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Wideman Comparative Wideman Comparative Glossary of Common Project Management Terms v5.5 is copyright © R. Max Wideman, 2000-2017.

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Last updated 12-22-17

Master Glossary
Budget Cost   - to -   Business Analyst, financial
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Term
Definition     Editor's Choice
Cat Source
Budget Cost
The cost anticipated at the start of a project. [D00172]

GJN
CHMT

 WST
Budget Costs
The translation of the estimate into man-hour rates, quantity units of production, etc. so that these budget costs can be compared to actual costs and variances developed to highlight performance and alert those responsible to implement corrective action if necessary. [D00173]

GJN
C

 PMK87
Budget Decrement
A reduction in the amount of money available for an activity. [D00174]

JN

 OTOB p271-4
Budget Element
Budget elements are the same as resources i.e. the people, materials, or other entities needed to do the work. Budget elements can be validated against a Resource Breakdown Structure (RBS). They are typically assigned to a work package, but can also be defined at the cost account level. [D04389]

GJN
CHMT

 APM
The resources i.e. the people, materials, or other entities needed to do the work of the program. For example, engineer, technician, travel, and pipe can all be budget elements. These budget elements can be validated against a Resource Breakdown Structure (RBS). Budget elements are typically assigned to a work package, but can also be defined at the cost account level. [D00175]

JN
C

 WST
Budget Estimate
(Accuracy -10 to +25 %) An estimate prepared from flow sheets, layouts and equipment details. This is often required for the owner's budget system. These estimates are established on quantitative information, are a mixture of firm and unit prices for labor, material and equipment. These estimates establish the funds required and are used for obtaining approval for the project. Other terms used to identify a Budget Estimate include Appropriation, Control, Design, etc. [D00176]

GJN
CHM

 PMK87
See Estimate and Appropriation Estimate [D00177]

GJ
CHM

  
Budget Presentation
A formal representation of a project budget usually for purposes of obtaining approval to proceed. [D02423]

GJ
CHM

 RMW
Budget Revision
A formal document in which approval is sought or gained to change the contents of a budget. [D02424]

GJ
CHM

 RMW
Budget Unit
The base unit for calculation. Budget units are user defined and can be any appropriate unit of measure such as hours, dollars, linear feet, or tons. [D00178]

GJ
CHM

 WST
Budgetary Control
System of creating budgets, monitoring progress and taking appropriate action to achieve budgeted performance.
Note: A budget should provide the information necessary to enable approval, authorization and policy-making bodies to assess a project proposal and reach a rational decision. [D04388]

JN
CHM

 APM
BS
Budgeted
A budgeted item is one for which expenditure has been provided, usually as a line item in the budget makeup. [D02425]

FGN
CHM

 RMW
Budgeted Cost of Work Performed ("BCWP")
The sum of the budgets for completed portions of in-process work, plus the appropriate portion of the budgets for level of effort and apportioned effort for the relevant time period. BCWP is commonly referred to as Earned Value. [D00182]

JN

 PMK87
A measure used in cost control that allows you to quantify the overall progress of the project in monetary terms. BCWP is calculated by applying a performance measurement factor to the planned cost. (By comparing BCWP with ACWP, it is possible to determine if the project is under or over budget.) Another term for BCWP is "Earned Value." [D00179]

N

 WST
A term in the Cost/Schedule Control System Criteria (C/SCSC) system for the sum of the budgets for completed work packages and completed portions of open work packages, plus the appropriate portion of the budgets for level of effort and apportioned effort. [D00180]

N

 SPM p304-9
The sum of the approved cost estimates (including any overhead allocation) for activities (or portions of activities) completed during a given period (usually project-to-date). See also Earned Value. [D00181]

N

 PMK96
This is sometimes referred to as Earned Value or Achieved Cost and is equal to the original budgeted (or baseline) cost of work that has been performed to date. It is calculated by: BCWP = percentage completion x BAC (baseline cost), i.e. it equals the percentage complete multiplied by the planned cost for each task at the current time. [D02243]

N

 PMST
Budgeted Cost of Work Scheduled ("BCWS")
The sum of the budgets for work scheduled to be accomplished (including in-process work), plus the appropriate portion of the budgets for Level of Effort and apportioned effort for the relevant time period. [D00186]

JN

 PMK87
A term in the Cost/Schedule Control System Criteria (C/SCSC) system for the sum of budgets for all work packages, planning packages, and similar items scheduled to be accomplished (including in-process work packages), plus the amount of level of effort and apportioned effort scheduled to be accomplished within a given time period. [D00183]

N

 SPM p304-9
The planned cost that should have been achieved according to the project baseline dates. (By comparing BCWS with ACWP, it is possible to determine if the project is ahead of or behind schedule) [D00184]

N

 WST
The sum of the approved cost estimates (including any overhead allocation) for activities (or portions of activities) scheduled to be performed during a given period (usually project-to-date). See also earned value. [D00185]

N

 PMK96
Cost that is budgeted (according to the baseline plan) up to current date and is calculated by: (Current Date - Baseline Start Date) x Baseline Cost / Baseline Duration. That is, BCWS equals the planned percentage complete multiplied by the planned cost for each task at the current time, which itself is based upon the planned date and the current date. [D02244]

