Project Management Glossary: Key Terms & Concepts

Posted on Jun 5, 2024 in Computers

Project Management Glossary

Key Terms and Concepts

1. Project Life Cycle

The phases a project goes through from start to finish. Typically includes initiation, planning, execution, monitoring and controlling, and closing.

2. Triple Constraints in Project Management

The three main factors that constrain a project: scope (what needs to be done), time (schedule), and cost (budget). Changing one usually affects the others.

3. Role of a Project Manager

The person responsible for planning, executing, and closing a project. They manage the team, resources, and stakeholders, and ensure the project meets its objectives.

4. Work Breakdown Structure (WBS)

A visual breakdown of a project into smaller, manageable parts. It helps in organizing and defining the total scope of the project.

5. Risk Management

The process of identifying, assessing, and controlling risks that could potentially affect the project’s outcomes.

6. Risk Management Strategies

Methods to deal with risks, such as:

  • Avoiding the risk
  • Mitigating (reducing the impact)
  • Transferring (shifting the risk to another party)
  • Accepting the risk

7. Goldratt’s Critical Chain

A project management method that focuses on resources needed to complete project tasks. It aims to keep projects on schedule by identifying and addressing bottlenecks.

8. Concurrent Engineering

A method where tasks are performed simultaneously rather than sequentially. It’s used to reduce project timelines and improve collaboration.

9. Project Management Information System (PMIS)

A tool or set of tools used to gather, integrate, and disseminate the outputs of project management processes. It supports project planning, execution, and monitoring.

10. Top-Down & Bottom-Up Budgeting

  • Top-Down: Senior management sets the budget and expectations, which are then broken down into smaller budgets for individual departments or projects.
  • Bottom-Up: Individual departments or project managers create their own budgets, which are then combined to form the overall budget.

11. Four Stages of Team Development

  • Forming: Team members get to know each other.
  • Storming: Conflicts arise as team members work through their differences.
  • Norming: The team starts to work well together.
  • Performing: The team operates efficiently towards achieving goals.
Advantages of an Effective Team:
  • Better problem-solving
  • Improved morale
  • Higher productivity

12. Non-Numeric/Numeric Models

  • Non-Numeric: Decision-making models that don’t use numbers, such as qualitative assessments.
  • Numeric: Models that use numerical data for decision-making, like cost-benefit analysis.

13. Scope Creep/Formal Change Control System

  • Scope Creep: The gradual expansion of project scope without formal changes. It often leads to project overruns.
  • Formal Change Control System: A process for managing changes to the project scope, including documentation, approval, and implementation of changes.

14. Planning, Monitoring, and Controlling Cycle

  • Planning: Defining objectives and how to achieve them.
  • Monitoring: Tracking project progress and performance.
  • Controlling: Making adjustments to ensure the project stays on track.

15. Earned Value Chart

  • Three Variances:
    • Cost Variance (CV): Difference between budgeted cost and actual cost.
    • Schedule Variance (SV): Difference between planned progress and actual progress.
    • Variance at Completion (VAC): Expected budget difference at project completion.
  • Significance: These variances help determine if the project is on budget and on schedule.

16. Project Portfolio Process

Steps to manage multiple projects to ensure they align with the organization’s goals. Includes project selection, prioritization, resource allocation, and performance monitoring.

17. Project Estimation and Scheduling Techniques

  • Estimation: Methods like expert judgment, analogous estimating, parametric estimating, and bottom-up estimating.
  • Scheduling: Techniques like Gantt charts, Critical Path Method (CPM), and Program Evaluation and Review Technique (PERT).

18. Project Management Template

A sample template might include sections like project objectives, scope, deliverables, schedule, resources, risk management plan, and communication plan.

19. Probability and Impact Matrix

A tool used in risk management to assess the likelihood (probability) and consequences (impact) of risks. Helps prioritize risks for mitigation.

20. Risk Register

A document that lists all identified risks, their severity, the responses planned, and the owners responsible for managing the risks.

21. Functional, Pure Project & Matrix

  • Functional: Team members work in their respective departments and may support multiple projects.
  • Pure Project: Team members are dedicated solely to one project.
  • Matrix: Combines functional and projectized structures, with team members reporting to both functional and project managers.

22. Project Audit

A thorough review of a project to evaluate its performance and compliance with the project plan. It includes reviewing processes, documentation, and outcomes to identify areas for improvement.

Formulas:

SPI = EV / PV

CPI = EV / AC

SV = EV – PV

CV = EV – AC

Te = (t0 + 4tm + tp) / 6

a2 = [(tp – t0) / 6]2