Feasibility Study Quarter

Feasibility Study Quarter (hereinafter, the Quarter) is the first of four lectures of Operations Quadrivium (hereinafter, the Quadrivium):

• The Quarter is designed to introduce its learners to enterprise discovery, or, in other words, to concepts related to obtaining data needed to administer the enterprise effort; and
• The Quadrivium examines concepts of administering various types of enterprises known as enterprise administration as a whole.

The Quadrivium is the first of seven modules of Septem Artes Administrativi, which is a course designed to introduce its learners to general concepts in business administration, management, and organizational behavior.

Outline

The predecessor lecture is Idea Generation Quarter.

Concepts

1. Feasibility study. In enterprise administration, an assessment of the practical potential of a proposed change. This assessment may consist of several evaluations. The difference between the attained value estimate, which is what the enterprise is going to obtain, and change budget estimate, which is what the enterprise is going to lose, is the primary target of the feasibility study if the proposed change is a project. If the change refers to the enterprise portfolio, another study, portfolio feasibility, is needed. A feasibility study is feasible itself when a business opportunity is its change stimulus. If its change stimulus is a business need, no feasibility study is needed; business analysis is conducted instead.
   • Change. In enterprise administration, the act or instance of becoming different and/or doing business differently.
   • Organizational change. Creation and/or creative alteration of how the organization conducts its overall business and/or what it offers to its stakeholders. The change can include its enterprise portfolio, organizational structure, people, work environment, technology, etc.
   • Business strategy change. Creation and/or creative alternation of a business strategy. This change may include the product that is offered on the market, its scope or features, pricing, presentations, production personnel, and/or way of production usually in order to (a) offer new and/or additional benefits to the customer and/or (b) serve some organizational needs.
   • Planned change. Change activities that are intentional and goal oriented.
   • Unexpected change. Change activities that are unintentional and not necessarily goal oriented.
2. Change budget estimate. The expected total cost of a set of enterprise efforts undertaken in order to implement a proposed change when the defined scope of work has been completed. In simple words, it is what the enterprise is going to lose as a result of the proposed change implementation. Because the budgets likely depend on the payroll and the payroll depends on work time, schedule feasibility needs to be evaluated before the budget. Because the work time likely depends on the project scope, effort feasibility needs to be evaluated before the work time. Because the project scope definitely depends on the product scope, deliverable feasibility needs to be evaluated first of all.
   • Deliverable feasibility.
   • Effort feasibility.
   • Schedule feasibility.
3. Attained value estimate. The expected total value that the enterprise is going to obtain when a proposed change is implemented. Because this value shall have several components, several evaluations may be needed. The components may include economic, social, compliance, and configuration ones.
   • Economic feasibility.
   • Compliance feasibility.
   • Social feasibility.
   • Configuration feasibility.
4. Market analysis.
   • Enterprise environmental complexity. The number of components in an enterprise's environment and the extent of the entity's knowledge about its components.
   • Enterprise environmental uncertainty. The degree of change and complexity in an enterprise's environment.
   • Market.
   • Market research.
   • Planned economy. An economic system in which economic decisions are planned by a central government.
   • Free market economy. An economic system in which resources are primarily owned and controlled by the private sector.
   • Competition.
   • Competitor intelligence. Gathering information about competitors that allows managers to anticipate competitors' actions rather than merely react to them.
   • First mover. An enterprise that's first to bring a product innovation to the market or to use a new process innovation.
   • Restraining force. A force that hinders movement from the existing equilibrium (Kurt Lewin).
5. Portfolio feasibility.
   • Business strategy. The formulation of how an organization is going to compete in a particular business. This formulation may or may not include (a) what products, (c) resulted from what production, (d) at what price, (e) using what presentation, (f) on what market, (g) with what people, (h) with what level of organization's support this organization is going to offer, as well as (i) what financial results and/or competitors' actions would trigger what changes in those decisions. Rarely, a mature organization formulates just one business strategy; usually, there are several business strategies in the organization's enterprise portfolio since both/either different divisions may have their own business strategies and/or different business strategies are developed for different products, regions, and/or segments of customers.
   • Organization. A consciously coordinated social unit, composed of two or more legal entities, that functions on a relatively continuous basis to achieve a common goal or set of goals.
6. Enterprise portfolio. A collection of all businesses in which a particular organization is.
   • Startup business (or, simply, startup). A business in its search of its business model or its ways of making money.
   • Ongoing business. A business that executes its business model in order to make money.

