{"id":674,"date":"2022-01-14T22:40:45","date_gmt":"2022-01-15T03:40:45","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/?post_type=back-matter&p=674"},"modified":"2022-01-19T21:20:24","modified_gmt":"2022-01-20T02:20:24","slug":"glossary","status":"publish","type":"back-matter","link":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/back-matter\/glossary\/","title":{"raw":"Glossary","rendered":"Glossary"},"content":{"raw":"","rendered":"
\n
Actual Cost (AC)<\/dfn><\/dt>\n
\n

The realized cost incurred for the work performed on an activity during a specific time period.<\/p>\n<\/dd>\n

Affinity Grouping<\/dfn><\/dt>\n
\n

The process of classifying items into similar categories or collections on the basis of their likeness.<\/p>\n<\/dd>\n

Agile<\/dfn><\/dt>\n
\n

A term used to describe a mindset of values and principles as set forth in the Agile Manifesto.<\/p>\n<\/dd>\n

Ambiguity<\/dfn><\/dt>\n
\n

A state of being unclear, having difficulty in identifying the cause of events, or having multiple options from which to choose.<\/p>\n<\/dd>\n

Baseline<\/dfn><\/dt>\n
\n

The approved version of a work product, used as a basis for comparison to actual results.<\/p>\n<\/dd>\n

Benchmarking<\/dfn><\/dt>\n
\n

The comparison of actual or planned products, processes, and practices to those of comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measuring performance.<\/p>\n<\/dd>\n

Bid Documents<\/dfn><\/dt>\n
\n

All documents used to solicit information, quotations, or proposals from prospective sellers.<\/p>\n<\/dd>\n

Budget<\/dfn><\/dt>\n
\n

The approved estimate for the project or any work breakdown structure (WBS) component or any schedule activity.<\/p>\n<\/dd>\n

Budget at Completion (BAC)<\/dfn><\/dt>\n
\n

The sum of all budgets established for the work to be performed.<\/p>\n<\/dd>\n

Complexity<\/dfn><\/dt>\n
\n

A characteristic of a program or project or its environment that is difficult to manage due to human behavior, system behavior, and ambiguity.<\/p>\n<\/dd>\n

Contingency<\/dfn><\/dt>\n
\n

An event or occurrence that could affect the execution of the project, which may be accounted for with a reserve.<\/p>\n<\/dd>\n

Contingency Reserve<\/dfn><\/dt>\n
\n

Time or money allocated in the schedule or cost baseline for known risks with active response strategies.<\/p>\n<\/dd>\n

Contract<\/dfn><\/dt>\n
\n

A mutually binding agreement that obligates the seller to provide the specified product, service, or result and obligates the buyer to pay for it.<\/p>\n<\/dd>\n

Control<\/dfn><\/dt>\n
\n

The process of comparing actual performance with planned performance, analyzing variances, assessing trends to effect process improvements, evaluating possible alternatives, and recommending appropriate corrective action as needed.<\/p>\n<\/dd>\n

Control Chart<\/dfn><\/dt>\n
\n

A graphic display of process data over time and against established control limits, which has a centerline that assists in detecting a trend of plotted values toward either control limit.<\/p>\n<\/dd>\n

Cost Baseline<\/dfn><\/dt>\n
\n

The approved version of the time-phased project budget, excluding any management reserves, which can be changed only through formal change control procedures and is used as a basis for comparison to actual results.<\/p>\n<\/dd>\n

Cost Estimation<\/dfn><\/dt>\n
\n

The process of estimating all of the costs associated with completing a project within scope and according to its timeline.<\/p>\n<\/dd>\n

Cost of Quality (COQ)<\/dfn><\/dt>\n
\n

All costs incurred over the life of the product by investment in preventing nonconformance to requirements, appraisal of the product or service for conformance to requirements, and failure to meet requirements.<\/p>\n<\/dd>\n

