Collaborative negotiation entails all negotiating parties obtaining at least some of what they want from negotiations.

Communications log

This document is used to track all project-related communications.

Communications management plan

This plan states who will send and receive information on aspects of the project, what details are communicated, and when communications are sent.

Communities of practice

Groups of people who share an area of interest within project management.

Competence

The ability and knowledge required to perform the tasks associated with a specific role.

Concept

The beginning phase of the project management life cycle.

Conceptual project planning

Involves developing the documentation from which a project's organization and control system will originate.

Concurrent engineering

A product development approach where design and development are carried out at the same time to shorten the development life cycle and release products more quickly.

Configuration

Involves shaping a product's functions and characteristics to make it suitable for customer use.

Configuration management

Ensures that the product of a project meets all necessary specifications and stipulations, providing well-defined standards for management and team to guarantee quality and functional requirements.

Consensus

A decision agreed upon by all members of a group.

Constraint

A limitation on a project, which may be financial or based on time or resource availability.

Constructability

A concept used in complex hard projects to assess and examine the entire construction process before beginning construction, reducing errors, setbacks, and delays.

Construction

The process by which a team builds infrastructure, managed by a project manager with supervision from engineers and architects.

Consumable resource

A nonrenewable resource that cannot be used once consumed.

Contingency plan

An alternative or additional course of action planned in anticipation of the occurrence of specific risks.

Contingency reserve

An allocation of time or money set aside for known possibilities that could delay a project or increase costs, authorized upon the occurrence of a contingency.

Contract administration

The process by which a team manages a relationship with a contracting party, establishing protocols for dealings between contracting parties.

Contract closeout

The process of determining whether the terms of a contract were completed successfully and settling any remaining terms.

Control Account

A work breakdown structure tool that allows aggregation of costs for work packages as part of earned value management calculations.

Control chart

Charts that compare process results with historical averages and process control limits to show whether a process meets results expectations.

Core process

A process that follows an established order and is central to the performance of the process system or project.

Corrective action

A step taken to bring work back into alignment with performance expectations after it has failed to meet them.

Business analysis

The practice of identifying and solving business problems, focusing on creating and implementing solutions to business needs.

Business case

A documentation of the potential outcomes of a new project, including benefits, cost, and effects, showing the reasoning for starting the project.

Business imperative

An issue, situation, or circumstance with the potential to affect a business, prioritized for actions that will realize potential benefits or avoid potential harm.

Business model

A company's system by which the organization's profitable activities are planned, structured, and executed, and by which it interacts with its customers.

Business operations

The entire ensemble of activities or business processes through which a company uses its assets to create value for its customers.

Business process

A system of activities by which a business creates a specific result for its customers. There are three categories of business processes: management processes, operational processes, and supporting processes.

Business process modeling (BPM)

Is the representation, analysis, and evaluation of business processes in an effort to improve them.

Business requirements

The conditions a product must satisfy to effectively serve its purpose within a business.

Business value

Is the sum of positive effects — tangible and intangible — it has on the business.

Calendar unit

The smallest unit of time-usually hours or days-by which a project activity duration is measured.

Capability maturity model (CMM)

This model is used to assess the maturity of business process capabilities. It was created to assess the capabilities of software development processes but is now used in a number of other industries as well. Like other maturity models, the CMM allows organizations to assess themselves against external benchmarks and provides recommendations for improvement.

CAPEX

capital expenditure, is the money a company spends to acquire new fixed physical assets or upgrade old ones, typically for long-term use.

Case study

Involves extensive and in-depth formal research into an area of a company, a situation, or an event. Case studies typically result in formal reports that are published in academic or professional publications. They investigate important, singular, or locally representative cases that contribute to the advancement of knowledge.

Certified Associate in Project Management (CAPM)

This is an entry-level certification for project managers offered by the Project Management Institute. It is designed to build knowledge of project management processes and terms.

Champion

A project champion makes project success a personal responsibility. This person pushes the project team to work hard, liaise with stakeholders on behalf of the project.

CISD

CISD is a psycho-educational exercise for small groups who have experienced a traumatic event. It is sometimes used in project management to help project teams cope with trauma and to rebuild team cohesion.

Critical path activity

A scheduled activity that is part of a project's critical path.

Critical path method

The Critical path method is used to estimate the shortest length of time needed to complete a project and to determine the amount of float for activities that are not part of the critical path.

Critical success factor

A critical success factor is an aspect of a project that is crucial to the success of the project.