Methods

1. Project estimate techniques.

Second edition

• Activity. An element of work performed during the course of a project. An activity normally has an expected duration, an expected cost, and expected resource requirements. Activities can be subdivided into tasks.
• Activity definition. Identifying the specific activities that must be performed to produce the various project deliverables.
• Activity description (AD). A short phrase or label used in a project network diagram. The activity description normally describes the scope of work of the activity.
• Activity duration estimating. Estimating the number of work periods that will be needed to complete individual activities.
• Activity sequencing. Identifying and documenting interactivity logical relationships.
• Actual cost (AC). Total costs incurred that must relate to whatever cost was budgeted within the planned value and earned value (which can sometimes be direct labor hours alone, direct costs alone, or all costs including indirect costs) in accomplishing work during a given time period. See also earned value.
• Actual finish date (AF). The point in time that work actually ended on an activity. (Note: In some application areas, the activity is considered "finished" when work is "substantially complete".)
• Actual start date (AS). The point in time that work actually started on an activity.
• Administrative closure. Generating, gathering, and disseminating information to formalize phase or project completion.
• Application area. A category of projects that have common elements not present in all projects. Application areas are usually defined in terms of either the product of the project (i.e., by similar technologies or industry sectors) or the type of customer (e.g., internal versus external, government versus commercial). Application areas often overlap.
• Arrow. The graphic presentation of an activity. See also arrow diagramming method.
• Arrow diagramming method (ADM). A network diagramming technique in which activities are represented by arrows. The tail of the arrow represents the start, and the head represents the finish of the activity (the length of the arrow does not represent the expected duration of the activity). Activities are connected at points called nodes (usually drawn as small circles) to illustrate the sequence in which the activities are expected to be performed. See also precedence diagramming method.
• Assumption. The factor that, for planning purposes, is 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 assumptions' accuracy and identifies risks to the project from inaccuracy, inconsistency, or incompleteness of assumptions.
• Backward pass. The calculation of late finish dates and late start dates for the uncompleted portions of all network activities. Determined by working backwards through the network logic from the project's end date. The end date may be calculated in a forward pass or set by the customer or sponsor. See also network analysis.
• Bar chart. A graphic display of schedule-related information. In the typical bar chart, activities or other project elements are listed down the left side of the chart, dates are shown across the top, and activity durations are shown as date-placed horizontal bars. Also called a Gantt chart.
• Baseline. 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).
• Brainstorming. A general creativity technique that can be used to identify risks using a group of team members or subject-matter experts. Typically, a brainstorming session is structured so that each participant's ideas are recorded for later analysis. A tool of the risk identification process.
• Budget at completion (BAC). The sum of the total budgets for a project.
• Calendar unit. The smallest unit of time used in scheduling the project. Calendar units are generally in hours, days, or weeks, but can also be in shifts or even in minutes. Used primarily in relation to project management software.
• Change control board (CCB). A formally constituted group of stakeholders responsible for approving or rejecting changes to the project baselines.
• Chart of accounts. Any numbering system used to monitor project costs by category (e.g., labor, supplies, materials, and equipment). The project chart of accounts is usually based upon the corporate chart of accounts of the primary performing organization. See also code of accounts.
• Checklist. 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.
• Code of accounts. Any numbering system used to uniquely identify each element of the work breakdown structure. See also chart of accounts.
• Communications planning. Determining the information and communications needs of the project stakeholders : who needs what information, when they will need it, and how it will be given to them.
• Component. A constituent part, an element.
• Constraint. Applicable restriction that will affect the performance of the project. Any factor that affects when an activity can be scheduled.
• 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 reserve. The amount of money or time needed above the estimate to reduce the risk of overruns of project objectives to a level acceptable to the organization.
• Contract. A contract is a mutually binding agreement that obligates the seller to provide the specified product and obligates the buyer to pay for it. Contracts generally fall into one of three broad categories: Fixed-price or lump-sum contracts — this category of contract involves a fixed total price for a well-defined product. Fixed-price contracts may also include incentives for meeting or exceeding selected project objectives, such as schedule targets. Cost-reimbursable contracts — this category of contract involves payment (reimbursement) to the contractor for its actual costs. Costs are usually classified as direct costs (costs incurred directly by the project, such as wages for members of the project team) and indirect costs (costs allocated to the project by the performing organization as a cost of doing business, such as salaries for corporate executives). Indirect costs are usually calculated as a percentage of direct costs. Cost-reimbursable contracts often include incentives for meeting or exceeding selected project objectives, such as schedule targets or total cost. Time and material contracts — time and material contracts are a hybrid type of contractual arrangement that contain aspects of both cost-reimbursable and fixed price-type arrangements. Time and material contracts resemble cost-type arrangements in that they are open ended, because the full value of the arrangement is not defined at the time of the award. Thus, time and material contracts can grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, time and material arrangements can also resemble fixed-unit arrangements when, for example, the unit rates are preset by the buyer and seller, as when both parties agree on the rates for the category of "senior engineers."
