Scenario 1: Budget and Cost Management

First, be sure to read the initial blogs in the series which form the foundation for this 8^th blog called, Scenario 1: Budget and Cost Management. Blog 1, Project Planning and Administration Outline, Blog 2, Project Management Glossary, Blog 3, Project Management Working Scenario 1, Blog 4, Scenario 1: Planning/Brainstorming, Blog 5, Scenario 1: Timelines – Part 1, and Blog 6, Scenario 1: Timelines – Part 2, and Scenario 1: Resource Management.

REMEMBER: If you require immediate assistance with your specific project planning and administration needs, visit my website at www.CherylASchneider.com or feel free to contact me directly at either (702) 399-3740 or info@CherylASchneider.com.

This blog will deal with budgeting the materials, salaries, and Costs for the ABC Manufacturing, Inc. reorganization project.

As we’ve discussed before, successful companies use multiple tools, including project management software, estimated cost reports, and project controls (planning) personnel, to Budget all expenses associated with a project.  This ensures there is a clear picture, every step of the way, of how their resources (personnel, Materials, and money) are being spent.  At any point in the project, the team knows if they are behind Schedule, on Schedule, over Budget, under Budget, etc.

As the Project Manager, you probably have a defined Budget you must adhere to while your team works toward completing their tasks on time.  In fact, the CEO has allotted $200,000 for the reorganization effort.  Using MP, or a similar project management software program, you can input cost estimates to see if your plan can be accomplished with the money budgeted for the tasks.  If not, you can adjust the Schedule (if possible) or add more resources (if you are still within your Budget), as needed.

A fellow Project Planner put together a succinct way of looking at Budgets:

Budgeted Cost of Work Scheduled (BCWS) Also referred to as Planned Value (PV). This represents the budgeted cost of work that is planned or scheduled. A project would generally follow an “S shaped” production relationship in which there is an increasing rate of Level of Effort (LOE) at the start of the project due to planning, then a constant rate for the LOE during the middle of the project, and then a diminishing LOE as the project nears completion with submitted Deliverables, and the review of Deliverables.

Actual Cost of Work Performed (ACWP) This represents the actual cost curve in time.

Budgeted Cost of Work Performed (BCWP) Also referred to as Earned Value (EV).  The budgeted cost of work performed or Earned Value is the budgeted cost of the actual work that has been performed in time.

A Comparison Between the Indicators can Show 9 Possible Combinations:

1. Above Budget and Behind Schedule (a  poorly managed project)
2. Above Budget but On Schedule
3. Above Budget but Ahead of Schedule
4. On Budget but Behind Schedule
5. On Budget and On Schedule (a well managed project)
6. On Budget and Ahead of Schedule (a better managed project)
7. Below Budget but Behind Schedule
8. Below Budget and On Schedule (a very well managed project)
9. Below Budget and Ahead of Schedule (a most successful project)

By constantly monitoring the indicators through Project Management reports and using Critical Path Methods (CPM), one can then apply “after burners” to bring the project in line.  For example, if tasks are on the Critical Path for the project, then focusing attention on these tasks can bring the project in line with regards to Schedule and Cost. It is interesting that to calculate Earned Value, one needs to consider the technical aspects of the project. The Project Manager must communicate with the technical staff to accomplish their goals.

Another consideration when working with Budgets is identifying Variable Costs versus Fixed Costs:

A Variable Cost is a resource rate that can change due to the type or length of work.  An example is when a consultant charges a setup fee of $5,000 and then charges a fee of $700 per day for the remainder of the project.

A Fixed Cost remains the same regardless of how long it takes to complete the project.  The total price of each of the Materials used in the project is an example of a Fixed Cost.

Using the Fixed Cost Accrual Method field on the Resource Sheet, you can select how and when a Fixed Cost (i.e., Materials) assigned to a task should accrue, or be paid for, in a project by choosing either Start, Prorated, or End in the drop-down list.

Select Start to have the cost of a resource accrued as soon as the task begins.  Select Prorated (the default in MP) when you want the cost of a resource accrued on the percentage that the task is completed. Or, select End if you want MP to calculate costs at the end of the resource’s task.

The Materials for our reorganization project have estimated costs of $300 for Office Supplies and $400 for Installation Materials.  IT ordered 16 Computers at $1,200 per unit for $19,200 and 16 Telephones at $55 per unit for $880.  Considering we do not know the final cost for Office Supplies or Installation Materials, we will accrue these costs at the End.  The Computers and Telephones are already ordered and paid for.  These costs will accrue at the Start.

Now that we understand the basic concept of Budgets and Accrual, it’s time to input the salaries into our Resource Sheet.  Go to View and select Resource Sheet.  I plugged in salaries for each member of the staff, taking into account exempt employees will not be eligible for overtime pay (i.e., senior management).

Next we’ll enter the costs for Materials.  While still in the Resources Sheet, enter 300 in the Std Rate cell for Office Supplies.  Move your cursor to the Accrue At drop down list and select End.  Use the same process to enter $1,200 and Start for Computers, 55 and Start for Telephones, 400 and End for the Installation Materials, and select OK.

Under the column named Cost/Use enter $1,000 for the Meeting Facility, $450 for Catering, and $1,000 for the Moving Vans.  Using the Accrue At drop-down list, select Start for the Meeting Facility, End for Catering, and End for Moving Vans.

Resource Sheet v4

The Risk Lead consultant will arrive Thursday, 6/9/10 (the night before the CMP Team Meeting on Friday 6/10/11),.  He will work all week and leave town on Saturday, 6/18/11. Go to View, enter $900 for roundtrip Air Fare, $75 a night for 6 nights in the Hotel Room, and  $30 per day for 6 days for Meals. Enter End in the Accrue At fields for the Air Fare, Hotel Room, and Meals.

We’ll need to change to a different view to enter the Cost resources for these three items.  Go to View and open the Gantt Chart.  Go to View again, scroll down to Table: Entry, and select Cost from the drop-down list. MP forces us to use of this screen to enter total costs per task.

Double click on Task 34, select the Resources tab, enter $900 for Air Fare, $450 for Hotel Room, $180 for Meals, and select OK.

Task Information Screen v2

Now that all Costs are entered for the project, let’s see what the numbers look like.  As you can see from the Cost Table below, there are dollar costs for each task, Summary Task, and for the total projected costs at the top of the chart.  What is missing are the actual dollars spent for each item.  We’ll enter this information later in the blog entry.

ABC Manuf Reorg v9 Cost Table

Go to View, select Table: Cost, and select Entry.  This will bring you back to the normal Gantt Chart view.

ABC Manuf Reorg v9

It’s time to set the Baseline.  Go to Tools, select Tracking.  This screen is pretty straight forward.  Save either the Baseline or an Interim Plan (you can save up to 10 different snapshots of various Start and Finish Dates so you can compare them with the current Schedule or the Baseline).  If you need to add a task, you can do that, as well.  Just choose Selected tasks when you update the Baseline.  We are going to keep the current settings:  Save baseline and • Entire project.  Select OK.

NOTE:  According to the Legend, black bars represent Baseline task information.

Set Baseline Screen Shot v1

Our expected Budget numbers (resource salaries, material costs, and resource costs) are now completely entered in MP.  Thankfully, the total of $189,636.01, is well under the $200,000 the CEO reserved for the reorganization.  However, we can’t be certain those numbers will remain the same throughout the project.

The reorganization project started on 6/6/11.  Today is 7/25/11.  Updates to the Schedule are way overdue.  We will correct this by entering task completion information in the Task Information screens.

In the Gantt Chart view, click on the + sign at the beginning of the Task 2 description.  This will open all the Weekly CMP Team meetings.  Double click on the Task 3 description, and enter 100% in the Percent Complete box.  Click OK.  You’ll notice there is now a ✓ mark in front of Task 3.  This indicates the task was completed.

Do the same for Tasks 4 through 8 (7/20/11).  Tasks 3 – 8 should now all have ✓ marks in front of them.  Click on the + sign at the beginning of the Task 2 description to close the CMP Meeting tasks.

At this point, all tasks due on or before today’s date (7/25/11) were completed on Schedule.  Proceed to click on each task description with due dates before or on 7/25/11 and show they are 100% completed.   

NOTE:  Considering all tasks under Summary Tasks 24 and 40 are completed, an easy way to enter their completion information is to mark each of the 2 Summary Tasks as 100% complete.  MP automatically changes the Subtasks to 100% complete, as well.

NOTE:  Another easy way to enter the updates en masse, is to highlight several rows that are being updated with the same information (i.e., Tasks 48 – 53), select the Task Information icon at the top center of MP (or enter Shift F2), enter only the information you want changed (i.e., 100%), and select OK.

You should now have ✓ marks of completion in front of Tasks 3 – 46, Tasks 48, 52, 53, and 58 and black Progress bars to end of each task bar.  Also, when you position your mouse pointer over one of the ✓ marks, a message pops up that reads, “This task was completed on Fri 6/10/11.” or “This task was completed on Mon 7/18/11.”

ABC Manuf Reorg v10

We have many other tasks that were started, are progressing, but may (or may not) be completed.  We will enter their progress next.

Task 54 began on 6/20/11 and is due for completion on 8/22/11.  We will mark this task 50% complete as of 7/25/11 by double clicking on Task 54 description and entering 50%.  Open the Notes tab and enter, “50% completion on 7/25/11.”  Click OK.  Now we see the Notes icon in front of Task 54.  If you pass your mouse over this box, it will read, “Notes: ‘50% completion 7/25/11.’”

NOTE:  Adding notes is optional.

