BUSINESS EDUCATIONAL-ENTERTAINMENT RESOURCE

[A]

Abscissa
The coordinate representing the distance from the y axis in a two-dimensional plot.

Accelerated testing
The testing of equipment in an environment so that the time for failures to occur is reduced. The acceleration test factor (A), is the test time consumed to perform the accelerated testing divided into the expected ""normal usage time"" that the test is exhibiting for the device being tested.

Acceptable Quality Level - AQL
The maximum proportion of defective units in a sampling plan, that can be considered a satisfactory process average. See AQL below for more information.

Accuracy
The proximity of concurrence between the value of an observation and the value of the accepted reference.

Active Experimentation
Experiments conducted in which variable levels are modified to assess their impact on a response or several responses.

Affinity Diagram
A methodology where a team can organize and summarize the natural grouping from a large number of ideas and issues. From this summary teams can better understand the essence of problems and breakthrough solution alternatives.

Alpha ( a ) risk
Risk of erroneously rejecting the null hypothesis. It is often referred to as Type I Error or Producer's risk.

ANOM - Analysis of Means
A graphical analysis approach to compare the means of several group of size n.

ANOVA - Analysis of Variance
A statistical procedure that can be used to determine the significant effects in a factorial experiment.

AQL
Acceptable Quality Level is typically regarded as the worst quality level that is still considered satisfactory. The probability of accepting an AQL lot should be high. A probability of 0.95 translates to a beta [b] risk of 0.05.

[B]

Balanced Scorecard
A suggested tool to describe the relevant measures of a business, usually in the following categories: - financial, or return on investment and economic value-added; - customer, or satisfaction, retention, market and account share; - internal, or response time, cost, and new product introductions; - and learning and growth, or employee satisfaction and information system availability.

Bar Charts
Horizontal or vertical bars that graphically illustrate the magnitude of multiple situations.

Bathtub curve
A curve used to describe the life-cycle of a system or device as a function of usage. When a curve has its initial downward slope, the failure rate is decreasing with usage (b < 1). This is an early-life region where manufacturing problems are typically encountered. The failure rate is constant (b = 1) during the flat part of the curve. When the curve begins to slope upward, the failure rate is increasing with usage (b > 1) . This region describes wear-out of a product.

Benchmarking
Benchmarking involves the search for the best practices, adaptation of the practices to processes, and improving the processes with emphasis on becoming the best in the class.

Best Estimate
A value where there is a 50% chance that the true reading is higher or lower than the estimate.

Beta [ b ] risk
Risk of not rejecting the null hypothesis erroneously. Often called Type II Error or Consumer's Risk

Bias
Bias may be considered the difference between the observed average of measurements and the reference value. Bias is often referred to as accuracy.

Bimodal Distribution
A distribution that is a combination of two different distributions resulting in two distinct peaks.

Binomial Distribution
A distribution that is useful in describing discrete variables or attributes that have two possible outcomes.

Bootstrapping
Bootstrapping is a resampling technique that provides a simple but effective way of describing any uncertainty associated a summary statement without much consideration for complexity of the given summary, or the exact distribution from which the data were collected.

Box plot
A box plot is useful to graphically describe various aspects of data. Box plots can describe one set of data or visually show differences between the characteristics of a set of data.

Brainstorming
Consensus building among experts about a problem or an issue using group discussion techniques.

[C]

Cause and Effect Diagram
Ishikawa Diagram - Fishbone diagram - Cause and Effect diagram, also called the fishbone or Ishikawa diagram; a graphical brainstorming tool used to organize possible causes of a symptom into categories of causes, usually materials, machines, method, personnel, measurement and environment. These are branched as required to increasing levels of specificity. It assists in gathering organizational wisdom. Illustrates how various factors might be linked to potential problems or effects.

Cause and Effect Matrix
A tool used to help quantify team consensus on relationships thought to exist between key input and key output variables. The results lead to other activities such as an FMEA, creating multi-vari charts, doing an ANOVA, regression analysis or DOE.

Central Limit Theorem
This theory implies that the means of samples from a population will tend to be normally distributed around the population mean.

Check Sheets
The systematic recording and compiling of data from historical or current observations.

Chi-Square Distribution
The Chi-square distribution can be used to compare the frequency of occurrence for discrete variables. However, if there is a small amount of expected frequencies in a cell, chi-square (if applied) might result in an erroneous conclusion.

Chi-square Test
The chi-square test of significance is one of the most commonly used nonparametric tests. One of the use for chi-square is the test of goodness of fit. Chi-square was developed by Karl Pearson in the 90's, and is applicable to data from a single sample and requires only nominal-level information.
Chronic Problem
A description of the situation where a process SPC chart may be in control; however, the overall response is not satisfactory (i.e., common causes yield an unsatisfactory response). For example, a manufacturing process has a consistent "yield" over time; however, the average yield number is not satisfactory.

Coefficient
See - Regression analysis

Coefficient of Determination (R squared)
The square of the correlation coefficient. Values for R (squared) describe the percentage of variability accounted for by the model.

Common Cause
Natural or random variation that is inherent in a process over time, affecting every outcome of the process. If a process is in control it has common cause variation only.

Confidence Interval
A confidence interval gives an estimated range of values which is likely to include an unknown population parameter, the estimated range being calculated from a given set of sample data. If independent samples are taken repeatedly from the same population, and a confidence interval calculated for each sample, then a certain percentage (confidence level) of the intervals will include the unknown population parameter. Confidence intervals are usually calculated so that this percentage is 95%, but we can produce 90%, 99%, 99.9% (or any) confidence intervals for the unknown parameter.

Continuous Distribution
A distribution used in describing the probability of a response when the output is continuous.

Continuous Response
A response is said to be continuous if any value can be taken between limits. Examples include weight, distance, and voltage.

Control
The term - In Control - is used in process control charting to describe when the process indicates that there are no special causes. The term - Out of control - indicates that there is a special cause.

Control - Process out of Control
The process is out of a state of statistical control under either of two circumstances:
- A data point falls outside the upper and lower control limits, or
- Non-random data points that are still within the upper and lower control limits, such as the rule of seven.
Out of control represents a lack of consistency and predictability in the process.

Control Chart
A graph of a sample statistic over many successive samples from a production process. Used to monitor the product consistency. A procedure used to track a process with time for the purpose of determining if sporadic or chronic problems (common or special causes) exist. Control charts are a graphic display of the results, over time and against established control limits, of a process. They are used to determine if the process is -in control- or in need of adjustment. To create a control chart samples are taken, variables measured and attributes found. The attributes (e.g.: size) are plotted on the chart joined by lines.

Control Limits
Upper and Lower Limits - The acceptable range of variation of a process often shown as two dashed lines on a control chart. The acceptable range, between the upper and lower control limits is determined by the organization's quality standard (e.g.: 3 or 6 sigma). Data points within this range are generally thought of as -in control-, and are an acceptable range of variation.

Control plan
A control plan is designed to ensure that processes operate in a manner to produce products that always meet or exceed customer expectations.

COPQ - Cost of Poor Quality
Cost of quality issues are often given the broad categories of internal failure costs, external failure costs, appraisal costs, and prevention costs.

Corrective Action
Any action done (or changes made) to bring expected future performance in line with the project plan. Corrective action is accomplished by measuring performance and identifying the root causes of any variation.

Correlation coefficient - r
A statistic that describes the strength of a relationship between two variables is the sample correlation coefficient. A correlation coefficient can take values between [-1] and [+1]. A [-1] indicates perfect negative correlation, while a [+1] indicates perfect positive correlation. A zero indicates no correlation.

Cost of Conformance-Nonconformance
Deming says that 85% of the costs of quality are the direct responsibility of management. Specifically, these costs are:
Cost of Conformance
- Quality training
- Studies
- Surveys

Cost of Nonconformance
- Rework
- Scrap
- Inventory costs
- Warranty costs

Cost of Quality
Looking at how the costs of conformance and nonconformance to quality will cost the project and creating an appropriate balance. Costs of quality include prevention costs, appraisal costs and failure costs.

Cp
This is the capability index which is defined as the tolerance width divided by the process capability, irrespective of process centering. A process capability index metric used to specify how well a process is performing relative to customer requirements or specifications. It is affected by the variation in the process relative to its specification. A large number indicates the process has less process variability relative to the width of the specification.

Cpk
This is the capability index which accounts for process centering. It relates the scaled distance between the process mean and the closest specification limit to half the total process spread. A process capability index metric used to specify how well a process is performing relative to customer requirements or specifications. It is affected by both the variation in the process and by how well centered that variation is within the specification. A larger number indicates the process is performing better.

Cumulative distribution function (CDF)
The calculated integral of the PDF (probability density function) from minus infinity to x. This integration takes on a characteristic "percentage less than or percentile" when plotted against x.

Customer
Someone for whom work is done or a service is performed. The end user of a product is a customer of the employees within a company that manufactures the product. There is also internal customers in a company. The business unit which receives a service, say from the Information Technology unit, is a customer of the I.T. unit.

CUSUM - Cumulative sum chart
An alternative control charting technique to Shewhart control charting. CUSUM control charts can detect small process shifts faster than Shewhart control charts.

[D]

Data precision
Precision refers to the level of accuracy of the knowledge available on any given risk. It measures the accuracy of available data, as well as the validity of the data. The integrity of the source of data that was used to identify the risk must also be evaluated.

Dead on Arrival (DOA)
A product that does not work the first time it is used or tested. The binomial distribution can often be used to statistically evaluate DOA scenarios

Decision Tree Analysis
The decision tree is a diagram that describes a decision under consideration and the implications of choosing one or another of the available alternatives. It incorporates probabilities or risks and the costs or rewards of each logical path of events and future decisions. - A decision tree takes into account future events in trying to make a decision today
- It calculates the expected value (probability times consequences) in more complex situations
- It involves mutual exclusivity of events
Please refer to "Expected Monetary Value (EMV)" for more info

Defect
A nonconformity or departure of a quality characteristic from its intended level or state. Defective A nonconforming item that contains at least one defect, or having a combination of several imperfections causing the unit not to satisfy intended requirements.

Degrees of freedom (df or v)
Number of measurements that are independently available for estimating a population parameter. The number of degrees of freedom for a random sample from a population is equal to the sample size minus one.

Delphi Technique procedure
A method of "predicting" the future by surveying experts in the area of concern.
A method most commonly uses to obtain expert opinions on technical issues, scope of work needed, estimates or risks. The Delphi technique has three rules:- Do not get the experts in the same room, Keep the experts' identities anonymous, Try to build consensus.
A creativity technique intended to overcome the undesired effects of group interactions while retaining the positive effects of interactive group judgments.

Deming 7 Diseases
"Deming's seven diseases in behaviorism:
- Lack of constancy of purpose
- Emphasis on short-term profits
- Personal review systems
- Job-hopping
- Manage only by numbers
- Excess medical costs
- Excess liability costs

Deming's 14 Points
1. Create constancy of purpose toward improvement of products and service, to stay in business and provide jobs.
2. Adopt the new philosophy. Management must learn their responsibilities and take on leadership for change.
3. Cease dependence on inspection to achieve quality. Eliminate inspection and build quality into the product..
4. End the practice of awarding business on the basis of price tag.
5. Improve constantly the system of production and service.
6. Institute training on the job.
7. Institute leadership.
8. Drive out fear of participation and transparency.
9. Break down barriers between departments.
10. Eliminate slogans, exhortations and production targets.
11. Eliminate work standards, substitute leadership. Eliminate MBO.
12. Remove barriers to workman's pride and achievement.
13. Institute a vigorous program of education and self-improvement.
14. Include everyone in the company's transformation process.

Demings PDCA Cycle
1 - Plan improvements for present practices
2 - Do - Implement the plan on a small scale
3 - Check - Verify the results of the plan
4 - Act - Corrective action on the opportunity, standardize and feed forward to the next plan

DFSS - Design for Six Sigma
Design for Six Sigma - Same as DMADV for new product/service introduction.

Difference Chart
Difference charts (sometimes called target or nominal charts) facilitate the visualization of the underlying process even though it carries short runs of varying products. The nominal value that is subtracted from each observed value is specific to each product. This value can be either the historical grand mean for each product or the target value for a product.

Discrete distribution
A distribution function that describes the probability for a random discrete variable.

Discrete random variable
A random variable that can only assume discrete values.

Distribution
A pattern that randomly collected numbers from a population follow. The normal, Weibull, Poisson, binomial, and log-normal distributions are applicable to the modeling of various industrial situations.

DMADV
Define, Measure, Analyze, Design and Verify - Should be used when a product or process is in existence at your company but is not meeting customer specification or is not performing adequately.

DMAIC
The five phases of Six Sigma methodology: Define, Measure, Analyze, Improve and Control

DOE - Design of Experiments
Experiment methodology where factor levels are assessed in a fractional factorial experiment or full factorial experiment structure. The use of experimentation of "what if" scenarios to determine what variables will improve quality.

Double-sided test
A statistical consideration where, for example, the mean of a population is to be equal to a criterion, as stated in a null hypothesis.

DPMO (Defects per Million Opportunities):
Number of defects that, on average, occur in one million opportunities. Care should be taken to assure that all defects, including touch-ups and reworks that previously may not have been recorded are included in this calculation. Also important is an agreed-upon standard method of counting opportunities.

[E]

Efficiency
A concept due to R. A. Fisher who declared that one estimator is more efficient than another if the first has a smaller variance than the latter. Percentage efficiency is 100 times the ratio of the variance of the estimator with minimum variance to the variance of the estimator in question.

Evolutionary operations (EVOP)
Evolutionary operations (EVOP) may be considered an analytical approach geared toward securing the data derived from a manufacturing process, where process conditions vary in a planned factorial structure between data lots, without compromising the manufactured product.

Exponentially Weighted Moving Average (EWMA)
These techniques offer an alternative ( to Shewhart model ) that is based on exponential smoothing (sometimes called geometric smoothing).

[F]

Failure Mode and Effects Analysis (FMEA)
A methodology to analyze and discover: (1) all potential failure modes of a system, (2) the effects these failures have on the system and (3) how to correct and or mitigate the failures or effect on the system. [The correction and mitigation is usually based on a ranking of the severity and probability of the failure]. An analytical approach directed toward problem prevention through the prioritization of potential problems and their resolution. FMEA is the opposite of Fault Tree Analysis. - See FMEA below.

Failure rate
Failure rate criterion is a failure rate value that is not to be exceeded in a product.

Fault Tree Analysis
A schematic picture of possible failure modes and associated probabilities. This is the opposite of FMEA.

Fifty (50)-Foot-Level Metric
A low-level metric or input to a process that can affect the response to the output, or 30-000-Foot-Level metric.

Fire fighting
An expression used to describe the process of performing emergency fixes to problems.
The practice of focusing on fixing the problems of the day. These do not create any long-term solutions, and may actually cause degradation to the process.

Fish Bone Diagram - Ishikawa
See Cause and Effect Diagram

Flowchart
Flowcharts depict workflow and process flow through a system. They are used for quality, engineering and other work.

Flowcharting
Showing how the process or system flows from beginning to end and how the elements interrelate. It is used in quality planning to analyze potential future quality problems and determine quality standards. It is used in quality control to analyze quality problems.