• Contract administration. Managing the relationship with the seller.
• Contract closeout. Completion and settlement of the contract, including resolution of any open items.
• Control. The process of comparing actual performance with planned performance, analyzing variances, evaluating possible alternatives, and taking appropriate corrective action as needed.
• Control account plan (CAP). Previously called a Cost Account Plan. The CAP is a management control point where the integration of scope and budget and schedule takes place, and where the measurement of performance will happen. CAPs are placed at selected management points of the work breakdown structure.
• Control chart. 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.
• Corrective action. Changes made to bring expected future performance of the project in line with the plan.
• Cost budgeting. Allocating the cost estimates to individual work activities.
• Cost control. Controlling changes to the project budget.
• Cost estimating. Developing an approximation (estimate) of the cost of the resources needed to complete project activities.
• Cost of quality. The costs incurred to ensure quality. The cost of quality includes quality planning, quality control, quality assurance, and rework.
• Cost performance index (CPI). The cost efficiency ratio of earned value to actual costs. CPI is often used to predict the magnitude of a possible cost overrun using the following formula: BAC/CPI = projected cost at completion. CPI = EV divided by AC.
• Cost-plus-fixed-fee contract (CPFF Contract). A type of contract where the buyer reimburses the seller for the seller's allowable costs (allowable costs are defined by the contract) plus a fixed amount of profit (fee).
• Cost-plus-incentive-fee contract (CPIF Contract}. A type of contract where the buyer reimburses the seller for the seller's allowable costs (allowable costs are defined by the contract), and the seller earns its profit if it meets defined performance criteria.
• Cost variance (CV). 1) Any difference between the budgeted cost of an activity and the actual cost of that activity. 2) In earned value, EV less ACWP = CV.
• Crashing. Taking action to decrease the total project duration after analyzing a number of alternatives to determine how to get the maximum duration compression for the least cost.
• Critical activity. Any activity on a critical path. Most commonly determined by using the critical path method. Although some activities are "critical," in the dictionary sense, without being on the critical path, this meaning is seldom used in the project context.
• Critical path. The series of activities that determines the duration of the project. In a deterministic model, the critical path is usually defined as those activities with float less than or equal to a specified value, often zero. It is the longest path through the project. See critical path method.
• Critical Path Method (CPM). A network analysis technique used to predict project duration by analyzing which sequence of activities (which path) has the least amount of scheduling flexibility (the least amount of float). Early dates are calculated by means of a forward pass, using a specified start date. Late dates are calculated by means of a backward pass, starting from a specified completion date (usually the forward pass' calculated project early finish date).
• Current finish date. The current estimate of the point in time when an activity will be completed.
• Current start date. The current estimate of the point in time when an activity will begin.
• Data date (DD). The date at which, or up to which, the project's reporting system has provided actual status and accomplishments. Also called as-of date.
• Decision tree analysis. The decision tree is a diagram that describes a decision under consideration and the implications of choosing one or another of the available alternatives. It incorporates probabilities or risks and the costs or rewards of each logical path of events and future decisions.
• Deliverable. Any measurable, tangible, verifiable outcome, result, or item that must be produced to complete a project or part of a project. Often used more narrowly in reference to an external deliverable, which is a deliverable that is subject to approval by the project sponsor or customer.
• Dummy activity. An activity of zero duration used to show a logical relationship in the arrow diagramming method. 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 (DU). The number of work periods (not including holidays or other nonworking periods) required to complete an activity or other project element. Usually expressed as workdays or workweeks. Sometimes incorrectly equated with elapsed time. See also effort.
• 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.
• Early finish date (EF). In the critical path method, the earliest possible point in time on which the uncompleted portions of an activity (or the project) can finish, based on the network logic and any schedule constraints. Early finish dates can change as the project progresses and changes are made to the project plan.
• Early start date (ES). In the critical path method, the earliest possible point in time on which the uncompleted portions of an activity or the project) can start, based on the network logic and any schedule constraints. Early start dates can change as the project progresses and changes are made to the project plan.
