PMBOK Guide - PREFACE TO THE THIRD EDITION This document supersedes A Guide to the Project Management Body of Knowledge(PMBOK® Guide – 2000

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: PREFACE TO THE THIRD EDITION This document supersedes A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – 2000 Edition, which was published as the second edition of the PMBOK® Guide. In the time since its publication, the Project Management Institute (PMI) received thousands of valuable recommendations for improvements to the PMBOK® Guide – 2000 Edition that have since been reviewed and, as appropriate, incorporated into the third edition. As a result of those inputs and growth of the Project Management Body of Knowledge, PMI volunteers prepared an updated version of the PMBOK® Guide. The project charter to update the PMBOK® Guide – 2000 Edition was to: • Change the criteria for the inclusion of material from “generally accepted on most projects most of the time” to “generally recognized as good practice on most projects most of the time.” Generally recognized means that the knowledge and practices described are applicable to most projects most of the time, and that there is widespread consensus about their value and usefulness. • Add new material reflecting the growth of the knowledge and practices in the field of project management by documenting those practices, tools, techniques, and other relevant items that are generally recognized as good practice. • Expand the emphasis on and treatment of the Project Management Process Groups. • Expand the treatment of integration and more appropriately convey its importance to a project. • Expand treatment of the Initiating Process Group to more accurately describe the front-end of the project and the start of each phase. • Expand the closing processes. • Evaluate all processes to ensure that they are properly placed, complete, and clear. • Review all text to make sure it is clear, complete, and relevant. • Ensure consistent terminology and placement of project inputs, outputs, and tools and techniques. Identify the origin of all inputs and the destination of all outputs. • Change text, where possible, to improve the translatability of the document and consider changing words and phrases with negative cultural connotations. • Expand the index and glossary. • Correct existing errors in the predecessor document. ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA vii The PMBOK® Guide 2004 Update Project Team complied with its charter as described above. To assist practitioners and other interested parties who may be familiar with the PMBOK® Guide – 2000 Edition, the major differences between the editions are summarized below: 1. Across the entire third edition, in most instances when a new process was introduced, and in other selected cases where existing process names were revised, such process names are in a verb-object format for clarity. 2. The writing style was generally changed to the active voice. 3. The distinction between project life cycles and product life cycles was clarified. 4. The number of processes increased from 39 to 44. Seven processes were added, two processes were deleted, and 13 processes were renamed for a net gain of five new processes. 5. All graphics were numbered and labeled as either a table or figure. 6. The distinction between Project Management Process Groups and the Knowledge Areas was clarified. A greater emphasis was placed on the importance of Process Groups. 7. Chapter 3 was renamed “Project Management Processes for a Project” and moved from Section I to a new Section II, which is now called “The Standard for Project Management of a Project.” As part of this change, Chapter 3 was extensively revised to indicate that the Process Groups and inputs and outputs in the chapter are the basis of the standard for project management of a single project. 8. The project management processes were mapped to show process integration. 9. The glossary was significantly revised and augmented. Appropriate terms have been categorized to avoid confusion. 10. The following processes were added: • Develop Project Charter (Section 4.1) • Develop Preliminary Project Scope Statement (Section 4.2) • Monitor and Control Project Work (Section 4.5) • Close Project (Section 4.7) • Create Work Breakdown Structure (Section 5.3) • Activity Resource Estimating (Section 6.3) • Manage Project Team (Section 9.4) 11. All of the process inputs, tools, techniques, and outputs have been revised to support the improved integration and mapping of the processes. 12. Process flow diagrams have been added to Chapters 4 through 12 to provide added support to the integration of processes. 13. An introduction has been added to Section III to describe the process flow diagrams and provide a legend of the symbols. Appendix A – Third Edition Changes details the changes made in the chapters. The PMBOK® Guide – Third Edition was presented in an exposure draft document at the end of calendar year 2003, and a significant number of the comments sent in by reviewers were incorporated into this final release. Dennis Bolles, PMP Project Manager PMBOK® Guide 2004 Update Project Team Steve Fahrenkrog, PMP PMI Standards Manager ® viii A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 1 CHAPTER 1 Introduction The Project Management Body of Knowledge is 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 who apply and advance it. The complete Project Management Body of Knowledge includes proven traditional practices that are widely applied, as well as innovative practices that are emerging in the profession, including published and unpublished material. As a result, the Project Management Body of Knowledge is constantly evolving. This chapter defines several key terms and provides an overview of the rest of A Guide to the Project Management Body of Knowledge (PMBOK® Guide) in the following major sections: 1.1 Purpose of the PMBOK® Guide 1.2 What is a Project? 1.3 What is Project Management? 1.4 The PMBOK® Guide Structure 1.5 Areas of Expertise 1.6 Project Management Context 1.1 Purpose of the PMBOK® GUIDE The primary purpose of the PMBOK® Guide is to identify that subset of the Project Management Body of Knowledge that is generally recognized as good practice. “Identify” means to provide a general overview as opposed to an exhaustive description. “Generally recognized” means that the knowledge and practices described are applicable to most projects most of the time, and that there is widespread consensus about their value and usefulness. “Good practice” means that there is general agreement that the correct application of these skills, tools, and techniques can enhance the chances of success over a wide range of different projects. Good practice does not mean that the knowledge described should always be applied uniformly on all projects; the project management team is responsible for determining what is appropriate for any given project. ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 3 Chapter 1 − Introduction The PMBOK® Guide also provides and promotes a common lexicon for discussing, writing, and applying project management. Such a standard lexicon is an essential element of a profession. The Project Management Institute uses this document as a foundational, but not the sole, project management reference for its professional development programs including: • Project Management Professional (PMP®) certification • Project management education and training offered by PMI Registered Education Providers (R.E.P.s) • Accreditation of educational programs in project management. As a foundational reference, this standard is neither comprehensive nor allinclusive. Appendix D discusses application area extensions, while Appendix E lists sources of further information on project management. This standard addresses only single projects and the project management processes that are generally recognized as good practice. There are other standards on organizational project management maturity, project manager competency, and other topics that address what is generally recognized as good practices in those areas. Some of the material in those other standards impacts single projects. The other standards should be consulted for additional information and understanding of the broader context in which projects are accomplished. Project management standards do not address all details of every topic. Topics that are not mentioned should not be considered unimportant. There are several reasons why a topic may not be included in a standard: it may be included within some other related standard; it may be so general that there is nothing uniquely applicable to project management; or there is insufficient consensus on a topic. The lack of consensus means there are variations in the profession regarding how, when or where within the organization, as well as who within the organization, should perform that specific project management activity. The organization or the project management team must decide how those activities are going to be addressed in the context and the circumstances of the project for which the PMBOK® Guide is being used. 1.1.1 Audience for the PMBOK® Guide This standard provides a foundational reference for anyone interested in the profession of project management. This includes, but is not limited to: • Senior executives • Program managers and managers of project managers • Project managers and other project team members • Members of a project management office • Customers and other stakeholders • Functional managers with employees assigned to project teams • Educators teaching project management and related subjects • Consultants and other specialists in project management and related fields • Trainers developing project management educational programs • Researchers analyzing project management. ® 4 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 1.2 1.2.1 1 What is a Project? Project Characteristics A project is a temporary endeavor undertaken to create a unique product, service, or result. .1 Temporary Temporary means that every project has a definite beginning and a definite end. The end is reached when the project’s objectives have been achieved, or it becomes clear that the project objectives will not or cannot be met, or the need for the project no longer exists and the project is terminated. Temporary does not necessarily mean short in duration; many projects last for several years. In every case, however, the duration of a project is finite. Projects are not ongoing efforts. In addition, temporary does not generally apply to the product, service or result created by the project. Most projects are undertaken to create a lasting outcome. For example, a project to erect a national monument will create a result expected to last centuries. Projects also may often have intended and unintended social, economic and environmental impacts that far outlast the projects themselves. The temporary nature of projects may apply to other aspects of the endeavor as well: • • .2 The opportunity or market window is usually temporary—some projects have a limited time frame in which to produce their product or service. The project team, as a working unit, seldom outlives the project—a team created for the sole purpose of performing the project will perform that project, and then the team is disbanded and the team members reassigned when the project ends. Unique Products, Services, or Results A project creates unique deliverables, which are products, services, or results. Projects can create: • A product or artifact that is produced, is quantifiable, and can be either an end item in itself or a component item • A capability to perform a service, such as business functions supporting production or distribution • A result, such as outcomes or documents. For example, a research project develops knowledge that can be used to determine whether or not a trend is present or a new process will benefit society. Uniqueness is an important characteristic of project deliverables. For example, many thousands of office buildings have been developed, but each individual facility is unique—different owner, different design, different location, different contractors, and so on. The presence of repetitive elements does not change the fundamental uniqueness of the project work. ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 5 Chapter 1 − Introduction .3 1.2.2 Progressive Elaboration Progressive elaboration is a characteristic of projects that accompanies the concepts of temporary and unique. Progressive elaboration means developing in steps, and continuing by increments1. For example, the project scope will be broadly described early in the project and made more explicit and detailed as the project team develops a better and more complete understanding of the objectives and deliverables. Progressive elaboration should not be confused with scope creep (Section 5.5). Progressive elaboration of a project’s specifications needs to be carefully coordinated with proper project scope definition, particularly if the project is performed under contract. When properly defined, the scope of the project—the work to be done—should be controlled as the project and product specifications are progressively elaborated. The relationship between product scope and project scope is discussed further in the Chapter 5 introductory material. The following examples illustrate progressive elaboration in two different application areas: • Development of a chemical processing plant begins with process engineering to define the characteristics of the process. These characteristics are used to design the major processing units. This information becomes the basis for engineering design, which defines both the detailed plant layout and the mechanical characteristics of the process units and ancillary facilities. All of this results in design drawings that are elaborated to produce fabrication and construction drawings. During construction, interpretations and adaptations are made as needed and are subject to proper approval. This further elaboration of the deliverables is captured in as-built drawings, and final operating adjustments are made during testing and turnover. • The product of an economic development project may initially be defined as: “Improve the quality of life of the lowest income residents of community X.” As the project proceeds, the products may be described more specifically as, for example: “Provide access to food and water to 500 low-income residents in community X.” The next round of progressive elaboration might focus exclusively on increasing agriculture production and marketing, with provision of water deemed to be a secondary priority to be initiated once the agricultural component is well under way. Projects vs. Operational Work Organizations perform work to achieve a set of objectives. Generally, work can be categorized as either projects or operations, although the two sometimes overlap. They share many of the following characteristics: • Performed by people • Constrained by limited resources • Planned, executed, and controlled. Projects and operations differ primarily in that operations are ongoing and repetitive, while projects are temporary and unique. ® 6 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA The objectives of projects and operations are fundamentally different. The purpose of a project is to attain its objective and then terminate. Conversely, the objective of an ongoing operation is to sustain the business. Projects are different because the project concludes when its specific objectives have been attained, while operations adopt a new set of objectives and the work continues. Projects are undertaken at all levels of the organization and they can involve a single person or many thousands. Their duration ranges from a few weeks to several years. Projects can involve one or many organizational units, such as joint ventures and partnerships. Examples of projects include, but are not limited to: • Developing a new product or service • Effecting a change in structure, staffing, or style of an organization • Designing a new transportation vehicle • Developing or acquiring a new or modified information system • Constructing a building or facility • Building a water system for a community • Running a campaign for political office • Implementing a new business procedure or process • Responding to a contract solicitation. 1.2.3 1 Projects and Strategic Planning Projects are a means of organizing activities that cannot be addressed within the organization’s normal operational limits. Projects are, therefore, often utilized as a means of achieving an organization’s strategic plan, whether the project team is employed by the organization or is a contracted service provider. Projects are typically authorized as a result of one or more of the following strategic considerations: • A market demand (e.g., an oil company authorizes a project to build a new refinery in response to chronic gasoline shortages) • An organizational need (e.g., a training company authorizes a project to create a new course in order to increase its revenues) • A customer request (e.g., an electric utility authorizes a project to build a new substation to serve a new industrial park) • A technological advance (e.g., a software firm authorizes a new project to develop a new generation of video games after the introduction of new gameplaying equipment by electronics firms) • A legal requirement (e.g., a paint manufacturer authorizes a project to establish guidelines for the handling of a new toxic material). ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 7 Chapter 1 − Introduction 1.3 What is Project Management? Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. Project management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring and controlling, and closing. The project manager is the person responsible for accomplishing the project objectives. Managing a project includes: • Identifying requirements • Establishing clear and achievable objectives • Balancing the competing demands for quality, scope, time and cost • Adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders. Project managers often talk of a “triple constraint”—project scope, time and cost—in managing competing project requirements. Project quality is affected by balancing these three factors (Chapters 5 through 7). High quality projects deliver the required product, service or result within scope, on time, and within budget. The relationship among these factors is such that if any one of the three factors changes, at least one other factor is likely to be affected. Project managers also manage projects in response to uncertainty. Project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on at least one project objective. The project management team has a professional responsibility to its stakeholders including customers, the performing organization, and the public. PMI members adhere to a “Code of Ethics” and those with the Project Management Professional (PMP®) certification adhere to a “Code of Professional Conduct.” Project team members who are PMI members and/or PMPs are obligated to adhere to the current versions of these codes. It is important to note that many of the processes within project management are iterative because of the existence of, and necessity for, progressive elaboration in a project throughout the project’s life cycle. That is, as a project management team learns more about a project, the team can then manage to a greater level of detail. The term “project management” is sometimes used to describe an organizational or managerial approach to the management of projects and some ongoing operations, which can be redefined as projects, that is also referred to as “management by projects.” An organization that adopts this approach defines its activities as projects in a way that is consistent with the definition of a project provided in section 1.2.2. There has been a tendency in recent years to manage more activities in more application areas using project management. More organizations are using “management by project.” This is not to say that all operations can or should be organized into projects. The adoption of “management by project“ is also related to the adoption of an organizational culture that is close to the project management culture described in Section 2.3. Although, an understanding of project management is critical to an organization that is using “management by projects,” a detailed discussion of the approach itself is outside the scope of this standard. ® 8 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 1.4 The PMBOK® Guide Structure The PMBOK® Guide is organized into three sections. 1.4.1 1 Section I: The Project Management Framework Section I, The Project Management Framework, provides a basic structure for understanding project management. Chapter 1, Introduction, defines key terms and provides an overview for the rest of the PMBOK® Guide. Chapter 2, Project Life Cycle and Organization, describes the environment in which projects operate. The project management team should understand this broader context. Managing the day-to-day activities of the project is necessary, but not sufficient, to ensure success. 1.4.2 Section II: The Standard for Project Management of a Project Section II, The Standard for Project Management of a Project, specifies all the project management processes that are used by the project team to manage a project. Chapter 3, Project Management Processes for a Project, describes the five required Project Management Process Groups for any project and their constituent project management processes. This chapter describes the multi-dimensional nature of project management. 