Moving on to Task 56, which started on 6/20/11, the Contract Manager states they are behind Schedule with an estimated progress of about 60% instead of the projected 83%.  On day 26 of what was supposed to be a task duration of 30 days, the manager is struggling with 2 subcontractors who are not happy about adjusting their contracts.  He estimates negotiations may take another 2 – 3 weeks to resolve, which would push the completion date out to 8/8/11 or 8/15/11.

Considering there is some Lag Time between an estimated Finish Date of 8/15/11 and the Celebration Finish Date of 8/25/11, the Project Manager agrees to extend the duration for this task out 10 more days.  First, double click on Task 56 description and enter 60% completion.  Next, change the Finish Date to 8/15/11 (or change the Duration to 40 days).  Click on the Notes tab and enter, “60% completion on 7/25/11.  Duration increased to 40 days moving Finish Date to 8/15/11.”  Click OK.

We now see 2 icons in front of Task 56:  the Constraint icon and the Notes icon.  Pass your mouse over that cell and it reads, “This task has a ‘Finish No Later Than’ constraint on Mon 8/15/11.” It also reads, “Notes:  60% completion on 7/25/11.  Changed Finish Date to 8/15/11.”

Two other Tasks started before 7/25/11 and require documentation of their current progress.  Task 59 was finished on 7/22/11.  Double click on Task 59 description, enter 100%, change Finish Date to 7/22/11, open the Notes tab, and enter “100% completion on 7/22/11.”  Click OK.

Task 61 just started on 7/22/11.  Therefore, we will enter 10% completion and click OK.

When we look at the Gantt Chart now, we can see some real progress (all the ✓ marks).

ABC Manuf Reorg v11 

Other views used to track the project are:

Calendar Screen Shot v1

Go to View, select Calendar.  You can look at the Calendar by the Month, Week (preferred for the clearest picture), or Custom.

NOTE:  Tasks without ✓ marks are NOT visible on the Calendar.

ABC Manuf Reorg v11 Cost Table

Go to View, Gantt Chart, select Table: Entry, and select Cost. 

ABC Manuf Reorg v11 Variance Table

If you want to see all of the current actual and Baseline information, go to View, select More Views, select Task Sheet, and select Apply.  Then, click View, select Table: Entry, click Variance.

ABC Manuf Reorg v11 Tracking Gantt

Go to View,  Tracking Gantt.  

ABC Manuf Reorg v11 Tracking Gantt Cost

Go to View, Tracking Gantt, select Table: Entry, and select Cost.

We’ve covered a lot of ground.  The next blog entry, Scenario 1:  Reports, will target the tools, frequency, structure, and resources required to provide meaningful status reports.

Scenario 1: Resource Management

Be sure to read the initial blogs in the series which form the foundation for this 7^th blog called, Scenario 1: Resource Management.

Blog 1, Project Planning and Administration Outline, Blog 2, Project Management Glossary, Blog 3, Project Management Working Scenario 1, Blog 4, Scenario 1: Planning/Brainstorming, Blog 5, Scenario 1: Timelines – Part 1, and Blog 6, Scenario 1: Timelines – Part 2.

NOTE: If you require immediate assistance with your specific project planning and administration needs, visit my website at www.CherylASchneider.com or feel free to contact me directly at either (702) 399-3740 or info@CherylASchneider.com.

Our timeline now contains our main goal, Project Summary Tasks, Subtasks, Recurring Tasks, Milestones, Due Dates, Predecessor Activities, and Constraints. The next step is to enter the Resources needed to complete the project.

Every task on the Gantt Chart should have a Resource assigned to it.  The Project Manager has the overall responsibility for the reorganization project.  His first task (#25) is to “Identify the CMP Team Members.”  For this exercise, I will use employee titles instead of names.  Either is acceptable.

Entering the Resources can be accomplished several ways in Microsoft Project (MP):

• Enter the names directly under the Resource Names column on the Gantt Chart.
• Double click on the task and enter the names in the Summary Task Information page under the Resources tab.
• Use the View button at the top of the page, select Resource Sheet, and enter the Resource Names and Initials (MP automatically enters the first initial) in the Resource Pool.*

* This is the preferred method because you can build an overview of Resources and Costs in one place.  Therefore, we will use the Resource Sheet to initially enter all Resources.

NOTE: While entering the Resource Names, I noticed we did not have a specific task for the Risk Lead.  I inserted a new Task 34 (go to Insert and select New Task) named “Create Risk Management Plan.” An error screen appeared.  I selected •Continue. Allow the scheduling conflict. and clicked OK.  I then allocated a 5 day Duration, and entered Task 26 as the Predecessor.  I also added Task 33 as a Predecessor for Task 35.

ABC Manuf Reorg v4

All employee titles (in lieu of Resource Names) are now listed on the Resource Sheet along with their Initials and Group names. The Type for all personnel is categorized as “Work” (which is the default in MP). A column for Resource Initials was manually added to the Gantt Chart.

Two rented moving vans to facilitate moving employees to new office spaces, the rented facility that will be used twice (once for the reorganization announcement meeting and once for the celebration meeting at the end of the project), and the catering service (including food, beverages, plates, utensils, and staff) hired for the celebration, were entered as “Work” tasks. 

Materials are also Resources. If we look at the tasks that were identified in ABC Manuf Reorg v4, we can assume there will be material costs associated with routine office supplies, new telephones, computers, and installation materials.  The materials are now added to the Resource Sheet.

Cost Resources must now be added to the Resource Sheet.  This type of Resource is used to identify costs for air fare, lodging, daily meals, etc.  The person selected as Risk Lead is a consultant who, in addition to his salary, will be reimbursed for travel, hotel room, and food while on this assignment.  The 3 Cost Resources were also added to the Resource Sheet.

We now have a preliminary overview of all Resources required for the project. (We will enter salaries and other Costs to the Resource Sheet when we discuss Budget and Cost Management in a future blog entry.)

Resource Sheet v1

NOTE: There is another way to identify and allocate Resources. Instead of naming each individual person with 100% available time, we can demonstrate the personnel in terms of percentage groups. For example, the CEO would be entered as 100% in Management. The Project Manager would also be 100%, but in the Project group. Human Resources would be 300%, IT 400%, Admin 200%, etc. Using this process, you can allocate any percentage of the group’s resources, up to the maximum percentage the group represents.

It’s time to assign the personnel Resources to the tasks. Going back to the Gantt Chart view, we can click on the first cell under Resource Names and select Project Manager. The rest of the tasks will have Resources assigned in the same manner.* Click on the cell and select the appropriate Resource(s). (To enter more than 1 resource for a task, add a comma at the end of the selected name and select the next name on the dropdown list.) When the Resource Name is entered for a task, the corresponding Initials are automatically entered by MP. ABC Manuf Reorg v5 (below) now shows the Resource Names and Initials for each task on the Gantt Chart.

*Except for the Recurring Task “Weekly CMP Meeting.” Considering the entire team will likely attend the weekly meetings, the Gantt Chart will be much cleaner without a lengthy list of Resource Names. The Recurring Task was also collapsed to allow more room to clearly view the Gantt Chart.

NOTE:  Columns were also “hidden” so you can better view the Resource Names and Initials columns.

ABC Manuf Reorg v5

Let’s go back to the Resource Sheet (below) and see how our assignments look. We now see 2 yellow diamonds with an “!” in the center (the Resource Leveling Icon), followed by red text. In MP, if you hold your cursor over the diamond, a message appears, “This resource should be leveled based on a Day by Day setting.”

Resource Sheet v2

Now, go to View and open Resource Usage. If you scroll to the right, you will see the number of hours each Resource is scheduled to work, day-by-day. Scroll down and you’ll see the CMP and PPPs Authors are scheduled for 16 hrs on 7/18/11.

NOTE:  Most tasks are collapsed under the Resource Name for visual clarity.

Resource Usage v1

Resource Leveling is used to bring Resources in line with expected Deadlines and Costs. The easiest way to “level” the Resources is by using the Level Resources function. Go to Tools and choose Level Resources. This screen has several options you can select to Constrain the leveling.

Resource Leveling Screen Shot 1

For this exercise, choose •Automatic, keep ✓Clear leveling values before leveling, choose •Level entire project, keep Leveling Order “Standard”, keep ✓Leveling can adjust individual assignments on a task, and keep ✓Leveling can create splits in remaining work. Then select Level Now. Select •Entire pool and click OK.

Overallocation Screen Shot 1  

A new screen appears stating “Project cannot resolve the Overallocation of CMP Author on 7/18/11. •To continue leveling other overallocated resources, click Skip.” Select Skip at the bottom of the screen.

Overallocation Screen Shot 2

Another screen appears stating “Project cannot resolve the Overallocation of PPPs Author on 7/18/11. •To continue leveling other overallocated resources, click Skip.” Select Skip at the bottom of the screen.

Since MP can’t resolve the Overallocations, we will have to “level” these resources manually.  Go to the Gantt Chart and look at Tasks 37 and 38. Both are scheduled to complete on 7/18/11. This is the extra 8 hours MP has assigned to the CMP Author. Tasks 44 and 45 are scheduled to complete on 7/19/11 and 7/18/11 respectively, showing an Overallocation for the PPPs Author.

ABC Manuf Reorg v5+

First we will change the Predecessor for Task 42 to 27, (which is the real Predecessor for this task). Select •Continue. Allow the scheduling conflict. and click OK  at the error message. Next, add 28 as another Predecessor for Task 41. Change the text for Task 41 to “Draft CMP Delivered to PPPs Author”, change the Duration to zero (0), making this task a Milestone, and delete the CMP Author assignment. Finally, double click on Task 41, go to the Predecessors tab, add Task 26, click on Finish-to-Start, change it to Start-to-Start, and add 6 days Lag Time. This will give the CMP Author ample time to provide a first draft of the CMP to the PPPs Author.