FMEA (Failure Mode and Effect Analysis):
A proactive method of improving reliability and minimizing failures in a product or service. It is an analytical approach to preventing problems in a process. For a process FMEA, organizational wisdom is collected to list what can go wrong at each step of a process that could cause potential failures or customer problems.
Each item is evaluated for its importance, frequency of occurrence, and probability of detecting its occurrence. This information is used to prioritize the items that most need improving. These are then assigned a corrective action plan to reduce their risk. - See Failure Mode and Effects above.

Force field analysis
Representation of the forces in an organization are supporting and driving toward a solution and which are restraining progress.

[G]

Gauge R&R (Repeatability and Reproducibility)
A tool used in a Measurement System Analysis. It is the evaluation of measuring instruments to determine their capability to yield a precise response. It determines how much of the observed process variation is due to measurement system variation.
Gauge repeatability is the variation in measurements using the same measurement instrument several times by one appraiser measuring the identical characteristic on the same part. Gauge reproducibility is the variation in the average of measurements made by different appraisers using the same measuring instrument when measuring the identical characteristics on the same part.

Gauge repeatability and reproducibility study
R&R - The evaluation of measuring instruments to determine capability to yield a precise response. Gauge repeatability is the variation in measurements considering one part and one operation. Gauge reproducibility is the variation between operators measuring one part.

Go/No-Go
A technique often used in manufacturing where a device is tested with a gauge that is to evaluate the device against its upper/lower specification limit. A decision is made that the device either meets or does not meet the criterion.

Goodness of fit
See - Lack of fit

[H]

Hidden factory
Reworks within an organization that have no value and are often not considered within the metrics of the factory.

Histogram
A graphical representation or bar graph of the sample relative frequency distribution describing the occurrence of grouped items. This graph summarizes and displays the distribution of data in an easier-to-grasp form than tables of data.
The histogram is the most commonly used means of portraying the frequency distribution. It is also the most easily interpreted.

House of Quality
A House Of Quality covers customer requirements, product characteristics, and competitive analysis.

Hypothesis testing
Consists of a null hypothesis (Ho) and alternative hypothesis (Ha) where, for example, a null hypothesis indicates equality between two process outputs and an alternative hypothesis indicates nonequality.
Through a hypothesis test a decision is made whether to reject a null hypothesis or not to reject a null hypothesis.
When a null hypothesis is rejected, there is a [a] risk of error. Most typically there is no risk assignment when we fail to reject the null hypothesis. However, an appropriate sample size could be determined such that failure to reject the null hypothesis is made with [ß] risk of error.

[I]

I-MR Chart
A type of Control Chart for variable data that plots individual data and the moving range of present and previous individual data.

Indifference Quality Level (IQL)
Where the quality level is somewhere between AQL and RQL. This is frequency defined as quality level having a probability of acceptance of 0.50 for a sampling plan

Inherent Process Variation
The scope of process variation due to common causes only.

Interaction
A description for the measure of the differential comparison of response for each level of a factor at each of the several levels of one or more other factors.

Internal Rate of Return
The Internal Rate of Return, or IRR, is a popular measure used in capital budgeting. The IRR is a measure of profitability. By definition, the IRR is a discount rate that makes the present value of cash flows equal to the initial investments. In simple terms, the IRR is a discount rate that makes the NPV equal to zero. The rate below which projects are rejected is called the cut-off rate, the target rate, the hurdle rate, or the required rate of return. Firms determine their cut-off rates by the cost of financing and the riskiness of the project. Next, they predict future cash flows and calculate the IRR. If the calculated IRR exceeds the cut-off rate, the project is added to the list of recommended investments. The higher the IRR, the more attractive is the project.

ISO-9000
A standard created by the International Standards Organization (ISO) to help ensure that organizations have quality procedures and that they follow them. ISO 9000 does not tell you what quality should be or describes a recommended quality system.

[J]

Jurans Trilogy
Juran's Trilogy
Quality Planning
Quality Control
Quality Improvement

[L]

Kaizen
Kaizen is a Japanese term meaning continuous improvement by doing little things better and setting and achieving increasingly higher standards.

Kaizen Event (or Kaizen Blitz):
A Kaizen Event occurs when an operation team works together to improve a specific operation. It typically involves a detailed description of the current state of the selected operation, developing the Kaizen plan for improvement, implementing the plan, following-up to confirm that the plan was carried out fully and correctly, and reporting to management on the event and its accomplishments.

Kanban
Pulling a product through the production process. This method of manufacturing process-flow-control only allows movement of material by pulling from a preceding process. Inventory is kept low. Then quality errors are detected, there is less product affected.

KPIV - Key Process Input Variable
Factors within a process correlated to an output characteristic(s) important to the internal or external customer. Optimizing and controlling these is vital to the improvement of the KPOV.

KPOV - Key Process Output Variable
Characteristic(s) of output of a process that are important to the customer. Understanding what is important to the internal and external customer is essential to identifying KPOVs.

[L]

Lack of fit
A value determined by using one of many statistical techniques stating probabilistically whether data can be shown not to fit a model. Lack of fit is used to assess the goodness of fit of a model to data.

Lambda plot
A technique to determine a data transformation when analyzing data.

Lean
An approach to producing products or services focusing on reducing total cycle time and costs by reducing waste, improving flow, and striving for excellence.

Lean Enterprise
Focusing on the identification and reduction of waste throughout the entire organization and involving both suppliers and customers in the effort.

Lean Manufacturing
A manufacturing process involving tools such as value-stream mapping and workflow diagrams without considering either supplier or customer processes. The methodology used to implement the Lean production philosophy.

Least squares
A method used in regression to estimate the equation coefficients and constants so that the sum of squares of the differences between the individual responses and the fitted model is a minimum.
The least squares method of arriving at the straight line gives the "best fitting" line. The equation for the line can be computed using either a direct method or a coded method.

Linearity
Linearity is the difference in the bias values through the expected operating range of the gauge. For a linearity evaluation, one or more operators measure parts selected during the operating range of the measurement instrument.

Location parameter (Xo)
A parameter in the three-parameter Weibull distribution that equates to the minimum value for the distribution.

Loss function
The concept of loss function (Taguchi 1978) describes the loss experienced when a process does not produce a product that meets a target expectation or value. Loss is less when there is no variability in the process, and the best response is evident in all areas of product design.

[M]

Malcolm Baldridge National Quality Award
An annual award to recognize US companies for performance excellence. The President of the United States presents the awards, which may be given in each of three categories: Manufacturing Companies, Service Companies and Small Businesses. It uses criteria in seven areas to select recipients: Leadership, Strategic Planning, Customer and Market Focus, Information and Analysis, Human Resource Focus, Process Management, and Business results.

Marginal Analysis
Optimum quality is reached at the point where the incremental revenue from improvement equals the incremental cost to secure it.

MC**2
More Customers and Cash

Mean - Arithmetic
The arithmetic mean, often called the mean, is the most widely used average. The mean of a set of ungrouped observations is the sum of all the observations divided by the total number of observations.

Mean - Control chart
A line in the middle of the control chart that shows the middle of the range of acceptable variation of the process.

Mean - Geometric
There are two main uses of the geometric mean (1) to average percents, indexes, and relatives; and (2) to determine the average percent increase in sales, production, or other business or economic series from one time period to another.
The geometric mean of a set of n positive numbers is defined as the nth root of the product of n numbers.

Mean - Statistical
The mean of a sample (x) is the sum of all the responses divided by the sample size. The mean of a population (µ) is the sum of all responses of the population divided by the population size. In a random sample of a population, [x] is an estimate of the u of the population.

Mean square
Sum of squares divided by degrees of freedom.

Mean time between failure (MTBF)
A term that can be used to described the frequency of failures in a repairable system with a constant failure rate. MTBF is the average time that is expected between failures MTBF = 1/failure rate.

Measurement Systems Analysis
Analysis of the complete process of obtaining measurements. This includes the collection of equipment, operations, procedures, software and personnel that affects the assignment of a number to a measurement characteristic. Includes, but is not limited to, Gauge R&R.

Median
For a sample, the Median is the number that is in the middle when all observations are ranked in magnitude. For a population, the Median is the value at which the cumulative distribution function is 0.5.

Monte Carlo Simulation
Monte Carlo simulation This simulation "performs" the project many times and uses the network diagram and estimates to simulate the cost or schedule results of the project.
Simulation - Uses a model that translates the uncertainties specified at a detailed level into their potential impact on total project.
Monte Carlo analysis can also help deal with "path convergence", places in the network diagram where multiple paths converge into one or more tasks, thus adding risk to the project.

Muda
A Japanese term indicating efforts that do not add value (waste). some categories of muda are defects, over production or excess inventory, idle time and poor layout.

Multi-vari chart
A chart that displays the variance within units, between units, between samples and between lots. It is useful in detecting variation sources within a process.

Mutually Exclusive
Two events are said to be mutually exclusive if they cannot both occur in a single trial.

[N]

Nested data
An experiment design where the trials are not fully randomized sets. In lieu of full randomization, trials are structured such that some factor considerations are randomized within other factor considerations.

Net Present Value (NPV)
The present value of a project's future cash flow less the initial investment in the project. If the NPV is either zero or positive the project should be accepted. If the NPV is less than 0 (negative) , the project should be rejected.

NPV = PV - I
Where PV = present value, and I = initial outlay

Nominal group technique (NGT)
A voting procedure to expedite team consensus on relative importance of problems, issues, or solutions.

Normal Distribution
A normal distribution is the most common probability density distribution chart that is in the shape of a bell curve and is used to measure variation. A distribution of data described by the mean and standard deviation. The curve displaying the distribution of data is shaped like a bell, with the area under the curve representing 100% of all possible observations. A bell-shaped distribution that is often useful in describing various physical, mechanical, electrical and chemical properties.

Null hypothesis (Ho)
See - Hypothesis testing

[O]

One-sided test
See - Single-sided test

One-way analysis of variance
See - Single-factor analysis of variance

Opportunity costs
The opportunity given up by selecting one choice or project over another.

Outlier
A data point that does not fit a model because of an erroneous reading or some other abnormal situation.

[P]

Pareto Diagram
The Pareto Chart is a histogram, ordered by frequency of occurrence, that shows how many results were generated by each identified cause. A graphical technique used to quantify problems so that effort can be expended in fixing the ""vital few"" causes, as opposed o the "trivial many"

Pareto Analysis
The Pareto diagram is based on the 80/20 rule - 80% of the problems will come from 20% of the work. - The chart presents the information being examined in its order of priority and helps focus attention on the most critical issues.
- Prioritizes potential ""causes"" of the problem
- Separates the critical few from the uncritical many.

Pareto principle
80% of the trouble comes from 20% of the problems (i.e., the vital few problems)

Pass/Fail functional test
A test strategy described in this text to determine whether a failure will occur given that the response is s logic pass/fail situation. See Response.

Passive Analysis
Data collected and analyzed as the process is currently performing, without adjustments to the process, to determine KPIVs.

Passive data analysis
Data is collected and analyzed as the process is currently performing. Process alterations are not assessed.

Percent (%) R&R
The percentage of process variation related to the measurement system for repeatability and reproducibility.

Percent of tolerance
Percent of tolerance is the percentage of the part tolerance related to the measurement system for repeatability and reproducibility.

Poisson distribution
A distribution that is useful, for example, to design reliability tests where the failure rate is considered to be constant as a function of usage.

Poka-Yoke
A Japanese term indicating a mechanism that either prevents a mistake from occurring or makes a mistake obvious at a glance.

Population
The totality of items under consideration.

Pp
This is the performance index which is defined as the tolerance width divided by the process performance, irrespective of process centering. Usually, this is defined as the tolerance width divided by six times the sample standard deviation.

Pp
should only be used to compare to or with Cp and Cpk and to measure and prioritize improvements over time.

Ppk
This is the performance index which accounts for process centering. Ppk should only be used to compare to or with Cp and Cpk and to measure and prioritize improvements over time.

PPM - Parts per Million Opportunities
A defect-per-unit calculation giving additional insight into a process by including the number of opportunities for failure. When this is done, the metric is DPMO. Care must be taken in estimating the number of opportunities for defects in a process.

Present Value
In its simplest form, PV means the value today of future cash flows, and can be found by the formula below.: PV = FV/(1 + r) n
Where FV = future value
r = interest rate
n = number of time periods

Probability
The likelihood that something will occur, usually expressed as a percent. Please refer to "Probability - Scales of

Probability - Scales of
Scales of probability refers to the method used to apply values to the probability of risk occurrence. For example, one could use a scale of 1 to 10, with 10 being the greatest probability of occurrence. In two dimensional risk analysis, scales should be established for the probability of occurrence as well as the impact of consequence. Impact may be defined qualitatively on a scale such as: Very low, low, moderate, high, very high, or quantitatively as : 1 - 10, with 10 being the greatest impact.

Probability (P)
A numerical expression for the likelihood of an occurrence.

Probability Density Function (PDF) [F(x)]
A mathematical function that can model the probability density reflected in a histogram.

Probability Distribution
A formula, table or graph providing the probability associated with each value of the random variable if the random variable is discrete or providing the fraction of measurement in the population falling in specific intervals if it is continuous. A probability distribution is a mutually exclusive listing of the outcomes of an experiment which can occur by chance and the corresponding probabilities of occurrence.

Probability Plot
Probability plots are most often associated with tests to assess the validity of normality assumptions. When data are plotted in a straight line on a normal probability plot, the data are presumed to be from a normal, bell-shaped curve.

Problem Solving
What is the real problem behind the situation presented?
- Define the cause of the problem, not just the symptoms.
- Analyze the problem
- Identify solutions
- Implement a decision
- Review the decision and confirm that the decision solved the problem

Process
A method to make or do something that involves a number of steps.

Process Capability
A measure of the ability of a process to produce output that is within the customer requirement or specification. See - Cp and Cpk

Process capability indices
[Cp and Cpk) Cp = A measurement of the allowable tolerance spread divided by the actual 6[s] data spread.
Cpk has a similar ratio to that of Cp except that this ratio considers the shift of the mean relative to the central specification target.

Process flow diagram
A chart with a path of steps of work used to produce or do something.

Process performance
The 6 (sigma) range of the total variation of a process, where (sigma) is usually estimated by s, the sample standard deviation.

Producers risk
See - Alpha [a] risk

Project selection methods
There are three project selection methods worth mentioning:
1. Benefit measurement methods (comparative approach)
2. Constrained optimization method (mathematical approach)
3. Financial Analysis

[Q]

QFD - Quality function deployment
Quality function deployment or the "house of quality" is a tool that can be used to give direction on what should be done to meet the needs of the customer. It is a tool that can aid in translating customer requirements into basic requirements that have direction.

Qualitative factor
A factor that has discrete levels. For example, product origination where the factor levels are supplier A, supplier B, and supplier C.

Qualitative risk analysis
The process of assessing the impact and likelihood of identified risks. This process prioritizes risks according to their potential effect on objectives.

Quality - defined
What is Quality?
- Quality is defined as conformance to requirements and fitness of use.
- The project must produce what it said it would produce and what it produces must satisfy real needs.
- Quality must be planned into the project, not inspected in at the end.

Quality - Impact of Poor Quality
If you have poor quality, you will have:
- Increased costs
- Low morale
- Lower customer satisfaction
- Increased risks
Increases in quality can result in increased productivity and cost effectiveness and decreased cost risk.

Quality - Responsible for
The entire organization has responsibilities relating to quality.
- the project manager has the ultimate responsibility for the quality of the product of the project.
- Each team member must check his or her own work - self inspection
- Senior management has the ultimate responsibility for quality in the organization as a whole.
Work should meet the project requirements and testing should be done whenever appropriate before submission.