1.4.3 Section III: The Project Management Knowledge Areas Section III, The Project Management Knowledge Areas, organizes the 44 project management processes from the Chapter 3 Project Management Process Groups into nine Knowledge Areas, as described below. An introduction to Section III describes the legend for the process flow diagrams used in each Knowledge Area chapter and introductory material applicable to all the Knowledge Areas. Chapter 4, Project Integration Management, describes the processes and activities that integrate the various elements of project management, which are identified, defined, combined, unified and coordinated within the Project Management Process Groups. It consists of the Develop Project Charter, Develop Preliminary Project Scope Statement, Develop Project Management Plan, Direct and Manage Project Execution, Monitor and Control Project Work, Integrated Change Control, and Close Project project management processes. Chapter 5, Project Scope Management, describes the processes involved in ascertaining that the project includes all the work required, and only the work required, to complete the project successfully. It consists of the Scope Planning, Scope Definition, Create WBS, Scope Verification, and Scope Control project management processes. ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 9 Chapter 1 − Introduction Chapter 6, Project Time Management, describes the processes concerning the timely completion of the project. It consists of the Activity Definition, Activity Sequencing, Activity Resource Estimating, Activity Duration Estimating, Schedule Development, and Schedule Control project management processes. Chapter 7, Project Cost Management, describes the processes involved in planning, estimating, budgeting, and controlling costs so that the project is completed within the approved budget. It consists of the Cost Estimating, Cost Budgeting, and Cost Control project management processes. Chapter 8, Project Quality Management, describes the processes involved in assuring that the project will satisfy the objectives for which it was undertaken. It consists of the Quality Planning, Perform Quality Assurance, and Perform Quality Control project management processes. Chapter 9, Project Human Resource Management, describes the processes that organize and manage the project team. It consists of the Human Resource Planning, Acquire Project Team, Develop Project Team, and Manage Project Team project management processes. Chapter 10, Project Communications Management, describes the processes concerning the timely and appropriate generation, collection, dissemination, storage and ultimate disposition of project information. It consists of the Communications Planning, Information Distribution, Performance Reporting, and Manage Stakeholders project management processes. Chapter 11, Project Risk Management, describes the processes concerned with conducting risk management on a project. It consists of the Risk Management Planning, Risk Identification, Qualitative Risk Analysis, Quantitative Risk Analysis, Risk Response Planning, and Risk Monitoring and Control project management processes. Chapter 12, Project Procurement Management, describes the processes that purchase or acquire products, services or results, as well as contract management processes. It consists of the Plan Purchases and Acquisitions, Plan Contracting, Request Seller Responses, Select Sellers, Contract Administration, and Contract Closure project management processes. ® 10 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 1 Figure 1-1. Overview of Project Management Knowledge Areas and Project Management Processes ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 11 Chapter 1 − Introduction 1.5 Areas of Expertise Much of the knowledge and many of the tools and techniques for managing projects are unique to project management, such as work breakdown structures, critical path analysis, and earned value management. However, understanding and applying the knowledge, skills, tools, and techniques, which are generally recognized as good practice, are not sufficient alone for effective project management. Effective project management requires that the project management team understand and use knowledge and skills from at least five areas of expertise: • The Project Management Body of Knowledge • Application area knowledge, standards, and regulations • Understanding the project environment • General management knowledge and skills • Interpersonal skills. Figure 1-2 illustrates the relationship among these five areas of expertise. Although they appear as discrete elements, they generally overlap; none can stand alone. Effective project teams integrate them into all aspects of their project. It is not necessary for every project team member to be an expert in all five areas. In fact, it is unlikely that any one person will have all the knowledge and skills needed for the project. However, it is important that the project management team has full knowledge of the PMBOK® Guide and is conversant in the knowledge of the Project Management Body of Knowledge and the other four areas of management to effectively manage a project. 1.5.1 Project Management Body of Knowledge The Project Management Body of Knowledge describes knowledge unique to the project management field and that overlaps other management disciplines. Figure 1-2 shows the common areas of expertise needed by the project team. The PMBOK® Guide is, therefore, a subset of the larger Project Management Body of Knowledge. The knowledge of project management described in the PMBOK® Guide consists of: • Project life cycle definition (Chapter 2) • Five Project Management Process Groups (Chapter 3) • Nine Knowledge Areas (Chapters 4-12). ® 12 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 1 Figure 1-2. Areas of Expertise Needed by the Project Team 1.5.2 Application Area Knowledge, Standards and Regulations Application areas are categories of projects that have common elements significant in such projects, but are not needed or present in all projects. Application areas are usually defined in terms of: • Functional departments and supporting disciplines, such as legal, production and inventory management, marketing, logistics, and personnel • Technical elements, such as software development or engineering, and sometimes a specific kind of engineering, such as water and sanitation engineering or construction engineering • Management specializations, such as government contracting, community development, and new product development • Industry groups, such as automotive, chemical, agriculture, and financial services. Each application area generally has a set of accepted standards and practices, often codified in regulations. The International Organization for Standardization (ISO) differentiates between standards and regulations as follows2: ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 13 Chapter 1 − Introduction • A standard is a “document established by consensus and approved by a recognized body 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.” Some examples of standards are computer disk sizes and the thermal stability specifications of hydraulic fluids. • A regulation is a government-imposed requirement, which specifies product, process or service characteristics, including the applicable administrative provisions, with which compliance is mandatory. Building codes are an example of regulations. There is an overlap in the concepts of standards and regulations that cause confusion. For example: • Standards often begin as guidelines that describe a preferred approach and later, with widespread adoption, become generally accepted as if they were regulations • Different organizational levels can mandate compliance, such as when a government agency, the management of the performing organization, or the project management team establishes specific policies and procedures. A more detailed discussion of project management application areas appears in Appendix D. 1.5.3 Understanding the Project Environment Virtually all projects are planned and implemented in a social, economic, and environmental context, and have intended and unintended positive and/or negative impacts. The project team should consider the project in its cultural, social, international, political, and physical environmental contexts. • Cultural and social environment. The team needs to understand how the project affects people and how people affect the project. This may require an understanding of aspects of the economic, demographic, educational, ethical, ethnic, religious, and other characteristics of the people whom the project affects or who may have an interest in the project. The project manager should also examine the organizational culture and determine whether project management is recognized as a valid role with accountability and authority for managing the project. • International and political environment. Some team members may need to be familiar with applicable international, national, regional, and local laws and customs, as well as the political climate that could affect the project. Other international factors to consider are time-zone differences, national and regional holidays, travel requirements for face-to-face meetings, and the logistics of teleconferencing. • Physical environment. If the project will affect its physical surroundings, some team members should be knowledgeable about the local ecology and physical geography that could affect the project or be affected by the project. ® 14 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 1.5.4 General Management Knowledge and Skills General management encompasses planning, organizing, staffing, executing, and controlling the operations of an ongoing enterprise. It includes supporting disciplines such as: • Financial management and accounting • Purchasing and procurement • Sales and marketing • Contracts and commercial law • Manufacturing and distribution • Logistics and supply chain • Strategic planning, tactical planning, and operational planning • Organizational structures, organizational behavior, personnel administration, compensation, benefits, and career paths • Health and safety practices • Information technology. General management provides the foundation for building project management skills and is often essential for the project manager. On any given project, skill in any number of general management areas may be required. General management literature documents these skills, and their application is fundamentally the same on a project. 1.5.5 1 Interpersonal Skills The management of interpersonal relationships includes: • Effective communication. The exchange of information • Influencing the organization. The ability to “get things done” • Leadership. Developing a vision and strategy, and motivating people to achieve that vision and strategy • Motivation. Energizing people to achieve high levels of performance and to overcome barriers to change • Negotiation and conflict management. Conferring with others to come to terms with them or to reach an agreement • Problem solving. The combination of problem definition, alternatives identification and analysis, and decision-making. ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 15 Chapter 1 − Introduction 1.6 Project Management Context Project management exists in a broader context that includes program management, portfolio management and project management office. Frequently, there is a hierarchy of strategic plan, portfolio, program, project and subproject, in which a program consisting of several associated projects will contribute to the achievement of a strategic plan. 1.6.1 Programs and Program Management A program is a group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually3. Programs may include elements of related work outside of the scope of the discrete projects in the program. For example: • A new car model program can be broken up into projects for the design and upgrades of each major component (for example, transmission, engine, interior, exterior) while the ongoing manufacturing occurs on the assembly line • Many electronics firms have program managers who are responsible for both individual product releases (projects) and the coordination of multiple releases over a period of time (an ongoing operation). Programs also involve a series of repetitive or cyclical undertakings. For example: • Utilities often speak of an annual “construction program,” a series of projects built on previous efforts • Many nonprofit organizations have a “fundraising program,” to obtain financial support involving a series of discrete projects, such as a membership drive or an auction • Publishing a newspaper or magazine is also a program with each individual issue managed as a project. This is an example of where general operations can become “management by projects” (Section 1.3). In contrast with project management, program management is the centralized, coordinated management of a group of projects to achieve the program's strategic objectives and benefits. 1.6.2 Portfolios and Portfolio Management A portfolio is a collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programs in the portfolio may not necessarily be interdependent or directly related. Funding and support can be assigned on the basis of risk/reward categories, specific lines of business, or general types of projects, such as infrastructure and internal process improvement. ® 16 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Organizations manage their portfolios based on specific goals. One goal of portfolio management is to maximize the value of the portfolio by careful examination of candidate projects and programs for inclusion in the portfolio and the timely exclusion of projects not meeting the portfolio’s strategic objectives. Other goals are to balance the portfolio among incremental and radical investments and for efficient use of resources. Senior managers or senior management teams typically take on the responsibility of portfolio management for an organization. 1.6.3 1 Subprojects Projects are frequently divided into more manageable components or subprojects, although the individual subprojects can be referred to as projects and managed as such. Subprojects are often contracted to an external enterprise or to another functional unit in the performing organization. Examples include: • Subprojects based on the project process, such as a single phase in the project life cycle • Subprojects according to human resource skill requirements, such as plumbers or electricians needed on a construction project • Subprojects involving specialized technology, such as the automated testing of computer programs on a software development project. On very large projects, the subprojects can consist of a series of even smaller subprojects. 1.6.4 Project Management Office A project management office (PMO) is an organizational unit to centralize and coordinate the management of projects under its domain. A PMO can also be referred to as a “program management office,” “project office,” or “program office.” A PMO oversees the management of projects, programs, or a combination of both. The projects supported or administered by the PMO may not be related other than by being managed together. Some PMOs, however, do coordinate and manage related projects. In many organizations, those projects are indeed grouped or are related in some manner based on the way the PMO will coordinate and manage those projects. The PMO focuses on the coordinated planning, prioritization and execution of projects and subprojects that are tied to the parent organization’s or client’s overall business objectives. PMOs can operate on a continuum, from providing project management support functions in the form of training, software, standardized policies, and procedures, to actual direct management and responsibility for achieving the project objectives. A specific PMO can receive delegated authority to act as an integral stakeholder and a key decision-maker during the initiation stage of each project, can have the authority to make recommendations, or can terminate projects to keep the business objectives consistent. In addition, the PMO can be involved in the selection, management, and redeployment, if necessary, of shared project personnel and, where possible, dedicated project personnel. ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 17 Chapter 1 − Introduction • • • • • • • • • • • • • • • • Some of the key features of a PMO include, but are not limited to: Shared and coordinated resources across all projects administered by the PMO Identification and development of project management methodology, best practices, and standards Clearinghouse and management for project policies, procedures, templates, and other shared documentation Centralized configuration management for all projects administered by the PMO Centralized repository and management for both shared and unique risks for all projects Central office for operation and management of project tools, such as enterprise-wide project management software Central coordination of communication management across projects A mentoring platform for project managers Central monitoring of all PMO project timelines and budgets, usually at the enterprise level Coordination of overall project quality standards between the project manager and any internal or external quality personnel or standards organization. Differences between project managers and a PMO may include the following: Project managers and PMOs pursue different objectives and, as such, are driven by different requirements. All of these efforts, however, are aligned with the strategic needs of the organization. A project manager is responsible for delivering specific project objectives within the constraints of the project, while a PMO is an organizational structure with specific mandates that can include an enterprisewide perspective. The project manager focuses on the specified project objectives, while the PMO manages major program scope changes and can view them as potential opportunities to better achieve business objectives. The project manager controls the assigned project resources to best meet project objectives, while the PMO optimizes the use of shared organizational resources across all projects. The project manager manages the scope, schedule, cost, and quality of the products of the work packages, while the PMO manages overall risk, overall opportunity, and the interdependencies among projects. The project manager reports on project progress and other project specific information, while the PMO provides consolidated reporting and an enterprise view of projects under its purview. ® 18 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 3 CHAPTER 3 Project Management Processes for a Project Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. Project management is accomplished through processes, using project management knowledge, skills, tools, and techniques that receive inputs and generate outputs. In order for a project to be successful, the project team must: • Select appropriate processes within the Project Management Process Groups (also known as Process Groups) that are required to meet the project objectives • Use a defined approach to adapt the product specifications and plans to meet project and product requirements • Comply with requirements to meet stakeholder needs, wants and expectations • Balance the competing demands of scope, time, cost, quality, resources, and risk to produce a quality product. This standard documents information needed to initiate, plan, execute, monitor and control, and close a single project, and identifies those project management processes that have been recognized as good practice on most projects most of the time. These processes apply globally and across industry groups. Good practice means there is general agreement that the application of those project management processes has been shown to enhance the chances of success over a wide range of projects. This does not mean that the knowledge, skills and processes described should always be applied uniformly on all projects. The project manager, in collaboration with the project team, is always responsible for determining what processes are appropriate, and the appropriate degree of rigor for each process, for any given project. ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 37 Chapter 3 − Project Management Processes for a Project In fact, project managers and their teams are advised to carefully consider addressing each process and its constituent inputs and outputs. Project managers and their teams should use this chapter as a high-level guide for those processes that they must consider in managing their project. This effort is known as tailoring. A process is a set of interrelated actions and activities that are performed to achieve a pre-specified set of products, results, or services. The project processes are performed by the project team, and generally fall into one of two major categories: • The project management processes common to most projects most of the time are associated with each other by their performance for an integrated purpose. The purpose is to initiate, plan, execute, monitor and control, and close a project. These processes interact with each other in complex ways that cannot be completely explained in a document or with graphics. However, an example of the interactions among the Process Groups is shown in Figure 3-4. The processes may also interact in relation to project scope, cost, schedule, etc., which are called Knowledge Areas, and are described in Chapters 4 through 12. • Product-oriented processes specify and create the project's product. Productoriented processes are typically defined by the project life cycle (discussed in Section 2.1) and vary by application area. Project management processes and product-oriented processes overlap and interact throughout the project. For example, the scope of the project cannot be defined in the absence of some basic understanding of how to create the specified product. Project management is an integrative undertaking. Project management integration requires each project and product process to be appropriately aligned and connected with the other processes to facilitate their coordination. These process interactions often require tradeoffs among project requirements and objectives. A large and complex project may have some processes that will have to be iterated several times to define and meet stakeholder requirements and reach agreement on the processes outcome. Failure to take action during one process will usually affect that process and other related processes. For example, a scope change will almost always affect project cost, but the scope change may or may not affect team morale or product quality. The specific performance tradeoffs will vary from project to project and organization to organization. Successful project management includes actively managing these interactions to successfully meet sponsor, customer and other stakeholder requirements. This standard describes the nature of project management processes in terms of the integration between the processes, the interactions within them, and the purposes they serve. These processes are aggregated into five groups, defined as the Project Management Process Groups: • Initiating Process Group • Planning Process Group • Executing Process Group • Monitoring and Controlling Process Group • Closing Process Group. ® 38 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA This chapter provides information about project management of a single project as a number of interlinked processes, and includes the following major sections: 3.1 Project Management Processes 3.2 Project Management Process Groups 3.3 Process Interactions 3.4 Project Management Process Mapping 3.1 3 Project Management Processes The project management processes are presented as discrete elements with welldefined interfaces. However, in practice they overlap and interact in ways that are not completely detailed here. Most experienced project management practitioners recognize there is more than one way to manage a project. The specifics for a project are defined as objectives that must be accomplished based on complexity, risk, size, time frame, project team’s experience, access to resources, amount of historical information, the organization’s project management maturity, and industry and application area. The required Process Groups and their constituent processes are guides to apply appropriate project management knowledge and skills during the project. In addition, the application of the project management processes to a project is iterative and many processes are repeated and revised during the project. The project manager and the project team are responsible for determining what processes from the Process Groups will be employed, by whom, and the degree of rigor that will be applied to the execution of those processes to achieve the desired project objective. An underlying concept for the interaction among the project management processes is the plan-do-check-act cycle (as defined by Shewhart and modified by Deming, in the ASQ Handbook, pages 13–14, American Society for Quality, 1999). This cycle is linked by results – the result from one part of the cycle becomes the input to another. See Figure 3-1. Figure 3-1. The Plan-Do-Check-Act Cycle ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 39 Chapter 3 − Project Management Processes for a Project The integrative nature of the Process Groups is more complex than the basic plan-do-check-act cycle (see Figure 3-2). However, the enhanced cycle can be applied to the interrelationships within and among the Process Groups. The Planning Process Group corresponds to the “plan” component of the plan-do-check-act cycle. The Executing Process Group corresponds to the “do” component and the Monitoring and Controlling Process Group corresponds to the “check and act” components. In addition, since management of a project is a finite effort, the Initiating Process Group starts these cycles and the Closing Process Group ends them. The integrative nature of project management requires the Monitoring and Controlling Process Group interaction with every aspect of the other Process Groups. Figure 3-2. Project Management Process Groups Mapped to the Plan-Do-Check-Act Cycle 3.2 Project Management Process Groups This section identifies and describes the five Project Management Process Groups required for any project. These five Process Groups have clear dependencies and are performed in the same sequence on each project. They are independent of application areas or industry focus. Individual Process Groups and individual constituent processes are often iterated prior to completing the project. Constituent processes also can have interactions both within a Process Group and among Process Groups. The symbols for the process flow diagrams are shown in Figure 3-3: • Process Groups • Processes within the Process Groups • Organizational Process Assets and Enterprise Environmental Factors, shown as inputs to and outputs from the Process Groups, but external to the processes • Arrows or line arrows indicate process or data flow among or within the Process Groups. ® 40 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Note: Not all process interactions and data flow among the processes are shown in an effort to make the diagrams more readable. 3 Figure 3-3. Flow Chart Legend The process flow diagram, Figure 3-4, provides an overall summary of the basic flow and interactions among the Process Groups. An individual process may define and constrain how inputs are used to produce outputs for that Process Group. A Process Group includes the constituent project management processes that are linked by the respective inputs and outputs, that is, the result or outcome of one process becomes the input to another. The Monitoring and Controlling Process Group, for example, not only monitors and controls the work being done during a Process Group, but also monitors and controls the entire project effort. The Monitoring and Controlling Process Group must also provide feedback to implement corrective or preventive actions to bring the project into compliance with the project management plan or to appropriately modify the project management plan. Many additional interactions among the Process Groups are likely. The Process Groups are not project phases. Where large or complex projects may be separated into distinct phases or sub-projects such as feasibility study, concept development, design, prototype, build, test, etc. all of the Process Group processes would normally be repeated for each phase or subproject. The five Process Groups are: • Initiating Process Group. Defines and authorizes the project or a project phase. • Planning Process Group. Defines and refines objectives, and plans the course of action required to attain the objectives and scope that the project was undertaken to address. • Executing Process Group. Integrates people and other resources to carry out the project management plan for the project. • Monitoring and Controlling Process Group. Regularly measures and monitors progress to identify variances from the project management plan so that corrective action can be taken when necessary to meet project objectives. • Closing Process Group. Formalizes acceptance of the product, service or result and brings the project or a project phase to an orderly end. ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 41 Chapter 3 − Project Management Processes for a Project Note: Not all process interactions and data flow among the Process Groups are shown. Figure 3-4. High Level Summary of Process Groups’ Interactions ® 42 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA APPENDIX A – THIRD EDITION CHANGES The purpose of this appendix is to give a detailed explanation of the detailed changes made to A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – 2000 Edition to create the PMBOK® Guide – Third Edition. Structural Changes One of the most pronounced changes to the Third Edition of the PMBOK® Guide is the structure. The Third Edition is structured to emphasize the importance of the Process Groups as described in Table 1, which displays a side-by-side comparison of the changes. Chapter 3 is renamed “Project Management Processes for a Project” and has been moved from Section I to a new Section II, which is now called “The Standard for Project Management of a Project.” As part of this change, Chapter 3 has been extensively revised to clearly indicate that the processes, inputs, and outputs called out in the chapter are the basis of the standard for project management of a single project. 2000 Edition Sections Third Edition Sections Section I - The Project Management Framework Chapters 1, 2, and 3 Section I - The Project Management Framework Chapters 1 and 2 Section II - The Standard for Project Management of a Project Chapter 3 - Project Management Processes for a Project Section III - The Project Management Knowledge Areas Chapters 4 through 12 Section IV - Appendices Appendix D - Application Area Extensions Section II - The Project Management Knowledge Areas Chapters 4 through 12 Section III - Appendices Appendix D - Notes Appendix E - Application Area Extensions Section IV - Glossary and Index A Section V – References, Glossary, and Index Table 1 – Structural Changes ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 301 Appendix A − Third Edition Changes Process Name Changes In the Third Edition, seven processes have been added, thirteen renamed, and two deleted for a net gain of five processes. The names of processes in the various chapters of the PMBOK® Guide – 2000 Edition are in different formats and styles. Inconsistent naming styles can cause confusion for project management students and experienced individuals as well. As an example, the processes in the Scope Knowledge Area are Initiation, Scope Planning, Scope Definition, Scope Verification, and Scope Change Control. Some of these are active voice; some are present participles. The effect of these different styles is that readers are unable, at a glance, to determine whether a term is an activity (a process) or a deliverable (a work-product or artifact). The project team proposed a wholesale change of all process names to the verb-object format in the PMBOK® Guide – Third Edition. However, PMI was concerned that changing all of the names would be too large a change; therefore, PMI authorized only an incremental change in the PMBOK® Guide – Third Edition to include only those approved new processes and a small number of other processes for specific reasons explained later in this appendix. Elimination of Facilitating and Core Process Designations The terms “Facilitating Processes” and “Core Processes” are no longer used. These terms have been eliminated to ensure that all project management processes in the Project Management Process Groups have the same level of importance. The project management processes are still grouped within the Project Management Process Groups, as indicated in Figure 3-5 Initiating Process Group; Figure 3-6 Planning Process Group; Figure 3-7 Executing Process Group; Figure 3-8 Monitoring and Controlling Process Group; and Figure 3-9 Closing Process Group. The 44 project management processes are mapped into both the Project Management Process Groups and the Knowledge Areas, as shown in Table 3-45. Writing Styles A Style Guide was developed and used by the project team to create and finalize the input. Attention was focused on using active voice language and content consistency throughout the document to prevent an occurrence of different writing styles. ® 302 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Chapter 1 - Introduction Changes Chapter 1 changes clarify and improve organization within the chapter. Chapter 1 clarifies the differences between a project and operations. The changes provide standard definitions for program and program management, portfolio and portfolio management, and include a more detailed discussion of project management office (PMO) variations. Additional revisions include the following: • General management skills have been moved to Chapter 1 • A section identifying the many areas of expertise needed by the project team has been added. Chapter 2 - Project Life Cycle and Organization Changes Chapter 2 changes clarify the distinctions between project life cycles and product life cycles, and explain project phases. Stakeholders are defined in relation to the project team. A PMO’s role and responsibility in the organization are defined, and the concept of a project management system is introduced. Chapter 3 - Project Management Processes for a Project Changes Chapter 3 has been completely rewritten and expanded to focus on the Project Management Process Groups and processes within the Knowledge Areas. For emphasis, Chapter 3 has been renamed “Project Management Processes for a Project” and moved into a new Section II, “The Standard for Project Management of a Project.” Chapter 3 has been extensively revised to serve as a standard for managing a single project and clearly indicates the five required Project Management Process Groups and their constituent processes. The Initiating Process Group and the Closing Process Group are given more emphasis than in previous editions. The Controlling Process Group has been expanded to include Monitoring and is retitled the “Monitoring and Controlling Process Group.” Material has been added to clarify the distinction between the Project Management Process Groups and project phases, which have sometimes mistakenly been viewed as one and the same. A Chapter 4 - Project Integration Management Changes Chapter 4 has been completely rewritten and enhances the discussion of integrating project management processes and activities. The chapter describes integration from the aspect of the Project Management Process Groups, and provides a clear description of integration across all Project Management Process Groups and among all project management processes. Four new processes are included in the chapter and two processes have been renamed: ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 303 Appendix A − Third Edition Changes • • • • • • Develop Project Charter process formally authorizes a project. Develop Preliminary Project Scope Statement process provides a high-level scope narrative. Develop Project Management Plan process documents the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans into the project management plan. Direct and Manage Project Execution process executes the work defined in the project management plan to achieve the project’s objectives. Monitor and Control Project Work process defines the processes to monitor and control the project activities needed to initiate, plan, execute, and close a project. Close Project process finalizes all activities across all of the Process Groups to formally close the project. The following table summarizes the Chapter 4 changes: 2000 Edition Sections Third Edition Sections 4.1 Develop Project Charter 4.2 Develop Preliminary Project Scope Statement 4.3 Develop Project Management Plan 4.4 Direct and Manage Project Execution 4.5 Monitor and Control Project Work 4.6 Integrated Change Control 4.7 Close Project 4.1 Project Plan Development 4.2 Project Plan Execution 4.3 Integrated Change Control Table 2 – Chapter 4 Changes Chapter 5 - Project Scope Management Changes Chapter 5 has been modified to clarify the role of the project scope management plan in developing the project scope statement. The chapter expands the discussion and clarifies the importance of a work breakdown structure (WBS), with the addition of a new section on creating the WBS. The Initiation section has been rewritten and moved to Chapter 4. The following table summarizes the Chapter 5 changes: 2000 Edition Sections 5.1 Initiation 5.2 Scope Planning 5.3 Scope Definition 5.4 Scope Verification 5.5 Scope Change Control Third Edition Sections Rewritten and moved to Chapter 4 5.1 Scope Planning 5.2 Scope Definition 5.3 Create WBS 5.4 Scope Verification 5.5 Scope Control Table 3 – Chapter 5 Changes ® 304 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Chapter 6 - Project Time Management Changes Chapter 6 changes include moving the Resource Planning section into the chapter and renaming it Activity Resource Estimating. Several figures have been deleted (e.g., PERT) and other figures reworked to clarify the use and meaning (e.g., bar or Gantt chart, milestone chart). Another figure has been added to show the difference between a milestone schedule, summary schedule, and detailed schedule. The chapter introduction describes the need for a schedule management plan, a subsidiary component of the project management plan. Subsections have also been added to provide information on project cost estimates, resource leveling, and progress reporting to reflect how these processes influence the project’s schedule. The following table summarizes the Chapter 6 changes: 2000 Edition Sections 6.1 Activity Definition 6.2 Activity Sequencing Third Edition Sections 6.1 Activity Definition 6.2 Activity Sequencing 6.3 Activity Resource Estimating 6.4 Activity Duration Estimating 6.5 Schedule Development 6.6 Schedule Control 6.3 Activity Duration Estimating 6.4 Schedule Development 6.5 Schedule Control Table 4 – Chapter 6 Changes Chapter 7 - Project Cost Management Changes Chapter 7 processes have been expanded to integrate project budget directly with the WBS and to cover controlling costs. There are significant structural changes to the inputs, tools and techniques, as well. The chapter introduction describes the need for a cost management plan, a subsidiary component of the project management plan. The Resource Planning process has been moved to Chapter 6 and renamed Activity Resource Estimating. This chapter contains the majority of the information on Earned Value Management. The following table summarizes the Chapter 7 changes: 2000 Edition Sections 7.1 Resource Planning 7.2 Cost Estimating 7.3 Cost Budgeting 7.4 Cost Control A Third Edition Sections Moved to Project Time Management (Chapter 6) 7.1 Cost Estimating 7.2 Cost Budgeting 7.3 Cost Control Table 5 – Chapter 7 Changes ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 305 Appendix A − Third Edition Changes Chapter 8 - Project Quality Management Changes Chapter 8 includes two revised project management process names to better reflect the activities of those processes. An emphasis has been made to integrate quality activities with the overall Monitoring and Controlling process, as defined in Chapter 4. The following table summarizes the Chapter 8 changes: 2000 Edition Sections 8.1 Quality Planning 8.2 Quality Assurance 8.3 Quality Control Third Edition Sections 8.1 Quality Planning 8.2 Perform Quality Assurance 8.3 Perform Quality Control Table 6 – Chapter 8 Changes Chapter 9 - Project Human Resource Management Changes Chapter 9 identifies several aspects of human resource planning, as well as the staffing management plan. Manage Project Team has been added as a Monitoring and Controlling process. Several key explanations have also been added, including organizational charts and position descriptions. The figures in this chapter now reflect current project management techniques, such as virtual teams, ground rules, and issues log. The following table summarizes the Chapter 9 changes: 2000 Edition Sections 9.1 Organizational Planning 9.2 Staff Acquisition 9.3 Team Development Third Edition Sections 9.1 Human Resource Planning 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team Table 7 – Chapter 9 Changes Chapter 10 - Project Communications Management Changes Chapter 10 has been updated with the addition of a Manage Stakeholders process. The Manage Stakeholders process manages communications to satisfy the needs of, and resolve issues with, project stakeholders. The following table summarizes the Chapter 10 changes: 2000 Edition Sections 10.1 Communications Planning 10.2 Information Distribution 10.3 Performance Reporting 10.4 Administrative Closure Third Edition Sections 10.1 Communications Planning 10.2 Information Distribution 10.3 Performance Reporting 10.4 Manage Stakeholders Table 8 – Chapter 10 Changes ® 306 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Chapter 11 - Project Risk Management Changes Chapter 11 has been updated to increase focus on opportunities (versus threats). It includes options based on project complexity, enhances Risk Management Planning activities, adds the risk register, and provides closer integration with other processes. The following table summarizes the Chapter 11 changes: 2000 Edition Sections 11.1 Risk Management Planning 11.2 Risk Identification 11.3 Qualitative Risk Analysis 11.4 Quantitative Risk Analysis 11.5 Risk Response Planning 11.6 Risk Monitoring and Control Third Edition Sections 11.1 Risk Management Planning 11.2 Risk Identification 11.3 Qualitative Risk Analysis 11.4 Quantitative Risk Analysis 11.5 Risk Response Planning 11.6 Risk Monitoring and Control Table 9 – Chapter 11 Changes (no name changes were made) Chapter 12 - Project Procurement Management Changes Chapter 12 has been updated to include a consistent use of the terms “buyer” and “seller.” The chapter now clarifies the difference between the project team as a buyer of products and services, and as the seller of products and services. The chapter now includes a process on seller performance evaluation to contract administration, and has removed the words “procure,” “solicit,” and “solicitation” to recognize the negative connotation of these words in various areas around the world. The following table summarizes the Chapter 12 changes: 2000 Edition Sections 12.1 Procurement Planning 12.2 Solicitation Planning 12.3 Solicitation 12.4 Source Selection 12.5 Contract Administration 12.6 Contract Closeout Third Edition Sections 12.1 Plan Purchases and Acquisitions 12.2 Plan Contracting 12.3 Request Seller Responses 12.4 Select Sellers 12.5 Contract Administration 12.6 Contract Closure A Table 10 – Chapter 12 Changes Glossary The glossary has been expanded and updated to: • Include those terms within the PMBOK® Guide that need to be defined to support an understanding of the document’s contents • Clarify meaning and improve the quality and accuracy of any translations • Eliminate terms not used within the PMBOK® Guide – Third Edition. ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 307 APPENDIX F Summary of Project Management Knowledge Areas Project Integration Management 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. In the project management context, integration includes characteristics of unification, consolidation, articulation and integrative actions that are crucial to project completion, successfully meeting customer and stakeholder requirements and managing expectations. The Project Integration Management processes include: • Develop Project Charter – developing the project charter that formally authorizes a project • Develop Preliminary Project Scope Statement – developing the preliminary project scope statement that provides a high-level scope narrative • Develop Project Management Plan – documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans into a project management plan • Direct and Manage Project Execution – executing the work defined in the project management plan to achieve the project’s requirements defined in the project scope statement • Monitor and Control Project Work – monitoring and controlling the processes required to initiate, plan, execute, and close a project to meet the performance objectives defined in the project management plan • Integrated Change Control – reviewing all change requests, approving changes, and controlling changes to the deliverables and organizational process assets • Close Project – finalizing all activities across all of the Project Process Groups to formally close the project. F ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 337 Appendix F − Summary of Project Management Knowledge Areas 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. Project Scope Management is primarily concerned with defining and controlling what is and is not included in the project. The Project Scope Management processes include: • Scope Planning - creating a project scope management plan that documents how the project scope will be defined, verified, and controlled, and how the work breakdown structure (WBS) will be created and defined • Scope Definition - developing a detailed project scope statement as the basis for future project decisions • Create WBS - subdividing the major project deliverables and project work into smaller, more manageable components • Scope Verification - formalizing acceptance of the completed project deliverables • Scope Control - controlling changes to the project scope. Project Time Management Project Time Management includes the processes required to accomplish timely completion of the project. The Project Time Management processes include: • Activity Definition - identifying the specific schedule activities that need to be performed to produce the various project deliverables • Activity Sequencing - identifying and documenting dependencies among schedule activities • Activity Resource Estimating - estimating the type and quantities of resources required to perform each schedule activity • Activity Duration Estimating - estimating the number of work periods that will be needed to complete individual schedule activities • Schedule Development - analyzing activity sequences, durations, resource requirements, and schedule constraints to create the project schedule • Schedule Control - controlling changes to the project schedule. Project Cost Management Project Cost Management includes the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget. The Project Cost Management processes include: • Cost Estimating - developing an approximation of the costs of the resources needed to complete project activities • Cost Budgeting - aggregating the estimated costs of individual activities or work packages to establish a cost baseline • Cost Control - influencing the factors that create cost variances and controlling changes to the project budget. ® 338 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Project Quality Management 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. It implements the quality management system through policy and procedures, with continuous process improvement activities conducted throughout, as appropriate. The Project Quality Management processes include: • Quality Planning - identifying which quality standards are relevant to the project and determining how to satisfy them • Perform Quality Assurance - applying the planned, systematic quality activities to ensure that the project employs all processes needed to meet requirements • Perform Quality Control - monitoring specific project results to determine whether they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. Project Human Resource Management Project Human Resource Management includes the processes that organize and manage the project team. The project team is comprised of the people who have assigned roles and responsibilities for completing the project. While it is common to speak of roles and responsibilities being assigned, team members should be involved in much of the project’s planning and decision-making. Early involvement of team members adds expertise during the planning process and strengthens commitment to the project. The type and number of project team members can often change as the project progresses. Project team members can be referred to as the project’s staff. Project Human Resource Management processes include: • Human Resource Planning - Identifying and documenting project roles, responsibilities, and reporting relationships, as well as creating the staffing management plan • Acquire Project Team - Obtaining the human resources needed to complete the project • Develop Project Team - Improving the competencies and interaction of team members to enhance project performance • Manage Project Team - Tracking team member performance, providing feedback, resolving issues, and coordinating changes to enhance project performance. F ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 339 Appendix F − Summary of Project Management Knowledge Areas Project Communications Management Project Communications Management includes the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information. The Project Communications Management processes provide the critical links among people and information that are necessary for successful communications. Project managers can spend an inordinate amount of time communicating with the project team, stakeholders, customer, and sponsor. Everyone involved in the project should understand how communications affect the project as a whole. Project Communications Management processes include: • Communications Planning - determining the information and communications needs of the project stakeholders • Information Distribution - making needed information available to project stakeholders in a timely manner • Performance Reporting - collecting and distributing performance information, including status reporting, progress measurement, and forecasting • Manage Stakeholders - managing communications to satisfy the requirements of, and resolve issues with, project stakeholders. Project Risk Management Project Risk Management includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project. The objectives of Project Risk Management are to increase the probability and impact of positive events and decrease the probability and impact of events adverse to project objectives. Project Risk Management processes include: • Risk Management Planning - deciding how to approach, plan, and execute the risk management activities for a project • Risk Identification - determining which risks might affect the project and documenting their characteristics • Qualitative Risk Analysis - prioritizing risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact • Quantitative Risk Analysis - numerically analyzing the effect on overall project objectives of identified risks • Risk Response Planning - developing options and actions to enhance opportunities and to reduce threats to project objectives • Risk Monitoring and Control - tracking identified risks, monitoring residual risks, identifying new risks, executing risk response plans, and evaluating their effectiveness throughout the project life cycle. ® 340 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Project Procurement Management Project Procurement Management includes the processes to purchase or acquire the products, services, or results needed from outside the project team to perform the work. This chapter presents two perspectives of procurement. The organization can be either the buyer or seller of the product, service, or results under a contract. Project Procurement Management includes the contract management and change control processes required to administer contracts or purchase orders issued by authorized project team members. Project Procurement Management also includes administering any contract issued by an outside organization (the buyer) that is acquiring the project from the performing organization (the seller) and administering contractual obligations placed on the project team by the contract. Project Procurement Management processes include: • Plan Purchases and Acquisitions - determining what to purchase or acquire, and determining when and how • Plan Contracting - documenting products, services, and results requirements and identifying potential sellers • Request Seller Responses - obtaining information, quotations, bids, offers, or proposals, as appropriate • Select Sellers - reviewing offers, choosing from among potential sellers, and negotiating a written contract with a seller • Contract Administration - managing the contract and the relationship between the buyer and the seller, reviewing and documenting how a seller is performing or has performed to establish required corrective actions and provide a basis for future relationships with the seller, managing contract related changes and, when appropriate, managing the contractual relationship with the outside buyer of the project • Contract Closure - completing and settling each contract, including the resolution of any open items, and closing each contract. F ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 341 GLOSSARY 1. Inclusions and Exclusions This glossary includes terms that are: • Unique or nearly unique to project management (e.g., project scope statement, work package, work breakdown structure, critical path method) • Not unique to project management, but used differently or with a narrower meaning in project management than in general everyday usage (e.g., early start date, schedule activity). This glossary generally does not include: • Application area-specific terms (e.g., project prospectus as a legal document—unique to real estate development) • Terms whose uses in project management do not differ in any material way from everyday use (e.g., calendar day, delay) • Compound terms whose meaning is clear from the combined meanings of the component parts • Variants when the meaning of the variant is clear from the base term (e.g., exception report is included, exception reporting is not). As a result of the above inclusions and exclusions, this glossary includes: • A preponderance of terms related to Project Scope Management, Project Time Management, and Project Risk Management, since many of the terms used in these knowledge areas are unique or nearly unique to project management • Many terms from Project Quality Management, since these terms are used more narrowly than in their everyday usage • Relatively few terms related to Project Human Resource Management and Project Communications Management, since most of the terms used in these knowledge areas do not differ significantly from everyday usage • Relatively few terms related to Project Cost Management, Project Integration Management, and Project Procurement Management, since many of the terms used in these knowledge areas have narrow meanings that are unique to a particular application area. Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 347 Glossary 2. Common Acronyms AC ACWP AD ADM AE AF AOA AON AS BAC BCWP BCWS BOM CA CAP CCB COQ CPF CPFF CPI CPIF CPM CPPC CV CWBS DD DU DUR EAC EF EMV ES ETC EV EVM EVT FF FF FFP FMEA FPIF FS Actual Cost Actual Cost of Work Performed Activity Description Arrow Diagramming Method Apportioned Effort Actual Finish date Activity-on-Arrow Activity-on-Node Actual Start date Budget at Completion Budgeted Cost of Work Performed Budgeted Cost of Work Scheduled Bill Of Materials Control Account Control Account Plan Change Control Board Cost of Quality Cost-Plus-Fee Cost-Plus-Fixed-Fee Cost Performance Index Cost-Plus-Incentive-Fee Critical Path Method Cost-Plus-Percentage of Cost Cost Variance Contract Work Breakdown Structure Data Date Duration Duration Estimate at Completion Early Finish date Expected Monetary Value Early Start date Estimate to Complete Earned Value Earned Value Management Earned Value Technique Finish-to-Finish Free Float Firm-Fixed-Price Failure Mode and Effect Analysis Fixed-Price-Incentive-Fee Finish-to-Start ® 348 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA IFB LF LOE LS OBS OD PC PCT PDM PF PM PM PMBOK® PMIS PMO PMO PMP® PS PSWBS PV QA QC RAM RBS RBS RD RFP RFQ SF SF SOW SPI SS SS SV SWOT TC TF TF T&M TQM TS VE WBS Invitation for Bid Late Finish date Level of Effort Late Start date Organizational Breakdown Structure Original Duration Percent Complete Percent Complete Precedence Diagramming Method Planned Finish date Project Management Project Manager Project Management Body of Knowledge Project Management Information System Program Management Office Project Management Office Project Management Professional Planned Start date Project Summary Work Breakdown Structure Planned Value Quality Assurance Quality Control Responsibility Assignment Matrix Resource Breakdown Structure Risk Breakdown Structure Remaining Duration Request for Proposal Request for Quotation Scheduled Finish date Start-to-Finish Statement of Work Schedule Performance Index Scheduled Start date Start-to-Start Schedule Variance Strengths, Weaknesses, Opportunities, and Threats Target Completion date Target Finish date Total Float Time and Material Total Quality Management Target Start date Value Engineering Work Breakdown Structure Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 349 Glossary 3. Definitions Many of the words defined here have broader, and in some cases different, dictionary definitions. The definitions use the following conventions: • Terms used as part of the definitions and that are defined in the glossary are shown in italics. ♦ When the same glossary term appears more than once in a given definition, only the first occurrence is italicized. ♦ In some cases, a single glossary term consists of multiple words (e.g., risk response planning). ♦ In many cases, there are multiple, consecutive glossary terms within a given definition. For example, duration estimate denotes two separate glossary entries, one for “duration” and another for “estimate.” ♦ There are even some definitions with a string of consecutive italicized words (not separated by commas) that represent multiple, consecutive glossary terms, at least one of which consists of multiple words. For example, critical path method late finish date denotes two separate glossary entries, one for “critical path method” and another for “late finish date.” In situations such as this, an asterisk (*) will follow the last italicized word in the string to denote that there are multiple adjacent glossary terms. • When synonyms are included, no definition is given and the reader is directed to the preferred term (i.e., see preferred term). • Related terms that are not synonyms are cross-referenced at the end of the definition (i.e., see also related term). Accept. The act of formally receiving or acknowledging something and regarding it as being true, sound, suitable, or complete. Acceptance. See accept. Acceptance Criteria. Those criteria, including performance requirements and essential conditions, which must be met before project deliverables are accepted. Acquire Project Team [Process]. The process of obtaining the human resources needed to complete the project. Activity. A component of work performed during the course of a project. See also schedule activity. Activity Attributes [Output/Input]. Multiple attributes associated with each schedule activity that can be included within the activity list. Activity attributes include activity codes, predecessor activities, successor activities, logical relationships, leads and lags, resource requirements, imposed dates, constraints, and assumptions. Activity Code. One or more numerical or text values that identify characteristics of the work or in some way categorize the schedule activity that allows filtering and ordering of activities within reports. Activity Definition [Process]. The process of identifying the specific schedule activities that need to be performed to produce the various project deliverables. Activity Description (AD). A short phrase or label for each schedule activity used in conjunction with an activity identifier to differentiate that project schedule activity from ® 350 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA other schedule activities. The activity description normally describes the scope of work of the schedule activity. Activity Duration. The time in calendar units between the start and finish of a schedule activity. See also actual duration, original duration, and remaining duration. Activity Duration Estimating [Process]. The process of estimating the number of work periods that will be needed to complete individual schedule activities. Activity Identifier. A short unique numeric or text identification assigned to each schedule activity to differentiate that project activity* from other activities. Typically unique within any one project schedule network diagram. Activity List [Output/Input]. A documented tabulation of schedule activities that 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-on-Arrow (AOA). See arrow diagramming method. Activity-on-Node (AON). See precedence diagramming method. Activity Resource Estimating [Process]. The process of estimating the types and quantities of resources required to perform each schedule activity. Activity Sequencing [Process]. The process of identifying and documenting dependencies among schedule activities. Actual Cost (AC). Total costs actually incurred and recorded in accomplishing work performed during a given time period for a schedule activity or work breakdown structure component. Actual cost can sometimes be direct labor hours alone, direct costs alone, or all costs including indirect costs. Also referred to as the actual cost of work performed (ACWP). See also earned value management and earned value technique. Actual Cost of Work Performed (ACWP). See actual cost (AC). 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. Actual Finish Date (AF). The point in time that work actually ended on a schedule activity. (Note: In some application areas, the schedule activity is considered “finished” when work is “substantially complete.”) Actual Start Date (AS). The point in time that work actually started on a schedule activity. Analogous Estimating [Technique]. An estimating technique that uses the values of parameters, such as scope, cost, budget, and duration or measures of scale such as size, weight, and complexity from a previous, similar activity as the basis for estimating the same parameter or measure for a future activity. It is frequently used to estimate a parameter when there is a limited amount of detailed information about the project (e.g., in the early phases). Analogous estimating is a form of expert judgment. Analogous estimating is most reliable when the previous activities are similar in fact and not just in appearance, and the project team members preparing the estimates have the needed expertise. Application Area. A category of projects that have common components significant in such projects, but are not needed or present in all projects. Application areas are usually defined in terms of either the product (i.e., by similar technologies or production methods) or the type of customer (i.e., internal versus external, government versus commercial) or industry sector (i.e., utilities, automotive, aerospace, information technologies). Application areas can overlap. Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 351 Glossary Apportioned Effort (AE). Effort applied to project work that is not readily divisible into discrete efforts for that work, but which is related in direct proportion to measurable discrete work efforts. Contrast with discrete effort. Approval. See approve. Approve. The act of formally confirming, sanctioning, ratifying, or agreeing to something. Approved Change Request [Output/Input]. A change request that has been processed through the integrated change control process and approved. Contrast with requested change. Arrow. The graphic presentation of a schedule activity in the arrow diagramming method or a logical relationship between schedule activities in the precedence diagramming method. Arrow Diagramming Method (ADM) [Technique]. A schedule network diagramming technique in which schedule activities are represented by arrows. The tail of the arrow represents the start, and the head represents the finish of the schedule activity. (The length of the arrow does not represent the expected duration of the schedule activity.) Schedule activities are connected at points called nodes (usually drawn as small circles) to illustrate the sequence in which the schedule activities are expected to be performed. See also precedence diagramming method. As-of Date. See data date. Assumptions [Output/Input]. Assumptions are factors that, for planning purposes, are considered to be true, real, or certain without proof or demonstration. Assumptions affect all aspects of project planning, and are part of the progressive elaboration of the project. Project teams frequently identify, document, and validate assumptions as part of their planning process. Assumptions generally involve a degree of risk. Assumptions Analysis [Technique]. A technique that explores the accuracy of assumptions and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions. Authority. The right to apply project resources*, expend funds, make decisions, or give approvals. Backward Pass. The calculation of late finish dates and late start dates for the uncompleted portions of all schedule activities. Determined by working backwards through the schedule network logic from the project’s end date. The end date may be calculated in a forward pass or set by the customer or sponsor. See also schedule network analysis. Bar Chart [Tool]. A graphic display of schedule-related information. In the typical bar chart, schedule activities or work breakdown structure components are listed down the left side of the chart, dates are shown across the top, and activity durations are shown as date-placed horizontal bars. Also called a Gantt chart. Baseline. The approved time phased plan (for a project, a work breakdown structure component, a work package, or a schedule activity), plus or minus approved project scope, cost, schedule, and technical changes. Generally refers to the current baseline, but may refer to the original or some other baseline. Usually used with a modifier (e.g., cost baseline, schedule baseline, performance measurement baseline, technical baseline). See also performance measurement baseline. Baseline Finish Date. The finish date of a schedule activity in the approved schedule baseline. See also scheduled finish date. Baseline Start Date. The start date of a schedule activity in the approved schedule baseline. See also scheduled start date. ® 352 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Bill of Materials (BOM). A documented formal hierarchical tabulation of the physical assemblies, subassemblies, and components needed to fabricate a product. Bottom-up Estimating [Technique]. A method of estimating a component of work. The work is decomposed into more detail. An estimate is prepared of what is needed to meet the requirements of each of the lower, more detailed pieces of work, and these estimates are then aggregated into a total quantity for the component of work. The accuracy of bottom-up estimating is driven by the size and complexity of the work identified at the lower levels. Generally smaller work scopes increase the accuracy of the estimates. Brainstorming [Technique]. A general data gathering and creativity technique that can be used to identify risks, ideas, or solutions to issues by using a group of team members or subject-matter experts. Typically, a brainstorming session is structured so that each participant’s ideas are recorded for later analysis. Budget. The approved estimate for the project or any work breakdown structure component or any schedule activity. See also estimate. Budget at Completion (BAC). The sum of all the budget values established for the work to be performed on a project or a work breakdown structure component or a schedule activity. The total planned value for the project. Budgeted Cost of Work Performed (BCWP). See earned value (EV). Budgeted Cost of Work Scheduled (BCWS). See planned value (PV). Buffer. See reserve. Buyer. The acquirer of products, services, or results for an organization. Calendar Unit. The smallest unit of time used in scheduling the project. Calendar units are generally in hours, days, or weeks, but can also be in quarter years, months, shifts, or even in minutes. Change Control. Identifying, documenting, approving or rejecting, and controlling changes to the project baselines*. Change Control Board (CCB). A formally constituted group of stakeholders responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project, with all decisions and recommendations being recorded. Change Control System [Tool]. A collection of formal documented procedures that define how project deliverables and documentation will be controlled, changed, and approved. In most application areas the change control system is a subset of the configuration management system. Change Request. Requests to expand or reduce the project scope, modify policies, processes, plans, or procedures, modify costs or budgets, or revise schedules. Requests for a change can be direct or indirect, externally or internally initiated, and legally or contractually mandated or optional. Only formally documented requested changes are processed and only approved change requests are implemented. Chart of Accounts [Tool]. Any numbering system used to monitor project costs* by category (e.g., labor, supplies, materials, and equipment). The project chart of accounts is usually based upon the corporate chart of accounts of the primary performing organization. Contrast with code of accounts. Charter. See project charter. Checklist [Output/Input]. Items listed together for convenience of comparison, or to ensure the actions associated with them are managed appropriately and not forgotten. Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 353 Glossary An example is a list of items to be inspected that is created during quality planning and applied during quality control. Claim. A request, demand, or assertion of rights by a seller against a buyer, or vice versa, for consideration, compensation, or payment under the terms of a legally binding contract, such as for a disputed change. Close Project [Process]. The process of finalizing all activities across all of the project process groups to formally close the project or phase. Closing Processes [Process Group]. Those processes performed to formally terminate all activities of a project or phase, and transfer the completed product to others or close a cancelled project. Code of Accounts [Tool]. Any numbering system used to uniquely identify each component of the work breakdown structure. Contrast with chart of accounts. Co-location [Technique]. An organizational placement strategy where the project team members are physically located close to one another in order to improve communication, working relationships, and productivity. Common Cause. A source of variation that is inherent in the system and predictable. On a control chart, it appears as part of the random process variation (i.e., variation from a process that would be considered normal or not unusual), and is indicated by a random pattern of points within the control limits. Also referred to as random cause. Contrast with special cause. Communication. A process through which information is exchanged among persons using a common system of symbols, signs, or behaviors. Communication Management Plan [Output/Input]. The document that describes: the communications needs and expectations for the project; how and in what format information will be communicated; when and where each communication will be made; and who is responsible for providing each type of communication. A communication management plan can be formal or informal, highly detailed or broadly framed, based on the requirements of the project stakeholders. The communication management plan is contained in, or is a subsidiary plan of, the project management plan. Communications Planning [Process]. The process of determining the information and communications needs of the project stakeholders: who they are, what is their level of interest and influence on the project, who needs what information, when will they need it, and how it will be given to them. Compensation. Something given or received, a payment or recompense, usually something monetary or in kind for products, services, or results provided or received. Component. A constituent part, element, or piece of a complex whole. Configuration Management System [Tool]. A subsystem of the overall project management system. It is a collection of formal documented procedures used to apply technical and administrative direction and surveillance to: identify and document the functional and physical characteristics of a product, result, service, or component; control any changes to such characteristics; record and report each change and its implementation status; and support the audit of the products, results, or components to verify conformance to requirements. It includes the documentation, tracking systems, and defined approval levels necessary for authorizing and controlling changes. In most application areas, the configuration management system includes the change control system. ® 354 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Constraint [Input]. The state, quality, or sense of being restricted to a given course of action or inaction. An applicable restriction or limitation, either internal or external to the project, that will affect the performance of the project or a process. For example, a schedule constraint is any limitation or restraint placed on the project schedule that affects when a schedule activity can be scheduled and is usually in the form of fixed imposed dates. A cost constraint is any limitation or restraint placed on the project budget such as funds available over time. A project resource constraint is any limitation or restraint placed on resource usage, such as what resource skills or disciplines are available and the amount of a given resource available during a specified time frame. Contingency. See reserve. Contingency Allowance. See reserve. Contingency Reserve [Output/Input]. The amount of funds, budget, or time needed above the estimate to reduce the risk of overruns of project objectives to a level acceptable to the organization. Contract [Output/Input]. A contract is a mutually binding agreement that obligates the seller to provide the specified product or service or result and obligates the buyer to pay for it. Contract Administration [Process]. The process of managing the contract and the relationship between the buyer and seller, reviewing and documenting how a seller is performing or has performed to establish required corrective actions and provide a basis for future relationships with the seller, managing contract related changes and, when appropriate, managing the contractual relationship with the outside buyer of the project. Contract Closure [Process]. The process of completing and settling the contract, including resolution of any open items and closing each contract. Contract Management Plan [Output/Input]. The document that describes how a specific contract will be administered and can include items such as required documentation delivery and performance requirements. A contract management plan can be formal or informal, highly detailed or broadly framed, based on the requirements in the contract. Each contract management plan is a subsidiary plan of the project management plan. Contract Statement of Work (SOW) [Output/Input]. A narrative description of products, services, or results to be supplied under contract. Contract Work Breakdown Structure (CWBS) [Output/Input]. A portion of the work breakdown structure for the project developed and maintained by a seller contracting to provide a subproject or project component. Control [Technique]. Comparing actual performance with planned performance, analyzing variances, assessing trends to effect process improvements, evaluating possible alternatives, and recommending appropriate corrective action as needed. Control Account (CA) [Tool]. A management control point where the integration of scope, budget, actual cost, and schedule takes place, and where the measurement of performance will occur. Control accounts are placed at selected management points (specific components at selected levels) of the work breakdown structure. Each control account may include one or more work packages, but each work package may be associated with only one control account. Each control account is associated with a specific single organizational component in the organizational breakdown structure (OBS). Previously called a Cost Account. See also work package. Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 355 Glossary Control Account Plan (CAP) [Tool]. A plan for all the work and effort to be performed in a control account. Each CAP has a definitive statement of work, schedule, and time-phased budget. Previously called a Cost Account Plan. Control Chart [Tool]. A graphic display of process data over time and against established control limits, and that has a centerline that assists in detecting a trend of plotted values toward either control limit. Control Limits. 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 that reflects the expected variation in the data. See also specification limits. Controlling. See control. Corrective Action. Documented direction for executing the project work to bring expected future performance of the project work in line with the project management plan. Cost. The monetary value or price of a project activity* or component that includes the monetary worth of the resources required to perform and complete the activity or component, or to produce the component. A specific cost can be composed of a combination of cost components including direct labor hours, other direct costs, indirect labor hours, other indirect costs, and purchased price. (However, in the earned value management methodology, in some instances, the term cost can represent only labor hours without conversion to monetary worth.) See also actual cost and estimate. Cost Baseline. See baseline. Cost Budgeting [Process]. The process of aggregating the estimated costs of individual activities or work packages to establish a cost baseline. Cost Control [Process]. The process of influencing the factors that create variances, and controlling changes to the project budget. Cost Estimating [Process]. The process of developing an approximation of the cost of the resources needed to complete project activities*. Cost Management Plan [Output/Input]. The document that sets out the format and establishes the activities and criteria for planning, structuring, and controlling the project costs. A cost management plan can be formal or informal, highly detailed or broadly framed, based on the requirements of the project stakeholders. The cost management plan is contained in, or is a subsidiary plan, of the project management plan. Cost of Quality (COQ) [Technique]. Determining the costs incurred to ensure quality. Prevention and appraisal costs (cost of conformance) include costs for quality planning, quality control (QC), and quality assurance to ensure compliance to requirements (i.e., training, QC systems, etc.). Failure costs (cost of non-conformance) include costs to rework products, components, or processes that are non-compliant, costs of warranty work and waste, and loss of reputation. Cost Performance Index (CPI). A measure of cost efficiency on a project. It is the ratio of earned value (EV) to actual costs (AC). CPI = EV divided by AC. A value equal to or greater than one indicates a favorable condition and a value less than one indicates an unfavorable condition. Cost-Plus-Fee (CPF). A type of cost reimbursable contract where the buyer reimburses the seller for seller’s allowable costs for performing the contract work and seller also receives a fee calculated as an agreed upon percentage of the costs. The fee varies with the actual cost. Cost-Plus-Fixed-Fee (CPFF) Contract. A type of cost-reimbursable contract where the buyer reimburses the seller for the seller’s allowable costs (allowable costs are defined by the contract) plus a fixed amount of profit (fee). ® 356 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Cost-Plus-Incentive-Fee (CPIF) Contract. A type of cost-reimbursable contract where the buyer reimburses the seller for the seller’s allowable costs (allowable costs are defined by the contract), and the seller earns its profit if it meets defined performance criteria. Cost-Plus-Percentage of Cost (CPPC). See cost-plus-fee. Cost-Reimbursable Contract. A type of contract involving payment (reimbursement) by the buyer to the seller for the seller’s actual costs, plus a fee typically representing seller’s profit. Costs are usually classified as direct costs or indirect costs. Direct costs are costs incurred for the exclusive benefit of the project, such as salaries of full-time project staff. Indirect costs, also called overhead and general and administrative cost, are costs allocated to the project by the performing organization as a cost of doing business, such as salaries of management indirectly involved in the project, and cost of electric utilities for the office. Indirect costs are usually calculated as a percentage of direct costs. Cost-reimbursable contracts often include incentive clauses where, if the seller meets or exceeds selected project objectives, such as schedule targets or total cost, then the seller receives from the buyer an incentive or bonus payment. Cost Variance (CV). A measure of cost performance on a project. It is the algebraic difference between earned value (EV) and actual cost (AC). CV = EV minus AC. A positive value indicates a favorable condition and a negative value indicates an unfavorable condition. Crashing [Technique]. A specific type of project schedule compression technique performed by taking action to decrease the total project schedule duration* after analyzing a number of alternatives to determine how to get the maximum schedule duration compression for the least additional cost. Typical approaches for crashing a schedule include reducing schedule activity durations and increasing the assignment of resources on schedule activities. See schedule compression and see also fast tracking. Create WBS (Work Breakdown Structure) [Process]. The process of subdividing the major project deliverables and project work into smaller, more manageable components. Criteria. Standards, rules, or tests on which a judgment or decision can be based, or by which a product, service, result, or process can be evaluated. Critical Activity. Any schedule activity on a critical path in a project schedule. Most commonly determined by using the critical path method. Although some activities are “critical,” in the dictionary sense, without being on the critical path, this meaning is seldom used in the project context. Critical Chain Method [Technique]. A schedule network analysis technique* that modifies the project schedule to account for limited resources. The critical chain method mixes deterministic and probabilistic approaches to schedule network analysis. Critical Path [Output/Input]. Generally, but not always, the sequence of schedule activities that determines the duration of the project. Generally, it is the longest path through the project. However, a critical path can end, as an example, on a schedule milestone that is in the middle of the project schedule and that has a finish-no-later-than imposed date schedule constraint. See also critical path method. Critical Path Method (CPM) [Technique]. A schedule network analysis technique* used to determine the amount of scheduling flexibility (the amount of float) on various logical network paths in the project schedule network, and to determine the minimum total project duration. Early start and finish dates* are calculated by means of a forward pass, using a specified start date. Late start and finish dates* are calculated by means of a backward pass, starting from a specified completion date, which sometimes is the project early finish date determined during the forward pass calculation. Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 357 Glossary Current Finish Date. The current estimate of the point in time when a schedule activity will be completed, where the estimate reflects any reported work progress. See also scheduled finish date and baseline finish date. Current Start Date. The current estimate of the point in time when a schedule activity will begin, where the estimate reflects any reported work progress. See also scheduled start date and baseline start date. Customer. The person or organization that will use the project’s product or service or result. (See also user). Data Date (DD). The date up to or through which the project’s reporting system has provided actual status and accomplishments. In some reporting systems, the status information for the data date is included in the past and in some systems the status information is in the future. Also called as-of date and time-now date. Date. A term representing the day, month, and year of a calendar, and, in some instances, the time of day. Decision Tree Analysis [Technique]. The decision tree is a diagram that describes a decision under consideration and the implications of choosing one or another of the available alternatives. It is used when some future scenarios or outcomes of actions are uncertain. It incorporates probabilities and the costs or rewards of each logical path of events and future decisions, and uses expected monetary value analysis to help the organization identify the relative values of alternate actions. See also expected monetary value analysis. Decompose. See decomposition. Decomposition [Technique]. A planning technique that subdivides the project scope and project deliverables into smaller, more manageable components, until the project work associated with accomplishing the project scope and providing the deliverables is defined in sufficient detail to support executing, monitoring, and controlling the work. Defect. An imperfection or deficiency in a project component where that component does not meet its requirements or specifications and needs to be either repaired or replaced. Defect Repair. Formally documented identification of a defect in a project component with a recommendation to either repair the defect or completely replace the component. Deliverable [Output/Input]. Any unique and verifiable product, result, or capability to perform a service that must be produced to complete a process, phase, or project. Often used more narrowly in reference to an external deliverable, which is a deliverable that is subject to approval by the project sponsor or customer. See also product, service, and result. Delphi Technique [Technique]. An information gathering technique used as a way to reach a consensus of experts on a subject. Experts on the subject participate in this technique anonymously. A facilitator uses a questionnaire to solicit ideas about the important project points related to the subject. The responses are summarized and are then recirculated to the experts for further comment. Consensus may be reached in a few rounds of this process. The Delphi technique helps reduce bias in the data and keeps any one person from having undue influence on the outcome. Dependency. See logical relationship. Design Review [Technique]. A management technique used for evaluating a proposed design to ensure that the design of the system or product meets the customer requirements, or to assure that the design will perform successfully, can be produced, and can be maintained. ® 358 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Develop Project Charter [Process]. The process of developing the project charter that formally authorizes a project. Develop Project Management Plan [Process]. The process of documenting the actions necessary to define, prepare, integrate, and coordinate all subsidiary plans into a project management plan. Develop Project Scope Statement (Preliminary) [Process]. The process of developing the preliminary project scope statement that provides a high level scope narrative. Develop Project Team [Process]. The process of improving the competencies and interaction of team members to enhance project performance. Direct and Manage Project Execution [Process]. The process of executing the work defined in the project management plan to achieve the project’s requirements defined in the project scope statement. Discipline. A field of work requiring specific knowledge and that has a set of rules governing work conduct (e.g., mechanical engineering, computer programming, cost estimating, etc.). Discrete Effort. Work effort that is directly identifiable to the completion of specific work breakdown structure components and deliverables, and that can be directly planned and measured. Contrast with apportioned effort. Document. A medium and the information recorded thereon, that generally has permanence and can be read by a person or a machine. Examples include project management plans, specifications, procedures, studies, and manuals. Documented Procedure. A formalized written description of how to carry out an activity, process, technique, or methodology. Dummy Activity. A schedule activity of zero duration used to show a logical relationship in the arrow diagramming method. Dummy activities are used when logical relationships cannot be completely or correctly described with schedule activity arrows. Dummy activities are generally shown graphically as a dashed line headed by an arrow. Duration (DU or DUR). The total number of work periods (not including holidays or other nonworking periods) required to complete a schedule activity or work breakdown structure component. Usually expressed as workdays or workweeks. Sometimes incorrectly equated with elapsed time. Contrast with effort. See also original duration, remaining duration, and actual duration. Early Finish Date (EF). In the critical path method, the earliest possible point in time on which the uncompleted portions of a schedule activity (or the project) can finish, based on the schedule network logic, the data date, and any schedule constraints. Early finish dates can change as the project progresses and as changes are made to the project management plan. Early Start Date (ES). In the critical path method, the earliest possible point in time on which the uncompleted portions of a schedule activity (or the project) can start, based on the schedule network logic, the data date, and any schedule constraints. Early start dates can change as the project progresses and as changes are made to the project management plan. Earned Value (EV). The value of completed work expressed in terms of the approved budget assigned to that work for a schedule activity or work breakdown structure component. Also referred to as the budgeted cost of work performed (BCWP). Earned Value Management (EVM). A management methodology for integrating scope, schedule, and resources, and for objectively measuring project performance and Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 359 Glossary progress. Performance is measured by determining the budgeted cost of work performed (i.e., earned value) and comparing it to the actual cost of work performed (i.e., actual cost). Progress is measured by comparing the earned value to the planned value. Earned Value Technique (EVT) [Technique]. A specific technique for measuring the performance of work for a work breakdown structure component, control account, or project. Also referred to as the earning rules and crediting method. Effort. The number of labor units required to complete a schedule activity or work breakdown structure component. Usually expressed as staff hours, staff days, or staff weeks. Contrast with duration. Enterprise. A company, business, firm, partnership, corporation, or governmental agency. Enterprise Environmental Factors [Output/Input]. Any or all external environmental factors and internal organizational environmental factors that surround or influence the project’s success. These factors are from any or all of the enterprises involved in the project, and include organizational culture and structure, infrastructure, existing resources, commercial databases, market conditions, and project management software. Estimate [Output/Input]. A quantitative assessment of the likely amount or outcome. Usually applied to project costs, resources, effort, and durations and is usually preceded by a modifier (i.e., preliminary, conceptual, feasibility, order-of-magnitude, definitive). It should always include some indication of accuracy (e.g., ±x percent). Estimate at Completion (EAC) [Output/Input]. The expected total cost of a schedule activity, a work breakdown structure component, or the project when the defined scope of work will be completed. EAC is equal to the actual cost (AC) plus the estimate to complete (ETC) for all of the remaining work. EAC = AC plus ETC. The EAC may be calculated based on performance to date or estimated by the project team based on other factors, in which case it is often referred to as the latest revised estimate. See also earned value technique and estimate to complete. Estimate to Complete (ETC) [Output/Input]. The expected cost needed to complete all the remaining work for a schedule activity, work breakdown structure component, or the project. See also earned value technique and estimate at completion. Event. Something that happens, an occurrence, an outcome. Exception Report. Document that includes only major variations from the plan (rather than all variations). Execute. Directing, managing, performing, and accomplishing the project work, providing the deliverables, and providing work performance information. Executing. See execute. Executing Processes [Process Group]. Those processes performed to complete the work defined in the project management plan to accomplish the project’s objectives defined in the project scope statement. Execution. See execute. Expected Monetary Value (EMV) Analysis. A statistical technique that calculates the average outcome when the future includes scenarios that may or may not happen. A common use of this technique is within decision tree analysis. Modeling and simulation are recommended for cost and schedule risk analysis because it is more powerful and less subject to misapplication than expected monetary value analysis. Expert Judgment [Technique]. Judgment provided based upon expertise in an application area, knowledge area, discipline, industry, etc. as appropriate for the activity being performed. Such expertise may be provided by any group or person with specialized ® 360 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA education, knowledge, skill, experience, or training, and is available from many sources, including: other units within the performing organization; consultants; stakeholders, including customers; professional and technical associations; and industry groups. Failure Mode and Effect Analysis (FMEA) [Technique]. An analytical procedure in which each potential failure mode in every component of a product is analyzed to determine its effect on the reliability of that component and, by itself or in combination with other possible failure modes, on the reliability of the product or system and on the required function of the component; or the examination of a product (at the system and/or lower levels) for all ways that a failure may occur. For each potential failure, an estimate is made of its effect on the total system and of its impact. In addition, a review is undertaken of the action planned to minimize the probability of failure and to minimize its effects. Fast Tracking [Technique]. A specific project schedule compression technique that changes network logic to overlap phases that would normally be done in sequence, such as the design phase and construction phase, or to perform schedule activities in parallel. See schedule compression and see also crashing. Finish Date. A point in time associated with a schedule activity’s completion. Usually qualified by one of the following: actual, planned, estimated, scheduled, early, late, baseline, target, or current. Finish-to-Finish (FF). The logical relationship where completion of work of the successor activity cannot finish until the completion of work of the predecessor activity. See also logical relationship. Finish-to-Start (FS). The logical relationship where initiation of work of the successor activity depends upon the completion of work of the predecessor activity. See also logical relationship. Firm-Fixed-Price (FFP) Contract. A type of fixed price contract where the buyer pays the seller a set amount (as defined by the contract), regardless of the seller’s costs. Fixed-Price-Incentive-Fee (FPIF) Contract. A type of contract where the buyer pays the seller a set amount (as defined by the contract), and the seller can earn an additional amount if the seller meets defined performance criteria. Fixed-Price or Lump-Sum Contract. A type of contract involving a fixed total price for a well-defined product. Fixed-price contracts may also include incentives for meeting or exceeding selected project objectives, such as schedule targets. The simplest form of a fixed price contract is a purchase order. Float. Also called slack. See total float and see also free float. Flowcharting [Technique]. The depiction in a diagram format of the inputs, process actions, and outputs of one or more processes within a system. Forecasts. Estimates or predictions of conditions and events in the project’s future based on information and knowledge available at the time of the forecast. Forecasts are updated and reissued based on work performance information provided as the project is executed. 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. Forward Pass. The calculation of the early start and early finish dates for the uncompleted portions of all network activities. See also schedule network analysis and backward pass. Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 361 Glossary Free Float (FF). The amount of time that a schedule activity can be delayed without delaying the early start of any immediately following schedule activities. See also total float. Functional Manager. Someone with management authority over an organizational unit within a functional organization. The manager of any group that actually makes a product or performs a service. Sometimes called a line manager. Functional Organization. A hierarchical organization where each employee has one clear superior, staff are grouped by areas of specialization, and managed by a person with expertise in that area. Funds. A supply of money or pecuniary resources immediately available. Gantt Chart. See bar chart. Goods. Commodities, wares, merchandise. Grade. A category or rank used to distinguish items that have the same functional use (e.g., “hammer”), but do not share the same requirements for quality (e.g., different hammers may need to withstand different amounts of force). Ground Rules [Tool]. A list of acceptable and unacceptable behaviors adopted by a project team to improve working relationships, effectiveness, and communication. Hammock Activity. See summary activity. Historical Information. Documents and data on prior projects including project files, records, correspondence, closed contracts, and closed projects. Human Resource Planning [Process]. The process of identifying and documenting project roles, responsibilities and reporting relationships, as well as creating the staffing management plan. Imposed Date. A fixed date imposed on a schedule activity or schedule milestone, usually in the form of a “start no earlier than” and “finish no later than” date. Influence Diagram [Tool]. Graphical representation of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes. Influencer. Persons or groups that are not directly related to the acquisition or use of the project’s product, but, due to their position in the customer organization*, can influence, positively or negatively, the course of the project. Information Distribution [Process]. The process of making needed information available to project stakeholders in a timely manner. Initiating Processes [Process Group]. Those processes performed to authorize and define the scope of a new phase or project or that can result in the continuation of halted project work. A large number of the initiating processes are typically done outside the project’s scope of control by the organization, program, or portfolio processes and those processes provide input to the project’s initiating processes group. Initiator. A person or organization that has both the ability and authority to start a project. Input [Process Input]. 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. Inspection [Technique]. Examining or measuring to verify whether an activity, component, product, result or service conforms to specified requirements. Integral. Essential to completeness; requisite; constituent with; formed as a unit with another component. ® 362 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Integrated. Interrelated, interconnected, interlocked, or meshed components blended and unified into a functioning or unified whole. Integrated Change Control [Process]. The process of reviewing all change requests, approving changes and controlling changes to deliverables and organizational process assets. Invitation for Bid (IFB). Generally, this term is equivalent to request for proposal. However, in some application areas, it may have a narrower or more specific meaning. Issue. 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. Knowledge. Knowing something with the familiarity gained through experience, education, observation, or investigation, it is understanding a process, practice, or technique, or how to use a tool. Knowledge Area Process. An identifiable project management process within a knowledge area. Knowledge Area, Project Management. See Project Management Knowledge Area. Lag [Technique]. A modification of a logical relationship that directs a delay in the successor activity. For example, in a finish-to-start dependency with a ten-day lag, the successor activity cannot start until ten days after the predecessor activity has finished. See also lead. Late Finish Date (LF). In the critical path method, the latest possible point in time that a schedule activity may be completed based upon the schedule network logic, the project completion date, and any constraints assigned to the schedule activities without violating a schedule constraint or delaying the project completion date. The late finish dates are determined during the backward pass calculation of the project schedule network. Late Start Date (LS). In the critical path method, the latest possible point in time that a schedule activity may begin based upon the schedule network logic, the project completion date, and any constraints assigned to the schedule activities without violating a schedule constraint or delaying the project completion date. The late start dates are determined during the backward pass calculation of the project schedule network. Latest Revised Estimate. See estimate at completion. Lead [Technique]. A modification of a logical relationship that allows an acceleration of the successor activity. For example, in a finish-to-start dependency with a ten-day lead, the successor activity can start ten days before the predecessor activity has finished. See also lag. A negative lead is equivalent to a positive lag. Lessons Learned [Output/Input]. The learning gained from the process of performing the project. Lessons learned may be identified at any point. Also considered a project record, to be included in the lessons learned knowledge base. Lessons Learned Knowledge Base. A store of historical information and lessons learned about both the outcomes of previous project selection decisions and previous project performance. Level of Effort (LOE). Support-type activity (e.g., seller or customer liaison, project cost accounting, project management, etc.) that does not readily lend itself to measurement of discrete accomplishment. It is generally characterized by a uniform rate of work performance over a period of time determined by the activities supported. Leveling. See resource leveling. Life Cycle. See project life cycle. Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 363 Glossary Log. 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. See network logic. Logic Diagram. See project schedule network diagram. Logical Relationship. A dependency between two project schedule activities, or between a project schedule activity and a schedule milestone. See also precedence relationship. The four possible types of logical relationships are: Finish-to-Start; Finish-to-Finish; Startto-Start; and Start-to-Finish. Manage Project Team [Process]. The process of tracking team member performance, providing feedback, resolving issues, and coordinating changes to enhance project performance. Manage Stakeholders [Process]. The process of managing communications to satisfy the requirements of, and resolve issues with, project stakeholders. Master Schedule [Tool]. A summary-level project schedule that identifies the major deliverables and work breakdown structure components and key schedule milestones. See also milestone schedule. Materiel. The aggregate of things used by an organization in any undertaking, such as equipment, apparatus, tools, machinery, gear, material, and supplies. Matrix Organization. 