Project Management 7e by Larson, Gray

Project Management 7e by Larson, Gray is the 7th edition of the Project Management: The Managerial Process textbook authored by Erik W. Larson and Clifford F. Gray, Oregon State University, and published by McGraw-Hill Education, New York, NY in 2018.

• 360-degree feedback. A multirater appraisal system based on performance information that is gathered from multiple sources (superiors, peers, subordinates, customers).
• Accept risk. When a conscious decision is made to accept the risk of an event occurring (i.e., if risk is too large, if chance of occurring is slim, or if the budget reserve can simply absorb the risk if it materializes).
• Activity. Task(s) of the project that consumes time while people/equipment either work or wait.
• Agile Project Management (Agile PM). A family of incremental, iterative development methods for completing projects.
• AOA. Activity-on-arrow method for drawing project networks. The activity is shown as an arrow.
• AON. Activity-on-node method for drawing project networks. The activity is on the node (rectangle).
• Apportionment method. Costs allocated to a specific segment of a project by using a percentage of planned total cost -- for example, framing a house might use 25 percent of the total cost, or coding a teaching module 40 percent of total cost.
• Avoiding risk. Elimination of the risk cause before the project begins.
• Balanced matrix. A matrix structure in which the project manager and functional managers share roughly equal authority over the project. The project manager decides what needs to be done; functional managers are concerned with how it will be accomplished.
• Baseline. A concrete document and commitment; it represents the first real plan with cost, schedule, and resource allocation. The planned cost and schedule performance are used to measure actual cost and schedule performance. Serves as an anchor point for measuring performance.
• BATNA. Best alternative to a negotiated agreement. Strong or weak BATNA indicates your power to negotiate with the other party.
• Bottom-up estimates. Detailed estimates of work packages usually made by those who are most familiar with the task (also called micro estimates).
• Brainstorming. Generating as many ideas/solutions as possible without critical judgment.
• Budget at completion (BAC). Budgeted cost at completion. The total budgeted cost of the baseline or project cost accounts.
• Budget reserve. Reserve setup to cover identified risks that may occur and influence baseline tasks or costs. These reserves are typically controlled by the project manager and the project team. See management reserve.
• Burst activity. An activity that has more than one activity immediately following it.
• Change management systems. A defined process for authorizing and documenting changes in the scope of a project.
• Co-location. A situation in which project members including those from different organizations work together in the same location.
• Concurrent engineering. Cross-functional teamwork in new-product development projects that provides product design, quality engineering, and manufacturing process engineering all at the same time.
• Contingency plan. A plan that covers possible identified project risks that may materialize over the life of the project.
• Control chart. A chart used to monitor past project schedule performance and current performance as well as estimate future schedule trends.
• Cost account. A control point of one or more work packages used to plan, schedule, and control the project. The sum of all the project cost accounts represents the total cost of the project.
• Cost performance index (CPI). The ratio of work performed to actual costs (EV/AC).
• Cost variance (CV). The difference between EV and AC (CV = EV – AC). Tells if the work accomplished cost more or less than was planned at any point over the life of the project.
• Crash point. The most a project activity time can realistically be compressed with the resources available to the organization.
• Crash time. The shortest time an activity can be completed (assuming a reasonable level of resources).
• Crashing. Shortening an activity or project.
• Critical path. The longest activity path(s) through the network. The critical path can be distinguished by identifying the collection of activities that all have the same minimum slack.
• Cross-cultural orientations. A framework which describes and/or explains cultural differences.
• Culture. The totality of socially transmitted behavior patterns, beliefs, institutions, and all other products of human work and thought characteristic of a community or country.
• Culture shock. A natural psychological disorientation that most people suffer when they move to a culture different from their own.
• Dedicated project team. An organizational structure in which all of the resources needed to accomplish a project are assigned full time to the project.
• Delphi technique. A group method to predict future events -- e.g., time, cost.
• Direct costs. Costs that are clearly charged to a specific work package -- usually labor, materials, or equipment.