Quality Assurance
Quality assurance is primarily done during the executing phase of the project. It involves: - The process of evaluating overall performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards.
- Re-evaluating quality standards, methods and procedures used on the project
- Quality audits - A structured review of quality activities that identifies lessons learned.


Quality Audits
Quality Audits are structured reviews of other quality management activities. The objective of a quality audit is to identify lessons learned that can improve performance of the project, or of other projects within the organization.

Quality Control
Quality control involves analysis of the "correctness" of the work. Quality control is done during the controlling phase of the project and its focus is on the correctness of work. Quality control includes:
- The process of monitoring (inspecting, checking) specific project results to determine if they comply with relevant quality standards and to identify way to eliminate causes of unsatisfactory performance.
- Performance of the measurement or process, using quality control tools or checking the work.

Quality control measurements
The results of quality control measurements are analyze for quality improvement. These measurements are records of quality control testing and monitoring delivered in a format useful for comparison and analysis.

Quality Control Tools
Quality control tools include:
- Inspection - checking quality after work is complete
- Pareto diagram
- Fishbone diagram
- Checklists
- Statistical sampling
- Control charts
- Flowcharting
- Trend analysis - examining project results over time to evaluate performance

Quality Management
Quality management is the processes required to ensure that the project will satisfy the needs for which it was undertaken. Quality management includes quality planning, quality assurance and quality control.

Quality Policy
The quality policy must be determined and established by the management of the performing organization. The policy must reflect the overall intentions, philosophy and direction of the organization with regard to policy. If there is no formal quality policy in the organization, then the project management team should develop a quality policy for the project.

Quantitative factor
A factor that is continuous. For example, a product can be manufactured with a process temperature factor between 50 degrees Celsius and 80 degrees Celsius.

[R]

Regression analysis
Data collected from an experiment are used to empirically quantify through a mathematical model the relationship that exists between the response variable and influencing factors. In a simple linear regression model, y = b0 + b1x + E, where x is the repressor, y is the expected response, b0 and b1 are coefficients, and E is random error.

Regression or Regression Analysis:
A defined process for quantifying and modeling the output of a process relative to its input variables. It estimates the relationship between inputs and outputs of a process and produces mathematical model of that relationship. Its use can lead to a better understanding of the critical factors controlling the equality of the process output.

Rejectable quality level
(RQL) The level of quality that is considered unsatisfactory when developing a test plan.

Repeatability
The variation in measurements obtained with one measurement instrument when used several times by one appraiser while measuring the identical characteristic on the same part.

Replication
Test trials that are made under identical conditions.

Residuals
In an experiment the differences between experimental responses and predicted values that are determined from a model are considered residuals.

Response
Three basic types of responses are: continuous, attribute, and logic: pass/fail.
Continuous - A response is continuous if any value can be taken between limits
Attribute - A response is attribute if the evaluation takes on a pass/fail proportion output
Logic - A response is logic (pass/fail) if combinational considerations are involved to either always cause an event to pass or fail.

Response surface methodology
Response surface methodology (RSM) is used to determine how a response might be affected by a set of quantitative variables or factors over a given region. This information is useful for optimizing the parameters of a process to produce maximum or minimum response.

Risk - Common causes
If several risks are driven by the same internal or external cause, the discovery may uncover real opportunities to reduce or eliminate two or more potential risks with a single response.

Risk - Data Precision ranking
How well is the risk understood - Before project managers can use the risk information collected they must also analyze the precision of the data
- How reliable is? This may include the following activities and that each risk be rated for its precision (or accuracy of occurrence)
- Extent of the understanding of the risk
- Data available about the risk
- Quality of the data
- Reliability and integrity of the data

Risk Assumptions
Before a project manager can use the risk information collected, all assumptions made regarding the risk must be identified and tested. Testing includes evaluating the stability of each assumption and consequences if each assumption is false.

Risk Categories
Risk categories are a list of common sources of risks experienced by the company or on similar projects. The categories help analyze and identify risks on each project. There are many ways to classify or categorize risk:
- Technical, quality or performance risks (changes in technology, etc)
- Project management risks
- Organizational risks
- External risks (regulatory, environmental, market, etc)
- Internal (time, cost, unforeseen conditions, scope changes, people, etc)
- Unforeseeable ( only about 10% are in this category)

Risk Factors
When looking at risk, one should determine:
- The probability that it will occur - what
- The range of possible outcomes (impact or amount at stake)
- Expected timing (when) in the project life cycle
- Anticipated frequency of risk events from that source (how often)

Risk gathering techniques
There are several ways to identify risks or gather a list of potential risks to the project.
- Brainstorming - A group of experts trade ideas about potential risks
- Delphi technique - A group of anonymous experts provide information regarding potential risks
- Interviewing - Expert interviewing - a team or project manager interviewing experts to identify risks on a project or specific element of work.
- SWOT - strengths, weaknesses, opportunities and threats analysis will also help us to identify potential risks


Risk Identification
Risk identification is defined as determining which risks might affect the project and documenting their characteristics. All stakeholders and experts internal and external to the company may be involved in risk identification. Sometimes the core team may begin the process and then others may become involved, making risk identification an iterative process.

Risk Management
The processes involved with identifying, analyzing and responding to risk. It includes maximizing the results of positive events and minimizing the consequences of adverse events.

Risk Management Plan
The risk management plan defined how the risk process will be structured and performed during the project life cycle.

Risk Management Planning
Risk management planning is the process of deciding how to approach and plan the risk management activities for a project. The project manager, team, customer, stakeholders, experts and others will review any templates and procedures that exist for risk management, determine how risk management will be handled on the current project and develop a risk management plan.

Risk management policy
The organization's risk management policy must be determined and established by the management of the performing organization. The risk policy must reflect the overall thresholds, philosophy and tolerance of the organization with regard to particular project. If there is no formal risk policy in the organization, then the project management team should develop a risk policy for the project to be authorized by management.

Risk Management Process
The risk management process included six steps:
- Risk management planning
- Risk identification
- Qualitative risk analysis
- Quantitative risk analysis
- Risk response planning
- Risk monitoring and control

Risk Management Response
Avoidance - eliminating the cause to avoid risk impact
Transference - Shifting the consequence to a third party
Mitigation - Reduce the probability of risk by taking early action.
Acceptance - Do nothing to avoid risk, or create a contingency plan to address impact

Risk Owner
Each risk must be assigned to someone who will help develop the risk response and who will be assigned to carry it out or "own" the risk. The risk owner is then free to take predetermined action when risks occur resulting in faster action and less cost, time and other impacts on the project.

Risk Probability and Impact
One of the ways to help rank risks is to analyze the probability of a risk occurring and the effect (or impact or consequences) of the risk on the project.
- Determine the probability of each risk occurring - usually in the form of an educated guess (low, medium or high or scale of 1 - 10)
- Determine the consequences (amount at stake, or impact) of each risk occurring - also in the form of an educated guess (low, medium or high or scale of 1 - 10)

Risk Rating Matrix
In order to sort or rate risks so a determination can be made as to which risks will move through the risk process, a risk rating matrix may be used. Such a matrix results in a consistent evaluation of low, medium and high (or some scale) for the project and for all projects, an improvement in the quality of the data and the risk rating process being more repeatable between projects.

Risk Response Audit
Examining and documenting the effectiveness of the risk response and the person managing (owning) the risk. This is an important step in order to see if the plans put in place are effective and if changes are needed. An audit allows lessons to be learned for the project and for other projects in the organization

Risk Response Planning
This step involves figuring out what we are going to do about the identified risk. It involves finding ways to make the negative risk smaller or eliminate it entirely, as well as finding ways to make positive risks more likely or greater in impact. All risks cannot be eliminated at this step.

Risk threshold
Risk threshold refers to the level of tolerance that can be expected in risk-taking. The highest risk value acceptable. A cut-off point for risk tolerance.

Risk tolerance
The amount of risk that is acceptable (tolerance level). Please see "Risk Threshold". This level of risk tolerance of the organization has great influence on the latitude given to risk response planning.

Risks - types of
Risks can be classified under two main types:
1 - Business - Risk of a gain or loss
2 - Pure (insurable) risk - Only a risk of loss (i.e..: fire, theft, personal injury, etc)

Robust Process
A process with output variability that is not sensitive to the normal variation from its input variables.

Rolled Throughput Yield
Rolled Throughput Yield (Y-rt) is a yield metric that measures the probability that a unit of product will make it through a series of opportunities defect-free. It is calculated by multiplying the Throughput Yields at each opportunity for a defect.

Rule of Seven
The rule of seven is a rule of thumb or heuristic. It refers to non-random data points grouped together in a series that total seven on one side of the mean. The rule of seven tells you that although none of these points are outside of the control limits, they are not random and the process is out of control. An assignable cause. This is a data point, or rule of seven, that requires investigation to determine the cause of the variation.

Run Chart
A run chart or time series plot permits the study of observed data for trends or patterns over time, where the x-axis is time and the y-axis is the measured variable.

[S]

S.M.A.R.T
An acronym for guidelines in creating goals and strategies: S-Specific, M-Measurable, A- Agreed upon and Attainable, R- Realistic and Rewarded, T- Timely.

Sample
A selection of items from a population.

Sample size
The number of observations made from a population, or the number of items taken from a population.

Sampling distribution
A distribution derived from a parent distribution by random sampling.

Satellite-Level
Used to describe a high level business metric that has infrequent subgrouping/sampling such that short-term variations, which might be cause by KPIVs, will result in charts that view these perturbations as common cause issues. (Smarter Solutions)

Scatter diagram
A plot to assess the relationship between two variables. Also know as scatter plot, or dispersion graph.

Secular trend
A component of time series, which is described as the smooth movement of a series over a long period of time.

Sensitivity Analysis
Sensitivity analysis is a popular way to find out how the NPV of a project changes if sales, labor or material costs, the discount rate, or other factors vary from one case to another. In simple terms, sensitivity analysis is a "what if" study. What if the Interest changes from 10% to 12% when comparing the NPV of two projects? Notice the sensitivity in the percentage change.

Shewhart control chart
Dr. Shewhart is credited with developing the standard control chart test based on 3 Sigma limits to separate the steady components of variation from assignable causes.

Sigma
The Greek letter [a] that is often used to describe the standard deviation of data.

Sigma (3 or 6)
Sigma is another name for standard deviation. 3 or 6 sigma represents the level of quality that a company has decided to try to achieve. At 6 sigma, only 1 out of 10,000 doors produced will have a problem. At 3 sigma, 27 out of every 10,000 will have a problem.
- 3 and 6 sigma are also used to calculate the upper and lower control limits in a control chart.

Sigma level or Sigma quality level
A quality that is calculated by some to describe the capability of a process to meet specification. A Six Sigma quality level is said to have 3.4 ppm rate.

Sigma Quality Level
A metric calculated by some to describe the capability of a process relative to its specification. A Six Sigma quality level is said to have a 3.4 ppm defect rate.

Significance
A statistical statement indicating that the level of a factor causes a difference in a response with a certain degree of risk of being in error.

Single-factor analysis of variance
One-way analysis of variance with two levels (or treatments) that is to determine if there is s significant difference between level effects.

Single-Sided Test
A statistical consideration where, for example, an alternative hypothesis is that the mean of a population is less than a criterion value.

SIPOC
SIPOC stands for suppliers, inputs, process, outputs, customers. A SIPOC diagram is a tool used by a team to identify all relevant elements of a process improvement project before work begins. It helps define a complex project that may not be well-scoped and is typically employed in the measure phase of DMAIC.

Six Sigma
A term coined by Motorola that emphasizes the improvement of processes for the purpose of reducing variability and making general improvements.

SPC - Statistical process control
SPC is a technique for collecting and studying process data to monitor and improve process performnce using statistical signals. The application of statistical techniques in the control of processes SPC is often considered a subset of SQC, where the emphasis in SPC is on the tools associated with the process but not product acceptance techniques.

Special Cause
Variation in process from a cause that is not an inherent part of that process. That is, it is not a common cause.

Special causes
See - Sporadic problem

Specification
A criterion that is to be met by a part or a product.

Specification Limits
Specification limits represent the customer's expectations or contractual requirements for performance and quality. Specification limits will be outside the control limits on the control chart if the project can meet the specification limits. They will be within the control limits on the control chart of the project cannot meet the specification limits.

Sporadic problem
A problem that occurs in a process because of an unusual condition (i.e., from special causes). An out-of-control condition in a process control chart.

SQC - Statistical quality control
The application of statistical techniques in the control of quality. SQC includes the use of regression analysis, tests of significance, acceptance sampling, control charts, distributions, etc.

Stability
Stability (or drift) is the total variation in the measurements obtained with a measurement system on the same master or parts when measuring a single characteristic over an extended period of time.

Standard deviation
A mathematical quantity that describes the variability of a response. It equals the square root of the variance. The standard deviation of a sample (s) is used to estimate the standard deviation of a population (sigma).

Standard error
The square root of the variance of the sampling distribution of a statistic.

Statistical Independence
The probability of one event occurring does not affect the probability of another event occurring.

Statistical Sampling
Statistical sampling is inspecting by choosing only part of a population - a sample. For example, we will study only 5% of the tables made to determine if we have met the quality standards for all the tables.

Stress test
A test of devices outside usual operating conditions in an attempt to find marginal design parameters.

Sum of squares (SS)
The summation of the squared deviations relative to zero, to level means, or the grand mean of an experiment. A deviation can be the difference between the value of an observation in a sample and the sample average.

[T]

t Test
A statistical test that utilizes tabular values from the t distribution to assess, for example, whether two population means are different. Target I-MR Chart
A type of Control Chart for variable data that plots individual data as a difference from a target and the moving range of the present and previous individual differences.

Theory of Constraints (TOC)
The theory of constraints presents the thought process for a system where focus is placed on reducing system bottlenecks resulting in continuous process improvement of the overall system performance.

Thirty thousand (30,000) Foot-Level
A Six Sigma KPOV, Critical to Quality (CTQ), or Y variable response that is used to describe a high level project or operation metric that has infrequent sub grouping/sampling such that short-term variations, which might be cause by KPIVs, will result in charts that view these situations as common cause issues. A 30,000 foot-level XmR chart can reduce the amount of fire fighting in an organization when used to report operational metrics.

Throughput Yield
[Ytp] A measure of process performance at an opportunity. It is a measure of the probability of that opportunity being correct with no rework.

Time Series - definition
Loosely defines, time series are the records of sales, production, etc., over a given period of time. The time period can be years, months, weeks, days, etc. Time series analysis is used to make long-term and short-term forecasts.

Time series plot
See - Run chart

Tolerance
The difference between the Upper Specification Limit [USL] and the Lower Specification Limit [LSL].

Total process variation
This variation is due to both common and special causes. This variation may be estimated by s, the sample standard deviation, using all of the individual readings obtained from either a detailed control chart or a process study.

TQM - Total Quality Management
TQM is a philosophy that encourages companies and their employees to focus on finding ways to continuously improve the quality of their business practices and products.

Two-sided test
See - Double-sided test

Type I error
See - Alpha [a] risk

Type II error
See - Beta [b] risk

Type III error
The risk of answering the wrong question.

[U]

Uncertainty ( d= delta)
An acceptable amount of change from a criterion. The parameter is used when considering [ ß ] risk in sample size calculation.

Uncertainty
An uncommon state of nature, characterized by the absence of any information related to a desired outcome."

Unimodal
A distribution that has one peak.