This change also gives the PPPs Author more time to work on the procedures, and get them reviewed, revised, and approved. We will increase the Duration for Task 44 to 4 days and increase the Duration for Task 42 to 18 days. All Overallocation issues are now resolved.

Resource Usage v2

Go to View and select Resource Sheet.  We are going to use the Meeting Facility twice.  Change the Max. Units for the facility to 200%.  The company is renting 2 Moving Vans.  Change the Max. Units for the vans to 200%.

Resource Sheet v3

Let’s continue by assigning the Materials to their associated tasks.  We’re going to use half of our Office Supplies for Task 49 and the other half for Task 62.  Click on View and select Gantt Chart.  Go to Task 49, double click on the Task Name “Send out Announcement…,” and select the Resources tab.  From the drop-down list, add Office Supplies, click on the Units drop-down list, select 0.5 Supplies, and click OK.  Use the same process to add Office Supplies to Task 62, click OK, and return to the Gantt Chart.

Task Information Screen v1

Move to Task 60, click on the Task Name, add Computers, click on the Units up button, and select 16 Computers. Tab to the next open cell, add Telephones, click on Units and use the up button to select 16 Telephones. Add 1 Unit of Installation Materials and add Moving Vans with Units of 200% (a Work Resource).  Hit OK and return to the Gantt Chart.

Follow the same method as above for the other Work Resources. Go to Task 50, add the Meeting Facility with Units of 100%.  Open the Advanced Tab, uncheck Effort Driven,change Task Type to Fixed Duration, and click OK. Then, go to Task 63, add the Meeting Facility with Units of 100%, and Catering with Units of 100%.  Open the Advanced Tab, uncheck Effort Driven, change Task Type to Fixed Duration, and click OK.

NOTE:  We made these tasks “Non-Effort Driven” and “Fixed Duration” because the Announcement Meeting and Celebration Event are not based on work units or hours.

Finally, we’ll assign the Cost Resources to the Risk Manager in Task 34.  As above, add Air Fare, Hotel Room, and Meals to Task 34, and click OK.

ABC Manuf Reorg v6

Another issue was discovered during this process. The Standard Calendar in MP uses a 5 day, 8 hours a day, work week, with only weekends off. It does not account for holidays. There are 3 holidays occurring during the reorganization project that most American companies honor: the 4th of July (7/4), Labor Day (9/5), and Columbus Day (10/10). This definitely throws a monkey wrench in our schedule.

To correct the calendar errors (which, I’m sorry to admit, should have been dealt with at the very beginning of the project), we will revise the Standard (Project Calendar) to include holidays. We could create a new calendar to identify holidays, vacations, and scheduled personal time off. However, we are not going to address vacations or PTO in this exercise, so revising the Standard (Project Calendar) will be sufficient.

Go to Tools and select Change Working Time. This screen shows the legend used to identify working and non-working days on the left and the current working hours on the right. Note, the button to “Create a new calendar” is in the upper right hand corner.

A calendar showing the current month is in the center of the screen. We want to add holidays in July, September, and October. Using the scroll bar to the right of the calendar, click the scroll bar down button to change the calendar to July. Click on the 4th (of July) cell, click on the Name field (under the Exceptions tab), type “4th of July Holiday” and tab once. Click on Start. Now 7/4/11 is highlighted in red (representing a holiday) on the calendar, and the Start and Finish cells show 7/4/11 as an exception. 

NOTE:  The text on the right of the calendar now states, “July 4, 2011 is non-working.”  Beneath this text reads, “Based on:  Exception ‘4^th of July Holiday’ on calendar ‘Standard’.”

Calendar Screen Shot 1

Click on the scroll bar down button again to move the calendar to September. Using the same process, select the 5th (of September) cell, click on the next field under “4th of July Holiday”, type “Labor Day Holiday” and tab once. Repeat the process one more time to enter “Columbus Day Holiday” for the 10th of October. Once all 3 holidays are entered, select OK at the bottom of the screen.

We are immediately greeted by another Overallocation screen, telling us once again MP cannot resolve the Overallocation for the CMP Author on Monday, 7/18/11. Select Skip. Another screen warns us about a schedule conflict regarding Task 37. Select •Continue. Allow the scheduling conflict. and select OK.  We are now back to the Gantt Chart screen.

Go to View and select Resource Usage. When you scroll down, you will see our infamous Resource Leveling icon and the CMP Author’s name in red text. We could try using the Level Resources function again, but MP already notified us it cannot correct the Overallocation.

Resource Usage v3

Instead, we will authorize some overtime for the CMP Author for the week before the Overallocation to compensate for the extra 8 hours he is scheduled to work on 7/18/11.

The first step is to add Overtime to our tables. Go to View and select Task Usage.  Highlight the Task Name column. Next go to Insert and select Column. Click on the Field Name box, scroll down and select Overtime Work, and click OK. The Task Usage Screen now has a column titled Overtime Work.

Next, go to Format and select Detail Styles. From the Available Fields list on the left, scroll down and select Overtime Work. In the center, select Show. Overtime Work will be moved to the list to the right. Select OK. Now, under each row labeled Work, there is another row called Ovt. Work.

Scroll down to Task 36 until you are next to the CMP Author cell and enter 4hrs in the first column Overtime Work and click away from that cell. The Overallocation screen will tell us the CMP Author is overallocated on 7/18/11. Select Skip.

Scroll down to the cell after Task 37 and enter another 4hrs in the Overtime Work column next to the CMP Author. Click away from the cell and when the Overallocation screen appears again, select Skip. This will give the CMP Author a total of 8 hours overtime during 7/12/11-7/15/11.

Next, scroll to the right and enter 0hrs (zero) on the Work row for the CMP Author under Task 37 on 7/18/11 and hit Enter. This deletes all Work hours for that task on 7/18/11. The remaining 8 Work hours are allocated to Task 38.

MP automatically (and erroneously) calculates Work hours and Ovt. Work hours for the 4 days under Task 36. To correct them, change the 10hrs Work to 8hrs Work and leave the 2hrs Ovt. Work each day. The Overallocation for the CMP Author is now corrected.

NOTE: There is a new MP icon next to Tasks 36 and 37 stating, “This assignment work has been edited.”

Task Usage v1

Okay!  So we have our calendar corrected and no Overallocations, but Task 64 is behind schedule.  According to the latest timeline, and allowing 14 days from the date of the last activity, the Records Coordinator will not have all records submitted until 11/9/11 (5 days past our scheduled Reorganization Effort Completion date).

ABC Manuf Reorg v7

To correct this schedule conflict, we will give the Records Coordinator 3 days Lead Time (most of the records will be processed earlier in the reorganization project).  As we did before, double click on Task 64, open the Predecessors tab, select Task 60, and enter -3 day Lag Time.  Select Task 57 and enter -3 day Lag Time, as well.

Task Information Lead Time

ABC Manuf Reorg v8

At this point, our Resources are identified and assigned. The next blog entry, Scenario 1: Budget and Cost Management, will work with budgeting the salaries, materials, and costs for the project.

Scenario 1: Timelines – Part 2

Be sure to read the initial blogs in the series which form the foundation for this 6^th blog called, Scenario 1: Timelines – Part 2:  Blog 1, Project Planning and Administration Outline, Blog 2, Project Management Glossary, Blog 3, Project Management Working Scenario 1, Blog 4, Scenario 1: Planning/Brainstorming, and Blog 5, Scenario 1: Timelines – Part 1.

NOTE:  If you require immediate assistance with your specific project planning and administration needs, visit my website at www.CherylASchneider.com or feel free to contact me directly at either (702) 399-3740 or info@CherylASchneider.com.

At the end of Scenario 1:  Timelines – Part 1, the CEO directed the Project Manager to revise some Due Dates as outlined in Option 1.  We now have a better understanding of the scope of the project, the major activities that must be completed, and the Due Dates for each Summary Task and Milestone.  It’s time to put more details into the schedule by incorporating task types, Durations, Predecessor and Successor Activities, and Logical Relationships (dependencies).

With a Start Date of 6/6/11, the Project Manager quickly formed a Change Management Plan (CMP) Team on 6/8/11 through nominations and assignments from the impacted organizations. The first team meeting was held on 6/10/11.  During the meeting, copies of an approved CMP, and the CMP Policies, Procedures, and Processes (PPPs) used for the 2002 reorganization were distributed and will be used as the basis for the new CMP and PPPs.  The current company Mission Statement will also be reviewed and updated, as necessary.  By simply revising these documents for the upcoming reorganization, it will be much easier to comply with the 6 week deadline mandated by the CEO.

A CMP Author, a single CMP PPPs Author, CMP Team Leads, and a Risk Management Lead were identified at the meeting.  Using Flowcharts and the draft timeline, the Project Manager, Authors, and Leads identified expected Durations for each Subtask.  This information was immediately entered into the company’s project management software with a Start Date of 6/6/11.  

To more effectively demonstrate how project management software can save time and provide a visual picture of the project’s progress, all future timelines will be shown via Microsoft Project (MP) printouts.  The first printout, ABC Manuf Reorg V1 (below), is basically a transfer of the timeline to a Gantt Chart (with some additional Subtasks and Milestones entered to improve the flow of the timeline).

ABC Manuf Reorg V1

The CMP Team also added the Predecessor Activities to link specific tasks to each other. For example, the team meeting can’t take place until the team members are identified and availability is determined.  Therefore, the subtask “Identify CMP Team Members” is a Predecessor to “Schedule and Hold First CMP Team Meeting.”

