Definitions

============

Activity - an activity is an element of project work that requires action to produce a Deliverable.  Activities lay the foundation for estimating, scheduling, executing, and monitoring and controlling the project work.  The characteristics of an activity are: it has an expected duration; it consumes budget and/or human resources; is name in verb-noun format.

Activity Components - an activity that is broken down into smaller components - retains the same definition and characteristics as an activity.

Crashing - a schedule compression method that analyzes cost and schedule trade-offs to determine how to obtain the greatest schedule compression for the least incremental cost.

Fast-tracking - the process of compressing total project duration by performing some activities concurrently that were originally scheduled sequentially.

Qualitative Risk Analysis - a technique used to determine the probability of occurrence and the impact of identified risk.  This is then used to determine the risk exposure of the project by multiplying the probability and impact.  The qualitative risk analysis process ultimately provides the list of prioritized risks for further actions.

Rule of 8/80 - a general guideline regarding a Work Package - each requires more than 8 but fewer than 80 hours of effort to complete.

Schedule Compression - the shortening of the project schedule without affecting the project scope.  Compression may be achieved on one of two ways: fast-tracking or crashing.

Schedule Baseline - the management approved version of the project schedule, it is drawn from the schedule network analysis and includes baseline start and finish dates.  It provides the basis for measuring and reporting schedule performance.  It is a formal part of the project management plan.

Triggers - the early warning signs or indications that a risk to your project is about to occur.  Can be external factors that influence the project such as changes in relevant legislation or internal factors that influence your project such as change in staffing, governance, or funding within your organization.

Work Package - planned work or deliverables that are contained in the lowest-level component of the work breakdown structure.  Described as a manageable work effort, or a level at which the cost and schedule for the work can be easily estimated.  Work packages can be broken down into activities.  See Rule of 8/80.

Work Package Owners - those responsible for the completion of the work packages.

Competitive - Risks such as the risk of increased competition in the marketplace and a rival company developing a superior product.

Legislative - Risks such as the risk of new laws or changes in regulations governing your products, goods, or services requiring your company to spend more to maintain compliance.

Monetary - Risks such as the risk of increased prices for raw materials, increased taxes, increased operating costs, and losses due to nonpayment by customers.

Operational - Risks such as the risk of fraud, theft, employee injury, workplace accidents, and damage to equipment.

Monitoring and Controlling

EVM - earned value management - big picture term - method of evaluating project process by comparing actual schedule and cost performance

Three variables:

planned value - baseline cost of the project at a certain point

earned value - work done to date as a percentage of planned

actual cost - total amount of costs incurred

Comparison to schedule:

schedule variance - sv=ev-pv - delta of the difference

schedule performance index - spi - ev/pv - percentage of the difference

Comparison to budget:

cost variance - cv = ev-ac

cost performance index - cpi - ev/ac

TCPI - to-complete performance index

EVT - earned value technique - 

BAC = total PV at completion

estimate to complete (ETC)

ETC = BAC-EV or (BAC-EV)/CPI