[V]

Variable data
Data that can assume a range of numerical responses on continuous scale, as opposed to data that can assume only discrete levels.

Variables
Factors within a fractional factorial designed experiment or response surface experiment.

Variance
A measure of dispersion of observations based upon the mean of the squared deviations from the arithmetic mean.

Variance - statistical variance
A measure of dispersion of observations based upon the mean of the squared deviations from the arithmetic mean. The variance is the square of the Standard Deviation.

[W]

Weibull distribution
This distribution has a density function that has many possible shapes. The two-parameter distribution is described by the shape parameter (b) and the location parameter (k). This distribution has an X-intercept value at the low end of the distribution that approaches zero. (i.e., zero probability of a lower rate). The three-parameter has, in addition to the other parameters, the location parameter (Xo) which is the lowest x-intercept value.

Worst-case tolerance
The overall tolerance that can be expected if all mating components were at worst-case conditions.

[Z]

Z Chart
Z Chart - Standardized variables control chart. A graphical plot of standard values (Z) can be useful as a control chart for some situations. This type of chart facilitates the examination of multiple processes on the same chart.

[A]

Activity attributes
The attributes of the activity lend themselves to facilitating useful activity ordering and sorting, especially in the WBS classification process. Examples of activity attributes are: responsibility (performer of the work), Location (place of work), and activity type (summarized or detailed work).

Activity Duration Estimating
Activity Duration Estimating invloves estimating the number of work periods that will be needed to complete individual activities. See Analogous, Bottom-up, and Parametric.

Activity Durations - Logical Relationships
"A dependency between two project activities, or between a project activity and a milestone. The four possible types are:
FS - Finish-to-Start
FF - Finish-to-Finish
SS - Start-to-Start
SF - Start-to-Finish

Activity Sequencing
Identifying and documenting interactivity logical relationships

Actual Cost - ACWP
Actual Cost (AC) was formerly known as Actual Cost of Work Performed (ACWP). The actual cost incurred for the work performed as at the given time.

Additional risk identified
During the ongoing process pf measuring and reporting project performance, potential risks not identified earlier may eventually come to light. A reimplementation of the six risk processes should be done for every new risk presented.

ADM - Arrow Diagramming Method or AOA
ADM = Arrow Diagramming Method -(AOA = Activity-on-arrow) also know as Activity-on-Line. This method of constructing a project network diagram uses arrow to represent the activities and connects them at nodes to show their dependencies.

Adminsitrative Closure
Completing the project as stated in the project plan. Collecting and finalizing all the paperwork needed to complete the project and technical work to verify that the product of the project is acceptable. Generating, gathering, and disseminating information to formalize closing phase or project completion.

Advertising
To attract additional sellers, an advertisement may be placed in newspapers, magazines and other media. The US Govt is required to advertise most of its procurements

Analogous (Top down) Estimating
Using the actual duration of previous, similar activity as a basis for estimating the duration of a future activity. This is generally less costly and less accurate than other techniques. Top or middle managers use expert judgment or actual time and cost of a previous, similar project as the basis for estimating the current project. Analogous estimating is a form of expert judgment.

Application Area
Application areas are usually defined in terms of either the product of the project, or the type of customer (internal vs external) . Application areas often overlap.

Assumptions
Assumptions are factors that, for planning purposes, are considered to be true, real, or certain. Assumptions affect all aspects of project planning, and are part of the progressive elaboration of the project. Project teams frequently identify, document, and validate assumptions as part of their planning process. Assumptions generally involve a degree of risk.

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

Attribute Sampling
Attribute is the measurement (in inches, pounds, etc) that will tell if the sample is acceptable. Attributes can be subjective or objective and are the specific characteristics for which a product is built.

[B]

Bar charts
Bar charts typically used to create Gantt chart, do not show logical relationships between activities.

Baseline
The baseline should be used to monitor the progress of the project, and forecasts of final cost and schedule should be compared to it. Project baselines may be changed by formally approved changes, but the evolution of the baseline should be documented.

Baseline Plan
The original approved plan (for a project, a work package, or an activity), plus or minus approved scope changes. Usually used with a modifier (e.g., cost baseline, schedule baseline, performance measurement baseline).

Benchmarking
Looking at past projects to determine ideas for improvement and to provide a measure of quality performance.

Benefit Cost Ratio (BCR)
The BCR compares the benefits to the costs of different projects where benefits are the same as revenue, or sometimes referred to as "payback" A BCR of >1 means the benefits are greater than the costs. A BCR of <1 means the costs are greater then the benefits. A BCR of 1 means the costs and the benefits are the same. If a project has a BCR of 1.7 it means the "payback" is 1.7 times the costs.

Benefit-Cost Analysis
Considering the benefits versus the costs of quality requirements.

Bidders' Conference
A meeting with prospective sellers to make sure that they all have a clear and common understanding of the procurement. Sellers have a chance to ask questions. PM should look out for the following:
- Collusion
- Sellers not acking their questions in front of their competition
- Put all questions and answers in writing and issue to all potential sellers as an addendum to the procurement documents.

Bottom-up Estimating
Involves estimating the cost of individual activities or work packages, then summarizing or rolling up the individual estimates to get the project total. Accuracy is driven by size of work items being estimated. Smaller items increase both cost and accuracy. With this technique people doing the work create cost and schedule estimates. Estimates based on WBS are rolled up to get a project total.

Budget at Completion - BAC
BAC - The sum of the total budgets for a project. The entire budget allocated for the project.

Budget Estimate
This type of estimate is usually made during the planning phase and is in the range of -10% to +25% from actual.

[C]

Calendars
Project and resource calendars are important to the project schedule in that it provides the days and hours during which productive work may be scheduled. Resource calendars will specify when the resource is available, and project calendar may specify applicable workdays and holidays to be considerd during scheduling.

Cause and Effect Diagram
Ishikawa Diagram or Fish Bone - Illustrates how various factors might be linked to potential problems or effects. Refer to fishbone for more info.

Change Control Board
A change control board is formed to review change requests to determine if additional analysis is warranted. They aslo approve or reject project changes. The board may include the project manager, customer, experts, sponsor, and others.

Change Control System
A change control system is a collection of formal, documented procedures, paperwork, tracking systems and approval levels for authorizing changes. A change control system includes both hard (procedures) and soft (management practices) aspects.

Change Request
Change requests are identified in project plan execution and handled in integrated change control. They are usually formal documents submitted by anyone on the project after the project has been approved.

Chart of accounts
In Accounting, an accounting chart of accounts provides description of the numerical coding system organizations use to report financial information journalized in their general ledger.

Checklist - Risk
In Risk Identification - Tool A listing of many possible risks that might occur on a project. It is used as a tool in the risk identification process. Checklists are comprehensive, listing several types of risk that have been encountered on prior projects.

Checklist Quality
In Quality Control - Input In Quality Planning - Output. The Checklist contains of a list of items to inspect or a picture of the item to be inspected with space to note any defects found.

Code of Accounts
Any numbering system used to uniquely identify each element of the work breakdown structure.

Communication Channels
Communications grow ata greater than linear rate (exponentially) and are represented by the following formula: Channels = (Nx (N-1)) /2 Where N equals the number of people.
The intent is for the project manager to realize that communications are complex and need to be managed but cannot be controlled.

Communication Methods
Communications occur internal and external to the core project team and vertical and horizontal within the organization. A decision regarding whether the communciations needs to be formal, informal, written or verbal needs to be made for each instance of communication.

Communication requirements
Communication requirements constitutes the collective list of infromation requirements from all the project stakeholders. The value of the information will dictate its importance and the format in which it will be delivered to the stakeholder.

Communication Styles
Eilene Russo - There are two basic elements or dimensions of communication style: Assertiveness and Expressiveness.
- Assertiveness has three degrees: Aggress, Assert and Accommodate
- Expressiveness has two degrees: Expressive and Non-Expressive

Communications Management Plan
This plan is an output of Communications Planning. This plan is created by the projrct manager and become part of the project plan.For most projects this plan should be in writing and the individual needs of each stakeholder must be taken into account. The purpose of the plan is to inform all stakeholders how and in what form communications will be handled on the project.

Communications Model
The communications model designs like a circle with three parts: the sender, the message and the receiver. Each message is encoded by the sender and decoded by the receiver based on the receiver's education, experience, language and culture.
The sender should encode a message carefully, determine the communications method used to send it, and confirm that the message is understood.
The receiver should decode the message carefully and confirm that the message is understood.

Communications Planning
Communications planning involves determining the information and communications needs of the stakeholders. 90% of the project manager's time is spent communicating

Communications Technology
The means and methods to transfer information back and forth between project team members and stakeholders may be either formal or informal, electronic or manual.

Compression - Duration
Please refer to Duration compression

Configuration Management
Configuration management may be considered rigorous change management as it relates to scope. It is therefore a tool of integrated change control. Configuration management is any documented procedure used to apply technique and administrative direction and surveillance of changes to the infrastructure.
In many application areas, configuration management is a subset of the change control system and is used to ensure that the description of the project's product is correct and complete. In other application areas, change control refers to any systematic effort to manage project change.

Conflict Management
A project manager should be proactive, look for problms and conflicts and then deal with them before their impact on the project expands. Conflict is not necessarily bad, and may actually present opportunity for the project to improve. Root causes for conflict in order of frequency include:
- Schedules, Project priorities, Resources, Technical resources, Administrative procedures, Cost, Personality

Conflict resolution techniques
Conflict is best resolved by those invloved in the conflict. The project manager should generally try to resolve problems and conflict as long as he or she has authority over those in conflict or the issues in conflict. If the problem is greater, then functional manager or senior manager may intervene. Only in the case of violating professional responsibility should the manager go over the head of the persons in conflict. There are several techniques for conflict resolution: Confronting (problem solving), Compromising, Smoothing, Withdrawing , Forcing, and Avoidance

Constraints
Applicable restriction that will affect the performance of the project. Any factor that affects when an activity can be scheduled. Constraints are factors that limit the project team's options such as resources, budget, schedule and scope. Consytraints are identified and managed and are inputs to many aspects of project management. A single project may contain cost, time, human resource and other constraints.

Contingency Planning
The development of a management plan that identifies alternative strategies to be used to ensure project success if specified risk events occur.

Contingency Plans
Planned responses to risks, or putting in place the contingency plans set up during risk response planning.

Continuous Improvement
Kaizen - Small improvements in products or processes to reduce costs and ensure consistency of performance of products or services.

Contract - definition
A contract is a legally binding document. All terms and conditions of the contract must be met. The contract refers to the entire agreement between both parties. It includes legal language as well as business terms regarding payment, reporting requirements, marketing literature, the proposal and scope of work - all the requiremens of a project. Any changes to the contract must be approved by both parties and formal change to the contract must be issued in order to be effective.

Contract adminstration
Contract adminsitration consists of assuring that the seller's performance meets contractual requirements. The project manager must read and understand the contract and manage, or help manage, its administration. The terms and conditions of the contract include the work that needs to be done.

Conflict
In some situation another person is in charge of the contract. This is the contracting officer or contract administrator, the only person who has the authority to change the contract. There are sometimes conflict between this person and the project manager.

Contract Change Control system
A process for modifying the contract which should be included in the contract.

Changes
The change procedures in the contract must also be followed and all changes should be made formally as modifications to the contract.

Contract Closeout
Completion and settlement of the contract, including resolution of any open item. Contract closeout is done: When the contract ends, When a contract is terminated before the work is completed. Contract closeout should always occur before administrative closure.

Contract Requirements
Requirements to meet the legal definition of a contract are: An offer, Acceptance, Consideration, Legal capacity, and Legal purpose.

Contract Type Selection
Contract Types - There are generally four types of contracts:
- Cost Reimbursable - CR
- Time and Material - T& M (ie: Unit Price)
- Fixed-price - FP
- Purchase Order
Refer to each contract type in the glossary for more info

Contracting - centralized vs decentralized
There is centralized and decentralized contracting.
- In centralized contracting, a separate contracting office handles contracts for all projects.
- In decentralized contracing, a contract administrator (contracting officer) is assigned to each project.

Control - Process out of
The process is out of a state of statistical control under either of two circumstances:
- A data point falls ouside the upper and lower control limits, or
- Non-random data points that are still within the upper and lower control limits, such as the rule of seven.
Out of control represents a lack of consistency and predictability in the process.

Control Chart
Control charts are a graphic display of the results, over tome and against established control limits, of a process. They are used to determine if the process is "in control" or in need of adjustment. To create a control chart samples are taken, variables measured and attributes found. The attributes (eg: size) are plotted on the chart joined by lines.

Control Limits
Upper and Lower Limits - The acceptable range of variation of a process often shown as two dashed lines on a control chart. The acceptable range, between the upper and lower control limits is determined by the organization's quality standard (e.g.: 3 or 6 sigma). Data points within this range are generally thought od as "in control", and are an acceptable range of variation.

Corrective Action
Any action done (or changes made) to bring expected future performance in line with the project plan. Corrective action is accomplished by measuring performance and identifying the root causes of any variation. Corrective action is an input to the project plan execution process and an output from integrated change control process. Therefore, both executing and controlling involve taking corrective action, but only control includes measuring actions needed and taking further corrective action.

Cost baseline
A time-phased budget to measure and monitor cost performance.

Cost Estimating - Tools & Techniques
Estimating Methods include: Analogous (Top down) Estimating, Bottom-up Estimating, and Parametric modeling (estimating). Please see each technique individually.

Computerized estimating tools
Commerically available software estimating packages.

Cost Management Plan
After costs are estimated, the project manager must put in place a plan for effectively managing the project to the cost baseline and also manage cost variances. The cost management plan can be formal or informal.

Cost of Conformance and Nonconformance
Deming says that 85% of the costs of quality are the direct rsponsibility of management. Specifically, these costs are: Cost of Conformance and Cost of NonConformance.
Cost of Conformance includes: - Quality training; - Studies; - Surveys
Cost of NonConformance includes: - Rework; - Scrap; - Inventory costs; - Warranty costs

Cost of Quality
Looking at how the costs of conformance and noncorformance to quality will cost the project and creating an appropriate balance. Costs of quality include prevention costs, appraisal costs and failure costs.

Cost Performance Index - CPI
The cost efficiency ratio of earned value (EV) to actual costs (AC). CPI is often used to predict the magnitude of a possible cost overrun usinf the following formula: BAC/CPI = projected cost at completion. [CPI = EV/AC]

Cost Reimbursable - CR
BUYER bears the highest risk for cost. The seller's costs are reimbursed but the buyer has the most cost risk because the total costs are unknown. This form of contract is often used when the buyer can only describe what they need rather than what they do (when complete scope of work or requirements are unknown). The seller will therefore write the detailed scope of work.
This type of contract involves payment (reimbursement) to the seller for its actual costs, plus typically a fee representing seller profit. Costs are usually classified as direct or indirect costs.
Cost reimbursable contracts often include incentives for meeting or exceeding selected project objectives, such as schedule targets or total cost. See: Cost-Plus-Fixed, Cost-Plus-incentive, Cost-Plus-Percentage, and Cost-Plus-Award .

Cost Variance
CV = EV - AC - Cost variance tells how much the project is within budget or over budget.

Cost-Plus-Fixed Fee Contract (CPFF)
This is the most common form of cost reimbursable contract. In this form: 1. the buyer pays all the costs, but 2. the fee (or profit) is fixed at a specific dollar amount. This helps to keep the seller's costs in line because... 3. a cost overrun will not generate any additional fee or profit. 4. Fees will change with approved change order.