After plugging in the team’s proposed Durations and Predecessors, you can see how MP automatically calculated expected Finish Dates.  This visualization of the timeline immediately shows any “choke points” or areas where Durations exceed, or may even be much shorter than, expected Milestone completion dates.  Once these problem areas are identified, the Project Manager and Leads can work out how to solve the issues.

A quick glance at ABC Manuf Reorg v2 (below) shows the proposed Durations to Task 2 ”Create the CMP” and Task 17 “Create the PPPs” cause publication dates to be way past the 7/18/11 Due Date (6 weeks from project Start Date of 6/6/11) originally called for in Option 1.  This pushes Task 27  “Implement CMP“ (due 15 weeks after the CMP and PPPs are published) out to 11/14/11 instead of 11/4/11.

ABC Manuf Reorg v2

It was back to the drawing board for the CMP Team and the Project Manager.  To start, they entered Constraints of “Finish No Later Than” for Tasks 37 and 44 and identified the Due Date of 7/18/11. Task 64 was assigned the Due Date of 11/4/11.  Another Constraint was entered for Task 49 as “Must Finish On” with a Due Date of 7/22/11.  By default, the Constraint type for MP is “As Soon As Possible” and all remaining tasks were entered with that Constraint.

The Constraints forced the team to work within the actual deadlines.  After continuous negotiations, the Durations and Due Dates were finally aligned with Option 1, as demonstrated in ABC Manuf Reorg v3.  A Recurring Task for Weekly CMP Team Meeting was also added with “Start No Earlier Than” Constraints requiring each meeting to occur on succeeding Wednesdays.

ABC Manuf Reorg v3

NOTE:  Unfortunately, limited space on this blog page prohibits me from showing you a picture of the ABC Manuf Reorg v3 timeline from start to finish (including Gantt Chart bars).  You can click on any of the chart titles and open a pdf file to view the entire Gantt Chart.

Another factor to take into consideration is Logical Relationships, which are dependencies between two project schedule activities, or between a project schedule activity and a schedule Milestone.  Examples of Logical Relationships are:  Start-to-Finish, Start-to-Start, Finish-to-Finish, and Finish-to-Start. The default for MP, (as in most project management software programs), is Finish-to-Start, and that is what was used for the majority of tasks for Scenario 1.

Lag Time, and Lead Time are modifications of Logical Relationships and must also be considered during scheduling.  Sometimes, a Successor activity can be started before its Predecessor task begins.  A good example is Task 47 “Schedule & Make Mtg Arrangements.”  This task can certainly begin long before the CMP and PPPs are approved and published.  Therefore, in the Task Information view for Task 47, along with the 2 Predecessors (Tasks 37 and 44), a Lead Time of 14 days (-14 days Lag Time) was entered in MP.  This shows up in the Predecessors column as “FS37-14 days, FS44-14 days.”

Our next scheduling task is to assign Resources to the timeline.  The blog entry that follows in the series, Scenario 1: Resource Management, will discuss the administration of Resources including materials, personnel, the Resource Pool, resource allocation, Overallocation, Resource Leveling, and overtime.

Scenario 1: Timelines – Part 1

A critical part of project management is identifying and sticking to a schedule.  Blog 3 of my series, Project Management Working Scenario 1, provided the goals and expected timeline set forth by the CEO of ABC Manufacturing, Inc.  Blog 4, Scenario 1: Planning/Brainstorming, identified the key elements required for the successful completion of the company’s major reorganization.

This 5^th blog, Scenario 1:  Timelines – Part 1, puts each of the required elements on a detailed timeline (or outline) using commonly used project terms (see Blog 2, Project Management Glossary) and methodology.

Before we get into the details, please remember, if you require immediate assistance with your specific project planning and administration needs, visit my website at www.CherylASchneider.com or feel free to contact me directly at either (702) 399-3740 or info@CherylASchneider.com.

Project Definition:
Whether you are using a project management software program (e.g., Microsoft Project, Open Workbench, etc.) or a more simple application (e.g., Microsoft Excel or Word), for this assignment, you will want to “anchor” your Start Date and enter the elements of the project after this date.

NOTE: Some projects will require a defined Finish Date (a constraint) with all tasks scheduled to be completed no later than that date.

Let’s use 6/6/2011 as the Scenario 1 project Start Date.  Enter the primary objective (or the name of the project) and the Start Date as the first items in the schedule or the outline:

ABC Manufacturing Reorganization Project  6/6/2011

Summary Tasks:
The next level on a timeline defines the Summary Tasks.  These high-level activities equate with the goals identified in the Planning/Brainstorming phase, and usually culminate with a Milestone. The first goals we’ll enter for Scenario 1 are*:

     Create a Change Management Execution Plan
     Create a Change Management Procedure
     Implement Change Management Plan

Milestones:
By definition, a Milestone has zero (0) duration.  On the timeline/outline, it is at the same level as a Summary Task.  Only when all activities under a Summary Task are accomplished, is the Summary Task’s Milestone considered completed.  Milestones initially entered for Scenario 1 may include*:

     Change Management Execution Plan Approved
     Change Management Procedure Approved
     ABC Employees Informed of Reorganization Project
     Reorganization Effort Completed

*However, when we add activities under each Summary Task, we may determine additional Summary Tasks and Milestones.

Subtasks:
Subtasks are the next level on our timeline/outline and represent the “meat” of the project.  These activities pinpoint the step-by-step process required to accomplish the Summary Tasks.  Example Subtasks for Scenario 1 begin with:

          Identify Change Management Plan (CMP) Team Members
          Schedule CMP Team Meetings
          Identify CMP Author
          Identify CMP Procedure, Policies, & Processes (PPP’s) Author(s)
          Assign CMP Leads for each Affected Organization
          Identify, Maintain, and Disposition Records
          Identify Roles and Responsibilities by Employee
          Create Detailed Organization Charts (including “before & after” diagrams)
          Draft Outline of CMP
          Provide Draft Outline of CMP to Project Manager and CEO
          Obtain CMP Outline Approval from Project Manager and CEO
          Provide Approved Draft Outline of CMP to PPP’s Author(s)
          Provide Draft CMP PPP’s to Project Manager
          Provide Final CMP and PPP’s to Project Manager and CEO
          Publish Approved CMP and PPP’s
          Schedule and Make Announcement Meeting Arrangements
          Send Out Announcement Meeting Invitations to ABC Employees
          Announce Details of Reorganization to ABC Employees
          Provide a Q&A Website and/or Email Address
          Create New Statements of Work, Position Description, Compensation, and Payroll           Documents
          Comply with all Contracts and Subcontract Requirements regarding Contractor
          Notifications
          Update Human Resource Information System (HRIS) with Changes
          Draft Facilities Seating and Work Area Changes
          Perform an IT/Facilities/Maintenance Needs Assessment (including copiers, printers,           computers, networks, telephones, equipment, offices, meeting rooms, etc.)
          Implement Move Plan
          Perform a Training Needs Assessment
          Set up a Vehicle for Employee Concerns
          Submit all Records in accordance with the CMP
          Celebration Meeting

As you can see from the “first cut” at the Subtask level, this reorganization will involve a great deal of work by numerous people.  When we combine the 3⁺ levels of the timeline and add in estimated dates, we begin to reveal the amount of man-hours it will take to complete the project. 

NOTE:  When the Subtasks were entered under the Summary Tasks, revisions were made to the wording and order of the tasks, and a couple of new tasks were added to provide a better flow.  Even so, many more Subtasks may be needed to fully complete this project.

Our timeline is taking shape:

ABC Manufacturing Reorganization Project 6/6/2011
     Create a Change Management Execution Plan (3 weeks from 6/6/11)
                    Identify Change Management (CMP) Team Members
          Schedule CMP Team Meetings
          Identify CMP Author
          Identify CMP Procedures, Policies, & Processes (PPP’s) Author(s)
          Assign CMP Leads for each Affected Organization
          Identify, Maintain, and Disposition Records
          Identify Roles and Responsibilities by Employee
          Create Detailed Organization Charts (including “before & after” diagrams)
          Draft Outline of CMP
          Provide Draft Outline of CMP to Project Manager and CEO
          Obtain CMP Outline Approval from Project Manager and CEO
          Provide Final CMP to Project Manager and CEO
          Publish Approved CMP
     Change Management Execution Plan Approved 6/27/11
     Create a Change Management Procedure (3 weeks from 6/6/11)
          Provide Approved Draft Outline of CMP to PPP’s Author(s)
          Provide Draft CMP PPP’s to Project Manager
          Publish Approved CMP PPP’s
     Change Management Procedure Approved (6/27/11)
     Implement Change Management Plan (4 months from 7/1/11)
          Schedule and Make Announcement Meeting Arrangements
          Send Out Announcement Meeting Invitations to ABC Employees
          Announce Details of Reorganization to ABC Employees at Meeting
     ABC Employees Informed of Reorganization Project (7/1/11)
          Provide a Q&A Website and/or Email Address
          Set Up a Vehicle for Employee Concerns
          Perform a Training Needs Assessment
          Create New Statements of Work, Position Description, Compensation, and Payroll           Documents
          Comply with all Contracts and Subcontract Requirements regarding Contractor           Notifications
          Update Human Resource Information System (HRIS) with Changes
          Perform and IT/Facilities/Maintenance Needs Assessment (including copiers, printers,           computers, networks, telephones, equipment, offices, meeting rooms, etc.)
          Draft Facilities Seating and Work Area Changes
          Implement Move Plan
          Schedule and Make Celebration Event Arrangements
          Send Out Celebration Event Invitation to ABC Employees
          Celebration Event Held
          Submit all Records in accordance with the CMP
     Reorganization Effort Completed (11/1/11)

At this point, the Project Manager may want to sit down and review the timeline with the CEO to determine if the resources needed to accomplish the reorganization on this timeline are practical and if his deadlines are reasonable and attainable.  The 4 months allotted to “Implement the CMP” may be adequate, but 3 weeks to develop, review, revise, approve, and publish, both the CMP and the CMP PPP’s (which are dependent on the final CMP) is not enough time.  The CEO and the Project Manager must decide which alternative option is best for the company:

Option 1:   Extend the deadline for publishing the CMP and the CMP PPP’s to 6 weeks 7/18/11.  Reduce the time to implement the reorganization to 15 weeks 11/4/11.
Pro’s:  A more robust CMP and PPP’s will be produced.
Con’s:  Final celebration will occur 3 days later.