• Dysfunctional conflict. Disagreement that does not improve project performance.
• Early time. The earliest an activity can start or finish based on network logic, the data date, and any schedule constraints.
• Earned value (EV). The physical work accomplished plus the authorized budget for this work. Previously this was called the budgeted cost of work performed (BCWP).
• Emotional intelligence (EQ). The ability or skill to perceive, assess, and manage the emotions of one's self and others.
• Escalation. A control mechanism for resolving problems in which people at the lowest appropriate level attempt to resolve a problem within a set time limit or the problem is 'escalated' to the next level of management.
• Estimated cost at completion (EAC). The sum of actual costs to date plus revised estimated costs for the work remaining in the WBS. The text uses EACre to represent revisions made by experts and practitioners associated with the project. A second method is used in large projects where the original budget is less reliable. This method uses the actual costs to date plus an efficiency index (CPI = EV/AC) applied to the remaining project work. When the estimate for completion uses the CPI as the basis for forecasting cost at completion, we use the acronym EACf, where EACf = estimated costs at completion. Includes costs to date plus revised estimated costs for the work remaining. (Uses formula to compute EAC.)
• Fast-tracking. Accelerating project completion typically by rearranging the network schedule and using start-to-start lags.
• Feature. A piece of a product that delivers some useful functionality to a customer.
• Forecasted total cost at completion (EACf). The expected total cost of the project expressed as the sum of actual costs to date and forecasted estimate of the cost of remaining work based on the current CPI.
• Free slack. The maximum amount of time an activity can be delayed from its early start (ES) without affecting the early start (ES) of any activity immediately following it.
• Function points. Points derived from past software projects to estimate project time and cost, given specific features of the project.
• Functional conflict. Disagreement that contributes to the objectives of the project.
• Gantt chart. See bar chart.
• Groupthink. A tendency of members in highly cohesive groups to lose their critical evaluative capabilities.
• Hammock activity. A special-purpose, aggregate activity that identifies the use of fixed resources or costs over a segment of the project -- e.g., a consultant. Derives its duration from the time span between other activities.
• Heuristics. A rule of thumb used to make decisions. Frequently found in scheduling projects. For example, schedule critical activities first, then schedule activities with the shortest duration.
• Implementation gap. The lack of consensus between the goals set by top management and those independently set by lower levels of management. This lack of consensus leads to confusion and poor allocation of organization resources.
• Incremental, iterative development (IID). A cyclical development process in which a project gradually evolves over time.
• Indirect costs. Costs that cannot be traced to a particular project or work package.
• Infrastructure. Basic services (i.e., communication, transportation, power) needed to support project completion.
• Inspiration-related currencies. Influence based on inspiration (opportunity to do good, be the best, etc.).
• Lag relationship. The relationship between the start and/or finish of a project activity and the start and/or finish of another activity. The most common lag relationships are (1) finish-to-start, (2) finish-to-finish, (3) start-to-start, and (4) start-to-finish.
• Late time. The latest an activity can start or finish without delaying the completion of the project.
• Law of reciprocity. People are obligated to grant a favor comparable to the one they received.
• Leading by example. Exhibiting the behaviors you want to see in others.
• Learning curve. A mathematical curve used to predict a pattern of time reduction as a task is performed over and over.
• Lessons learned. An analysis carried out during and shortly after the project life cycle; they attempt to capture positive and negative project learning.
• Leveling. Techniques used to examine a project for an unbalanced use of resources, and for resolving resource overallocations.
• Management by wandering around (MBWA). A management style in which managers spend the majority of their time outside their offices interacting with key people.
• Management reserve. A percentage of the total project budget reserved for contingencies. The fund exists to cover unforeseen, new problems -- not unnecessary overruns. The reserve is designed to reduce the risk of project delays. Management reserves are typically controlled by the project owner or project manager. See budget reserve.
• Management reserve index. The percentage of the management reserve that has been used to date.
• Matrix. Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of individuals assigned to the project.
