Project Management Engineering
There are many different methods for project management. In general, the authors of this site subscribe to the methods and techniques laid out by the Project Management Institute. The reasoning is that the PMI has developed a comprehensive and scalable process for managing projects across multiple industries. For a complete and thorough education on Project Management, the Project Management Body of Knowledge (PMBOK) is an excellent resource and should be referenced.
It is important to note that every project may not support the techniques laid out by PMI. For instances like these, it is up to the project manager (PM) to decide to what extent each knowledge area and process should be utilized. However a PM should be familiar with all aspects laid out in the PMBOK.
Project Management Types
Project Management Methodology is a set of principles and processes used to manage a project. Your choice of methodology defines how you work and communicate.
- Agile Methodology - Manages a project by breaking it into several phases and short segments. It allows for maximum flexibility when managing a project. These teams will be easily adaptable to change, have open communication with clients or end users, and work on projects in rounds while always moving closer to final project solutions.
- Critical Chain Project Management - An alternative to the CPM method because it focuses on time, whereas CCPM emphasises resources like people, physical space and equipment.
- Critical Path Method - This management method creates a list of tasks that require complex operations and set dependencies between these tasks. The critical path method is similar to the the waterfall method, however it recognizes dependencies. A dependency is a task that must be completed before another task can move forward. One task is dependent on another. This creates a critical path.
- Kanban Methodology - An agile method that stresses the importance of continuous workflow and focuses primarily on the organisation.
- Lean Methodology - Focuses on a customer first approach and efficiency. This process reduces waste from within the project lifecycle by focusing on delivering value, reducing costs, reducing the time to completion, completing the project on budget and improving the quality of the final product.
- Project Integrating Sustainable Model - A sustainable project management type that enables an organisation to implement environmental sustainability to accomplish every project.
- Scrum Methodology - A process that allows teams to respond rapidly, efficiently, and effectively to change. It focuses on the delivery of outcomes through the improvement of communication, teamwork, and the speed of development. Scrum process is used most often by development teams because it is really easy to implement. One person is responsible for making sure that any bottlenecks or obstacles are cleared for the team to work smoothly.
- Six Sigma Methodology - A quality management process that primarily focuses on eliminating errors in development. It emphasis on the project or organization’s financial performance and the reduction of costs related to completing a project through a focus on improving processes.
- Waterfall Methodology - A management method that is a traditional and linear approach to managing a project. You have a set scope, schedule, and resources which you move throughout a series of executable tasks. The project manager putting a set of expectations in place and guiding a team slowly and deliberately towards the conclusion of the project. The goal is to ensure every expectation is met both adequately and in a timely, organized manner.
|Management and Systems Engineering|
|Project Management Engineering|
Nomenclature & Symbols
Basic Phases of Project Management
- Monitoring and Controlling
Project Management Engineering Glossary
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- Accounts Receivable Turnover Ratio - Measures how effectively a buisness uses customer credit and collects payments on the resulting debt.
- Accounting Cycle - During each accounting period, businesses must perform a number of steps to account for business activities.
- Accounting Period - An accounting period is a specific period of time covered by financial statements.
- Accounting Swap - An interest rate swap with an increasing notional amount.
- Accounting Worksheet - Accountants use an accounting worksheet to compile, organize, and structure data from the ledger accounts onto one page. In the past, worksheets were constructed on basic ruled paper, but today worksheets are prepared mostly using spreadsheet software.
- Accounts - An account is a right to receive payment for goods sold or leased, or for services rendered, where these rights are not evidenced by an instrument or by chattel paper.
- Accounts Payable - The money that your business owes for goods and services.
- Accounts Receivable - The amount of money due your business for goods and services that you have provided.
- Accrual Convention - Method used by investors for counting the number of days in each month and in the year.
- Activity Duration - The length of time that it takes to complete an activity.
- Accrued Cost - Earmarked for the project and for which payment is due, but has not been made.
- Accrued Expense - Another form of liability your business has and needs to pay.
- Accrued Interest - The amount of interest that has grown on the loan but has not been paid out yet by a certain date.
- Accrued Interest Cost - The total amount that it costs for the selected number of days as interest on the full investment amount.
- Accrued Interest Expense - When you pay the interest for a loan it is refered to as accured interest expense, because it costs an individual or a company money to have the facility.
- Accrued Interest Rate - The total interest rate which you will be charged for those days on the total amount.
- Accrued Interest Revenue - In the case of banks or lending companies the calculated interest for a particulatr period of time.
- Action Plan - A plan that describes what needs to be done and when it needs to be completed. Project plans are action plans.
- Activity Duration - The length of time that it takes to complete an activity.
- Activity Status - The state of completion of an activity.
- Actual Cost - The realized cost incured for the work performed on an activity during a specific time period.
Actual Expenditure - The costs that have been charged to the budget and for which payment has been made or accrued.
Actual Time Expended - The elapsed time from the beginning of an activity to date.
- Add-on Work - Additional work added to a maintenance schedule after the scheduled cut-off time.
- Advanced Product Quality Planning - A structured method of defining and establishing the steps necessaty to assure that a product satisfies the customer.
- Amortization - The paying off of debt in regular installments, till loan principle reduces to zero.
Annualized Rate of Return - The equivalent annual return that an investor earns over the investment holding period.
- Annuity - A series of periodic payments that are received at a future date.
- Annuity Payment - The periodic payment on an annuity.