Option 2:   Extend the deadline for publishing the CMP and the CMP PPP’s to 6 weeks 7/18/11.  Do not change the time to implement the reorganization at 4 months 12/22/11.
Pro’s:  A more intense CMP and PPP’s will be produced.  There will be ample time to implement the reorganization.
Con’s:  The implementation efforts will occur during the Thanksgiving holiday and very close to the Christmas holiday.  Many employees may have vacations planned at this time and fewer people will be available to perform reorganization activities.

Option 3:   Do not change any deadlines.  Add more resources to ensure the CMP and PPP’s are completed by 6/27/11, even if it means some personnel must work overtime.
Pro’s:  No changes to the current timeline, milestones, or deadlines.
Con’s:  There is a greater possibility the CMP and/or the PPP’s are not as powerful as they should be.  Personnel may feel resentment if required to perform overtime. Other personnel may feel slighted that they, too, are not able to work overtime.

After careful consideration, the CEO directs the Project Manager to go forward with Option 1.  In my next entry, Blog 6, Scenario 1: Timelines – Part 2, we will continue working with our timeline using the changed deadlines.  We will also work with Task Types, Durations, Predecessor and Successor Activities, and Logical Relationships (dependencies).

Scenario 1: Planning/Brainstorming

Scenario 1:  Planning/Brainstorming is the 4^th entry in a series of blogs devoted to the processes involved with project management from “cradle to grave.” 

Please refer to my earlier blog entries, Project Planning and Administration Outline, Project Management Glossary, and Project Management Working Scenario 1 (referred simply as Scenario 1 in future blogs entries).

If you need immediate assistance with your specific project planning and administration needs, visit my website at www.CherylASchneider.com or feel free to contact me directly at either (702) 399-3740 or info@CherylASchneider.com.

PLANNING/BRAINSTORMING:
The successful outcome of any project is determined (in large part) by starting with a robust planning stage.  You will find there is a direct correlation between a high level of detail identified at the beginning of your endeavor with a lower probability of unplanned activities, major delays, and cost overruns throughout the life of the project. Using Project Management Working Scenario 1 from blog 3, this 4^th entry in the series will concentrate on the key elements under Planning/Brainstorming.

Goal Setting:
Through management consensus, the Project Manager must propose clear, concise goals, milestones, and deadlines for each phase of the project.  The goals set forth by the CEO in Scenario 1 will be an excellent starting point.  However, the use of brainstorming sessions may ferret out ancillary functions not identified in the original set of goals.  This may also be a good opportunity to develop a Mission Statement as a guideline for the company’s new path forward or determine if the company’s new business focus will require revisions to the current Mission Statement. 

Roles and Responsibilities:
Once the goals are set, it’s time to identify who will be responsible for ensuring each part of your project is accomplished within budget and on schedule.  While there will be obvious key players for each segment of the project, brainstorming could produce a list of additional candidates for specific tasks.  Be sure each candidate’s availability, experience, and leadership capabilities are identified.  Ultimately, as the Project Manager, the success or failure of the project is on your shoulders, so it is crucial that sound decisions are made when choosing team members.  Some suggested team leads for Scenario 1 may be functional managers or individuals:

• Research & Development, Manufacturing, Engineering, and Distribution
• IT
• Human Resources
• Finance and Payroll
• Contracts
• Employee Concerns
• Facilities and Maintenance
• Administrative Support
• Records Management

Organizational Charts:
Since Scenario 1 requires a reorganization that directly impacts personnel (i.e., management changes, organizational title and functional changes, employee and contractor moves, etc.), revisions to Organizational Charts becomes a critical part of project management. Documenting changes to org charts should be part of the Change Management Execution Plan. Your personnel want to know where they fit in the new company structure and if their daily duties and/or reporting managers will change. The sooner they are aware of this information, the sooner they will settle back into performing their assigned work.

Change Management:
When a project is complex and impacts several interfacing organizations (as is the case in Scenario 1), the use of Change Management is considered an industry “Best Practice”.  By implementing a solid Change Management Execution Plan you ensure there is clear documentation of all proposed changes to the project’s purpose, organizational structure, responsible personnel, and processes.  Adding a Change Management Procedure details how the changes will be accomplished.  Proactive use of Change Management can avert misinformation (gossip) and alleviate anxiety during what can be a very stressful time for managers and employees, alike.

Risk Management:
While there is always the possibility of unexpected problems (risks) during a major project, a competent Risk Manager will prepare for the worst and hope for the best. Some key elements and activities identified in a comprehensive Risk Management Plan are: Risk Identification, Risk Avoidance, Risk Mitigation, and Risk Acceptance. The Risk Register documents the assessment as a component of the overall project management or Change Management Execution Plan.

Flow Charts:
The use of Flow Charts and other process mapping tools (e.g., as used by Six Sigma) can give you a visual overview of how your project will progress from start to finish.  When combined with brainstorming, it is another opportunity to ensure you aren’t missing any key, project management “pieces to the puzzle.”  This exercise may also identify costs (both material and personnel) that weren’t apparent during other planning efforts.

Budget and Cost Management:
Most likely there is an allotted amount of money at the disposal of the Project Manager to complete (or manage) the project.  Now that there is a clear picture of the required activities, deadlines, personnel, and materials involved, matching these costs to the  budget is essential.  During the Planning/Brainstorming stage, the tighter the control there is over each facet of the project, the less likely there will be cost overruns or a risk of delays waiting for approvals for additional funds to continue the project.  Many Project Managers use specialized software programs to help them track the project’s timeline, tasks, milestones, resources (personnel and materials), and expenses.  There are several excellent project management (project controls) software programs available, one of which your company may already be licensed to use.

Reporting:
Another functionality that should be taken into consideration when choosing a project management software program is Reporting features.  During Planning/Brainstorming, query team members:

• Who will need reports?
  
• What information will they want to see?
  
• How often will reports be generated?
  
• Will you incorporate all information into one report or produce several individual reports?
  
• Do managers need direct access to the software to generate their own reports or can someone in project administration provide the requested reports?

Frequent (more than weekly) reports are normally not very meaningful, unless the project is very short term (i.e., one to four weeks).  Be sure to enter and allocate resources to Reporting tasks, especially if “real time” reporting is required.  Assigning a task and allocating resources for regular project meetings is also advised, as personnel are not working on assigned tasks while they are attending team meetings.

Technical Documentation:
This element may include several types of documentation, depending on the nature and complexity of your project. Technical reports, white papers, contracts, Service Level Agreements (SLA), and manuals are but a few examples of technical documents produced by a business. Compliance with both company and governmental requirements necessitates the development, review, approval, and control of company policies and procedures.

Records Management:
All functions of business produce records.  Whether they are related to the production of work, the development of technical documents (including electronic media), regulatory requirements, human resources, finance, payroll, or administrative processes, the workplace generates hundreds of records per day.  It is imperative for the Project Manager to recognize the need to maintain and disposition those records according to internal policies and procedures and in compliance with local, state, and federal regulations.  Failure to do so could result in legal ramifications for the company down the line.  To ensure proper handling, maintenance, and disposition of all business records, the savvy Project Manager includes Records Management in their initial planning.

Process Improvement:
You might think this topic should be discussed nearer to the end of a project.  However, when the idea of “improvement” is incorporated into the Planning/Brainstorming stage of the project, the team’s attitude will focus on performing to a higher standard right from the beginning.

• Consider reviewing previous Lessons Learned submissions that relate to this venture and make regular requests for new Lessons Learned during the entire life of the project.
  
• Solicit assistance from your Six Sigma Yellow, Green, or Black Belts.  They can collect data, monitor how current processes are performing, and make suggestions for immediate and/or future process improvements.
  
• Self-Assessments are an excellent way to self-identify problems and/or “good business practices” within an organization.
  
• If one is not already in place, implement a Corrective Action Program to provide a vehicle for company personnel to report concerns without fear of retribution.  Some companies actually “reward” their staff for submitting significant issues (i.e., safety, misuse, fraud, waste, etc.), as well as, noteworthy solutions (i.e., cost-saving, morale building, community involvement, etc.) each month.
  
• Finally, if a serious issue is reported, initiating a Root Cause Analysis can provide a thorough investigation and meaningful resolution to the problem.

Project Closure:
Bringing a project to successful completion can be an exhilarating time for the Project Manager.  However, it spells the “end of the road” for loyal employees and contractors who may have spent several years pouring their hearts and souls into this endeavor. 

Including the Project Closure process in the Change Management Execution Plan and Procedure, and discussing its many components while still in the Planning/Brainstorming stage, will reassure everyone that a plan is in place for a smooth transition when the project shuts down.