• Mentor. Typically a more experienced manager who acts as a personal coach and champions a person's ambitions.
• Merge activity. An activity that has more than one activity immediately preceding it.
• Met expectations. Customer satisfaction is a function of the extent to which perceived performance exceeds expectations.
• Milestone. An event that represents significant, identifiable accomplishment toward the project's completion.
• Mitigating risk. Action taken to either reduce the likelihood that a risk will occur and/or the impact the risk will have on the project.
• Net present value (NPV). A minimum desired rate of return discount (e.g., 15 percent) is used to compute present value of all future cash inflows and outflows.
• Nominal group technique (NGT). A structured problemsolving process in which members privately rank-order preferred solutions.
• Opportunity. An event that can have a positive impact on project objectives.
• Organization breakdown structure (OBS). A structure used to assign responsibility for work packages.
• Organizational culture. A system of shared norms, beliefs, values, and assumptions held by an organization's members.
• Organizational politics. Actions by individuals or groups of individuals to acquire, develop, and use power and other resources to obtain preferred outcomes when there is uncertainty or disagreement over choices.
• Outsourcing. Contracting for the use of external sources (skills) to assist in implementing a project.
• Overhead costs. Typically organization costs that are not directly linked to a specific project. These costs cover general expenses such as upper management, legal, market promotion, and accounting. Overhead costs are usually charged per unit of time or as a percentage of labor or material costs.
• Oversight. A set of principles and processes to guide and improve the management of projects. The intent is to ensure projects meet the needs of the organization through standards, procedures, accountability, efficient allocation of resources, and continuous improvement in the management of projects.
• Parallel activity. One or more activities that can be carried on concurrently or simultaneously.
• Partnering charter. A formal document that states common goals as well as cooperative procedures used to achieved these goals which is signed by all parties working on a project.
• Path. A sequence of connected activities.
• Payback method. The time it takes to pay back the project investment (investment/net annual savings). The method does not consider the time value of money or the life of the investment.
• Percent complete index actual costs. The amount of work accomplished based on actual costs and revised estimates (AC/EAC).
• Percent complete index budgeted costs. The amount of work accomplished based on project budget (EV/BAC).
• Percent complete index -- actual costs (PCIC). The amount of work accomplished based on actual costs and revised estimates (AC/EAC).
• Performance review. In general, all review methods of individual performance center on the technical and social skills brought to the project and team. These reviews stress personal improvement and are frequently used for salary and promotion decisions.
• Personal integrity. Adherence to moral and ethical principles.
• Personal-related currencies. Influence based on enhancing another person's self-esteem.
• Phase estimating. This estimating method begins with a macro estimate for the project and then refines estimates for phases of the project as it is implemented.
• Phase gating. A structured process to review, evaluate, and document outcomes at each project phase and to provide management with information to guide resource deployment toward strategic goals.
• Planned value (PV). The planned time-phased baseline of the value of the work scheduled. Previously this was called budgeted cost of work scheduled (BCWS).
• Portfolio management. Centralized selection and management of a portfolio of projects to ensure that allocation of resources is directed and balanced toward the strategic focus of the organization.
• Position-related currencies. Influence based on the ability to enhance someone else's position within an organization.
• Positive synergy. A characteristic of high-performance teams in which group performance is greater than the sum of individual contributions.
• Principled negotiation. A process of negotiation that aims to achieve win/win results.
• Priority matrix. A matrix that is set up before the project begins that establishes which criterion among cost, time, and scope will be enhanced, constrained, or accepted.
• Priority system. The process used to select projects. The system uses selected criteria for evaluating and selecting projects that are strongly linked to higher-level strategies and objectives.
• Priority team. The group (sometimes the project office) responsible for selecting, overseeing, and updating project priority selection criteria.
• Proactive. Working within your sphere of influence to accomplish something.
• Process breakdown structure (PBS). A phase-oriented grouping of project activities that defines the total scope of the project. Each descending level represents an increasingly detailed description of project work.