Cost Performance Index (CPI)<\/dfn><\/dt>\n
\n

A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost.<\/p>\n<\/dd>\n

Cost Plus Award Fee Contract (CPAF)<\/dfn><\/dt>\n
\n

A category of contract that involves payments to the seller for all legitimate actual costs incurred for completed work, plus an award fee representing seller profit.<\/p>\n<\/dd>\n

Cost Plus Fixed Fee Contract (CPFF)<\/dfn><\/dt>\n
\n

A type of cost-reimbursable contract where the buyer reimburses the seller for the seller\u2019s allowable costs (allowable costs are defined by the contract) plus a fixed amount of profit (fee).<\/p>\n<\/dd>\n

Cost Plus Incentive Fee Contract (CPIF)<\/dfn><\/dt>\n
\n

A type of cost-reimbursable contract where the buyer reimburses the seller for the seller\u2019s allowable costs (allowable costs are defined by the contract), and the seller earns its profit if it meets defined performance criteria.<\/p>\n<\/dd>\n

Cost-Benefit Analysis<\/dfn><\/dt>\n
\n

A financial analysis method used to determine the benefits provided by a project against its costs.<\/p>\n<\/dd>\n

Cost-Reimbursable Contract<\/dfn><\/dt>\n
\n

A type of contract involving payment to the seller for the seller\u2019s actual costs, plus a fee typically representing the seller\u2019s profit.<\/p>\n<\/dd>\n

Definition of Done (DoD)<\/dfn><\/dt>\n
\n

A checklist of all the criteria required to be met so that a deliverable can be considered ready for customer use.<\/p>\n<\/dd>\n

Digital Transformation<\/dfn><\/dt>\n
\n

Changing the way business gets done and, in some cases, creating entirely new classes of businesses.<\/p>\n<\/dd>\n

Digitalization<\/dfn><\/dt>\n
\n

The use of digital data to simplify the way work is done.<\/p>\n<\/dd>\n

Digitization<\/dfn><\/dt>\n
\n

The process of converting information from analog to digital.<\/p>\n<\/dd>\n

Discounted Cash Flow<\/dfn><\/dt>\n
\n

A valuation method used to estimate the value of an investment based on its expected future cash flows.<\/p>\n<\/dd>\n

Earned Value (EV)<\/dfn><\/dt>\n
\n

The measure of work performed expressed in terms of the budget authorized for that work.<\/p>\n<\/dd>\n

Estimate<\/dfn><\/dt>\n
\n

A quantitative assessment of the likely amount or outcome of a variable, such as project costs, resources, effort, or durations.<\/p>\n<\/dd>\n

Estimate at Completion (EAC)<\/dfn><\/dt>\n
\n

The expected total cost of completing all work expressed as the sum of the actual cost to date and the estimate to complete.<\/p>\n<\/dd>\n

Estimate to Complete (ETC)<\/dfn><\/dt>\n
\n

The expected cost to finish all the remaining project work.<\/p>\n<\/dd>\n

Expected Monetary Value (EMV)<\/dfn><\/dt>\n
\n

The estimated value of an outcome expressed in monetary terms.<\/p>\n<\/dd>\n

Firm Fixed Price Contract (FFP)<\/dfn><\/dt>\n
\n

A type of fixed-price contract where the buyer pays the seller a set amount (as defined by the contract), regardless of the seller\u2019s costs.<\/p>\n<\/dd>\n

Fixed Price Incentive Fee Contract (FPIF)<\/dfn><\/dt>\n
\n

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 the seller meets defined performance criteria.<\/p>\n<\/dd>\n

Fixed-Price Contract<\/dfn><\/dt>\n
\n

An agreement that sets the fee that will be paid for a defined scope of work regardless of the cost or effort to deliver it.<\/p>\n<\/dd>\n

Governance<\/dfn><\/dt>\n
\n

The framework for directing and enabling an organization through its established policies, practices, and other relevant documentation.<\/p>\n<\/dd>\n