In the case of Scenario 1, the closeout activities may be a celebratory, “all-hands” meeting with cake and soda (or hors d’ouvres and champagne) to announce the end of a rigorous reorganization and the beginning of a new business era for your company.

Now that we have made comprehensive efforts to identify every element in the Planning/Brainstorming phase, blog entry 5 will address the importance of detailed Timelines when managing a project.

Project Management Working Scenario 1

Using the information discussed in my first two blog entries, Project Planning and Administration Outline, and the Project Management Glossary, this is the 3^rd blog in the series which presents a Project Management Working Scenario 1 (referred to as simply Scenario 1 for all future references).  

All future blog entries related to Scenario 1 will be clearly identified, (e.g., Scenario 1:  Planning/Brainstorming;  Scenario 1:  Timelines;  Scenario 1:  Resource Allocation, etc.).  Additional scenarios may be added at a later date.

If you need immediate assistance with your specific project planning and administration needs, visit my website at www.CherylASchneider.com or feel free to contact me directly at either (702) 399-3740 or info@CherylASchneider.com.

SCENARIO 1:

For this exercise, let’s assume you are a manager at a stable company we will call ABC Manufacturing, Inc.  The company has just appointed a new CEO.  He has gathered management together to tell them he plans to move the company from its outdated business structure to a “leaner, meaner” business model which will better compete in today’s global industrial environment.  The changes will involve a major reorganization with impacts throughout the corporation and will therefore include a Change Management Plan and Procedure.

In a nutshell, the CEO wants to streamline management to ensure each division of the company has executive oversight (from the top down) and each section manager is not focused exclusively on his own organization’s performance.  Under the direction of the newly defined position of Operational Manager, the Research & Development, Engineering, Manufacturing, and Distribution divisions will work in partnership to present a comprehensive organization that will track ABC’s products from inception through delivery.

The CEO’s goals are: 

1. Create a Change Management Execution Plan and Procedure (including the need for new working policies, processes, and procedures) within 3 weeks,
   
2. Begin the implementation of the Change Management Plan by announcing the details of the reorganization to the rest of the company within 5 days after approval of the Change Management Execution Plan and Procedure, and (with as little disruption to business as possible)
   
3. Secure full implementation of the new business model within the subsequent 4 month period.

Before the meeting ends, the CEO announces he has chosen you to oversee the reorganization as the Project Manager.  Although you have experience working on various functional business teams, this will be your first assignment as the person responsible for of all phases of the rollout’s success (or failure). 

Now that we’ve defined Scenario 1, my 4^th blog entry in this series presents an overview of the elements we will use to begin Planning/Brainstorming this complex project.

Project Management Glossary

Now that we have a Project Planning and Administration Outline, as detailed in my 1^st blog entry, this 2^nd blog entry in the series is a compilation of typical project management terms.   

If you need immediate assistance with your specific project planning and administration needs, visit my website at www.CherylASchneider.com or feel free to contact me directly at either (702) 399-3740 or info@CherylASchneider.com.

Project Management Glossary

*Accrual Method The most commonly used accounting method, which reports income when earned and expenses when incurred, as opposed to cash basis accounting, which reports income when received and expenses when paid.

*Accrue To accumulate or be added periodically over time (i.e., payment due, interest, etc.).

*Action Item Any task or activity, assignable to a resource, which must take place to accomplish a component of the project.

*Activity A component of work performed during the course of a project.

*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.

*Actual Cost Total costs actually incurred and recorded in the performance of work. Actual cost can sometimes be direct labor hours alone, direct costs alone, or all costs including indirect costs. Also referred to as Actual Cost of Work Performed (ACWP).

*Actual Cost of Work Performed (ACWP) (See Actual Cost)

*Actual Duration Length of time an activity takes from inception to completion.

*Actual Finish Date The point in time an activity is actually completed.

*Actual Start Date The point in time an activity actually starts.

*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, or the type of customer, or industry sector. Application areas can overlap.

*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)

*As Late As Possible (ALAP) Tasks scheduled to finish on their late finish date rather than their early finish date (as with ASAP). This can be set on a task-by-task basis and is the default setting when projects are scheduled from a finish date.

*As-of Date (See Data Date)

*As Soon As Possible (ASAP) By default, tasks are scheduled to commence either on the project start date or as soon as their predecessors have been completed. This can be set on a task-by-task basis and is the default setting when projects are scheduled from a start date.

*Assumptions 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.

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

*Bar Chart A graphic display of schedule-related information for a project.

*Base Calendar A calendar used to control work periods for the project and a set of resources.

*Baseline The approved, time-phased plan, plus or minus approved project scope, cost, schedule, and technical changes. Usually it is expressed as cost baseline, schedule baseline, performance measurement baseline, or technical baseline.

*Baseline Finish Date The finish date of a schedule activity in the approved schedule baseline.

*Baseline Plan A snapshot taken of the original plan. The Baseline Plan may be reviewed and revised during the project. In Microsoft Project, up to 11 baseline plans can be saved for one project file.

*Baseline Start Date The start date of a schedule activity in the approved schedule baseline.

*Bill of Materials (BOM) A formal document or invoice for the physical assemblies, subassemblies, and components needed to produce a product.

*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 budgets 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.

*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 A collection of formally 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 A request to expand or reduce the project scope, modify policies, processes, plans, or procedures, modify costs or budgets, or revise schedules. Requests for 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 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 on the corporate chart of accounts of the primary performing organization. (Contrast with Code of Accounts)

*Closing Phase The phase during which project managers, often using project management software, provide detailed summary reports of the completed project, from start to finish.

*Code of Accounts Any numbering system used to uniquely identify each component of the work breakdown structure. (Contrast with Chart of Accounts)

*Communications Management Plan The document that describes the communications needs and expectations for the project; the format and vehicle used to communicate information; when and where communications will take place; identification of responsible individuals for each type of communication. The communications management plan is contained in, or is a subset of, the project management plan.

*Compensation Something given or received, a payment or recompense, usually monetary or in kind, for products, services, or results provided or received.

*Configuration Management System A subsystem of an overall project management system. A collection of formally 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.

*Constraint A condition or limitation placed on the start or finish date of a task. Constraints can be flexible or inflexible, as listed below. (See also Deadline)

• ASAP As Soon As Possible
• ALAP As Late As Possible
• SNET Start No Earlier Than
• SNLT Start No Later Than
• FNET Finish No Earlier Than
• FNLT Finish No Later Than
• MSO Must Start On
• MFO Must Finish On

*Contract A mutually binding agreement that obligates the seller to provide the specified product, service, or result and obligates the buyer to pay for it.

*Contract Administration 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 Management Plan The document that describes how a specific contract will be administered and can include items such as required documentation delivery and performance requirements. Each contract management plan is a subset of the project management plan.

*Contract Statement of Work (SOW) A narrative description of products, service, or results to be supplied under contract.

*Contract Work Breakdown Structure (CWBS) 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 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) A management control point where scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement. CAs are placed at selected management points of the work breakdown structure. Each CA may include one or more work packages, but each work package may be associated with only on control account. Each CA is associated with a specific single organizational component in the organizational breakdown structure (OBS). (Previously called a Cost Account) (See also Work Package)

*Control Account Plan 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 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 the control chart that reflects the expected variation in the data. (See also Specification Limits)

*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. (See also Actual Cost and Estimate)

*Cost Budgeting The process of aggregating the estimated costs of individual activities or work packages to establish a cost baseline.

*Cost Control The process of influencing the factors that create variances, and controlling changes to the project budget.

*Cost Estimating The process of developing an approximation of the cost of the resources needed to complete project activities.

*Cost Management Plan The document that sets out the format and establishes the activities and criteria for planning, structuring, and controlling the project costs. The cost management plan is contained in, or is a subset plan, of the project management plan.

*Cost of Quality (COQ) Determining the costs incurred to ensure quality. Prevention and appraisal costs (cost of conformance) include quality planning, quality control (QC), and quality assurance (QA) to ensure compliance with requirements. 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 (1) indicates an unfavorable condition.

*Cost Per Use Per-use costs are one-time fees for the use of a resource, such as equipment. Per-use costs never depend on the amount of work done. Instead, they are one-time costs that are incurred every time that the resource is used.

*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 (as defined by the contract) plus a fixed amount of profit (fee).

*Cost-Plus-Incentive-Fee (CPIF) Contract A type of cost-reimbursable contract where the buyer reimburses the seller for the seller’s allowable costs (as defined in the contract), and the seller earns its profit if it meets defined performance criteria.

*Cost-Plus-Percentage of Cost (CPPC) (See also 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 the seller’s profit.

*Cost Resource Unlike fixed costs and per-use costs, cost resources (such as airfare, hotel, and food) are created as a type of resource and then assigned to a task. The amount of the cost resources doesn’t depend on the amount of work done on a task. And, unlike work resources, cost resources cannot have a calendar applied to them.

*Cost Variance (CV) A measure of cost performance on a project. The formula is CV = earned value (EV) minus actual cost (AC). A positive value indicates a favorable condition, while a negative value indicates an unfavorable condition.

*Crashing A type of project schedule compression used to reduce the total project schedule duration, typically by decreasing schedule activity durations and increasing the assignment of resources on activities.

*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 in the project schedule.

*Critical Chain A set of processes that emphasizes the resources needed to complete a project.

*Critical Chain Method A technique that modifies the project schedule to account for limited resources by mixing deterministic and probabilistic approaches to schedule network analysis.

*Critical PathA group of tasks that if not completed on schedule, the project finish date will be delayed. Typically, is the longest path through the project.

*Critical Path Method (CPM) A technique used to determine the amount of scheduling flexibility (float) on various logical network paths in the project schedule network, and to determine the minimum total project duration.