• Product backlog. A prioritized list of project requirements with estimated time to turn them into complete product functionality.
• Product owner. The person responsible for managing the product backlog in Scrum so as to maximize the value of the project. The product owner represents all stakeholders.
• Program. A group of related projects designed to accomplish a common goal over an extended period of time.
• Project. A temporary endeavor undertaken to create a unique product, service, or result.
• Project charter. A document that authorizes the project manager to initiate and lead a project.
• Project closure. All of the activities of shutting down a project. The major activities are evaluation of project goals and performance, developing lessons learned, releasing resources, and preparing a final report.
• Project cost -- duration graph. A graph that plots project cost against time; it includes direct, indirect, and total cost for a project over a relevant range of time.
• Project evaluation. The process of assessing, verifying, and documenting project results.
• Project facilitator. A guide who leads the project team through an analysis of project activities that went well, what needs improvement, and development of a follow-up action plan with goals and accountability.
• Project kick off meeting. Typically the first meeting of the project team.
• Project life cycle. The stages found in all projects -- definition, planning, execution, and delivery.
• Project Management Professional (PMP). An individual who has met specific education and experience requirements set forth by the Project Management Institute, has agreed to adhere to a code of professional conduct, and has passed an examination designed to objectively assess and measure project management knowledge. In addition, a PMP must satisfy continuing certification requirements or lose the certification.
• Project office (PO). A centralized unit within an organization or department that oversees and improves the management of projects.
• Project portfolio. Group of projects that have been selected for implementation balanced by project type, risk, and ranking by selected criteria.
• Project sponsor. Typically a high-ranking manager who champions and supports a project.
• Project vision. An image of what the project will accomplish.
• Projectitis. A condition in which team members become strongly attached to their project and disconnected from the larger organization.
• Projectized organization. A multi-project organization in which project managers have full authority to assign priorities and direct the work of persons assigned to their project.
• Range estimating. An estimating technique in which multiple estimating points are given based on some logic (i.e., high vs. low or best case, worst case, and most likely case).
• Ratio (parametric) methods. Uses the ratio of past actual costs for similar work to estimate the cost for a potential project. This macro method of forecasting cost does not provide a sound basis for project cost control since it does not recognize differences among projects.
• Reference class forecasting. A sophisticated forecasting method in which you take an external view and forecast project costs based on actual outcomes of similar projects.
• Relationship-related currencies. Influence based on friendship.
• Release burndown chart. The trend of work remaining across time. In a release or product, the source of data is the product backlog with work remaining tracked on the vertical axis and number of sprints on the horizontal axis.
• Resource smoothing. A technique that uses slack to reduce peak resource demand to increase resource utilization.
• Resource-constrained project. A project that assumes resources are limited (fixed) and therefore time is variable.
• Responsibility matrix. A matrix whose intersection point shows the relationship between an activity (work package) and the person/group responsible for its completion.
• Retrospective. A methodology that analyzes a past project event to determine what worked and what didn't, develops lessons learned, and creates an action plan that ensures lessons learned are used to improve management of future projects.
• Revised estimated cost at completion (EACre). The expected total cost of the project expressed as the sum of actual costs to date and revised estimates of the cost of remaining work based on the judgment of those doing the work.
• Risk. The chance that an undesirable project event will occur and the consequences of all its possible outcomes.
• Risk breakdown structure (RBS). A hierarchical depiction of the identified project risks arranged by risk category and subcategory that identifies the various areas and causes of potential risks.
• Risk profile. A list of questions that addresses traditional areas of uncertainty on a project.
• Risk register. A register detailing all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners, and current status.
• Risk severity matrix. A tool used to assess the impact of risks on a project.
• 'Sacred cow'. A project that is a favorite of a powerful management figure who is usually the champion for the project.
• Scaling. Adapting Agile PM to large, multi-team projects.
• Scenario analysis. Technique for analyzing risks where team members assess the significance of each risk event in terms of probability and impact of the event.