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. Methodology. A system of practices, techniques, procedures, and rules used by those who work in a discipline. Milestone. A significant point or event in the project. See also schedule milestone. Milestone Schedule [Tool]. A summary-level schedule that identifies the major schedule milestones. See also master schedule. Monitor. Collect project performance data with respect to a plan, produce performance measures, and report and disseminate performance information. Monitor and Control Project Work [Process]. The process of monitoring and controlling the processes required to initiate, plan, execute, and close a project to meet the performance objectives defined in the project management plan and project scope statement. Monitoring. See monitor. Monitoring and Controlling Processes [Process Group]. Those processes performed to measure and monitor project execution* so that corrective action can be taken when necessary to control the execution of the phase or project. Monte Carlo Analysis. A technique that computes, or iterates, the project cost or project schedule many times using input values selected at random from probability distributions of possible costs or durations, to calculate a distribution of possible total project cost or completion dates. Near-Critical Activity. A schedule activity that has low total float. The concept of nearcritical 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. Network. See project schedule network diagram. ® 364 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Network Analysis. See schedule network analysis. Network Logic. The collection of schedule activity dependencies that makes up a project schedule network diagram. Network Loop. A schedule network path that passes the same node twice. Network loops cannot be analyzed using traditional schedule network analysis techniques such as critical path method. Network Open End. A schedule activity without any predecessor activities or successor activities creating an unintended break in a schedule network path. Network open ends are usually caused by missing logical relationships. Network Path. Any continuous series of schedule activities connected with logical relationships in a project schedule network diagram. Networking [Technique]. Developing relationships with persons who may be able to assist in the achievement of objectives and responsibilities. Node. One of the defining points of a schedule network; a junction point joined to some or all of the other dependency lines. See also arrow diagramming method and precedence diagramming method. Objective. Something toward which work is to be directed, a strategic position to be attained, or a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed. Operations. An organizational function performing the ongoing execution of activities that produce the same product or provide a repetitive service. Examples are: production operations, manufacturing operations, and accounting operations. Opportunity. A condition or situation favorable to the project, a positive set of circumstances, a positive set of events, a risk that will have a positive impact on project objectives, or a possibility for positive changes. Contrast with threat. Organization. A group of persons organized for some purpose or to perform some type of work within an enterprise. Organization Chart [Tool]. A method for depicting interrelationships among a group of persons working together toward a common objective. Organizational Breakdown Structure (OBS) [Tool]. A hierarchically organized depiction of the project organization arranged so as to relate the work packages to the performing organizational units. (Sometimes OBS is written as Organization Breakdown Structure with the same definition.) Organizational Process Assets [Output/Input]. Any or all process related assets, from any or all of the organizations involved in the project that are or can be used to influence the project’s success. These process assets include formal and informal plans, policies, procedures, and guidelines. The process assets also include the organizations’ knowledge bases such as lessons learned and historical information. Original Duration (OD). The activity duration originally assigned to a schedule activity and not updated as progress is reported on the activity. Typically used for comparison with actual duration and remaining duration when reporting schedule progress. Output [Process Output]. A product, result, or service generated by a process. May be an input to a successor process. Parametric Estimating [Technique]. An estimating technique that uses a statistical relationship between historical data and other variables (e.g., square footage in construction, lines of code in software development) to calculate an estimate for activity Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 365 Glossary parameters, such as scope, cost, budget, and duration. This technique can produce higher levels of accuracy depending upon the sophistication and the underlying data built into the model. An example for the cost parameter is multiplying the planned quantity of work to be performed by the historical cost per unit to obtain the estimated cost. Pareto Chart [Tool]. A histogram, ordered by frequency of occurrence, that shows how many results were generated by each identified cause. Path Convergence. The merging or joining of parallel schedule network paths into the same node in a project schedule network diagram. Path convergence is characterized by a schedule activity with more than one predecessor activity. Path Divergence. Extending or generating parallel schedule network paths from the same node in a project schedule network diagram. Path divergence is characterized by a schedule activity with more than one successor activity. Percent Complete (PC or PCT). An estimate, expressed as a percent, of the amount of work that has been completed on an activity or a work breakdown structure component. Perform Quality Assurance (QA) [Process]. The process of applying the planned, systematic quality activities (such as audits or peer reviews) to ensure that the project employs all processes needed to meet requirements. Perform Quality Control (QC) [Process]. The process of monitoring specific project results* to determine whether they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. Performance Measurement Baseline. An approved plan for the project work against which project execution is compared and deviations are measured for management control. The performance measurement baseline typically integrates scope, schedule, and cost parameters of a project, but may also include technical and quality parameters. Performance Reporting [Process]. The process of collecting and distributing performance information. This includes status reporting, progress measurement, and forecasting. Performance Reports [Output/Input]. Documents and presentations that provide organized and summarized work performance information, earned value management parameters and calculations, and analyses of project work progress and status. Common formats for performance reports include bar charts, S-curves, histograms, tables, and project schedule network diagram showing current schedule status. Performing Organization. The enterprise whose personnel are most directly involved in doing the work of the project. Phase. See project phase. Plan Contracting [Process]. The process of documenting the products, services, and results requirements and identifying potential sellers. Plan Purchases and Acquisitions [Process]. The process of determining what to purchase or acquire, and determining when and how to do so. Planned Finish Date (PF). See scheduled finish date. Planned Start Date (PS). See scheduled start date. Planned Value (PV). The authorized budget assigned to the scheduled work to be accomplished for a schedule activity or work breakdown structure component. Also referred to as the budgeted cost of work scheduled (BCWS). Planning Package. A WBS component below the control account with known work content but without detailed schedule activities. See also control account. ® 366 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Planning Processes [Process Group]. Those processes performed to define and mature the project scope, develop the project management plan, and identify and schedule the project activities* that occur within the project. Portfolio. A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives. The projects or programs of the portfolio may not necessarily be interdependent or directly related. Portfolio Management [Technique]. The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives. Position Description [Tool]. An explanation of a project team member’s roles and responsibilities. Practice. 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) [Technique]. A schedule network diagramming technique in which schedule activities are represented by boxes (or nodes). Schedule activities are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed. Precedence Relationship. 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. Predecessor Activity. The schedule activity that determines when the logical successor activity can begin or end. Preventive Action. Documented direction to perform an activity that can reduce the probability of negative consequences associated with project risks*. Probability and Impact Matrix [Tool]. A common way to determine whether a risk is considered low, moderate, or high by combining the two dimensions of a risk: its probability of occurrence, and its impact on objectives if it occurs. Procedure. A series of steps followed in a regular definitive order to accomplish something. Process. A set of interrelated actions and activities performed to achieve a specified set of products, results, or services. Process Group. See Project Management Process Groups. Procurement Documents [Output/Input]. Those documents utilized in bid and proposal activities, which include buyer’s Invitation for Bid, Invitation for Negotiations, Request for Information, Request for Quotation, Request for Proposal and seller’s responses. Procurement Management Plan [Output/Input]. The document that describes how procurement processes from developing procurement documentation through contract closure will be managed. Product. 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 materiel and goods. Contrast with result and service. See also deliverable. Product Life Cycle. A collection of generally sequential, non-overlapping product phases* whose name and number are determined by the manufacturing and control needs of the organization. The last product life cycle phase for a product is generally the product’s Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 367 Glossary deterioration and death. Generally, a project life cycle is contained within one or more product life cycles. Product Scope. The features and functions that characterize a product, service or result. Product Scope Description. The documented narrative description of the product scope. Program. A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. Programs may include elements of related work outside of the scope of the discrete projects in the program. Program Management. The centralized coordinated management of a program to achieve the program's strategic objectives and benefits. Program Management Office (PMO). The centralized management of a particular program or programs such that corporate benefit is realized by the sharing of resources, methodologies, tools, and techniques, and related high-level project management focus. See also project management office. Progressive Elaboration [Technique]. Continuously improving and detailing a plan as more detailed and specific information and more accurate estimates become available as the project progresses, and thereby producing more accurate and complete plans that result from the successive iterations of the planning process. Project. A temporary endeavor undertaken to create a unique product, service, or result. Project Calendar. A calendar of working days or shifts that establishes those dates on which schedule activities are worked and nonworking days that determine those dates on which schedule activities are idle. Typically defines holidays, weekends and shift hours. See also resource calendar. Project Charter [Output/Input]. 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. Project Communications Management [Knowledge Area]. See Appendix F. Project Cost Management [Knowledge Area]. See Appendix F. Project Human Resource Management [Knowledge Area]. See Appendix F. Project Initiation. Launching a process that can result in the authorization and scope definition of a new project. Project Integration Management [Knowledge Area]. See Appendix F. Project Life Cycle. A collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project. A life cycle can be documented with a methodology. Project Management (PM). The application of knowledge, skills, tools, and techniques to project activities* to meet the project requirements. Project Management Body of Knowledge (PMBOK®). 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 material. The PMBOK is constantly evolving. Project Management Information System (PMIS) [Tool]. An information system consisting of the tools and techniques used to gather, integrate, and disseminate the ® 368 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 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. 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 Office (PMO). An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project. See also program management office. Project Management Plan [Output/Input]. A formal, approved document that defines how the projected is executed, monitored and controlled. It may be summary or detailed and may be composed of one or more subsidiary management plans and other planning documents. Project Management Process. One of the 44 processes, unique to project management and described in the PMBOK® Guide. Project Management Process Group. A logical grouping of the project management processes described in the PMBOK® Guide. The project management process groups include initiating processes, planning processes, executing processes, monitoring and controlling processes, and closing processes. Collectively, these five groups are required for any project, have clear internal dependencies, and must be performed in the same sequence on each project, independent of the application area or the specifics of the applied project life cycle. Project management process groups are not project phases. Project Management Professional (PMP®). A person certified as a PMP® by the Project Management Institute (PMI®). Project Management Software [Tool]. A class of computer software applications specifically designed to aid the project management team with planning, monitoring, and controlling the project, including: cost estimating, scheduling, communications, collaboration, configuration management, document control, records management, and risk analysis. Project Management System [Tool]. The aggregation of the processes, tools, techniques, methodologies, resources, and procedures to manage a project. The system is documented in the project management plan and its content will vary depending upon the application area, organizational influence, complexity of the project, and the availability of existing systems. A project management system, which can be formal or informal, aids a project manager in effectively guiding a project to completion. A project management system is a set of processes and the related monitoring and control functions that are consolidated and combined into a functioning, unified whole. Project Management Team. 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 (PM). The person assigned by the performing organization to achieve the project objectives*. Project Organization Chart [Output/Input]. A document that graphically depicts the project team members and their interrelationships for a specific project. Project Phase. A collection of logically related project activities*, usually culminating in the completion of a major deliverable. Project phases (also called phases) are mainly Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 369 Glossary completed sequentially, but can overlap in some project situations. Phases can be subdivided into subphases and then components; this hierarchy, if the project or portions of the project are divided into phases, is contained in the work breakdown structure. A project phase is a component of a project life cycle. A project phase is not a project management process group*. Project Process Groups. The five process groups required for any project that have clear dependencies and that are required to be performed in the same sequence on each project, independent of the application area or the specifics of the applied project life cycle. The process groups are initiating, planning, executing, monitoring and controlling, and closing. Project Procurement Management [Knowledge Area]. See Appendix F. Project Quality Management [Knowledge Area]. See Appendix F. Project Risk Management [Knowledge Area]. See Appendix F. Project Schedule [Output/Input]. The planned dates for performing schedule activities and the planned dates for meeting schedule milestones. Project Schedule Network Diagram [Output/Input]. Any schematic display of the logical relationships among the project schedule activities. Always drawn from left to right to reflect project work chronology. Project Scope. The work that must be performed to deliver a product, service, or result with the specified features and functions. Project Scope Management [Knowledge Area]. See Appendix F. Project Scope Management Plan [Output/Input]. The document that describes how the project scope will be defined, developed, and verified and how the work breakdown structure will be created and defined, and that provides guidance on how the project scope will be managed and controlled by the project management team. It is contained in or is a subsidiary plan of the project management plan. The project scope management plan can be informal and broadly framed, or formal and highly detailed, based on the needs of the project. Project Scope Statement [Output/Input]. The narrative description of the project scope, including major deliverables, project objectives, project assumptions, project constraints, and a statement of work, that provides a documented basis for making future project decisions and for confirming or developing a common understanding of project scope among the stakeholders. The definition of the project scope – what needs to be accomplished. Project Sponsor. See sponsor. Project Stakeholder. See stakeholder. Project Summary Work Breakdown Structure (PSWBS) [Tool]. A work breakdown structure for the project that is only developed down to the subproject level of detail within some legs of the WBS, and where the detail of those subprojects are provided by use of contract work breakdown structures. Project Team. All the project team members, including the project management team, the project manager and, for some projects, the project sponsor. Project Team Directory. A documented list of project team members, their project roles and communication information. ® 370 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Project Team Members. The persons who report either directly or indirectly to the project manager, and who are responsible for performing project work as a regular part of their assigned duties. Project Time Management [Knowledge Area]. See Appendix F. Project Work. See work. Projectized Organization. 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. Qualitative Risk Analysis [Process]. The process of prioritizing risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact. Quality. The degree to which a set of inherent characteristics fulfills requirements. Quality Management Plan [Output/Input]. The quality management plan describes how the project management team will implement the performing organization’s quality policy. The quality management plan is a component or a subsidiary plan of the project management plan. The quality management plan may be formal or informal, highly detailed, or broadly framed, based on the requirements of the project. Quality Planning [Process]. The process of identifying which quality standards are relevant to the project and determining how to satisfy them. Quantitative Risk Analysis [Process]. The process of numerically analyzing the effect on overall project objectives of identified risks. 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. Reliability. The probability of a product performing its intended function under specific conditions for a given period of time. Remaining Duration (RD). The time in calendar units, between the data date of the project schedule and the finish date of a schedule activity that has an actual start date. This represents the time needed to complete a schedule activity where the work is in progress. Request for Information. 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 (RFP). 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). 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. Request Seller Responses [Process]. The process of obtaining information, quotations, bids, offers, or proposals, as appropriate. Requested Change [Output/Input]. A formally documented change request that is submitted for approval to the integrated change control process. Contrast with approved change request. Requirement. A condition or capability that must be met or possessed by a system, product, service, result, or component to satisfy a contract, standard, specification, or other Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 371 Glossary formally imposed documents. Requirements include the quantified and documented needs, wants, and expectations of the sponsor, customer, and other stakeholders. Reserve. 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. The specific meaning of the modified term varies by application area. Reserve Analysis [Technique]. 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. Residual Risk. A risk that remains after risk responses have been implemented. Resource. Skilled human resources (specific disciplines either individually or in crews or teams), equipment, services, supplies, commodities, materiel, budgets, or funds. Resource Breakdown Structure (RBS). A hierarchical structure of resources by resource category and resource type used in resource leveling schedules and to develop resourcelimited schedules, and which may be used to identify and analyze project human resource assignments. Resource Calendar. A calendar of working days and nonworking days that determines those dates on which each specific resource is idle or can be active. Typically defines resource specific holidays and resource availability periods. See also project calendar. Resource-Constrained Schedule. See resource-limited schedule. Resource Histogram. 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 resource used as the project progresses. Resource Leveling [Technique]. Any form of schedule network analysis in which scheduling decisions (start and finish dates) are driven by resource constraints (e.g., limited resource availability or difficult-to-manage changes in resource availability levels). Resource-Limited Schedule. A project schedule whose schedule activity, scheduled start dates and scheduled finish dates reflect expected resource availability. A resourcelimited schedule does not have any early or late start or finish dates. The resource-limited schedule total float is determined by calculating the difference between the critical path method late finish date* and the resource-limited scheduled finish date. Sometimes called resource-constrained schedule. See also resource leveling. Resource Planning. See activity resource estimating. Responsibility Assignment Matrix (RAM) [Tool]. A structure that relates the project organizational breakdown structure to the work breakdown structure to help ensure that each component of the project’s scope of work is assigned to a responsible person. Result. 