*Critical Task Any task that appears on the Critical Path. Critical tasks have no slack.

*Current Finish Date The current estimate of the point in time when a schedule activity will be completed. The estimate represents any reported work progress.

*Current Start Date The current estimate of the point in time when a schedule activity will begin. The estimate represents any reported work progress.

*Data Date The date up to or through the point in time when the project’s reporting system reflects the actual status and accomplishments. Also referred to as the As-of Date or Time-Now Date.

*DeadlineThe point in time when an activity, task, or milestone must be completed.

*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.

*Deliverable Any product, result, or ability to perform a service that must be produced to complete a process, phase, or project.

*Discrete Effort Work effort that is separate, distinct, and related to the completion of specific work breakdown structure components and deliverables, and that can be directly planned and measured. (Contrast with Apportioned Effort)

*Duration The amount of time between the start of a task and its finish. When a duration is entered, non-working days and times are taken into account.

*Early Finish Date (EF) In the critical path method, the earliest possible point in time when 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 system.

*Early Start Date (ES) In the critical path method, the possible point in time when 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 system.

*Earned Value (EV) The value of work performed expressed in terms of the approved budget assigned to that work for a schedule activity or work breakdown structure component. Also referred to as Budgeted Cost of Work Performed (BCWP).

*Earned Value Management (EVM) A management methodology used to integrate scope, schedule, and resources, and to objectively measure project performance and progress.

*Earned Value Technique (EVT) A technique for measuring the performance of work and used to establish the performance measurement baseline (PMB). Also referred to as Earning Rules and Crediting Method.

*Effort The number of labor units required to complete a schedule activity or work breakdown structure component. It is usually expressed as staff hours, staff days, or staff weeks. (Contrast with Duration)

*Effort Driven Schedule The premise that adding more resources to work on a task will shorten the duration needed to complete the task. (See also Resource Driven Schedule)

*Estimate 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 indicator for accuracy (e.g. +/- %).

*Estimate at Completion (EAC) 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 ETC. The EAC may be calculated based on performance to date or estimated by the project team based on other factors.

*Estimate to Complete (ETC) The expected cost needed to complete all the remaining work for a schedule activity, work breakdown structure component, or the project.

*Exception Report Document that includes only major variations from the plan (rather than all variations).

*Execution Stage In PMBOK, Phase 3 of project management during which your plan from Phase 2 “Planning” is put to work. This phase can take as long as or longer than the Planning phase, and is the time when you’ll spend the majority of your money and resources. Also known as the Implementation Phase.

*Expected Monetary Value (EMV) Analysis A statistical technique that calculates the average outcome when the future includes scenarios that may or may not happen.

*Failure Mode and Effect Analysis (FMEA) An analytical procedure used to show each potential failure mode in every component of a product. The analysis determines the effect on the reliability of the 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 product (at the system and/or lower levels) is examined to determine all ways that a failure may occur. An estimate is made of each potential failure’s effect on the total system and of its impact. A review is undertaken of the action planned to minimize the probability of failure and to minimize its effects.

*Filter A tool that enables you to specify which tasks or resources are displayed.

*Finish Date A point in time when an activity is scheduled to finish. Usually the term is used with actual, planned, estimated, scheduled, early, late, baseline, target, or current.

*Finish No Earlier Than (FNET) A task that finishes on or after the date entered. Used when a task can not finish before a specific date.

*Finish No Later Than (FNLT) A task that finishes on or before the date entered. Used when a task must finish by a specific date. This may create a scheduling conflict if this date is not met.

*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 on the completion of work of the predecessor activity. (See also Logical Relationship)

*Firm-Fixed-Price (FFP) Contract A type if fixed price contract where the buyer pays the seller a set amount (as defined in the contract), regardless of the seller’s costs.

*Fixed Cost A set cost against a task that remains constant regardless of the task duration or the work performed by a resource. For example, a delivery of some goods, or some work that has been subcontracted to a third party organization.

*Fixed Duration A task type where the duration is a set period of time.

*Fixed-Price-Incentive-Fee (FPIF) Contract A type if fixed price contract where the buyer pays the seller a set amount (as defined in the contract), regardless of the seller’s costs.

*Fixed-Price or Lump-Sum Contract A type of contract involving a fixed total price for a well-defined product. This contract my 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.

*Fixed Units A task type where the units are preset.

*Fixed Work A task type where the work units are preset.

*Float (See Total Float and Free Float) (See also Slack)

*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.

*Free Float (FF) The amount of time a schedule activity can be delayed without delaying the early start of any immediately following schedule activities. (See also Total Float)

*Free Slack The amount of time a task can fall behind, be delayed, or slip, and not affect other tasks in the project schedule.

*Gantt Bar Chart The bar-graph portion of the Gantt Chart.

*Gantt Chart The Gantt Chart displays project data in a table (information listed across a timeline with summary tasks and milestones) and bar-chart format. It is the default view in Microsoft Project.

*Gantt Table The table portion of the Gantt Chart.

*Implementation Phase (See Execution Stage)

*Initiation Phase Phase 1 of project management. During this phase, a project manager works with the involved parties (project stakeholders) to document the expected outcome of the project, map out the milestones required to achieve the final goal, and determine initial estimates for materials and resources.

*Input Any item (internal or external to the project) that is required by a process before that process proceeds.

*Integrated Change Control The process of reviewing all change requests, approving changes and controlling changes to deliverables and organizational process assets.

*Invitation for Bid (IFB) Generally, equivalent to Request for Proposal (RFP).

*Lag Time A modification of a logical relationship that directs a delay in the start of the successor activity until after the predecessor activity has finished (e.g., a 10-day lag time allows a delay of 10 days after a predecessor activity is completed before a successor activity can begin).

*Late Finish Date In the critical path method, the latest possible point in time when a schedule activity can be completed based on 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.

*Late Start Date In the critical path method, the latest possible point in time when a schedule activity can begin based on 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.

*Lead Time A modification of a logical relationship that allows an acceleration of the successor activity (e.g., a 10-day lead time allows the successor activity to start 10 days before the predecessor activity has finished).

*Lessons Learned The learning gained from the process of performing the project. Lessons learned may be identified at any point. Also considered a project record, they are included in the Lessons Learned Knowledge Base.

*Lessons Learned Knowledge Base An historical archive of information Lessons Learned regarding the outcomes of previous project selection decisions and previous project performance.

*Leveling (See Resource Leveling)

*Level of Effort (LOE) A support-type activity which does not produce definitive end products, generally characterized by a uniform rate of work performance over a period of time determined by the activities supported.

*Logical Relationship A dependency between two project schedule activities, or between a project schedule activity and a schedule milestone.

*Master Project A project file used to manage multiple smaller projects (i.e., inserted subprojects) under a single project file.

*Master Schedule A summary-level project schedule that identifies the major deliverables and work breakdown structure components and key schedule milestones.

*Milestone A significant event and reference point in the project. A task with zero duration.

*Monitoring (Controlling) Phase Phase 4 of a project oversees work progress and adheres to the original project goal to ensure the project stays within the original project scope.

*Must Finish On (MFO) A task that must be completed on a specific date. May create a scheduling conflict if this date is not met.

*Must Start On (MSO) A task that must start on a specific date. May create a scheduling conflict if this date is not met.

*Near-Critical Activity A schedule activity that has low total float. The concept of near-critical is equally applicable to a schedule activity or schedule network path.

*Node A box that represents a task in the PERT Chart.

*Objective 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.

*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)

*Organizational Breakdown Structure (OBS) A hierarchically organized depiction of the project organization arranged in a way to relate the work packages to the performing organizational units.

*Organizational (Org) Chart) A diagram depicting the structure of an organization and the relationships and relative ranks of its departments, positions, titles, and names.

*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 A product, result, or service generated by a process.

*Overallocation A resource that is scheduled to work beyond its capacity. Overallocation can occur either because a resource is assigned too many tasks or because more resource units are assigned to a single task than exist in the resource pool.

*Pareto Chart A histogram, ordered by frequency of occurrence, showing how many results were generated by each identified cause.

*Percentage 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.

*Performance Measurement Baseline An approved integrated scope-schedule-cost plan for the project work against which project execution is compared to measure and manage performance. Technical and quality parameters may also be included.

*PERT Program Evaluation Review Technique is a model for project management designed to analyze and represent the tasks involved in completing a given project. It is commonly used in conjunction with the Critical Path Method.

*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 Budgeted Cost of Work Scheduled (BCWS).

*Planning Phase Phase 2 of a project is often the most time-consuming phase. The project groundwork is formed by creating a list of specific tasks and activities required to ensure your goal(s) are accomplished.

*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 in the portfolio may or may not be interdependent or directly related.

*Portfolio Management The centralized management of one or more portfolios, to include indentifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives.

*Position Description Documentation of a project team member’s roles and responsibilities.

*Predecessor Activity A task that must start or finish before its successor task can start or finish (depending on the type of task relationship in which the two tasks are linked).

*Preventive Action Documented direction to perform an activity that can reduce the probability of negative consequences associated with project risks.

*Probability and Impact Matrix 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 and defined order to accomplish an objective.

*Process A set of interrelated actions and activities performed to achieve a specified set of products, results, or services.

*Procurement Documents 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 Request for Seller Responses.

*Procurement Management Plan The document which describes how procurement processes will be managed beginning with the developing procurement documentation through contract closure.

*Product An object that is produced, is quantifiable, and can be either an end item in itself or a component item.

*Program A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.

*Program Management The centralized coordinated management of a program to achieve the program’s strategic objectives and benefits.