Cost-Plus-Incentive-Fee (CPIF) Contract
This type of cost reimbursable contract 1. buyer pays all costs and an agreed upon fee, 2. plus a bonus for beating the incentive.

Costs - Variable
Variable costs are any costs that change with the amount of production or the amount of work - cost of material, supplies and labor.

Costs - Fixed
Fixed costs are costs that do not change as production changes. - set up costs, rental, etc.

Costs - Direct
Direct Costs are directly attributable to the work on the project. - team travel, team wages, recognition and costs of material used on the project.

Costs - Indirect
Indirect costs are overhead items or costs incurred for the benefit of more than one project. - taxes, fringe benefits and janitorial services.

CPAF - Cost Plus Award Fee
This type of cost reimbursable contract 1. buyer pays all costs and 2. an apportionment of a bonus based on performance. This contract is very similar to the CPIF contract.

CPM - Critical Path Method
A network analysis technique used to predict project duration by analyzing which sequence of activities (which path) has the least amount of scheduling flexibility (the least amount of float).
CPM calculates a single, deterministic early and late start and finish date for each activity based on specified, sequential network logic and a single duration estimate. The focus of CPM is calculating FLOAT to determine which activities have the least scheduling flexibility. Early dates are calculated by means of a forward pass, using a specific start date. Late dates are calculated by means of a backward pass, starting from a specified completion date (usually the forward pass' calculated project early finish date).

CPM - Estimating Duration
CPM does not refer to finding the critical path. It refers to estimating based on one time estimate per activity. When estimating using a one-time estimate, one estimate per task is received. This method uses the most likely time estimate. Please also see - Estimating Methods for more info.

CPPC - Cost Plus Percentage of Costs
This is an illegal form of contract for the US government and is bad for buyers everywhere. This type of cost reimbursable contract requires 1. the buyer to pay for all costs plus a percent of the costs as a fee. Sellers are not motivated to control costs because the seller will get paid profit for every cost without limit.

Crashing
Shorten project duration by adding resources. Taking action to decrease the total project duration after analyzing a number of alternatives to determine how to get the maximum duration compression for the least cost. Adding more resources to the critical path tasks while maintaining scope. This can take the form of moving resources from noncritical tasks or adding extra resources to the task from outside the project. Crashing almost always results in increased costs.


Critical path
The critical path is the longest duration path through a network diagram, and shows earliest completion of a project. It can be derived using CPM, PERT, or Monte Carlo Analysis. After the network diagram has been created and the tasks estimated the critical path may be derived.

[D]

Data precision
Precision refers to the level of accuracy of the knowledge available on any given risk. It measures the accuracy of available data, as well as the validity of the data. The integrity of the source of data that was used to identify the risk must also be evaluated.

Decision Tree Analysis
The decision tress is a diagram that describes a decision under consideration and the implications of choosing one or another of the available alternatives. It incorporates probabilities or risks and the costs or rewards of each logical path of events and future decisions.
- A decision tree takes into account future events in trying to make a decision today
- It calculates the expected value (probability times consequences) in more complex situations
- It involves mutual exclusivity of events
Please refer to Expected Monetary Value (EMV) for more info.

Decomposition
Decomposition involves subdividing the major project deliverables or sub-deliverables into smaller, more manageable components until the deliverables are defined in sufficient detail to support development of project activities. Decomposition in Activity definition generates activity steps, while decomposition in Scope definition generates deliverables.

Definitive Estimate
This type of estimate is made during the planning phase and is in the range of -5% to +10% from actual. Project managers should note the difficulty of estimating within -5% and +10% of actual

Delphi Technique
A method most commonly uses to obtain expert opinions on technical issues, scope of work needed, estimates or risks. The technique, developed by Normal Dalkey and Olaf Helmer is a creativity technique intended to overcome the undesired effects of group interactions while retaining the positive effects of interactive group judgments.
Procedure - A panel of experts is formed to study a particular question. The panelists are kept apart so that their judgments will not be influences by social pressures or other psychoilogical aspects of group behavior. Panelists answer a carefully designed questionnaire seeking their opinion about future events. The responses are reviewed and a summary returned to the panelists for their second analysis. This continues until further revisions fail to yield new results.

Deming 7 Diseases
Deming's seven diseases in behavorism:
- Lack of constancy of purpose
- Emphasis on short-term profits
- Personal review systems
- Job-hopping
- Manage only by numbers
- Excess medical costs
- Excess liability costs

Denimg's PDCA Cycle
1 - Plan improvements for present practices
2 - Do - Implement the plan on a small scale
3 - Check - Verify the results of the plan
4 - Act - Corrective action on the opportunity, standardize and feed forward to the next plan

Dependencies - project tasks
The sequence of tasks depends on the following three dependencies:
Mandatory Dependency (hard logic)
- Inherent in the nature of the work being done (e.g.: design before construct)
Discretionary Dependency (Preferred, Preferential or Soft Logic)
- Based on experience, desire or preferences
External Dependency
- Based on the needs or desires of a party outside the project (e.g.: government or suppliers)

Depreciation Methods
Large assets (e.g. equipment) purchased by a company lose value over time. There are two forms of depreciation methods:
Straight Line Depreciation - the same amount of depreciation is taken each year
Accelerated Depeciation. There are two forms of accelerated depreciation
- Double declining balance
- Sum of the Year Digits
Accelerated depreciation recognizes depreciates faster than straight line depreciation.

Design of Experiments (DOE)
The use of experimentation of "what if" scenarios to determine what variables will improve quality.

Diagramming Methods
PDM=Precedence Diagramming Method; (AON = Activity-on-node); PDM doesn't use dummies.
Dependencies: F-S, F-F, S-S, S-F
ADM = Arrow Diagramming Method; (AOA = Activity-on-arrow); ADM uses dummies.
Conditional Diagramming Techniques
- GERT = Graphical Evaluation and Review Technique
- System Dynamics Model


Direct and Indirect Costs
Costs can be either direct or indirect:
Direct Costs - Costs that are directly attributable to the work on the project. - team travel, team wages, recognition and costs of material used on the project.
Indirect Costs - Overhead items or costs incurred for the benefit of more than one project. - taxes, fringe benefits and janitorial services.

Discretionary dependencies
Refer to- Dependencies, types of

Dummy Activity
An activity of zero duration used to show a logical relationship in the arrow diagramming method (ADM). Dummy activities are used when logical relationships cannot be completely or correctly described with regular activity arrows. Dummies are shown graphically as a dashed line headed by an arrow

Duration compression
Shortening the project schedule without reducing the project scope. Duration compression is not always possible and often requires an increase in project cost. Duration compression includes techniques such as Crashing and Fast Tracking
Reasons: When during planning the customer requires a completion date that cannot be met or during project execution when the project manager needs to bring the project back in line with the schedule baseline or to adjust the project for changes.



[E]

Earned Value - EV - (BCWP)
Previously called the Budgeted Cost of Work Performed (BCWP) for an activity or group of activities. It is the estimated value of the work actually accomplished as at the given time.
Earned Value - The physical work accomplished plus the authorized budget for this work. The sum of the approved cost estimates (may include overhead allocation) for activities (or portions of activities) completed during a given period (usually project-to-date).

Earned Value Management (EVM)
Earned value is a technique used to integrate the project scope, schedule and resources as well as to measure and report project performance. It compares the amount of work that was planned with what was actually earned with what was actually spent to determine if cost and schedule performance are as planned.

Estimate at Completion - EAC
EAC - The expected total cost of an activity, a group of activities, or the project when the defined scope of work has been completed. Most techniques for forecasting EAC include some adjustment of the original cost estimate, based on actual project performance to date. A forecast of the most likely total project costs based on project performance and risk quantifiction.

Estimate to Complete - ETC
The expected additional cost needed to complete an activity, a group of activities, or the project. Most techniques for forecasting ETC include some adjustment to the original estimate, based on project performance to date. Also called "estimated to complete". The formula is: EAC - AC; Where EAC = (BAC/CPI) and CPI = EV/AC

Estimates - Accuracy Ranges
When one estimates, the estimate should come with an indication of the range of possible results, especially at the project level. There are three levels of estimating accuracy:
1. Order of Magnitude Estimate = - 25% to +75% range to actual
2. Budget Estimate = - 10% to + 25% range to actual
3. Definitive Estimate = - 5% to + 10% range to actual

Estimating publications
Cost estimating techniques and approaches may be acquired by researching commercially available information from appropriate suppliers of resources, or on the Internet.

Evaluation Criteria
Evaluation criteria are included in the procurement documents to give the seller an understancing of the buyer's needs and help them decide if they should bid or make a proposal on the work. Evaluation criteria are not commonly used in an Invitation for Bid (IFB) (Fixed Price) situation since the lowest bidder or lowest responsible bidder is usually selected.

Expectancy Theory
Employee who believe that their efforts will lead to effective performance and who expect to be rewarded for their accomplishments remain productive as rewards meet their expectations.

Expected Monetary Value (EMV)
The EMV or expected value is the product of two numbers, probability and consequences (impact or the amount at stake)

Expert judgment
Expert judgment or expert opinion is always helpful when considering the requirements of project initiation and several other processes during the project life cycle. Expert opinion or judgment, constitute knowledge or subject matter expertise from past projects or real-life experiences. It provides added value to the final decision-making process. Expert opinion and judgment are usually provided by stakeholders and individuals internal and external to the project, with expertise in the field.

[F]

Fait accomplis
Decisions made earlier which limit the options for decision making. Fait Accompli - A done deal - Constraint

Fast Tracking
Compressing the project schedule by overlapping activities that would normally be done in sequence, such as design and construction. Eg: Doing critical path tasks in parallel that were originally planned in series. Fast tracking often results in rework, usually increases in risk and requires more attention to communications. Please refer to Crashing and Resource leveling.

Feedback
Feedback is any response, positive or negative, to the effect of an operation, process, product or service. An organization should solicit internal and external feedback on its goods and services. The project team should always use expectations from those outside the project as a external feedback by which to measure its performance.

Firm Fixed-Price (FFP) Contract
A type of contract where the buyer pays the seller a set amount (as defined by the contract), regardless of the seller's costs. Also called "Fixed-Price Contract". See "Fixed-Price contracts" for more info"

Fish Bone Diagram - Ishikawa
This is a quality planning tool if used to determine what will define quality on the project. The diagram illustrates how various causes and sub-causes relate to create potential problems.
- A creative way to look at the causes and potential causes of a problem
- Helps stimulate thinking, organizes thoughts and generates discussion
- Can be used to explore the factors that will result in a desired future outcome.
Same as "Cause and Effect Diagram".

Fixed Costs
Costs that do not change as production changes. - set up costs, rental, etc. Fixed-Price Contract - FP
FP, Lump Sum, Firm Fixed Price (SELLER has the cost risk) This is the most common form of contract in the world. Most appropriate when buyer can describe the scope of work. This category of contract involves a fixed total price for a well-defined product. To the extent that the product is not well defined, both the buyer and the seller are at risk. Fixed-price contracts may also include incentives for meeting or exceeding selected project objectives, such as schedule targets.See also: FPIF - Fixed Price Incentive Fee, FPEPA - Fixed Price Economic Price Adjustment

Float - Slack
Also called slack, total float, and path float. The amount of time that an activity may be delayed from its early start without delaying the project finish date. Float is a mathematical calculation, and can change as the project progresses and changes are made to the project plan. Tasks on the critical path almost always have zero slack. Critical path tasks that are delayed or have dictated dates can result in negative slack.

Float - Free Slack
The amount of time that an activity can be delayed without delaying the early start of any immediately following activities (successors).

Float - Total Slack
The amount of time that an activity may be delayed from its early start without delaying the project completion date.

Float - Project Slack
the amount of time a project can be delayed without delaying the externally imposed project completion date required by the customer or management, or previously committed to by the project manager.



Flowchart
Flowcharts depict workflow and process flow through a system. They are used for quality, engineering and other work.

Flowcharting
Showing how the process or system flows from beginning to end and how the elements interrelate. It is used in quality planning to analyze potential future quality problems and determine quality standards. It is used in quality control to analyze quality problems.

Forming
The first stage of group or individual development characterized by orientation and testing. Major Processes:
- Development of attraction bonds
- Exchange of information
- Orientation towards others and the situation.

FPEPA - Fixed Price Economic Price Adjustment
Sometimes a fixed price contract 1 - allows for price increases if the contract is for multiple years.

FPIF - Fixed Price Incentive Fee
There are also incentives for fixed price contracts (same as CPIF) A type of contract where: 1 - the buyer pays the seller a set amount (as defined by the contract), and 2 - the seller can earn an additional amount if it meets defined performance criteria.

Functional Manager Role
The amount of involvement of the functional manager depends on the type of organizational structure.In a matrix organization the responsibility to direct the work of individuals is shared with the project manager.

Functional organization
The most common form of organization.
- A hierarchy where each employee has one clear superior
- Members are grouped into specialty
- The percieved scope of the project is limited to the boundaries of the organization.
- Project manager's authority is little or none in scope. And the title is usually a ProjectCoordinator
- There are virtually no full time personnel assigned to projects.

[G]

Gantt (bar) chart
Gantt charts are weak planning tools, but effective tools for progress reporting and control. They are not project plans. Gantt charts are completed after the WBS and the network diagram.

General management skills
General management skills include: Leading - Establishing direction, Aligning people, Motivating and inspiring; Communicating - Written, oral, and listening skills; Addressing Internal and external, formal and informal audiences; Communicating verbally and horizontally in the organization; Negotiating - Ability to confer with others to reach appropriate agreement; and Problem solving - Problem definition and decision-making abilities; Influencing the organization - Ability to influence others to get thing done.

GERT- Graphical Evaluation and Review Technique
A network analysis technique that allows for conditional and probabilistic treatment of logicial relationships (i.e, some activities may not be performed). This method allows loops between tasks.

Gold plating
Gold plating means giving the customer extra. (extra functionality, high-quality components, extra scope of work, etc). Gold plating adds no value to the project. The project team should focus on producing what the project is committed to and only that..NO EXTRA

[H]

Hammock
An aggregate or summary activity (a group of related activities is shown as one and reported at a summary level). A hammock may or may not have an internal sequence.

Heuristics
A heuristic is a "rule of thumb".

Historical Information
Historical information (or data) is a record of past projects. It is used to plan and manage future projects, thereby improving the process of project management.

[I]

Identified Risks
Risks identified and documented during the risk identification process of Risk Management . Identified risks should be considered throughout all the planning processes of the project.

Incentive Clauses - in Contracts
Incentive clauses in contracts allow an incentive (or bonus) on top of the agreed upon price for beating cost, time, performance, scope of work or quality. An incentive helps bring the seller's objectives in line with those of the buyer. With an incentive both buyer and seller work toward the same objective, for instance, completing the project on time.

Information Distribution
This means implementing the communications management plan by distributing information to project stakeholders through reports, presentations and formal and informal communications.

Initiating phase
Initiating is the first step in the project management process. It includes all the work necessary to identify the project product and create a project charter and assign the authority of the project manager.

Inputs to Other Processes
Inputs to other processes are usually outputs deliverables from pocesses other than the process being examined. Process outputs include all base documents and deliverables that may serve as an initial input to other processes.

Integrated Change Control
The overall focus of integrated change control is to meet performance baselines, make changes, and coordinate changes across the knowledge areas.