• Earned value (EV). 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). Previously called the budgeted cost of work performed (BCWP) for an activity or group of activities.
• Earned value management (EVM). A method for integrating scope, schedule, and resources, and for measuring 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.
• Effort. The number of labor units required to complete an activity or other project element. Usually expressed as staff hours, staff days, or staff weeks. Should not be confused with duration.
• Element. One of the parts, substances, or principles that make up a compound or complex whole.
• Estimate. An assessment of the likely quantitative result. Usually applied to project costs and durations and should always include some indication of accuracy (e.g., ±x percent). Usually used with a modifier (e.g., preliminary, conceptual, feasibility). Some application areas have specific modifiers that imply particular accuracy ranges (e.g., order-of-magnitude estimate, budget estimate, and definitive estimate in engineering and construction projects).
• Estimate at completion (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.
• 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." See also earned value and estimate at completion.
• Event-on-node. A network diagramming technique in which events are represented by boxes (or nodes) connected by arrows to show the sequence in which the events are to occur. Used in the original program evaluation and review technique.
• Exception report. Document that includes only major variations from plan (rather than all variations).
• Fast tracking. Compressing the project schedule by overlapping activities that would normally be done in sequence, such as design and construction.
• Finish date. A point in time associated with an activity's completion. Usually qualified by one of the following: actual, planned, estimated, scheduled, early, late, baseline, target, or current.
• Firm fixed-price contract (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.
• Fixed-price-incentive-fee contract (FPIF Contract). A type of contract where the buyer pays the seller a set amount (as defined by the contract), and the seller can earn an additional amount if it meets defined performance criteria.
• 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. Also called slack, total float, and path float. See also free float.
• Forward pass. The calculation of the early start and early finish dates for the uncompleted portions of all network activities. See also network analysis and backward pass.
• Free float (FF). The amount of time that an activity can be delayed without delaying the early start of any immediately following activities. See also float.
• Functional manager. A manager responsible for activities in a specialized department or function (e.g., engineering, manufacturing, marketing).
• Functional organization. An organization structure in which staff are grouped hierarchically by specialty (e.g., production, marketing, engineering, and accounting at the top level; with engineering, further divided into mechanical, electrical, and others).
• Grade. A category or rank used to distinguish items that have the same functional use (e.g., "hammer"), but do not share the same requirements for quality (e.g., different hammers may need to withstand different amounts of force).
• Graphical Evaluation and Review Technique (GERT). A network analysis technique that allows for conditional and probabilistic treatment of logical relationships (i.e., some activities may not be performed).
• 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. See also subproject and subnet.
• Hanger. An unintended break in a network path. Hangers are usually caused by missing activities or missing logical relationships.
• Information distribution. Making needed information available to project stakeholders in a timely manner.
• Initiation. Authorizing the project or phase.
• Integrated change control. Coordinating changes across the entire project.
• Invitation for bid (IFB). Generally, this term is equivalent to request for proposal. However, in some application areas, it may have a narrower or more specific meaning.
• Lag. A modification of a logical relationship that directs a delay in the successor task. For example, in a finish-to-start dependency with a ten-day lag, the successor activity cannot start until ten days after the predecessor has finished. See also lead.
• Late finish date (LF). In the critical path method, the latest possible point in time that an activity may be completed without delaying a specified milestone (usually the project finish date).
• Late start date (LS). In the critical path method, the latest possible point in time that an activity may begin without delaying a specified milestone (usually the project finish date).
• Lead. A modification of a logical relationship that allows an acceleration of the successor task. For example, in a finish-to-start dependency with a ten-day lead, the successor activity can start ten days before the predecessor has finished. See also lag.
• Lessons learned. The learning gained from the process of performing the project. Lessons learned may be identified at any point. Also considered a project record.
• Level of effort (LOE). Support-type activity (e.g., vendor or customer liaison) that does not readily lend itself to measurement of discrete accomplishment. It is generally characterized by a uniform rate of activity over a period of time determined by the activities it supports.
• Life-cycle costing. The concept of including acquisition, operating, and disposal costs when evaluating various alternatives.
• Line manager. (1) The manager of any group that actually makes a product or performs a service. (2) A functional manager.
• Logical relationship. A dependency between two project activities, or between a project activity and a milestone. See also precedence relationship. The four possible types of logical relationships are: Finish-to-start — the initiation of work of the successor depends upon the completion of work of the predecessor. Finish-to-finish — the completion of the work of the successor cannot finish until the completion of work of the predecessor. Start-to-start — the initiation of work of the successor depends upon the initiation of the work of the predecessor. Start-to-finish — the completion of the successor is dependent upon the initiation of the predecessor.