• Schedule performance index (SPI). The ratio of work performed to work scheduled (EV/PV).
• Schedule variance (SV). The difference between the planned dollar value of the work actually completed and the value of the work scheduled to be completed at a given point in time (SV = EV – PV). Schedule variance contains no critical path information.
• Scope creep. The tendency for the scope of a project to expand once it has started.
• Scope statement. A definition of the end result or mission of a project. Scope statements typically include project objectives, deliverables, milestones, specifications, and limits and exclusions.
• Scrum master. The person responsible for the Scrum process and its correct application.
• Self-organizing team. A semi-autonomous team that manages itself.
• Sensitivity. A function of the number of critical or near-critical paths.
• Social network building. The process of identifying and building cooperative relationships with key people.
• Splitting. A scheduling technique in which work is interrupted on one activity and the resource is assigned to another activity for a period of time, then reassigned to work on the original activity.
• Sprint backlog. A list of tasks that defines a Scrum team's work for a sprint. Each task identifies those responsible for doing the work and the estimated amount of work remaining on the task on any given day during the sprint.
• Sprint burndown chart. The trend of work remaining across time in a sprint. The source of data is the sprint backlog with work remaining tracked on the vertical axis and days of a sprint on the horizontal axis.
• Stakeholders. Individuals and organizations that are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or completion. They may also exert influence over the project and its results.
• Strategic management process. The process of assessing 'what we are' and deciding and implementing 'what we intend to be and how we are going to get there.' Strategy describes how an organization intends to compete with the resources available in the existing and perceived future environment.
• Strong matrix. A matrix structure in which the project manager has primary control over project activities and functional managers support project work.
• Systems thinking. A holistic approach to viewing problems that emphasizes understanding the interactions among different problem factors.
• Task-related currencies. Influence based, helping someone else do their work.
• Team evaluation. Evaluating the performance of the project team using a minimum core of conditions in place before the project began. Evaluation practices should emphasize the team as a whole, while minimizing individual performance.
• Team rituals. Ceremonial actions that reinforce team identity and values.
• Team-building. A process designed to improve the performance of a team.
• Template method. Use of a prepared form to develop project networks, costs, and time estimates.
• Time and cost databases. Collection of actual versus estimated times and costs of work packages over many projects that are used for estimating new project tasks and their expected possible error.
• Time buffer. A contingency amount of time for an activity to cover uncertainty -- for example, availability of a key resource or merge event.
• Time-constrained project. A project that assumes time is fixed and, if resources are needed, they will be added.
• Time-phased budget baseline. A cost baseline that is derived from the WBS and project schedule. The budgeted costs are distributed to mirror the project schedule.
• To complete performance index (TCPI). The calculated cost performance index that must be achieved on the remaining work in order to meet the project budget (BAC-EV)/(BAC-AC).
• Top-down estimates. Rough estimates that use surrogates to estimate project time and cost (also called macro estimates).
• Total slack (TS). The amount of time an activity can be delayed and not affect the project duration (TS = LS – ES or LF – EF).
• Tracking Gantt. A Gantt chart that compares planned versus actual schedule information.
• Transferring risk. Shifting responsibility for a risk to another party.
• Variance at completion (VAC). Indicates expected actual cost over- or underrun at completion (VAC = BAC – EAC).
• Virtual project team. Spatially separated project team whose members are unable to communicate face to face. Communication is usually by electronic means.
• Weak matrix. A matrix structure in which functional managers have primary control over project activities and the project manager coordinates project work.
• White elephant. A burdensome possession which is not easily disposed of and whose cost (particulary upkeep) is out of proportion with its usefulness.
• Work breakdown dictionary. Provides detailed information about each element in the WBS. The dictionary typically includes the work package level (code), name, and functional description.
• Work breakdown structure (WBS). A hierarchical method that successively subdivides the work of the project into smaller detail.
• Work package. A task at the lowest level of the WBS. Responsibility for the package should be assigned to one person and, if possible, limited to 80 hours of work.