Internal Rate of Return
The Internal Rate of Return, or IRR, is a popular measure used in capital budgeting. The IRR is a measure of profitability. By definition, the IRR is a discount rate that makes the present value of cash flows equal to the initial investments. In simple terms, the IRR is a discount rate that makes the NPV equal to zero. The rate below which projects are rejected is called the cut-off rate, the target rate, the hurdle rate, or the required rate of return. Firms determine their cut-off rates by the cost of financing and the riskiness of the project. Next, they predict future cash flows and calculate the IRR. If the calculated IRR exceeds the cut-off rate, the project is added to the list of recommended investments. The higher the IRR, the more attractive is the project.

ISO 9000
A standard created by the International Standards Organization (ISO) to help ensure that organizations have quality procedures and that they follow them. ISO 9000 does not tell you what quality should be or describes a recommended quality system.

[J]

Juran's Trilogy
Quality Planning; Quality Control; Quality Improvement

Just in Time
This is an approach to decrease the amount of inventory that a company carries, thereby decreasing investment in inventory.

[K]

Kick-Off Meeting
A meeting of all parties to the project (customers, sellers, project team, senior management, agencies, functional management, sponsor). It is held at the end of the planning phase just before beginning work on the project. This is a communications and coordination meeting to make certain everyone is familiar with the details of the project and the people working on the project. Topics may include introductions, a review of the project risks, mmunications plan and meeting schedule.

[L]

Leadership Styles
Project management is heavily dependent on managing people, therefore the project manager must adopt the appropriate leadership style in order to successfully manage the team.

Leads and Lags
Lead: The successor activity starts a few days before the preceeding activity is completed. This is a finish-to-start relationship.
Lag: A planned or scheduled delay between two activities due to some required constraint or process requirement. A lag is an inserted waiting time between tasks. For example, you must wait three days after pouring concrete before constructing the frame of the house.

Lessons Learned
A lessons learned is a document that discusses what was done right, wrong and what would be done differently if the project could be done over again. It should cover three areas:
- Technical aspects of the project
- Project management (how did we do with the WBS creation, risk, etc?)
- Management (How did we do with communications and leadership as a project manager?)
The lessons learned from past or ongoing projects are an input into many of the project planning processes for future projects under the title "historical records".

Letter of intent.
This is not normally a contract but simply a letter, without legal binding, that says the buyer intends to hire the seller. Life Cycle Costing The life cycle costs refers more to the costs incurred during the operations and maintenance phase of the project. If the life cycle costs are not considered during the project, project costs may be low at the expense of greater overall costs for the rest of the life of the project.

[M]

Make or Buy Analysis
The company should decide whether or not the cost savings of one action outweighs the cost savings of the other.
- If substantial risk is reduced by taking one action over the other
- If more control is retained by making instead of buying
- If proprietary information or procedures need protecting

Management by Objectives (MBO)
A management philosophy that says an organization should be managed by objectives. It has three steps:
1. Establish unambiguous and realistic objectives
2. Periodically evaluate if objectives are being met
3. Take corrective action
If the project is not in line with or does not support the corporate objectives, the project is likely to lose resource, assistance, and attention. MBO works only of management supports it.

Management Reserve
An amount of time or money set aside to cover risk.

Marginal Analysis
Optimum quality is reached at the point where the incremental revenue from improvement equals the incremental cost to secure it.

Market conditions
During the procurement planning process much thorugh should be given to what products and services are available on the market, who are the suppliers, and what are the terms and conditions in acquiring those products and services.

Maslow's Hierarchy of Needs
Maslow's message is that people do not work for security or money. They work to contribute and to use their skills - self-actualization. Maslow's pyramid of needs describes this hierarchy.
- Self actualization: self-fulfillment, growth, learning
- Esteem: accomplishment, respect, attention, appreciation
- Social: love, affection, approval, friends, association
- Safety: security, stability and freedom from harm
- Physiological: need for air, water, food, housing and clothing

Master Schedule
A summary-level schedule that identifies the major activities and key milestones.

Matrix Organization - Balanced
Matrix organizations have a degree of blend between functional and projectized structure. In a balanced matrix the power is shared between the Project Manager and the Functional Manager.
- The balanced matrix organization has a conservatively blend of the projectized and functional organizations.
- The project manager's role is full time in scope and authority considered low to moderate.
- There is about 15-60% full time staff assigned to any project.
- There is usually a Project manager or Project officer assigned.

Matrix Organization - Strong
Matrix organizations have a degree of blend between functional and projectized structure. In a strong matrix power rests with the project manager.
- The strong matrix organization has many characteristics of the projectized organization.
- The project manager's authority id moderate to high in scope
- The project manager is assigned full time to the project
- There is about 50 - 95% full time staff assigned to any project.
- There is usually a Project Manager or Program Manager assigned
- Administrative staff is full time assigned.

Matrix organization - tight
A tight matrix has nothing to do with a matrix organization. It simply refers to locating the offices of the project team in the same room.

Matrix organization - Weak
Matrix organizations have a degree of blend between functional and projectized structure. In a weak matrix, power rests with the functional manager.
- The weak matrix organization has many characteristics of the functional organization.
- The project manager's authority is limited in scope, and role is part-time.
- There is about 0 - 25% full time staff assigned to any project.
- There is usually a Project coordinator or Project Leader as opposed to a project manager.

Mean
A line in the middle of the control chart that shows the middle of the range of acceptable variation of the process.

Milestone charts
Milestone charts are good tools for reporting major deliverables to senior management and the customer. These are similar to bar charts but only show major events. Milestones have no durations; they are simply the completion of activities. Shows dates of significant events on the project.

Milestones
A milestone is a major event or deliverable planned in the project schedule. The milestone has no duration, and serves only as an indication as to when that event or deliverable is scheduled to occur.

Monte Carlo Analysis
A technique that performs a project simulation many times to calculate a distribution of likely results. This method of estimating uses the computer to simulate the outcome of a project based on PERT estimates (optimistic, pessisimistic, most likely) and the network diagram, but do not use the PERT formula.
This simulation "performs" the project many times and uses the network diagram and estimates to simulate the cost or schedule results of the project.
Monte Carlo analysis can also help deal with "path convergence", places in the network diagram where multiple paths converge into one or more tasks, thus adding risk to the project.

Motivation Theory - McGregor
McGregor believed that all workers fit in one of two groups: X and Y. Depending on which group one is in motivation is displayed accordingly.
- Theory X states: People need to be watched every minute. People are incapable, avoid responsibility and avoid work whenever possible.
- Theory Y states: People are willing to work without supervision and want to achieve. People can direct their own efforts.

Mutually Exclusive
Two events are said to be mutually exclusive if they cannot both occur in a single trial.

[N]

Net Present Value: (NPV)
The present value of a project's future cash flow less the initial investment in the project. If the NPV is either zero or positive the project should be accepted. If the NPV is less than 0 (megative) , the project should be rejected. NPV = PV - I Where PV = present value, and I = initial outlay

Network Analysis
The process of identifying early and late start and finish dates for the uncompleted portions of project activities

Network Diagram
Also logic diagram or network logic. Network diagrams include PERT, CPM, PDM charts. They show how the project tasks will flow from beginning to end. A network diagram is completed after the project charter, project staffing and WBS

Network logic
Network logic diagram. A network logic is the collection of activity dependencies that makes up a project network diagram

Network Logic and Float
Network Logic The collection of activity dependencies that makes up a project network diagram.

Normal Distribution
A normal distribution is the most common probability density distribution chart that is in the shape of a bell curve and is used to measure variation.

Norming
The third stage of individual and group development characterized by a sense of heightened solidarity. Major Proceses: Development of group structure, Increased cohesiveness and harmony, Establishment of roles and responsibilities.

[O]

Operations definitions
Operation definitions relates to the characteristics of an operation, or a product, and how its quality level can be measured by the quality control process.

Opportunity costs
The opportunity given up by selecting one project over another.

Order of Magnitude Estimate
This type of estimate is usually made during the initiating phase and is in the range of -25% to + 75% from actual.

Organizational Policies
Formal or informal organizational policies that may have some impact on project management decision-making process must be considered. Typically, policies governing the following should be reviewed:
Quality management - process audits, continuous improvement targets
Personnel adminsitration - recruiting guidelines and performance reviews
Financial controls - reporting, expenditure and disbursement reviews, accounting standards and contract provisions.

Organizational procedures
These are the formal and/or informal written procedures established within the performaning organization and made available to guide the project team during the project execution processes.

Organizational Structures
1 - Functional Organization
2 - Matrix Organization
- Weak Matrix
- Balanced Matrix
- Strong Matrix
3 - Projectized Organization

Other Planning Outputs
Other planning outputs are deliverables from planning pocesses other than the process being examined. Planning outputs include all base documents and deliverables that may serve as an initial input to other processes.

Other process outputs
Other proces outputs may represent inputs to the process being examined. These are outputs from other processes which may have important contribution to the initiation of the current process.

[P]

Parametric Estimating
An estimating technique that uses a statistical relationship between historical data and other variables (e.g., square footage in construction, lines of code in software development) to calculate an estimate.

Parametric Modeling (estimating)
Uses a mathematical model to predict project costs. There are two types of parametric estimating approaches:
- Regression analysis - scatter diagram
- Learning Curve
An estimating technique that uses a statistical relationship between historical data and other variables (eg: sq ft, code lines, etc) to calculate an estimate. (eg: regression analysis and learning curves)

Pareto Diagram
The Pareto Chart is a histogram, ordered by frequency of occurrence, that shows how many results were generated by each indentified cause.

Pareto Analysis
The Pareto diagram is based on the 80/20 rule - 80% of the problems will come from 20% of the work.
- The chart presents the information being examined in its order of priority and helps focus attention on the most critical issues.
- Prioritizes potential "causes" of the problem.
- Separates the critical few from the uncritical many.

Path Convergence
The node in the schedule where parallel paths merge or join. At that node, delays or elongation of any converging path can delay the project. In quantitative risk analysis of a schedule, significant risk may occur at this point.
P [A] * P[B] * P[C] = P[D]
0.50 * 0.50 * 0.50 = .125
where paths [A, B, C] converge to form path [D].

Payback Period
Payback period is the number of time period it takes to recover an investment in the project before it begins to accumulate profit. The shorter the payback period, the more attractive the project.


PDM - Precedence Diagramming Method or AON
PDM - A network diagramming technique in which activities are represented by boxes (or nodes). Activities are linked by precedence relationships to show the sequence in which the activities are to be performed. PDM includes 4 types of dependencies:
FS = Finish to Start
FF = Finish to Finish
SS = Start to Start
SF = Start to Finish

This technique is also called Activity-on-Node (AON). This method adds leads and lags to relationships.

PDM=Precedence Diagramming Method
(AON = Activity-on-node). PDM doesn't use dummies. Dependencies: F-S, F-F, S-S, S-F

Percent Complete (PC)
An estimate, expressed as a percent, of the amount of work that has been completed on an activity or a group of activities.

Performance measurement documentation
During administrative closure all project documents such as those developed for recording and analyzing performance, and all planning documents describing the protocols for performance measurement, should be made available for delivery to the project owners.

Performance Measuring and Reporting
Performance measuring and reporting involves:
- Continually measuring project performance using variance and trend analysis, earned value, PERT or CPM
- Distributing information
- Holding performance reviews
- Identifying and analyzing trends and variances
- Taking corrective action
- Issuing change requests

Performance Reporting
Reports should provide the kinds of information and the level of detail required by stakeholders. Reports are communications tools and may include:
- Status report - describing where the project now stands
- Progress report - describing what has been accomplished
- Trend report - examining project results over time to see if performance is improving or deteriorating
- Forecasting report - predicting future project status and performance
- Variance report - comparing actual results to planned
- Earned value - integrating scope, cost and schedule measures to assess project performance.

Performing
The fourth stage of individual and group development heralded by increased cooperation, problem solving and task performance. Major Processes:
- Group energy is focused on productivity
- Decisions made with full participation of all
- Emotionalism is minimized

PERT - Program Evaluation and Review Technique
An event-oriented network analysis technique used to estimate program duration when there is uncertainty in the individual activity duration estimates. PERT applies the critical path method using durations that are computed by a weighted average of optimistic, pessimistic, and most likely duration estimates. PERT computes the standard deviation of the completion date from those of the path's activity durations. This method has three estimates per activity: - Optimistic, Pessimistic; Most likely.
PERT is superior to CPM because it requires three time (or cost) estimates per task and uses the distribution mean instead of the most likely estimate alone. Also known as the Method of Moments Analysis.

Planned Value - BCWS
Planned value (PV) was formerly known as Budgeted Cost of Work Scheduled (BCWS). The estimated value of the work planned to be done as at the given time.

Present Value
In its simpliest form, PV means the value today of future cash flows, and can be found by the.formula below.:
PV = FV/(1 + r) n, Where FV = future value, r = interest rate, n = number of time periods

Preventive action
Preventive action is any initiative taken to reduce the probability of occurrence, and minimize the potential impact of project risk events.

Probability
The likelihood that something will occur, usually expressed as a percent. Please refer to "Probability - Scales of"

Probability - Scales of
Scales of probability refers to the method used to apply values to the probability of risk occurrence. For example, one could use a scale of 1 to 10, with 10 being the greatest probability of occurrence. In two dimensional risk analysis, scales should be established for the probability of occurrence as well as the impact of consequence. Impact may be defined qualitatively on a scale such as: Very low, low, moderate, high, very high, or quantitatively as : 1 - 10, with 10 being the greatest impact.

Problem Solving
What is the real problem behind the situation presented?
- Define the cause of the problem, not just the symptoms.
- Analyze the problem
- Identify solutions
- Implement a decision
- Review the decision and confirm that the decision solved the problem

Process Groups - 5
There are five process groups which encompass the nine project management areas:
1 - Initiating - Authorizing the project or phase
2 - Planning - Defining/refining objectives
3 - Executing - Carrying out the plan (activities and tasks)
4 - Controlling - Monitoring and measuring progress
5 - Closing - Formalizing acceptance of project or phase


Procurement Audit
A procurement audit (lessons learned) is a structured review of the procurement process from procurement planning through contract administration. The objective of the procurement audit is to identify successes and failures that warrant transfer to other procurement items on this project or to other projects within the performing organization. The seller may be involved in procurement audits or lessons learned activities.

Procurement Documents
Bid Documents - The documents put together by the buyer to tell the seller its needs. Procurement documents may take one of the following forms: RFP - Request for Proposal , IFB - Invitation for Bid (Request for Bid) , RFQ - Request for Quotation .

Procurement Management
Procurement management includes the processes required to acquire goods and services from outside the performing organization.

Procurement Management Plan
An output of Procurement Planning. A formal or informal component of the project plan that describes how solicitation planning through contract closeout will be managed.

Procurement resources
The project mananagement team may have to supply the resources and the expertise to perform procurement manangement activities if the performing organization does not have the required procurement or contracting group.

Product documentation
Product documentation provides a comprehensive description of the project product. This should be available for review by the project management team and stakeholders. This includes all paper documents and electronic files used to describe the products of the project. All these documents must be available for review by stakeholders, and all affectd by the project.

Program - Definition
A program is a group of projects managed in a coordinated way.

Program management information system - PMIS
A PMIS is an all-encompassing phrase to mean the system set up in advance that keeps the project manager informed of the statius of all project tasks. A PMIS consists of the tools and techniques used to gather, integrate and disseminate the outputs of project management processes.
A PMIS is critical to know what is really happening on the project and the real status of the project. It may contain manual and automated tools, techniques and procedures including reportng, meetings, management by walking around, asking questions and using a Gantt chart.