• Loop. A network path that passes the same node twice. Loops cannot be analyzed using traditional network analysis techniques such as critical path method and program evaluation and review technique. Loops are allowed in graphical evaluation and review technique.
• Master schedule. A summary-level schedule that identifies the major activities and key milestones. See also milestone schedule.
• Matrix organization. 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.
• Milestone. A significant event in the project, usually completion of a major deliverable.
• Milestone schedule. A summary-level schedule that identifies the major milestones. See also master schedule.
• Monitoring. The capture, analysis, and reporting of project performance, usually as compared to plan.
• Monte Carlo Analysis. A technique that performs a project simulation many times to calculate a distribution of likely results. See simulation.
• Near-critical activity. An activity that has low total float.
• Network analysis. The process of identifying early and late start and finish dates for the uncompleted portions of project activities. See also critical path method, program evaluation and review technique, and graphical evaluation and review technique.
• Network logic. The collection of activity dependencies that makes up a project network diagram.
• Network path. Any continuous series of connected activities in a project network diagram.
• Node. One of the defining points of a network; a junction point joined to some or all of the other dependency lines. See also arrow diagramming method and precedence diagramming method.
• Organizational breakdown structure (OBS). A depiction of the project organization arranged so as to relate work packages to organizational units.
• Organizational planning. Identifying, documenting, and assigning project roles, responsibilities, and reporting relationships.
• 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.
• Pareto diagram. A histogram, ordered by frequency of occurrence, that shows how many results were generated by each identified cause.
• Path. A set of sequentially connected activities in a project network diagram.
• Path convergence. The node in the schedule where parallel paths merge or join. At that node, delays or elongation or any converging path can delay the project. In quantitative risk analysis of a schedule, significant risk may occur at this point.
• 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 baseline. An approved plan against which deviations are compared for management control.
• Performance reporting. Collecting and disseminating performance information. This includes status reporting, progress measurement, and forecasting.
• Performing organization. The enterprise whose employees are most directly involved in doing the work of the project.
• PERT chart. The term is commonly used to refer to a project network diagram. See program evaluation and review technique for the traditional definition of PERT.
• Planned value (PV). The physical work scheduled, plus the authorized budget to accomplish the scheduled work. Previously, this was called the budgeted costs for work scheduled (BCWS).
• Precedence diagramming method (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.
• Precedence relationship. The term used in the precedence diagramming method for a logical relationship. In current usage, however, precedence relationship, logical relationship, and dependency are widely used interchangeably, regardless of the diagramming method in use.
• Predecessor activity. (1) In the arrow diagramming method, the activity that enters a node. (2) In the precedence diagramming method, the "from" activity.
• Probability and Impact Matrix. A common way to determine whether a risk is considered low, moderate, or high by combining the two dimensions of a risk, its probability of occurrence, and its impact on objectives if it occurs.
• Procurement planning. Determining what to procure and when.
• Product scope. The features and functions that characterize a product or service.
• Program. A group of related projects managed in a coordinated way. Programs usually include an element of ongoing work.
• Program Evaluation and Review Technique (PERT). 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. Also known as the Method of Moments Analysis.
• Project. A temporary endeavor undertaken to create a unique product, service, or result.
• 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 resources to project activities.
• Project communications management. A subset of project management that includes the processes required to ensure timely and appropriate generation, collection and dissemination, storage and ultimate disposition of project information. It consists of communications planning, information distribution, performance reporting, and administrative closure.
• Project cost management. A subset of project management that includes the processes required to ensure that the project is completed within the approved budget. It consists of resource planning, cost estimating, cost budgeting, and cost control.
• Project human resource management. A subset of project management that includes the processes required to make the most effective use of the people involved with the project. It consists of organizational planning, staff acquisition, and team development.
• Project integration management. A subset of project management that includes the processes required to ensure that the various elements of the project are properly coordinated. It consists of project plan development, project plan execution, and integrated change control.
• 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 management (PM). The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.
• Project Management Body of Knowledge (PMBOK®). An inclusive term that describes the sum of knowledge within the profession of project management. As with other professions — such as law, medicine, and accounting — the body of knowledge rests with the practitioners and academics that apply and advance it. The PMBOK® includes proven, traditional practices that are widely applied, as well as innovative and advanced ones that have seen more limited use.