Histogram<\/dfn><\/dt>\n
\n

A bar chart that shows the graphical representation of numerical data.<\/p>\n<\/dd>\n

Internal Rate of Return (IRR)<\/dfn><\/dt>\n
\n

The annualized effective compounded return rate OR the discount rate that makes the net present value of all cash flows (both positive and negative) from a particular investment equal to zero.<\/p>\n<\/dd>\n

Leadership<\/dfn><\/dt>\n
\n

Using one\u2019s interpersonal skills in order to guide, motivate and direct a team.<\/p>\n<\/dd>\n

Lease-or-Buy Analysis<\/dfn><\/dt>\n
\n

A technique used to determine if needed equipment should be purchased or leased on a project.<\/p>\n<\/dd>\n

Make-or-Buy Analysis<\/dfn><\/dt>\n
\n

The process of gathering and organizing data about product requirements and analyzing them against available alternatives including the purchase or internal manufacture of the product.<\/p>\n<\/dd>\n

Management Reserve<\/dfn><\/dt>\n
\n

An amount of the project budget or project schedule held outside of the performance measurement baseline for management control purposes that is reserved for unforeseen work that is within the project scope.<\/p>\n<\/dd>\n

Monte Carlo Simulation<\/dfn><\/dt>\n
\n

A method of identifying the potential impacts of risk and uncertainty using multiple iterations of a computer model to develop a probability distribution of a range of outcomes that could result from a decision or course of action.<\/p>\n<\/dd>\n

Net Present Value<\/dfn><\/dt>\n
\n

The difference between the project\u2019s current value of cash inflow and the current value of cash outflow.<\/p>\n<\/dd>\n

Opportunity<\/dfn><\/dt>\n
\n

A risk that would have a positive effect on one or more project objectives.<\/p>\n<\/dd>\n

Opportunity Cost<\/dfn><\/dt>\n
\n

The cost that is given up when selecting another project.<\/p>\n<\/dd>\n

Organization Environment<\/dfn><\/dt>\n
\n

Represents the organization governance, policies, organizational culture and supporting practices of the organization that are created to support OPM and organizational strategy delivery and the system must be set up for value delivery.<\/p>\n<\/dd>\n

Payback Period<\/dfn><\/dt>\n
\n

The ratio of the total cash to the average per period cash.<\/p>\n<\/dd>\n

Planned Value (PV)<\/dfn><\/dt>\n
\n

The authorized budget assigned to scheduled work.<\/p>\n<\/dd>\n

Portfolio<\/dfn><\/dt>\n
\n

Projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.<\/p>\n<\/dd>\n

Principle<\/dfn><\/dt>\n
\n

A norm, rule, value or fundamental truth which serve as a guide for behaviour or action.<\/p>\n<\/dd>\n

Procurement Management Plan<\/dfn><\/dt>\n
\n

A component of the project or program management plan that describes how a project team will acquire goods and services from outside of the performing organization.<\/p>\n<\/dd>\n

Product<\/dfn><\/dt>\n
\n

An artifact that is produced, is quantifiable, and can be either an end item in itself or a component item.<\/p>\n<\/dd>\n

Program<\/dfn><\/dt>\n
\n

Related projects, subsidiary programs, and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually.<\/p>\n<\/dd>\n

Project<\/dfn><\/dt>\n
\n

A temporary endeavour undertaken to create a unique product, service, or result.<\/p>\n<\/dd>\n

Project Governance<\/dfn><\/dt>\n
\n

The framework, functions, and processes that guide project management activities in order to create a unique product, service, or result to meet organizational, strategic, and operational goals.<\/p>\n<\/dd>\n

Project Management Body of Knowledge (PMBOK)<\/dfn><\/dt>\n
\n

A term that describes the knowledge within the profession of project management.<\/p>\n<\/dd>\n

Project Management Office (PMO)<\/dfn><\/dt>\n
\n

A management structure that standardizes the project-related governance processes and facilitates the sharing of resources, methodologies, tools, and techniques.<\/p>\n<\/dd>\n