Progress Reporting
A progress report is a useful method to control costs. If a project is planned using WBS, we can use one of the following rules to estimate progress of each activity:
- 50/50 Rule - A task is considered 50% complete when it begins and gets credit for the remaining 50% only when it is completed.
- 20/80 Rule - A task is considered 20% complete when it begins and gets credit for the remaining 80% only when it is completed.
- 0/100% - A task does not get credit for partial completion, only full completion.

Project - Definition
The definition of a project may be expressed in these terms:
- A temporary endeavor with a beginning and an end
- It serves to create a unique product, service or result
- It is done for a specific purpose
- It is made up of interrelated activities
- It is progressively elaborated - meaning that distinguishing characteristics of each unique project will be progressively detailed as the project is better understood.

Project charter
A document issued by senior management that formally authorizes the existence of a project. And it provides the project manager with the authority to apply organizational rsources to project activities.

Project communication
Information collected regarding project performance from work results and other project records must be shared with project team and stakeholders. Various reports are used to monitor and control risks such as Issues Logs, Action-item Logs, Escalation notices, etc, are also shared with participants of the project team.

Project Coordinator
In an organization structure that uses project coordinator instead of project manager, the project coordinator (unlike the expediter) has some power to make decisions, some authority, and reports to a higher-level manager.

Project Expediter
In an organization structure that uses project expediter instead of project manager, the project expediter acts primarily as a staff assistant and communications coordinator. The expediter cannot personally make or enforce decisions.

Project Integration Management
- Project plan development
- Project plan execution
- Overall change control

Project Integrator - PM
Project Manager as Integrator. During execution, it is the team member's role to concentrate on completing the tasks, activities and work packages. The project sponsor or senior management should be protecting the project from changes and loss of resources. It is the project manager's role to integrate all the pieces of the project into a whole.

Project Life Cycle
This life cycle describes what you need to do to complete the work on the project. Project Management (PM) The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.

Project Management Information System - PMIS
A PMIS constitutes the mechanics and approaches (tools and techniques) used to collect, analyze, integrate, and distribute the deliverables (outputs) of the project management processes. The project management information system must consider all the requirements of project management processes from initiating, planning, executing, controlling to closing.

Project Management Life Cycle
This life cycle describes what is needed to be done to manage the project. It encompasses the the process groups: - Initiating; Planning; Executing; Controlling; and Closing.
For small projects these process groups may represent the entire project. For large projects they may represent life cycles repeated for ech phase of the project.

Project Manager Role in Organizations
Functional Organization - Little or none
Weak Matrix Organization - Limited
Balanced Matrix Organization - Low to moderate
Strong Matrix Organization - Moderate to high
Projectized Organization - High to total

Project Manager's Role
The Project Manager's role is to integrate all pieces of a project into a cohesive whole. It is senior management's responsibility to define the project and 'protect' it form adverse changes.

Project Network Diagram
Any schematic display of the logical relationships of project activities. Always drawn from left to right to reflect project chronology. Often referred to as PERT chart.

Project Office
A formal structure that supports project management within an organization and usually takes one of three forms:
- Providing the policies, methodologies and templates for managing projects within the organization.
- Providing support and guidance to others in the organization on how to manage projects, training others in project management or project management software and assisting with specific project management tools.
- Providing project managers for selected projects and being responsible for the results of the projects. All projects (or projects of a certain size, type or influence) are managed by this office.

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

Project Life Cycle
A collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project.

Project phases
There are five (5) project phases:
Initiate - Plan - Execute - Control - Close
The project phases collectively represent the life-cycle of a project.

Project Plan
A project plan is a multi-page document created by the project manager based on input from the team and stakeholders. It contains mostly charts and tables included in the list below. A project plan is used as a day-to-day tool to help manage the project. Though it may evlove and change over the life of the project, a project plan is designed to be as complete as possible when the project executing phase begins. Project planning is an ongoing effort throughout the life of the project.

Project Plan Approval
A project plan is a formal document that will be used to manage the execution of the project and includes items like project completion dates, milestones and costs. It will also include trakeholders needs and objectives and address all conflicting priorities. It must therefore receive formal approval (sign-off) by management, stakeholders and the project team before it can effectively begin.

Project Plan Development
Project plan development is the process of creating a project plan that is bought-into, approved, realistic and formal.

Project Plan Execution
This process involves carrying out the project plan. It makes up the majority of activities in the executing phase of the project and uses up the majority of the project budget. The project plan included all the efforts necessary to achieve work results and identify change requests.

Project Plan Updates
An input to integrated change control is an update to the project plan. A project plan must exist, be controlled to and formally updated. Changes to the work breakdown structure, network diagram, resources, schedule and cost will always occur, but also need to be controlled. A project plan is progressively elaborated even though the project manager should try to finalize it during planning.

Project Planning Methodology
Many companies have standard procedures, forms and guidelines for planning projects. These should be followed in planning the project.

Project Procurement Management
This includes the processes required to acquire goods and services, to attain project scope, from outside he organization.

Project Records
Project recorde include the following which describe the project:
- Correspondence
- Memos
- Documents
The information must be maintained appropriately, organized, and available for retrieval.

Project Selection Methods
There are three project selection methods worth mentioning:
1. Benefit measurement methods (comparative approach)
2. Constrained optimization method (mathematical approach)
3. Financial Analysis

Project Sponsor's Role
The sponsor's role may differ in different organizations, and the sponsor may sometimes be the customer or the owner of the project, but in general:
- Formally accepts the product of the project during scope verification and administrative closure
- May provide some key events, milestones and deliverable due dates
- Sponsor's threshold for risk should be acknowledged
- May provide financial resources for the project

Project Status
Project status is a measurement of how the project is progressing against expectations. With risk, the occurrence of a risk is often determined by the progress of the project through its life cycle. Potential risks may not surface early in the project, but as the project progresses and changes become evident, the status of the project becomes more vulnerable to risks and delays.

Project Team's Role
It is the team members' role to help plan what needs to be done and create time estimates for tasks, and complete the assigned tasks.

Project Type
Projects that are more complex and less frequent are more vulnerable to risks than are projects that are common and more frequently deployed. Risks are more manageable when we have similar templates and expertise from past projects to rely on for the project at hand.

Projectized Organization
The entire organization is by projects. The project manager has total control of projects. Personnel are assigned and report directly to the project manager.

Purchase Order Contract
A form of contract that is normally unilateral (signed by one party) instead of bilateral (signe by both parties). It is usually used for simple commodity procurements.

[Q]

Qualified seller lists
Some organizations maintain lists or files with information on prospective suppliers. The sellers' qualifications have been checked in advance and the companies' names are put on an approved or prequalified list. The procurement documents are then sent only to the prequalified sellers.These documents may contain additional information on suppliers' past experiences, performance and other qualifications and characteristics of the prospective sellers.

Qualitative risk analysis
Qualitative risk analysis is the process of assessing the impact and likelihood of identified risks. This process prioritizes risks according to their potential effect on project objectives. Performing a qualitative analysis of risks and conditions to prioritize their effects on project objectives. It involves assessing the probability and impact of project risk(s) and using methods such as the probability and impact matrix to classify risks into categories of high, moderate, and low for prioritized risk response planning.

Quality - defined
What is Quality?
- Quality is defined as conformance to requirements and fitness of use.
- The project must produce what it said it would produce and what it produces must satisfy real needs.
- Quality must be planned into the project, not inspected in at the end.

Quality - Impact of Poor Quality
If you have poor quality, you will have:
- Increased costs
- Low morale
- Lower customer satisfaction
- Increased risks
Increases in quality can result in increased productivity and cost effectiveness and decreased cost risk.

Quality - Responsibilty for
The entire organization has responsibilities relating to quality.
- The project manager has the ultimate responsibility for the quality of the product of the project.
- Each team member must check his or her own work - self inspection
- Senior management has the ultimate responsibility for quality in the organization as a whole.
Work should meet the project requirements and testing should be done whenever appropriate before submission.

Quality Assurance
Quality assurance is primarily done during the executing phase of the project. It involves:
- The process of evaluating overall performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards.
- Re-evaluating quality standards, methods and procedures used on the project
- Quality audits - A structured review of quality activities that identifies lessons learned.

Quality Audits
Quality Audits are structured reviews of other quality management activities. The objective of a quality audit is to identify lessons learned that can improve performance of the project, or of other projects within the organization.

Quality Control
Quality control involves analysis of the "correctness" of the work. Quality control is done during the controlling phase of the project and its focus is on the correctness of work.

Quality control measurements
The results of quality control measurements are analyze for quality improvement. These measurements are records of quality control testing and monitoring deliverd in a format useful for comparison and analysis.

Quality Control Tools
Quality control tools may include Inspection, Pareto diagram, Fishbone diagram, Checklists, Statistical samplin, Control charts, Flowcharting, Trend analysis, and others.

Quality Management
Quality management is the processes required to ensure that the project will satisfy the needs for which it was undertaken. Quality management includes quality planning, quality assurance and quality control.

Quality Policy
The quality policy must be determined and established by the management of the performing organization. The policy must reflect the overall intentions, philosophy and direction of te organization with regard to policy. If there is no formal quality policy in the organization, then the project management team should develop a quality policy for the project.

Quantitative Risk Analysis
Measuring the probability and consequences of risks and estimating their implications for project objectives. Risks are characterized by probability distributions of possible outcomes. This process uses quantitative techniques such as simulation and decision tree analysis. It represents a numerical analysis of the probability and consequences (amount at stake ot impacts) of the highest risks on the project.

[R]

Recruitment practices
Recruitment practice may sometimes create constraints on the ability of the porject management team to acquire a specific resource. Some organizations have specific recruitment polices and guidelines which govern staff acquisition and assignments. The project management team may need senior management's specific authorization to operate outside these policies.

Re-estimating
A project manager can investigate the task estimates that contain the most unknowns, eliminate or reduce these "risks" and thus decrease the estimate.

Residual Risk
A risk that remains after risk responses have been implemented.

Resouce Capabilities
Resource capability refers to the capacity of the individual resource and the value that it brings to the project. It is generally anticipated that a more experienced individual will provide mor value-added to project results. In some instances, automation of certain activities is anticipated to be more efficient than a manual approach.

Resource Gantt Chart
Shows WHEN staff is allocated to tasks

Resource Histogram
This graph show the number of resources used each month and is displayed in a bar chart format.

Resource Leveling
Any form of network analysis in which scheduling decisions (start and finish dates) are driven by resource management concerns (e.g., limited resource availability or difficult-to-manage changes in resource levels). Leveling resources lets schedule and cost slip in favor of having a stable number of resources each month. Leveling allows you to level the peaks and valleys of resource usage from one month to another resulting in a more stable number of resources used on the project. May be considered as schedule compression or duration compression.

Resource Planning
Resources must be planned and coordinated in order to avoid common problems such as lack of resources and resources taken away from the project. This involves determining what physical resources (people, equipment , materials) and what quantities of each should be used and when they would be needed to perform project activities. Resource Planning is a cost management process.

Resource Pooling
A resource pool should have a list of the various resources, what type they are, when they are available and in what volume they are available. The project management team needs to have knowledge of the availability of shared or critical resources especially in times of crisis. The amount of detail and specificity in the resource pool descriptions may vary from time to time.

Resource rates
In order to calculate project costs accurately, the project member responsible for preparing the estimates must be familiar with the unit rates of the resource being estimated.. Resource rates ca be acuired from the source providing the resource, or from historical information from previous similar usage of such resources in the past, while considering adjustments for inflation, price increases, etc.

Resource Requirements
Resource requirements is a description of what type of resources are required and in what quantities for each element at the lowest level of the WBS. Resource requirements for higher levels within the WBS can be calculated based on the lower-level values. Resource requirements is an output of Resource Planning.

Responsibiltiy Assignment Matrix - RAM
A structure that relates the project organization structure to the work breakdown structure to help ensure that each element of the project's scope of work is assigned to a responsible individual.

Retainage
A portion of a contract payment that is held until contract completion to ensure full performance of the contract terms.

Risk - Common causes
If several risks are driven by the same internal or external cause, the discovery may uncover real opportunities to reduce or eliminate two or more potential risks with a single response.

Risk - Data Precision ranking
How well is the risk understood. Before project managers can use the risk information collected they must also analyze the precision of the data - how reliable is is? This may include the following activities and that each risk be rated for its precision (or accuracy of occurrence)
- Extent of the understanding of the risk
- Data available about the risk
- Quality of the data
- Reliability and integrity of the data

Risk - Risk event
A risk is a discrete occurrence that may affect the project for good or bad. A good risk is called an opportunity.

Risk Acceptance
This technique of the risk response planning process indicates that the project team has decided not to change the project plan to deal with a risk, or is unable to identify any other suitable response strategy. It is a tool of the risk response planning process.

Risk Assumptions
Before a project manager can use the risk information collected, all assumptions made regarding the risk must be identified and tested. Testing includes evaluating the stability of each assumption and consequences if each assumption is false.

Risk Avoidance
Risk avoidance is changing the project plan to eliminate the risk or to protect the project objectives from its impact. It is a tool of the risk response planning process.

Risk Categories
Risk categories are a list of common sources of risks experienced by the company or on similar projects. The categories help analyze and identify risks on each project. There are many ways to classify or categorize risk: - Technical risks, Project management risks, Organizational risks, External risks, Internal, and Unforseable risks.

Risk Factors
When looking at risk, one should determine:
- The probability that it will occur - what
- The range of possible outcomes (impact or amount at stake)
- Expected timing (when) in the project life cycle
- Anticipated frequency of risk events from that source (how often)

Risk Gathering Techniques
There are several ways to identify risks or gather a list of potential risks to the project.
- Brainstorming - A group of experts trade ideas about potential risks
- Delphi technique - A group of anonymous experts provide information regarding potential risks
- Interviewing - Expert interviewing: a team or project manager interviewing experts to identify risks on a project or specific element of work.
- SWOT - strengths, weaknesses, opportunities and threats analysis will also help us to identify potential risks

Risk Identification
Risk identification is defined as determining which risks might affect the project and documenting their characteristics. All stakeholders and experts internal and external to the company may be involved in risk identification. Sometimes the core team may begin the process and then others may become involved, making risk identification an iterative process.

Risk Management
The processes involved with identifying, analyzing and responding to risk. It includes maximizing the results of positive events and minimizing the consequences of adverse events.

Risk Management Plan
The risk management plan defined how the risk process will be structured and performed during the project life cycle. Risk management planning is the process of deciding how to approach and plan the risk management activities for a project. The project manager, team, customer, stakeholders, experts and others will review any templates and procedures that exist for risk management, determine how risk management will be handled on the current project and develop a risk management plan. Project teams hold planning meetings to develop the risk management plan.

Risk management policy
The organization's risk management policy must be determined and established by the management of the performing organization. The risk policy must reflect the overall thresholds, philosophy and tolerance of the organization with regard to particular project. If there is no formal risk policy in the organization, then the project management team should develop a risk policy for the project to be authorized by management.

Risk Owner
Each risk must be assigned to someone who will help develop the risk response and who will be assigned to carry it out or "own" the risk. The risk owner is then free to take predetermined action when risks occur resulting in faster action and less cost, time and other impacts on the project. Having a risk owner will avoid unnecessary team meetings when a problem arises.

