## Cost plus percentage of cost CPCC See cost plus fee CPF

cost reimbursable contract This type of contract charges the allowable costs associated with producing the goods or services of the project to the buyer.

cost variance (CV) This is an earned value analysis technique that determines whether costs are higher or lower than budgeted during a given period of time: CV = EV - AC.

cost-benefit analysis This compares the financial benefits to the company of performing the project to the costs of implementing the project.

crashing Crashing is a compression technique that looks at cost and schedule trade-offs. One of the things you might do to crash the schedule is add resources, from either inside or outside the organization, to the critical path tasks.

critical chain This is the new critical path formed as a result of constrained resources.

critical chain method This tool and technique from the Develop Schedule process modifies the project schedule by accounting for limited or restricted resources. This is a technique that's designed to help manage the uncertainties of a project. It combines deterministic and probabilistic approaches. The critical chain method often changes the critical path.

critical path (CP) This is the longest path through the project. It's made up of activities with zero float.

Critical Path Method (CPM) This determines a single early and late start date and early and late finish date for each activity on the project to determine both the longest path of the project schedule network diagram and the finish date of the project.

critical success factors These are the elements that must be completed in order for the project to be considered complete.

culture shock This is a disorienting experience that occurs when working in foreign surroundings or cultures that you are not familiar with.

cumulative cost performance index (CPIC) This is an earned value analysis technique that is used to calculate cost performance efficiencies: cumulative CPI = cumulative EV / cumulative AC.

decision models This is a category of selection methods outlined in the project selection methods tool and technique of the Develop Project Charter process. Decision models are used to examine different criteria to help make a decision regarding project selection. See also calculation methods.

decision trees These are diagrams that show the sequence of interrelated decisions and the expected results of choosing one alternative over the other. This is a Perform Quantitative Risk Analysis modeling technique, which is a tool and technique of this process.

Define Activities This process identifies the activities of the project that need to be performed to produce the product or service of the project.

Define Scope This Planning process further elaborates the objectives and deliverables of the project into a project scope statement that's used as a basis for future project decisions.

deliverable This is a measurable outcome, measurable result, or specific item that must be produced to consider the project or project phase completed. Deliverables are tangible and can be measured and easily proved.

Delphi technique This is an information gathering technique in the Identify Risks process used to gather information. Similar to brainstorming, except participants don't usually know each other, and they don't have to be present at the same location.

dependencies See logical relationships.

design of experiments (DOE) Design of experiments (DOE) is a statistical technique that identifies the elements—or variables—that will have the greatest effect on overall project outcomes.

Determine Budget This process creates the cost performance baseline, which measures the variance and performance of the project throughout the project's life.

Develop Human Resource Plan This process documents the roles and responsibilities of individuals or groups for various project elements and then documents the reporting relationships for each.

Develop Project Management Plan This is the first process in the Planning process group. The purpose of this process is to define, coordinate, and integrate all subsidiary project plans. The subsidiary plans might include the following: project scope management plan, schedule management plan, cost management plan, quality management plan, process improvement plan, staffing management plan, communication management plan, risk management plan, procurement management plan, milestone list, resource calendar, schedule baseline, cost baseline, quality baseline, and risk register.

Develop Project Team This process concerns creating an open, encouraging environment for team members as well as developing them into an effective, functioning, coordinated group.

Develop Schedule This process calculates and prepares the schedule of project activities, which becomes the schedule baseline. It determines activity start and finish dates, finalizes activity sequences and durations, and assigns resources to activities.

Direct and Manage Project Execution This process involves carrying out the project plan. Activities are clarified, the work is authorized to begin, resources are committed and assigned to activities, and the product or service of the project is created. The largest portion of the project budget will be spent during this process.

discounted cash flow This compares the value of the future cash flows of the project to today's dollars using time value of money techniques.

discretionary dependencies These are dependencies defined by the project management team. Discretionary dependencies are usually process or procedure driven. They are also known as preferred logic, soft logic, and preferential logic. See also logical relationships.

disputes See contested changes.