*Progressive Elaboration 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 non-working days that determine those dates on which schedule activities are idle. (See also Resource Calendar)

*Project Life Cycle A collection of generally sequential project phases named and numbered according to the requirements of the project stakeholders.

*Project Management The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

*Project Management Body of Knowledge An inclusive term that describes the sum of knowledge within the profession of project management.

*Project Management Plan A formal, approved document that defines how the project is executed, monitored, and controlled. A summary or detailed outline that may have one or more subset management plans and other planning documents.

*Project Manager The person responsible for achieving the project objectives.

*Project Phase A collection of logically related project activities, usually culminating in the completion of a major deliverable.

*Project Schedule The planned dates for performing schedule activities and the planned dates for meeting schedule milestones.

*Project Stakeholder (See Stakeholder)

*Project Summary Task The overarching task that defines the entire project and includes all other tasks within the project. It represents the ultimate goal or objective of the project.

*Project Summary Work Breakdown Structure (PSWBS) A work breakdown structure for the project that is only developed down to the subproject level of detail within certain legs of the WBS, and where the detail of those subprojects are provided by use of contract work breakdown structures.

*PMBOK A Guide to the Project Management Body of Knowledge. Produced by Project Management Institute (PMI).

*Qualitative Risk Analysis 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 The document that describes how the project management team will implement the performing organization’s quality policy. The quality management plan is a component or subset of the project management plan and is based on the requirements of the project.

*Quality Planning The process of identifying which quality standards are relevant to the project and determining how to satisfy them.

*Quantitative Risk Analysis The process of numerically analyzing the effect on overall project objectives of identified risks.

*Recurring Task A task that repeats at regular intervals during a project.

*Regulation Requirements imposed by a governmental body. These requirements can establish product, process, or service characteristics, including applicable administrative provisions, which 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, measured 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 (RFI) A type of procurement document whereby the buyer request 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.

*Request for Quotation (RFQ) A type of procurement document used to request price quotations from prospective sellers of common or standard products or services.

*Request for Seller Responses The process of obtaining information, quotations, bids, offers, or proposals.

*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 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.

*Resource Skilled personnel, equipment, services, commodities, materials, budgets, funds, and supplies.

*Resource Breakdown Structure (RBS) A hierarchical structure of resources detailed by resource category and type that is used to identify and analyze project human resource assignments.

*Resource Calendar A calendar unique to an individual resource. It is used for holding the resource’s schedule exceptions to the base calendar in use.

*Resource Driven Schedule Where work on a task may be shared by more than one resource. When resources are assigned or removed from a task, the duration of the task will be extended or shortened to accommodate the additional or fewer resources applied, but it will not change the total work for the task. (See also Effort Driven Schedule)

*Resource Histogram A bar chart that shows project resource assignments, usage, and availability grouped by generic skill or work requirements.

*Resource Leveling The process of resolving resource conflicts and overallocations by delaying tasks, splitting tasks, and making changes to assignments in a project.

*Resource Pool A list of resources available for assignment to tasks in one or more projects.

*Responsibility Assignment Matrix (RAM) A structure that relates the project organizational breakdown structure to the work breakdown structure to help ensure each component of the project’s scope of work is assigned to a responsible person/team.

*Result An output from performing project management processes and activities. Results include outcomes and documents. (Contrast with Product and Service) (See also Deliverable)

*Risk An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives.

*Risk Acceptance A risk response planning technique that indicates the project team 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 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.

*Risk Identification The process of determining risks that might affect the project and documenting their attributes.

*Risk Management Plan The document that describes how project risk management will be structured and performed to reduce the circumstances that could have a negative impact on the successful completion of a project.

*Risk Management Planning The process of deciding how to approach, plan, and execute risk management activities for a project.

*Risk Mitigation A risk response planning technique that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold.

*Risk Register The document containing the results of the qualitative risk analysis, quantitative risk analysis, and risk response planning. The 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.

*Role A defined function to be performed by a project team member, such as testing, filing, inspecting, coding, etc.

*Rolling Wave Planning 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 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 An analytical technique used to determine the basic underlying reason that causes a variance, defect, or a risk. A root cause may underlie more than one variance, defect, or risk.

*Schedule (See Project Schedule)

*Schedule Activity A discrete scheduled component of work performed during the course of a project which normally has an estimated duration, an estimated cost, and estimated resource requirements.

*Schedule Management Plan The document that establishes criteria and the activities for developing and controlling the project schedule. It is usually contained as a component of the project management plan.

*Schedule Network Analysis 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). SPE = 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 difference between the earned value (EV) and the planned value (PF). SV = EV minus PV. (See also Earned Value Management)

*Scheduled Finish Date The point in time when 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. Also referred to as Planned Finish Date.

*Scheduled Start Date The point in time when 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. Also referred to as Planned Start Date.

*Scope The sum of the products, services, and results to be provided as a project.

*Scope Creep Adding features and functionality (project scope) without addressing the effects on time, costs, and resources, or without customer approval.

*Scope Statement A statement documenting the project details (i.e., project name, charter, stakeholders, deliverables, and major objectives).

*S-Curve Graphic display of cumulative costs, labor hours, percentage of work, or other quantities, plotted against time. Used to depict planned value, earned value, and actual cost of project work. Also, as a tool of quantitative risk analysis, a term to describe the cumulative likelihood distribution that is a result of a simulation.

*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)

*Simulation A process that 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.

*Six Sigma A business management strategy that seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes.

*Slack The amount of time that a task can be delayed before delaying other tasks. Non-critical tasks have slack time. Critical tasks do not. (See Total Float and Free Float)

*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.

*Specification Limits Boundaries or parameters that define acceptable performance for a process expressed as a target limit, including upper and lower limits. Usually defined by the Voice of the Customer or the design engineer.

*Stakeholder Person or organization, actively involved in the project or whose interests may be positively or negatively impacted by the execution or completion of the project. A stakeholder may also exert influence over the project and it 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.

*Standard Calendar In Microsoft Project, it is the default calendar with working periods of Monday through Friday, from 8:00 am to 5:00 pm, and with an hour for lunch from 12:00 noon to 1:00 pm.

*Start Date A point in time associated with a schedule activity’s start, usually in conjunction with one of the following: actual, planned, estimated, scheduled, early, late, target, baseline, or current.

*Start No Earlier Than (SNLT) Starts the task on or before the entered date. Used when a task must start on a specific date.

*Start No Later Than (SNET) The most common constraint (with the exception of ASAP). Starts the task on or after the entered date. Used when a task can not start until a given date.

*Start-to-Finish (SF) The logical relationship where completion of the successor schedule activity is dependent on the initiation of the work 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 on the initiation of the work of the predecessor schedule activity. (See also Logical Relationship)

*Statement of Work (SOW) A detailed description of the work activities, deliverables, and timeline a vendor must adhere to in the performance of specified work for a client. Detailed requirements and pricing are usually included in the SOW, along with standard regulatory and governance terms and conditions.

*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.

*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.

*Subtask A task that represents a subset of the activities associated with a larger task.

*Successor Activity A task that can start or finish only after its predecessor task starts or finishes (depending on the type of task relationship in which the two are linked).

*Summary Task (See Project Summary Task)

*System An integrated set of regularly interacting or interdependent components created to accomplish a defined objective, with defined and maintained relationship among its components, and the whole producing or operating better than the simple sum of its components. Systems may be physically process based, or management process based, or more commonly a combination of both. Systems for project management are composed of project management process, 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 Start Date (TS) The date that work is planned (targeted) to start on a schedule activity.

*Table The row-and-column format used to view project data. Microsoft Project includes several tables that group together related information.

*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.

*Technical Performance Measurement 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 project as a quality metric.

*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.

*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)

*Three-Point Estimate 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 defines at the time of the award. This, time and material contracts can grow in contract value as id they were cost-reimbursable-type arrangements. Conversely, time and material arrangements can also resemble fixed-price arrangements. For example, 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)

*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. Total float is 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) A common approach to implementing a quality improvement program within an organization.

*Trend Analysis 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.

*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. Also referred to as Value Added.

*Variable Cost A resource rate that changes depending on the type of length of work. Variable costs are a direct function of production volume, rising whenever production expands and falling whenever it contracts. Examples of common variable costs include raw materials, packaging, and labor directly involved in a company’s manufacturing process.

*Variance A quantifiable deviation, departure, or divergence away from a known baseline or expected value.

*Variance Analysis A method for resolving the total variance in the set of scope, cost, and schedule variables into specific component variances associated with defined factors affecting the scope, cost, and schedule variables.

*Voice of the Customer A planning technique used to provide products, services, and results that truly reflect customer requirements by translating those customer requirement into the appropriate technical requirements for each phase of project product development.

*Work Sustained physical or mental effort, exertion, or exercise of skill to overcome obstacles and achieve an objective.

*Work Breakdown Schedule (WBS) A code system that organizes tasks according to the project hierarchy. WBS codes are used to identify a task in relation to its hierarchical position within a group of tasks, subtasks, and the entire project.

*Work Breakdown Structure Component An entry in the work breakdown structure that can be at any level.

*Work Breakdown Structure Dictionary A document that describes each component in the WBS. For each WBS component, the WBS dictionary includes a brief definition of the scope or statement of work, defined deliverables, a list of associated activities, and a list of milestones. Other information may include: responsible organization, start and end dates, resources, an estimate of cost, charge number, contract information, quality requirements, and technical references to facilitate performance of work.

*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 Information and data, on the status of the project schedule activities being performed to accomplish the project work, collected as part of the 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 A response to a negative risk that has occurred. Distinguished from a contingency plan, in that a workaround is not planned in advance of the occurrence or the risk event.

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