Risk Probability and Impact
One of the ways to help rank risks is to analyze the probability of a risk occurring and the effect (or impact or consequences) of the risk on the project. Determine the probability of each risk occurring - usually in the form of an educated guess (low, medium or high or scale of 1 - 10). Determine the consequences (amount at stake, or impact) of each risk occurring - also in the form of an educated guess (low, medium or high or scale of 1 - 10)

Risk Rating Matrix
In order to sort or rate risks so a determination can be made as to which risks will move through the risk process, a risk rating matrix may be used. Such a matrix results in a consistent evaluation of low, medium and high (or some scale) for the project and for all projects, an improvement in the quality of the data and the risk rating process being more repeatable between projects.

Risk Response Audit
Examining and documenting the effectiveness of the risk response and the person managing (owning) the risk. This is an important step in order to see if the plans put in place are effective and if changes are needed. An audit allows lessons to be learned for the project and for other projects in the organization.

Risk Response Planning
This step involves figuring out what we are going to do about the identified risk. It involves finding ways to make the negative risk smaller or eliminate it entirely, as well as finding ways to make positive risks more likely or greater in impact.

Risk Response Strategy
Developing options and determining actions to enhance opportunities and reduce threats. These strategies cannot eliminate all risks. Communication of risk and strategy is necessary as part of the strategy.Strategy may include:
Avoidance - eliminating the cause to avoid risk impact
Transference - Shifting the consequence to a third party
Mitigation - Reduce the probability of risk by taking early action.
Acceptance - Do nothing to avoid risk, or create a contingency plan to adress impact

Risk Reviews
The team needs to periodically review risk plans and adjust them as required. Risk should be a major topic in team meetings to keep focus on risks and make sure plans remain appropriate. The results of such reviews may be additional risk analysis or qualification and /or quantification analysis.

Risk threshold
Risk threshold refers to the level of tolerance that can be expected in risk-taking. The highest risk value acceptable. A cut-off point for risk tolerance.

Risk tolerance
The amount of risk that is acceptable (tolerance level). Please see "Risk Threshold". This level of risk tolerance of the organization has great influence on the latitude given to risk response planning.

Risk - Cost Reimbursable Contract
BUYER has the risk - If the costs increase, the buyer pays the additional costs

Risk - Fixed-Price Contract
SELLER has the risk - If costs increase, the seller pays the additional costs and makes less profit.

Risks types
Risks can be classified under two main types:
1 - Business - Risk of a gain or loss
2 - Pure (insurable) risk - Only a risk of loss (e.e.: fire, theft, personal injury, etc)

Rule of Seven
The rule of seven is a rule of thumb or heuristic. It refers to non-random data points grouped together in a series that total seven on one side of the mean.The rule of seven tells you that although none of these points are outside of the control limits, they are not random and the process is out of control.

[S]

Schedule Compression
See duration compression, Fast tracking, Crashing, Resource leveling

Schedule Development
In order to develop a schedule, one needs to define the activities (WBS), put them in order of how the work is to be done (Activity sequencing), and then estimate the duration of each activity (activity duration estimating). Additionally, the final schedule must be accepted by all (bought-into), and approved. Finally, the work estimates must be realistic and the presentation formal.

Schedule Management Plan
For effectively managing the project to the schedule and for managing changes, after the schedule is developed the project manage must develop the schedule management plan - formal or informal - to include:
- A schdule baseline for measuring against project duration control
- A plan for how schedule variances will be managed
- Identification of schedule change control procedures
- Identification of performance measures

Schedule Performance Index - SPI
The schedule efficiency ratio of earned value accomplished against planned value. The SPI describes what portion of the planned schedule was actually accomplished. The SPI = EV / PV.

Schedule Variance
The Schedule variance tells how much the project is behind or ahead of schedule. The SV = EV - PV.

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

Scope Change Control
Scope change control involves measuring performance, replanning, making changes and adjusting the baseline, taking corrective action, and documenting lessons learned.

Scope Definition
Scope definition involves subdividing the major project deliverables (as identified by the scope statement) into smaller, more manageable components.
Tools = WBS Templates, Decomposition
Output = Work breakdown structure (WBS)

Scope Management
Scope management includes the processes required to ensure that the project includes all the work and only the work required to complete the project successfully. It is primarily concerned with controlling what is and what is not in the project.

Scope Management Plan
An output of scope planning - This is a document that describes how scope and scope changes will be managed. A well documented scope management plan will prevent scope creep, changes and conflict, as well as provide improved communications and increased customer satisfaction.

Scope of Work
A scope of work describes what work is to be completed under the contract. It must be clear, complete and concise as possible and describe all the work and activities that the seller is required to complete. The scope of work may be revised during the procurement process, but should become finalized (excluding changes) by the time the contract is signed. There are many types of scope of work. The choice among them should depend on the nature of the work and the type of industry.

Scope Statement
The scope statement provides a documented basis for making future project decisions and for confirming or developing common understanding of project scope among stakeholders. As the project progresses, the scope statement may need to be revised or refined to reflect approved changes to the scope of the project. Loosely the same as a scope of work or statement of work, the scope statement is an output of scope planning.

Scope Verification
Scope verification focuses on the customer's "acceptance" of the scope of work. Formalizing acceptance of the project scope by the stakeholders. Scope verification is customer feedback on a more detailed basis. It is done at the end of each project phase (in the project life cycle) and during the controlling phase (in the project management life cycle). Socpe verification results in the formal acceptance of deliverables and the project by stakeholders, the sponsor and/or the customer.

Screening system
A screening system involves establishing minimum requirements of performance for one or more evaluation criteria. The results of these requirements would determine if the proposal would be considered. For example, the buyer could require that the seller has a specific certification of competence before he could qualify for the contract.

S-Curve
Graphic display of cumulative costs, labor hours, percentage of work, or other quantities, plotted against time. A tool of quantitative risk analysis.

Secondary Risk
A risk that arises as a direct result of implementing a risk response.

Seller Invoices
The seller, under contract provisions, must prepare and submit invoices for payment for work performed from time to time throughout the life of the contract. All supporting documents relative to the specific performance as defined in the contract, should be included with the invoice.

Senior Management's Role
The utmost role of senior management is to fully support the project and provide for the protection from external threats to assure success of the project. Management must have at least an overview understanding of the tools and techniques of project management.

Sensitivity Analysis
Sensitivity analysis is a popular way to find out how the NPV of a project changes if sales, labor or material costs, the discount rate, or other factors vary from one case to another. In simple terms, sensitivity analysis is a "what if" study. What if the Interest changes from 10% to 12% when comparing the NPV of two projects? Notice the sensitivity in the percentage change.

Sigma (3 or 6)
Sigma is another name for standard deviation. 3 or 6 sigma represents the level of quality that a company has decided to try to achieve. At 6 sigma, only 1 out of 10,000 doors produced will have a problem. At 3 sigma, 27 out of every 10,000 will have a problem. Sigmas 3 and 6 are also used to calculate the uppre and lower control limits in a control chart.

Sigma - Normal Curve
- Half the curve, on the right - are positive values above the Mean
- Half the curve, on the left - are negative values below the Mean
- +/- 1 sigma = 68.26% = 3,174 defective products/10,000 produced
- +/- 2 sigma = 95.46% = 454 defective products /10000 produced
- +/- 3 sigma = 99.73% = 27 defective products /10,000 produced
- +/- 6 sigma = 99.99% = 1 defective products /10,000 produced


Simulation
Uses a model that translates the uncertainties specified at a detailed level into their potential impact on total project.

Slack - float
Also called slack, total float, and path float.
- LS - ES (Late start - Early start)
- LF - EF (Late finish - Early finish)
- The amount of time an activity can be delayed without delaying the project.
Refer to "Float - slack" for more info.

Socio-Economic-Environmental Sustainability
There is a trend of more project responsibility and accountability toward the environment and the people and economy within which the projects take place. The effect of this accountability can remain long after the project is completed.

Solicitation
Solicitation (Q&A) consists of answering the sellers questions and the sellers preparing the proposal.

Source Selection
Choosing from among potential sellers. Source selection consists of receiving and reviewing the proposals and selecting a seller. The evaluation criteria are used to assess the potential sellers' ability and willingness to provide the requested products and services. The output is a Contract. The tools & techniques include contract negotioation, weighting, screening and independent estimates.

Special Provisions- Contracts
Special conditions - The project manager must be able to read and understand standard terms and conditions and determine what needs to be added to, changed or removed from the standard provisions so that the resulting contract addresses the particular needs of the project.

Specification Limits
Specification limits represent the customer's expectations or contractual requirements for performance and quality. Specification limits are characteristics of the measured process and are not inherent. Therefore, they can appear inside or outside of the control limits.
Specification limits are not calculated based on the control chart, but are inputs from the customer. Specification limits will be outside the control limits on the control chart if the project can meet the specification limits. They will be within the control limits on the control chart of the project cannot meet the specification limits.

Staffing pool description
The characteristics of any potentially available staff complement must be taken into consideration when the project management team has the ability to influence and direct staff assignment. Characteristics and skills will vary among individuals available to the project team.

Staffing requirements
Staffing requirements are a sub-set of resource requirements. It describes the type of competencies required from specific individuals and/or groups, and when those resources may be required. Thus:
- Competencies (specific skills) required
- Type of Individual or Group required (engineer, programer, etc)
- When they are required - Time frame or period

Stakeholder
A stakeholder is someone whose interest may be positively or negatively affected by the project. Stakeholders may also include those who may exert influence over the project but would not otherwise be considered stakeholders. The project management team must identify the stakeholders, determine their requirements, and then manage and influence those requirements to ensure a successful project.

Stakeholder Risk Tolerance
Different organizations and diffetrent individuals have different tolerances for risk. These may be expressed in policy statements or revealed in actions. The stakeholder risk tolerances should be documented in a chart or specigic docment for the poject team.

Stakeholder's Influence
Individuals and organizations that are actively involved in the project, or whose interest may be positively or negatively affected as a result of project execution or project completion. They may also exert influence over the project and its results.

Standard Deviation
The Standard Deviation (or Sigma) - A mathematical quantity that describes the variability of a response. It equals the square root of variance. The standard deviation of a sample (s) is used to estimate the standard deviation of a population (sigma). A measure of how for you are from the mean, (not the median).

Standards & Regulations
Standards - A standard is not a mandatory obligation. It is simply an established set of rules and/or guidelines approved by a specific recognized entity, for application with the processing and delivery of products and services.
Regulations - A regulation however, is a set of rules and guidelines regarding the processing of products and servicesm, established and approved by a specific regulatory authority and requires mandatory compliance.

Statistical Independence
The probability of one event occurring does not affect the probability of another event occurring.

Statistical Sampling
Statistical sampling is inspecting by choosing only part of a population - a sample.

Storming
The second stage of individual and group development marked by intragroup conflict and interpersonal differences as members vie for group and task roles. Major processes:
- Dissatisfaction with others
- Competition among members
- Disagreement over procedures
- Conflict

Subnets or fragnets.
A subdivision of a project network diagram, usually representing some form of subproject.

Subproject
A smaller portion of the overall project.

Sunk Cost
Sunk cost are cost expended on the project

SWOT Analysis
Strenghts, Weaknesses, Opportunities, Threats. The assessment of an organization's internal strengths and weaknesses in relation to its external opportunities and threats.

[T]

Target Completion Date - TC
An imposed date that constrains or otherwise modifies the network analysis.

Target Finish Date - TS
The date that work is planned (targeted) to finish on an activity.

Team Building
Team building is Team Development. It is the job of the project manager to enhance the ability of stakeholders to cntribute as individuals a well as enhance the ability of the team to function as a team. Team building should start early in the project
- The WBS is a team building tool
- Team building must be continuous throughout the life of the project

Team Development
Developing individual and group competencies to enhance project performance. The 4 stages of development include: Forming, Storming , Norming, and Performing

Time & Material Contract - TM
Time and Material Contract or Unit Price. T&M Contracts are a hybrid type of contractual arrangement that contains aspects of both cost-reimbursable and fixed-price-type arrangements. The buyer has a moderate/medium cost risk. The buyer has a medium amount of cost risk compared to CR and FP because the contract is usually for small dollar amounts and for a shorter length of time.

Total Quality Management - TQM
TQM is a philosophy that encourages companies and their employees to focus on finding ways to continuously improve the quality of their business practices and products.

Triggers
Triggers, sometimes called risk symptoms or warning signs, are indications that a risk has occurred or is about to occur. Triggers may be discovered in the risk identification process and watched in the risk monitoring and control process.

Triple Constraint
The triple constraint (the concept started with three items) are cost, time, scope of work (requirements or scope statement), quality and customer satisfaction (or stakeholder satisfaction). These are so intertwined that a change in one will most often cause a change in at least one of the others.

[U]

Uncertainty
Uncertainty is an uncommon state of nature, characterized by the absence of any information related to a desired outcome.

[V]

Value Analysis
Value analysis focuses on finding a less costly way to do the same scope of work. It requires the systematic use of technology to identify the required project functions, assign values to these functions and provide functions at the lowest overall cost without loss of performance.
- Finding a less costly way to complete the work without affecting quality.
- Decrease project costs but maintain the same scope of work.

Value Engineering
Value engineering is a creative approach used to optimize life-cycle costs, save time, increase profits, improve quality, expande market share, solve problems, and/or use resources more effectively.

Variable Costs
Any cost that changes with the amount of production or the amount of work - cost of material, supplies and labor.

Variance - statistical variance
A measure of dispersion of observations based upon the mean of the squared deviations from the arithmetic mean. The variance is the square of the Standard Deviation. An example of a variance is the result of comparing actual dates with planned dates. (Actual - Estimated)

Variance at Completion (VAC)
How much over budget will performance be at the end of the project? The formula is: BAC - EAC, Where EAC = BAC/CPI, or AC+ETC, or AC+BAC-EV, or AC+(BAC-EV)/CPI, and CPI = EV/AC, and ETC = EAC-AC.

[W]

War room
The project team is located in one room. It is used to create a project identity for the project team and management in a matrix organization.

WBS Dictionary
Work components descriptions are often collected in a WBS dictionary. A WBS dictionary will typically include work package descriptions, as well as other planning information such as schedule dates, cost budgets, and staff assignments. WBS dictionary is designed to control what work is done and when, to prevent scope creep and to increase the understanding of the effort for each task. Sometimes entries are called task descriptions.

Weighting system
In order to minimize the change of prejudice or bias in the source selection process, a simple weighting system may be applied as follows:
1 - Assign numerical weight (values) to each evaluation criteria
2 - Rate the prospective supplier on each criterion
3 - Multiply the criterion weight by the rating assigned
4 - Total the weight-rating results of all criteria to arrive at an overall score for the supplier.

Work Authorization System
A formal porocedure for sanctioning project work to ensure that work is done at the right time and in proper sequence. It defines what the task is and is not, and may take the form of a WBS dictionary.

Work Breakdown Structure - WBS
A deliverable-oriented grouping of project elements that organizes and defines the total work scope of the project. Each descending level represents an increasingly detailed definition of the project work. The WBS Is used as a basis for many planning activities and is considered very important by PMI.

Work Package
A deliverable at the lowest level of the work breakdown structure, when that deliverable may be assigned to another project manager to plan and execute. This may be accomplished through the use of a subproject where the work package may be further decomposed into activities.

Workaround Plans
Workaround is a response to a negative risk event. Distinguished from contingency plan in that a workaround is not planned in advance of the occurrence of the risk event.