A Presentation to the Construction Industry in the cities of Bangalore, Bombay, Calcutta, Madras and New Delhi on behalf of the Consultancy Development Centre, New Delhi, India - January 1990

Table of Contents | Introduction | Understanding | Environment
Education | Summary | Appendix A | Appendix  B | Appendix C

Appendix C —
Glossary of Project Management Terms

Management Definitions

Project Management Institute : A non-profit organization dedicated to advancing the state-of-the-art in the profession of project management located in Pennsylvania, USA.

Project Management: the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost, time, quality and participant satisfaction.

Project Management Body of Knowledge (PMBoK): all those topics, subject areas and intellectual processes which are involved in the application of sound management principles to the collective execution of any types of effort which qualify as projects.

Project Management Framework: The idea of setting out to achieve certain predetermined objectives in several concurrent areas pre supposes the application of discipline and control through sound management practices. This in turn requires delegation of effort to various specialized "functional" management areas in which the separate objectives are to be achieved.

Scope Management: the function of controlling a project in terms of its goals and objectives through the processes of conceptual development, full definition or scope statement, execution and termination.

Quality Management: Quality itself is the composite of material attributes (including performance features and characteristics) of the product or service which are required to satisfy the need for which the project is launched. Quality standards may be attained through the sub-functions of Quality Assurance and Quality Control.

Quality Assurance (Management): the development of a broad program which includes the processes of identifying objectives and strategies, of client interfacing, and of organizing and coordinating planned and systematic controls for maintaining established standards. This in turn involves measuring and evaluating performance to these standards, reporting results and taking appropriate action to deal with deviations.

Quality Control (Technical): the planned process of identifying project established system requirements and exercising influence through the collection of specific (usually highly technical and itself standardized) data. The basis for decision on any necessary corrective action is provided by analyzing the data and reporting it comparatively to system standards.

Time Management: the function required to maintain appropriate allocation of time to the overall conduct of the project through the successive stages of its natural life-cycle, (i.e. concept, development, execution, and finishing) by means of the processes of time planning, time estimating, time scheduling, and schedule control.

Cost Management: the function required to maintain effective financial control of the project through the processes of evaluating, estimating, budgeting, monitoring, analyzing, forecasting, and reporting the cost information.

Human Resources Management: the function of directing and coordinating human resources throughout the life of the project by applying the art and science of behavioral and administrative knowledge to achieve the predetermined project objectives of scope, cost, time, quality and participant satisfaction.

Communications Management: the proper organization and control of information transmitted by whatever means to satisfy the needs of the project. It includes the processes of transmitting, filtering, receiving and interpreting or understanding information using appropriate skills according to the application in the project environment.

Contract-Procurement Management: the function through which resources (including people, plant, equipment and materials) are acquired for the project (usually through some form of formal contract) in order to produce the end product. It includes the processes of establishing strategy, instituting information systems, identifying sources, selection, conducting proposal or tender invitation and award, and administering the resulting contract.

Risk Management: the art and science of identifying, analyzing and responding to risk factors throughout the life of a project and in the best interests of its objectives.

Other Useful Definitions

Control: The exercise of corrective action as necessary to yield a required outcome consequent upon monitoring performance.

Control Functions: Scope, Quality, Time and Cost are the basic or core functions of project management.

Effort: The application of human energy to accomplish an objective.

Environment (Project Environment): The combined internal and external forces, both individual and collective which assist or restrict the attainment of the project objectives. These could be business or project related or may be due to political, economic, technological, environmental or regulatory conditions.

Feedback: Information (data) extracted from a process or situation and used in controlling (directly) or in planning or modifying immediate or future inputs (actions or decisions) into the process or situation.

Integrative Functions: Risk, Human Resources, Contract/Procurement and Communications are the essential "people oriented" functions of project management.

Matrix Organization: A two dimensional organizational structure in which the horizontal and vertical intersections represent different staffing positions with responsibility divided between the horizontal and vertical authorities.

Project: Any undertaking with a defined starting point and defined objectives by which completion is identified. In practice, most projects depend on finite or limited resources by which the objectives are to be accomplished.

Project Life Cycle: The four sequential phases in time through which any project passes, namely: Concept; Development; Execution (implementation or operation); and Finishing (termination or close out). Note that these phases may be further broken down into stages depending on the area of project application.

Project Manager: The individual appointed with responsibility for project management of the project.

Project Phase: The division of a project time frame (or project life cycle) into the largest logical collection of related activities.

Project Stage: A sub-set of Project Phase.

Project Team: The central management group headed by a project manager and responsible for the management and successful outcome of the project.

Scope: The bounded set of verifiable end products, or outputs, which the project team undertakes to provide to the project sponsor. The required set of end results or products with specified physical or functional characteristics. A statement of scope should be introduced by a brief background to the project, or component, and the general objective(s).

Work Breakdown Structure: A task-oriented "family tree" of activities which organizes, defines and graphically displays the total work to be accomplished in order to achieve the final objectives of the project.

***  Appendix B

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