Distribute Information This process is concerned with providing stakeholders with information regarding the project in a timely manner via status reports, project meetings, review meetings, email, and so on. The communications management plan is put into action during this process.

earned value (EV) This is a measurement of the project's progress to date or the value of the work completed to date.

earned value management (EVM) This is the most commonly used performance measurement method. It looks at schedule, cost, and scope project measurements and compares their progress as of the measurement date against what was expected. The three measurements needed to perform earned value analysis are planned value (PV), actual cost (AC), and earned value (EV).

efficiency indicators Cost variance and schedule variance together are known as efficiency indicators.

enhance Enhance is a Plan Risk Responses strategy used for risks that pose an opportunity to the project.

Estimate Activity Durations This process assesses the number of work periods needed to complete the project activities. Work periods are usually expressed in hours or days. Large projects might express duration in weeks or months.

Estimate Activity Resources This process determines the types of resources needed (both human and materials) and in what quantities for each schedule activity within a work package.

estimate at completion (EAC) This is an earned value analysis technique that forecasts the expected total cost of a work component, the schedule activity, or the project at its completion.

Estimate Costs This process develops an approximation of the costs of each project activity.

estimate to complete (ETC) This is an earned value analysis technique that determines the additional expected costs to complete the schedule activity, WBS component, or control account (or project). This is most typically calculated in a bottom-up manner.

evaluation criteria This is a method of rating and scoring vendor proposals. Evaluation criteria are an output of the Conduct Procurements process.

Executing This is the third of the project management process groups. The Executing process group involves putting the project management plan into action, including coordinating and directing project resources to meet the objectives of the project plan. The Executing processes ensure that the project plan stays on track and that future execution of project plans stays in line with project objectives.

Expectancy Theory This is a motivational theory that states that the expectation of a positive outcome drives motivation and that people will behave in certain ways if they think there will be good rewards for doing so. The strength of the expectancy drives the behavior.

expected monetary value (EMV) EMV is a statistical technique that calculates the anticipated impact of the decision. This is a Perform Quantitative Risk Analysis modeling technique, which is a tool and technique of this process.

expected value This is the value calculated by using the three-point estimates for activity duration (most likely, pessimistic, and optimistic) and then finding the weighted average of those estimates.

expert judgment Expert judgment is a tool and technique of several processes. Expert judgment relies on individuals or groups of people who have training, specialized knowledge, or skills about the inputs you're assessing.

exploit Exploit is a Plan Risk Responses strategy used for risks that pose an opportunity to the project.

external dependencies These are the dependencies that are external to the project. See also logical relationships.

extinction This is a type of project ending where the work of the project is completed and accepted by the stakeholders.

failure costs Failure costs are the cost associated with nonconformance when products or services do not meet specifications. There are two types of failure costs, internal and external. Failure costs are also know as cost of poor quality.

fait accompli Fait accompli happens during contract negotiation when one party tries to convince the other party discussing a particular contract term that it is no longer an issue. It's a distraction technique because the party practicing fait accompli tactics is purposely trying to keep from negotiating an issue and claims the issue cannot be changed.

fast tracking This is a schedule compression technique where two activities that were previously scheduled to start sequentially start at the same time. Fast tracking reduces schedule duration if applied to the critical path.

feasibility study Feasibility studies are undertaken to determine whether the project is a viable project, the probability of project success, and the viability of the product of the project.

firm fixed-price contract (FFP) This type of contract sets a specific, firm price for the goods or services rendered based on a well-defined deliverable agreed upon by the buyer and seller. The biggest risk is borne by the seller with a fixed-price contract.

fitness for use Joseph Juran is noted for this theory, which means that stakeholders and customers expectations are met or exceeded.

fixed-price plus incentive contract (FPIF) This type of contract sets a specific, firm price for the goods or services rendered (like the fixed-price contract) and includes an extra incentive for exceeding agreed-upon performance criteria.

fixed-price with economic price adjustment (FP-EPA) This contract sets a firm price for the goods or services rendered and includes an adjustment that's tied to a reliable financial index. FP-EPA contracts are used when the contract period extends several years.

float The amount of time you can delay the early start of a task without delaying the finish date of the project. This is also known as slack time, total float, total slack, or path float.

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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