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 and service. See also deliverable. Retainage. A portion of a contract payment that is withheld until contract completion to ensure full performance of the contract terms. Rework. Action taken to bring a defective or nonconforming component into compliance with requirements or specifications. ® 372 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Risk. An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives. See also risk category and risk breakdown structure. Risk Acceptance [Technique]. A risk response planning technique* that indicates that the project team has decided not to change the project management plan to deal with a risk, or is unable to identify any other suitable response strategy. Risk Avoidance [Technique]. A risk response planning technique* for a threat that creates changes to the project management plan that are meant to either eliminate the risk or to protect the project objectives from its impact. Generally, risk avoidance involves relaxing the time, cost, scope, or quality objectives. Risk Breakdown Structure (RBS) [Tool]. A hierarchically organized depiction of the identified project risks* arranged by risk category and subcategory that identifies the various areas and causes of potential risks. The risk breakdown structure is often tailored to specific project types. Risk Category. A group of potential causes of risk. Risk causes may be grouped into categories such as technical, external, organizational, environmental, or project management. A category may include subcategories such as technical maturity, weather, or aggressive estimating. See also risk breakdown structure. Risk Database. A repository that provides for collection, maintenance, and analysis of data gathered and used in the risk management processes. Risk Identification [Process]. The process of determining which risks might affect the project and documenting their characteristics. Risk Management Plan [Output/Input]. The document describing how project risk management will be structured and performed on the project. It is contained in or is a subsidiary plan of the project management plan. The risk management plan can be informal and broadly framed, or formal and highly detailed, based on the needs of the project. Information in the risk management plan varies by application area and project size. The risk management plan is different from the risk register that contains the list of project risks, the results of risk analysis, and the risk responses. Risk Management Planning [Process]. The process of deciding how to approach, plan, and execute risk management activities for a project. Risk Mitigation [Technique]. A risk response planning technique* associated with threats that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold. Risk Monitoring and Control [Process]. The process of tracking identified risks, monitoring residual risks, identifying new risks, executing risk response plans, and evaluating their effectiveness throughout the project life cycle. Risk Register [Output/Input]. The document containing the results of the qualitative risk analysis, quantitative risk analysis, and risk response planning. The risk register details all identified risks, including description, category, cause, probability of occurring, impact(s) on objectives, proposed responses, owners, and current status. The risk register is a component of the project management plan. Risk Response Planning [Process]. The process of developing options and actions to enhance opportunities and to reduce threats to project objectives. Risk Transference [Technique]. A risk response planning technique* that shifts the impact of a threat to a third party, together with ownership of the response. Role. A defined function to be performed by a project team member, such as testing, filing, inspecting, coding. Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 373 Glossary Rolling Wave Planning [Technique]. A form of progressive elaboration planning where the work to be accomplished in the near term is planned in detail at a low level of the work breakdown structure, while the work far in the future is planned at a relatively high level of the work breakdown structure, but the detailed planning of the work to be performed within another one or two periods in the near future is done as work is being completed during the current period. Root Cause Analysis [Technique]. 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. Schedule. See project schedule and see also schedule model. Schedule Activity. A discrete scheduled component of work performed during the course of a project. A schedule activity normally has an estimated duration, an estimated cost, and estimated resource requirements. Schedule activities are connected to other schedule activities or schedule milestones with logical relationships, and are decomposed from work packages. Schedule Analysis. See schedule network analysis. Schedule Compression [Technique]. Shortening the project schedule duration without reducing the project scope. See also crashing and fast tracking. Schedule Control [Process]. The process of controlling changes to the project schedule. Schedule Development [Process]. The process of analyzing schedule activity sequences, schedule activity durations, resource requirements, and schedule constraints to create the project schedule. Schedule Management Plan [Output/Input]. The document that establishes criteria and the activities for developing and controlling the project schedule. It is contained in, or is a subsidiary plan of, the project management plan. The schedule management plan may be formal or informal, highly detailed or broadly framed, based on the needs of the project. Schedule Milestone. A significant event in the project schedule, such as an event restraining future work or marking the completion of a major deliverable. A schedule milestone has zero duration. Sometimes called a milestone activity. See also milestone. Schedule Model [Tool]. A model used in conjunction with manual methods or project management software to perform schedule network analysis to generate the project schedule for use in managing the execution of a project. See also project schedule. Schedule Network Analysis [Technique]. 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. See also critical path method, critical chain method, what-if analysis, and resource leveling. Schedule Performance Index (SPI). A measure of schedule efficiency on a project. It is the ratio of earned value (EV) to planned value (PV). The SPI = EV divided by PV. An SPI equal to or greater than one indicates a favorable condition and a value of less than one indicates an unfavorable condition. See also earned value management. Schedule Variance (SV). A measure of schedule performance on a project. It is the algebraic difference between the earned value (EV) and the planned value (PV). SV = EV minus PV. See also earned value management. Scheduled Finish Date (SF). The point in time that work was scheduled to finish on a schedule activity. The scheduled finish date is normally within the range of dates delimited by the early finish date and the late finish date. It may reflect resource leveling of scarce resources. Sometimes called planned finish date. ® 374 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Scheduled Start Date (SS). The point in time that work was scheduled to start on a schedule activity. The scheduled start date is normally within the range of dates delimited by the early start date and the late start date. It may reflect resource leveling of scarce resources. Sometimes called planned start date. Scope. The sum of the products, services, and results to be provided as a project. See also project scope and product scope. Scope Baseline. See baseline. Scope Change. Any change to the project scope. A scope change almost always requires an adjustment to the project cost or schedule. Scope Control [Process]. The process of controlling changes to the project scope. Scope Creep. Adding features and functionality (project scope) without addressing the effects on time, costs, and resources, or without customer approval. Scope Definition [Process]. The process of developing a detailed project scope statement as the basis for future project decisions. Scope Planning [Process]. The process of creating a project scope management plan. Scope Verification [Process]. The process of formalizing acceptance of the completed project deliverables. S-Curve. Graphic display of cumulative costs, labor hours, percentage of work, or other quantities, plotted against time. The name derives from the S-like shape of the curve (flatter at the beginning and end, steeper in the middle) produced on a project that starts slowly, accelerates, and then tails off. Also a term for the cumulative likelihood distribution that is a result of a simulation, a tool of quantitative risk analysis. Secondary Risk. A risk that arises as a direct result of implementing a risk response. Select Sellers [Process]. The process of reviewing offers, choosing from among potential sellers, and negotiating a written contract with a seller. Seller. A provider or supplier of products, services, or results to an organization. Sensitivity Analysis. 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. Service. Useful work performed that does not produce a tangible product or result, such as performing any of the business functions supporting production or distribution. Contrast with product and result. See also deliverable. Should-Cost Estimate. An estimate of the cost of a product or service used to provide an assessment of the reasonableness of a prospective seller’s proposed cost. Simulation. 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. Skill. Ability to use knowledge, a developed aptitude, and/or a capability to effectively and readily execute or perform an activity. Slack. See total float and free float. Special Cause. A source of variation that is not inherent in the system, is not predictable, and is intermittent. It can be assigned to a defect in the system. On a control chart, points Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 375 Glossary beyond the control limits, or non-random patterns within the control limits, indicate it. Also referred to as assignable cause. Contrast with common cause. Specification. 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, often, the procedures for determining whether these provisions have been satisfied. Examples are: requirement specification, design specification, product specification, and test specification. Specification Limits. 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. See also control limits. Sponsor. The person or group that provides the financial resources, in cash or in kind, for the project. Staffing Management Plan [Process]. The document that describes when and how human resource requirements will be met. It is contained in, or is a subsidiary plan of, the project management plan. The staffing management plan can be informal and broadly framed, or formal and highly detailed, based on the needs of the project. Information in the staffing management plan varies by application area and project size. Stakeholder. Persons and organizations such as customers, sponsors, performing organization and the public, that are actively involved in the project, or whose interests may be positively or negatively affected by execution or completion of the project. They may also exert influence over the project and its deliverables. Standard. A document established by consensus and approved by a recognized body 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. Start Date. 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-to-Finish (SF). The logical relationship where completion of the successor schedule activity is dependent upon the initiation of the predecessor schedule activity. See also logical relationship. Start-to-Start (SS). The logical relationship where initiation of the work of the successor schedule activity depends upon the initiation of the work of the predecessor schedule activity. See also logical relationship. Statement of Work (SOW). A narrative description of products, services, or results to be supplied. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis. This information gathering technique examines the project from the perspective of each project’s strengths, weaknesses, opportunities, and threats to increase the breadth of the risks considered by risk management. Subnetwork. 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. Subphase. A subdivision of a phase. ® 376 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Subproject. A smaller portion of the overall project created when a project is subdivided into more manageable components or pieces. Subprojects are usually represented in the work breakdown structure. A subproject can be referred to as a project, managed as a project, and acquired from a seller. May be referred to as a subnetwork in a project schedule network diagram. Successor. See successor activity. Successor Activity. The schedule activity that follows a predecessor activity, as determined by their logical relationship. Summary Activity. A group of related schedule activities aggregated at some summary level, and displayed/reported as a single activity at that summary level. See also subproject and subnetwork. System. An integrated set of regularly interacting or interdependent components created to accomplish a defined objective, with defined and maintained relationships among its components, and the whole producing or operating better than the simple sum of its components. Systems may be either physically process based or management process based, or more commonly a combination of both. Systems for project management are composed of project management processes, techniques, methodologies, and tools operated by the project management team. Target Completion Date (TC). An imposed date that constrains or otherwise modifies the schedule network analysis. Target Finish Date (TF). The date that work is planned (targeted) to finish on a schedule activity. Target Schedule. A schedule adopted for comparison purposes during schedule network analysis, which can be different from the baseline schedule. See also baseline. Target Start Date (TS). The date that work is planned (targeted) to start on a schedule activity. Task. A term for work whose meaning and placement within a structured plan for project work varies by the application area, industry, and brand of project management software. Team Members. See project team members. Technical Performance Measurement [Technique]. A performance measurement technique that compares technical accomplishments during project execution to the project management plan’s schedule of planned technical achievements. It may use key technical parameters of the product produced by the project as a quality metric. The achieved metric values are part of the work performance information. Technique. 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. A partially complete document in a predefined format that provides a defined structure for collecting, organizing and presenting information and data. Templates are often based upon documents created during prior projects. Templates can reduce the effort needed to perform work and increase the consistency of results. Threat. A condition or situation unfavorable to the project, a negative set of circumstances, a negative set of events, a risk that will have a negative impact on a project objective if it occurs, or a possibility for negative changes. Contrast with opportunity. Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 377 Glossary Three-Point Estimate [Technique]. An analytical technique that uses three cost or duration estimates to represent the optimistic, most likely, and pessimistic scenarios. This technique is applied to improve the accuracy of the estimates of cost or duration when the underlying activity or cost component is uncertain. Threshold. 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. Time and Material (T&M) Contract. 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-Now Date. See data date. Time-Scaled Schedule Network Diagram [Tool]. 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. Tool. Something tangible, such as a template or software program, used in performing an activity to produce a product or result. Total Float (TF). The total amount of time that a schedule activity may be delayed from its early start date without delaying the project finish date, or violating a schedule constraint. Calculated using the critical path method technique and determining the difference between the early finish dates and late finish dates. See also free float. Total Quality Management (TQM) [Technique]. A common approach to implementing a quality improvement program within an organization. Trend Analysis [Technique]. 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. Triggers. Indications that a risk has occurred or is about to occur. Triggers may be discovered in the risk identification process and watched in the risk monitoring and control process. Triggers are sometimes called risk symptoms or warning signs. Triple Constraint. A framework for evaluating competing demands. The triple constraint is often depicted as a triangle where one of the sides or one of the corners represent one of the parameters being managed by the project team. User. The person or organization that will use the project’s product or service. See also customer. Validation [Technique]. The technique of evaluating a component or product during or at the end of a phase or project to ensure it complies with the specified requirements. Contrast with verification. ® 378 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Value Engineering (VE). A creative 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. Variance. A quantifiable deviation, departure, or divergence away from a known baseline or expected value. Variance Analysis [Technique]. A method for resolving the total variance in the set of scope, cost, and schedule variables into specific component variances that are associated with defined factors affecting the scope, cost, and schedule variables. Verification [Technique]. The technique of evaluating a component or product at the end of a phase or project to assure or confirm it satisfies the conditions imposed. Contrast with validation. Virtual Team. A group of persons with a shared objective who fulfill their roles with little or no time spent meeting face to face. Various forms of technology are often used to facilitate communication among team members. Virtual teams can be comprised of persons separated by great distances. Voice of the Customer. 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. War Room. A room used for project conferences and planning, often displaying charts of cost, schedule status, and other key project data. Work. Sustained physical or mental effort, exertion, or exercise of skill to overcome obstacles and achieve an objective. Work Authorization [Technique]. 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 System [Tool]. 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) [Output/Input]. A deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. It organizes and defines the total scope of the project. Each descending level represents an increasingly detailed definition of the project work. The WBS is decomposed into work packages. The deliverable orientation of the hierarchy includes both internal and external deliverables. See also work package, control account, contract work breakdown structure, and project summary work breakdown structure. Work Breakdown Structure Component. An entry in the work breakdown structure that can be at any level. Work Breakdown Structure Dictionary [Output/Input]. A document that describes each component in the work breakdown structure (WBS). For each WBS component, the WBS dictionary includes a brief definition of the scope or statement of work, defined deliverable(s), a list of associated activities, and a list of milestones. Other information may include: responsible organization, start and end dates, resources required, an Glossary ® A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 379 Glossary estimate of cost, charge number, contract information, quality requirements, and technical references to facilitate performance of the work. Work Item. Term no longer in common usage. See activity and schedule activity. Work Package. A deliverable or project work component at the lowest level of each branch of the work breakdown structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component. See also control account. Work Performance Information [Output/Input]. Information and data, on the status of the project schedule activities being performed to accomplish the project work, collected as part of the direct and manage project execution processes*. Information includes: status of deliverables; implementation status for change requests, corrective actions, preventive actions, and defect repairs; forecasted estimates to complete; reported percent of work physically completed; achieved value of technical performance measures; start and finish dates of schedule activities. Workaround [Technique]. A response to a negative risk that has occurred. Distinguished from contingency plan in that a workaround is not planned in advance of the occurrence of the risk event. ® 380 A Guide to the Project Management Body of Knowledge (PMBOK Guide) Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA ...
View Full Document

This note was uploaded on 12/17/2010 for the course TECHNOLOGY CSC420 taught by Professor Na during the Spring '10 term at Sullivan.

Ask a homework question - tutors are online