N

 PMST
Budgeting
Time phased financial requirements. [D00187]

FG

 WST
Budgeting & Cost Management
The process of estimating the proper cost that should reasonably be expected to be incurred against a clear baseline, understanding how and why actual costs occur, and ensuring that the necessary response is taken promptly to ensure actual costs come under budget. Typical information needed for cost management includes:
  1. Budgets (including estimating), generally based on work breakdown structure or (cost) code of accounts
  2. Obtaining and recording commitments/accruals
  3. Measurement of work accomplished and value earned/valuation of work, including treatment of changes (change control) and claims
  4. Cash flow
  5. Forecast out-turn costs
  6. Variance analysis of the trend in forecast versus previous out-turn cost.
[D03427]

FG

 CRMP
Buffer
A designed amount of time, sized and applied to a project schedule to protect what is important to the success of that project. It protects the promised due date from variation in the critical chain. [D05554]

N

 067
See also Reserve. [D05555]

N

  
Buffer Management
The tracking and assessment of the consumption and replenishment of buffers during project execution. Its purpose is to provide a simple, easy to understand view of project health compared to original promises, and provide guidance on when, and when not, to develop and apply corrective actions to the project effort. By using regular and frequent updates of "time to complete" for active tasks, the buffers and their rate or level of consumption provide good indicators when something might be amiss. [D05556]

N

 067
Build
Put parts together to form a unified whole, i.e. construct. [D02426]

JN
CHMT

 RMW
An operational version of a system or part of a system that demonstrates a subset of the capabilities to be provided in the final product. [D04691]

J
T

 RUP
Build Own Operate Contract
A contract between a contractor and a sponsor whereby the contractor builds, finances and operates assets for the beneficial use by the sponsor in exchange for lease payments. [D06373]

J
C

 Costin
Build, Own, Operate, Transfer ("BOOT")
A project in which the contractor provides project funding. This represents a break with the traditional contractual process where the funding is provided by the owner/user. [D03596]

J
C

 PNG
Buildability
The practical ease with which parts can be put together to form a unified whole. [D02428]

GJ
CHM

 RMW
Builders Lien
In some jurisdictions, there is a special version of the Mechanics Lien legislation that is specific to the building industry, whereas the Mechanics Lien legislation tends to cover a wider scope of services, such as manufacturing. For example, design professionals may not be protected under the building lien legislation. For the specifics in each case, refer to the legislation in your jurisdiction. [D05599]

J
C

 PDG
Building
The assembly of parts. An enclosed space for human occupation. [D02429]

J
C

 RMW
Building Professionalism
Much discussion has taken place in recent years with a view to encouraging a professional approach in the conduct of managing projects and in pursuit of recognition of project management as a "profession" in the mind of the public.
Editor's Note: An alternate view is that project management is a discipline. There is also the question of whether project management is an art, a science, or partly both. [D02430]

GJ
CHM

 RMW
Build-to Documentation
Documents that define the build and coding details where applicable to satisfy the Design-to Specifications. [D04009]

J
CHMT

 CSM
Built-in Test Equipment
Test capability that is built into assemblies for fault isolation. [D04010]

J
CHMT

 CSM
Bulk Material
Material bought in lots; generally, no specific item is distinguishable from any other in the lot. These items can be purchased from a standard catalog description and are bought in quantity for distribution as required. [D00188]

J
CHM

 PMK87
QMPP
Bundling
The consolidation of two or more procurement requirements. [D06374]

N

 Costin
Burden
Overhead expenses distributed over appropriate direct labor and/or material base.
Editor's Note: See also Overhead. [D00189]

N

 WST
General costs that cannot be assigned to direct project tasks such as management salaries, rent, insurance, benefits etc. [D04011]

GJN
CHM

 CSM
See Indirect Cost. [D03462]

GJN
CHM

  
Burden of Proof
The requirement to prove the facts in dispute. In a claim, the burden of proof is always on the party making the claim. [D04931]

JN
C

 PDG
Bureaucracy
A centralized system of administration for the conduct of business in any given field. A bureaucracy is usually highly structured and constrained by regulations, protocol, policies and procedures, and consequently is slow to react to change.
Editor's Note: Bureaucracy is generally considered to be the antithesis of project management which requires much greater flexibility for the achievement of results. [D02431]

FG

 RMW
Burn Rate
The rate at which funds or man-hours are being expended on a project. [D02281]

JN
T

 RMW
Burst Node
In a network diagram, a node at which two or more activities commence after the completion of the preceding activity. [D00190]

N

 SPM p304-9
Business Actor
Someone or something, outside the business that interacts with the business. [D04807]

N
T

 RUP
Business Analyst
One who works as a liaison among stakeholders in order to elicit, analyze, communicate and validate requirements for changes to business processes, policies and information systems. [D05909]

FGN
T

 105 p9
An individual who analyzes the operations of a department or functional unit with the purpose of developing a general systems solution to the problem that may or may not require automation. The business analyst, who is often part of a user department, can provide insights into its operation for the systems analyst who reports to the information systems department. [D05866]

FG
T

 SU
Business Analyst, financial
A professional with the training and aptitude to investigate the profitability of project proposals, and who can assist in preparing a comprehensive project financing plan. [D06375]

FG
T

 Costin
Definitions for page B04: 50

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