Project Management Process Group<\/dfn><\/dt>\n
\n

A logical grouping of project management inputs, tools and techniques, and outputs. The Project Management Process Groups include Initiating processes, Planning processes, Executing processes, Monitoring and Controlling processes, and Closing processes.<\/p>\n<\/dd>\n

Psychological safety<\/dfn><\/dt>\n
\n

A shared belief held by members of a team that the team is safe for interpersonal risk taking.<\/p>\n<\/dd>\n

Quality<\/dfn><\/dt>\n
\n

The degree to which a set of inherent characteristics fulfills requirements.<\/p>\n<\/dd>\n

Risk<\/dfn><\/dt>\n
\n

An uncertain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.<\/p>\n<\/dd>\n

Risk Acceptance<\/dfn><\/dt>\n
\n

A risk response strategy whereby the project team decides to acknowledge the risk and not take any action unless the risk occurs.<\/p>\n<\/dd>\n

Risk Avoidance<\/dfn><\/dt>\n
\n

A risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact.<\/p>\n<\/dd>\n

Risk Breakdown Structure<\/dfn><\/dt>\n
\n

A hierarchical representation of potential sources of risks.<\/p>\n<\/dd>\n

Risk Enhancement<\/dfn><\/dt>\n
\n

A risk response strategy whereby the project team acts to increase the probability of occurrence or impact of an opportunity.<\/p>\n<\/dd>\n

Risk Exploitation<\/dfn><\/dt>\n
\n

A risk response strategy whereby the project team acts to ensure that an opportunity occurs.<\/p>\n<\/dd>\n

Risk Management Plan<\/dfn><\/dt>\n
\n

A component of the project, program, or portfolio management plan that describes how risk management activities will be structured and performed.<\/p>\n<\/dd>\n

Risk Mitigation<\/dfn><\/dt>\n
\n

A risk response strategy whereby the project team acts to decrease the probability of occurrence or impact of a threat.<\/p>\n<\/dd>\n

Risk Sharing<\/dfn><\/dt>\n
\n

A risk response strategy whereby the project team allocates ownership of an opportunity to a third party who is best able to capture the benefit of that opportunity.<\/p>\n<\/dd>\n

Risk Transference<\/dfn><\/dt>\n
\n

A risk response strategy whereby the project team shifts the impact of a threat to a third party, together with ownership of the response.<\/p>\n<\/dd>\n

Self-Organizing Team<\/dfn><\/dt>\n
\n

A cross-functional team in which people assume leadership as needed to achieve the team\u2019s objectives.<\/p>\n<\/dd>\n

Stakeholder<\/dfn><\/dt>\n
\n

An individual, group, or organization that may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project, program, or portfolio.<\/p>\n<\/dd>\n

Volatility<\/dfn><\/dt>\n
\n

The possibility for rapid and unpredictable change.<\/p>\n<\/dd>\n<\/dl>\n","protected":false},"author":1434,"menu_order":2,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"back-matter-type":[39],"contributor":[],"license":[],"class_list":["post-674","back-matter","type-back-matter","status-publish","hentry","back-matter-type-glossary"],"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/pressbooks\/v2\/back-matter\/674","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/pressbooks\/v2\/back-matter"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/wp\/v2\/types\/back-matter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/wp\/v2\/users\/1434"}],"version-history":[{"count":3,"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/pressbooks\/v2\/back-matter\/674\/revisions"}],"predecessor-version":[{"id":965,"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/pressbooks\/v2\/back-matter\/674\/revisions\/965"}],"metadata":[{"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/pressbooks\/v2\/back-matter\/674\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/wp\/v2\/media?parent=674"}],"wp:term":[{"taxonomy":"back-matter-type","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/pressbooks\/v2\/back-matter-type?post=674"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/wp\/v2\/contributor?post=674"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/projectcostsrisksqualityprocurement\/wp-json\/wp\/v2\/license?post=674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}