P

Parametric modeling A mathematical model that uses parameters, or project characteristics, to forecast project costs.

Pareto diagram A quality control technique used to rank importance of a problem based on its frequency of occurrence over time. This diagram is based on the Pareto principle, more commonly referred to as the 80/20 rule, which says that the majority of defects are caused by a small set of problems.

Payback period The length of time it takes a company to recover the initial cost of producing the product or service of the project.

Performance reporting Collecting information regarding project progress and project accomplishments and reporting it to the stakeholders, project team members , management team, and other interested parties. It also makes predictions regarding future project performance.

Pilot test Building and testing a proposed system in a small environment that includes a handful of users (also called pilot mode ). The purpose of pilot testing is to develop a fully functioning system and then put it out for a small component of people to test to see if it meets the expectations of the project. From successful pilot testing it's easy to put the system into full production.

Planned value (PV) The cost of work that's been budgeted for an activity during a certain time period. This was formerly referred to as budgeted cost of work scheduled (BCWS).

Precedence diagramming method (PDM) A diagramming method that places activities on nodes, which connect to dependent activities using arrows. Also known as activity on node.

Predecessor A task that exists on a path with another task and occurs before the other task.

Preliminary investigation An investigation at project request time to determine the costs and benefits of the project, as well as examine alternatives to the proposed solution in order to determine the feasibility of carrying out the project.

Preventative action The review of potential risks to determine if any steps can be taken to prevent the problem from occurring or reduce the probability that the problem will occur.

Prevention costs Costs of the activities performed to avoid quality problems including quality planning, training, and any product or process testing.

Procurement planning Identifying what goods or services will be purchased from outside of the organization. Also uses make or buy analysis to determine whether goods or services should be purchased or performed by the organization.

Product description Explains the major characteristics of the product and describes the relationship between the business need and the product. Also referred to as high-level requirements.

Program A grouping of related projects that are managed together. The individual projects are usually part of one bigger project.

Program evaluation and review technique (PERT) Uses expected value, or weighted average, of critical path tasks to determine project duration by establishing three estimates: most likely, pessimistic, and optimistic.

Progress reports Reports from project team members listing the tasks each team member is working on, the current progress of each task, and the work remaining.

Project A project is temporary in nature, has definite start and end dates, creates a unique product or service, and is completed when the goals and objectives of the project have been met and signed off on by the stakeholders.

Project champion This person, usually not the project sponsor, is one who fully understands, believes in, and espouses the benefits of the project.

Project charter An official, written acknowledgment and recognition that a project exists. It's issued by senior management and gives the project manager authority to assign organizational resources to the work of the project.

Project closure The formal acceptance of a project and the activities required to formally end the project work.

Project description Documents the key characteristics of the product or service that will be created by the project and the work required to deliver the product.

Project execution 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.

Project justification Documentation in the project scope statement that includes the reason the project is being undertaken and the business need the project will address.

Project life cycle The grouping of project phases in a sequential order from the beginning of the project to the close.

Project management The process that's used to initiate, plan, execute, monitor, control, and close out projects by applying skills, knowledge, and project management tools and techniques to fulfill the project requirements.

Project Management Institute (PMI) The world's leading professional project management association.

Project management knowledge areas These nine project management groupings, or knowledge areas, bring together common or related processes. They are: Integration, Scope, Time, Cost, Quality, Human Resource, Communications, Risk, Procurement.

Project management office (PMO) Established by organizations to create and maintain procedures and standards for project management methodologies to be used throughout the organization.

Project manager The person responsible for applying the skills, knowledge, and project management tools and techniques to the project activities in order to successfully complete the project objectives.

Project performance indicators Measures the project manager uses to determine whether the project is on track, such as any deviation from the baseline schedule or the baseline budget.

Project plan A document, or assortment of documents, that constitutes what the project is, what the project will deliver, and how all the processes will be managed. Used as the guideline throughout the project Executing and Controlling phases to track and measure project performance and to make future project decisions. Also used as a communication and information tool for stakeholders, team members, and management.

Project review A formal presentation by the project manager or project team members to the sponsor, the client, and other executive stakeholders.

Project schedule Determines the start and finish dates for project activities and assigns resources to the activities.

Project selection Used to determine which proposed projects are approved to move forward.

Projectized organization An organizational structure focused on projects. Project managers generally have ultimate authority over the project, and, sometimes, supporting departments like human resources and accounting might report to the project manager. Project managers are responsible for making project decisions and acquiring and assigning resources.

Proof of concept A project that undertakes to prove that a specific activity can be done or an idea can be accomplished.