Quantitative Methods in Project Management - page 76


Index

D

DCF, see Discounted cash flow

Debits, 14–18, 20, 21, 133

Decision node, 104, 105, 108

Decision policy, 99, 100–101, 108, 123

Decisions with conditions, 111–122

Bayes' Theorem, 115–117, 123, see also Bayes' Theorem

dependent conditions, 112, 117–122, 123

independent conditions, 112–115, 116, 123

Decision tables, 111

Decision tree, 103–111, 115, 123

probability functions in, 110–111

project example, 108–109

with dependent conditions, 117–122

Degrees of freedom, 229

Deliverables, 74, 86, 87–95

decisions with conditions and, 112

estimating, 83

in financial statements, 127

organization of, 68

Deliverables view, 70, 71, 72

Delphi method, 89, 107

Density, 63, 219

Department of Defense, 67, 74, 156, 159, 163

Dependent conditions, decision trees with, 117–122, 123

Dependent paths, merging, 203–205

Dependent variable, 218

Depreciation, 135, 142, 143, 144, 145, 151, 158

Depreciation expense, 130, 131

Deterministic estimate, 28

Deterministic variable, 37, 104, 105, 219

Direct costs, 253

Direct expenses, 151, 154, 158

Discounted cash flow, 132, 134, 137–146, see also specific topics

benefit/cost ratio, 141

break-even point, 141

discount rate, 137

economic value add, 142–146

internal rate of return, 140–141

net future value, 137–140

net present value, 137–140, 143, 145–146

Discounting, 137, 138, 143

Discount rate, 137, 139, 140, 141, 142, 144, 145, 146

Discrete probability distribution, 110

Discrete random variables, 38–39, 40, 41, 110

Discretionary funds, 8

Distance, 49–50, 57, 88, 90

Distribution function, 41, 111

Distribution probabilities, 98

Distributions

for cost, 154

probability, see Probability distributions; specific distributions

Double entry system, 131

Duration, 186–187, 192, 193, 197



Index

E

EAC, see Estimate at completion

Earliest finish date, 190, 192

Earliest start date, 192, 194

Earned finishes, 174

Earned starts, 174

Earned value (EV), 5, 23, 80, 149, 150, 155–178, 179, see also specific topics

applying, 166–173

penalty costs and, 168–170

three-task example, 168, 169

two-task example, 166–168

claims process, 165–166

dollar sizing the cost account, 163–164

equations for variances and indexes, 161–162

estimate at completion, 173

estimate to complete, 173

forecasting with, 171–173

graphing, 170–171

measurements, 156–158, 159

opportunity costs and, 168–170

project example, 158–161

project rules for claiming credit, 164–165

rebaselining, 166

rolling wave planning, 164

standards and specifications, 155–157

steps in preparing for, 162–166

time-centric, 173–178, 179

forecasting with, 175, 177–178

principles, 174–176, 177

Earnings, 142, 143, 146, 155, 179

Earnings after tax (EAT), 142–146

EAT, see Earnings after tax

Economic value add (EVA), 5, 18, 126, 135, 142–146

Effort, estimating, 186–187

Engineering tolerance, 233, 234, 235

Environmental industry, 92

Equity, 14, 15, 16, 17, 133, 142

Equivalence, 137, 143, 145–146

Estimate at completion (EAC), 161, 162, 166, 171, 173, 174

Estimate to complete (ETC), 82, 161, 162, 166, 173, 174

Estimating methods, 83–97, 98

bottom-up, 83, 84, 89–91, 98, 107, 182, 183

completion versus level of effort, 95, 97, 98

parametric, 83, 84, 91–95, 96, 98

similar-to, 83, 84, 88–89, 90, 97, 98, 108, 183

top-down, 83, 84–88, 98, 183

ETC, see Estimate to complete

EV, see Earned value

EVA, see Economic value add

Expected value, 45–54, 56, 57, 65, 85, 154, 193, 195–198, 204, 208, 209, 212, 224, 230

in decisions with conditions, 112–115

in decision tree, 105, 106

Expenditures, 149

Expense accounting, earned value and, see Earned value

Expenses, 150–154, 178, see also Costs

Expense statement, 126, 127–129, 130, 143, 146, 150–154, 178