A Guide to Project Management

Activity definition identifying the specific

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Unformatted text preview: I = EV divided by AC. Cost-Plus-Fixed-Fee (CPFF) Contract. A type of contract where the buyer reimburses the seller for the seller's allowable costs (allowable costs are defined by the contract) plus a fixed amount of profit (fee). Cost-Plus-Incentive-Fee (CPIF) Contract. A type of 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 Variance (CV). 1) Any difference between the budgeted cost of an activity and the actual cost of that activity. 2) In earned value, EV less AC = CV. Crashing. Taking action to decrease the total project duration after analyzing a number of alternatives to determine how to get the maximum duration compression for the least cost. Critical Activity. Any activity on a critical path. 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 Path. The series of activities that determines the duration of the project. In a deterministic model, the critical path is usually defined as those activities with float less than or equal to a specified value, often zero. It is the longest path through the project. See critical path method. Critical Path Method (CPM). A network analysis technique used to predict project duration by analyzing which sequence of activities (which path) has the least amount of scheduling flexibility (the least amount of float). Early dates are calculated by means of a forward pass, using a specified start date. Late dates are calculated by means of a backward pass, starting from a specified completion date (usually the forward pass' calculated project early finish date). Current Finish Date. The current estimate of the point in time when an activity will be completed. Current Start Date. The current estimate of the point in time when an activity will begin. Data Date (DD). The date at which, or up to which, the project's reporting system has provided actual status and accomplishments. Also called as-of date. Decision Tree Analysis. 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 incorporates probabilities or risks and the costs or rewards of each logical path of events and future decisions. Definitive Estimate. See estimate. Deliverable. Any measurable, tangible, verifiable outcome, result, or item that must be produced to complete a project or part of a 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. Dependency. See logical relationship. Dummy Activity. An activity of zero duration used to show a logical relationship in the arrow diagramming method. Dummy activities ar...
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