• Project Management Professional (PMP®). An individual certified as such by the Project Management Institute (PMI®).
• Project management software. A class of computer applications specifically designed to aid with planning and controlling project costs and schedules.
• Project management team. The members of the project team who are directly involved in project management activities. On some smaller projects, the project management team may include virtually all of the project team members.
• Project manager (PM). The individual responsible for managing a project.
• 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 a PERT chart.
• Project phase. A collection of logically related project activities, usually culminating in the completion of a major deliverable.
• Project plan. A formal, approved document used to guide both project execution and project control. The primary uses of the project plan are to document planning assumptions and decisions, facilitate communication among stakeholders, and document approved scope, cost, and schedule baselines. A project plan may be summary or detailed.
• Project plan development. Integrating and coordinating all project plans to create a consistent, coherent document.
• Project plan execution. Carrying out the project plan by performing the activities included therein.
• Project planning. The development and maintenance of the project plan.
• Project procurement management. A subset of project management that includes the processes required to acquire goods and services to attain project scope from outside the performing organization. It consists of procurement planning, solicitation planning, solicitation, source selection, contract administration, and contract closeout.
• Project quality management. A subset of project management that includes the processes required to ensure that the project will satisfy the needs for which it was undertaken. It consists of quality planning, quality assurance, and quality control.
• Project risk management. Risk management is the systematic process of identifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of events adverse to project objectives. It includes the processes of risk management planning, risk identification, qualitative risk analysis, quantitative risk analysis, risk response planning, and risk monitoring and control.
• Project schedule. The planned dates for performing activities and the planned dates for meeting milestones.
• Project scope. The work that must be done to deliver a product with the specified features and functions.
• Project scope management. A subset of project management that includes the processes required to ensure that the project includes all of the work required, and only the work required, to complete the project successfully. It consists of initiation, scope planning, scope definition, scope verification, and scope change control.
• Project team members. The people who report either directly or indirectly to the project manager.
• Project time management. A subset of project management that includes the processes required to ensure timely completion of the project. It consists of activity definition, activity sequencing, activity duration estimating, schedule development, and schedule control.
• Projectized organization. Any organizational structure in which the project manager has full authority to assign priorities and to direct the work of individuals assigned to the project.
• Qualitative risk analysis. 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.
• 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.
• Quality assurance (QA). (1) The process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. (2) The organizational unit that is assigned responsibility for quality assurance.
• Quality control (QC). 1) The process of monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. 2) The organizational unit that is assigned responsibility for quality control.
• Quality planning. Identifying which quality standards are relevant to the project, and determining how to satisfy them.
• Remaining duration (RDU). The time needed to complete an activity.
• Request for proposal (RFP). A type of bid document used to solicit proposals from prospective sellers of products or services. In some application areas, it may have a narrower or more specific meaning.
• Request for quotation (RFQ). Generally, this term is equivalent to request for proposal. However, in some application areas, it may have a narrower or more specific meaning.
• Reserve. A provision in the project plan to mitigate cost and/or schedule risk. Often used with a modifier (e.g., management reserve, contingency reserve) to provide further detail on what types of risk are meant to be mitigated. The specific meaning of the modified term varies by application area.
• Residual risk. A risk that remains after risk responses have been implemented.
• 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).
• Resource-limited schedule. A project schedule whose start and finish dates reflect expected resource availability. The final project schedule should always be resource limited.

1. • Proof of concept.
   • Idea evaluation. The process of creative behavior involving the evaluation of potential solutions to problems to identify the best one.

Instruments

1. • SWOT analysis. An analysis of the organization's strengths, weaknesses, opportunities, and threats.
   • Strength. Any activity the organization does well or its unique resource.
   • Weakness. An activity the organization does not do well or a resource it needs but does not possess.
   • Opportunity. A positive trend in the external environment.
   • Threat. A negative trend in the external environment.
   • BCG matrix. A strategy tool that guides resource allocation decisions on the basis of market share and growth rate of strategic business units.
   • Strategic business unit. A single independent business of an organization that formulates its own competitive strategy.
   • Porter's Five Forces.

Practices

The successor lecture is Business Modeling Quarter.