- Approved Manufacturer List - A set of approved relationships between manufacturer parts and a company's internal parts.
- Approved Vendor List - Ensures purchased products arrive on time and meet your quality control.
- Assembly Bill of Materials - A list of the items and resources that are required to assemble the parent item.
- Asset - Anything of value or a resource of value that can be converted into cash.
- Asset Turnover - A measure of how efficiently assets are used to produce sales.
- Asset Turnover Ratio - Measures the value of the company's sales revenue in relation to the value of your company's assets.
Assurance - The process of providing confidence to stakeholders that projects, programmes and portfolios will achieve their objectives for beneficial change.
- Audit - The examination of your business’s accounting records and physical assets because you believe a mistake or discrepancy exists and needs to be verified.
- Audit Trail - The tracking of all transactions from their source.
- Authorization - The dicision that triggers the allocation of funding needed to carry out the project.
- Authorization Work - The effort which has been defined, plus that work for which authorization has been given, but for which defined contract costs have not been agreed upon.
Availability - Takes into account all events that stop planned production like breaks, lunches, or pre-arranged time.
Average Accounts Receivable - The average amount of receivables during a reported period.
- Avoided Cost - An estimated saving based onpreventive measures.
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- Backflushing - A method of accounting for the use of resources, labor and machine time, and items, based on standards that was defined.
- Balance Sheet - A financial statement that reports on all of a company’s assets, liabilities, and equity.
Bank Efficiency Ratio - How effectively the company is performing currently by using its internal resources.
- Bank Reconciliation - The accounting process that provides an internal control for businesses and organizations.
- Base Date - A date used as a basis for the start of a project calendar.
- Baseline - The levels against which a project, programme or portfolio is monitored and controlled.
- Baseline Cost - The amount of money a project or activity was intended to cost when the project plan was baselined.
- Baseline Date - The original planned start and finish dates for a project or an activity when the schedule was baselined.
- Baseline Plan - The fixed project plan. It is the standard by which performance against the project plan is measured.
- Baseline Schedule - A fixed project schedule.
- Benefit Cost Ratio - It compares the present value of all benefits generated from a project/asset to the present value of all costs.
- Best Practice - Something that we have learned from experience on a number of similar projects.
- Bidding - The process of preparing and submitting a bid or tender.
- Bill of Materials - A list of parts, raw materials, and accessories, descriptions, part name, part number, quantity, reference designation, procurement type, that make up the assembly or entire product.
- Bill of Materials Level - The place occupied by a part on the ranking of the bill of materials.
- Bookkeeper - Someone who is in charge of maintaining your business’s books.
- Bookkeeping - The act of recording the accounts, financial transactions, and other information related to your business.
- Book Value - The value of an asset recorded on your balance sheet.
- Bottleneck - Any point at which movement is slowed because demand placed on a resource is greater than capacity.
- Brainstorming - The unstructured generation of ideas by a group of people.
- Breakeven Sales Volume - The amount of product that you will need to produce and sell to cover total costs of production.
- Budget - The funds allocated to the project that represent the estimated planned expenditures.
- Budget at Completion - The sum of all budgets established for the work to be performed.
- Budget Cost - The cost anticipated at the start of a project.
- Budgeting and Cost Management - The estimating of costs and the setting of an agreed budget, and the management of actual and forcast costs against that budget.
- Budgeting - Time phased financial requirements.
- Business Model - A system geared to produce profits consistently for an organization based upon a plan for resource procurement, customer base identification and other details of financing.
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- Capitol - The financial assets your business owns, which can include monetary funds as well as physical entities, such as manufacturing equipment or buildings.
- Capital Cost - The carrying cost in a balance sheet or acquiring an asset and bringing it to the condition where it is capable of performing its intended function over a future series of periods.
- Capital Employed - The amount of investment in an organisation or project, normally the sum of fixed and current assets, less current liabilities at a particular date.
Capital Expenditure - The amount of money that needs to be spent on a project to see it from design through completion.
- Capitalization Rate - The rate of return for an investor.
- Cash Flow - Cash receipts and payments in a specific period.
- Cash Flow Statement - This statement provides a summary of the in-going and out-going cash in a business during a set timeframe.
- Cash Posting - The process of entering payments received from customers into the business’s accounting records.
Cash Ratio - Is used to measure the liquidity of a company.
- Certified Public Accountant - Those with a CPA qualification have more credibility and expertise than regular accountants. A CPA can create audits and review reports as well as legally represent your business in front of the IRS, two things a regular accountant can’t do.
- Change Request - Outlines a problem and proposes an action to address the problem.
- Changeover - The time required to modify a system or workstation, including teardown and setup.
- Chart of Accounts - A report that lists all user accounts in a general ledger.
- Child Item - An item that appears in the bill of materials of another item.
- Closeout - The process of finalising all project matters, carrying out final project reviews, archiving project information and redeploying the remaining project team.
- Closure - The formal end point of a project, programme or portfolio, either because planned work has been completed or because it has been terminated early.
- Collaboration - Working with one or more parties on the same project and similar goals.
- Collection & Recovery - The process of attempting to gather past due payments is referred to as collection and recovery.
Common Stock - The number of shares of a company that is found on in balance sheet.
- Communication Channels - Is the ratio of earned value to planned value.
Compound Interest - The interest earned on an investment or paid on a loan.
- Conflict Management - The process of identifting and addressing differences.
- Contingencies - Planned actions for minimizing the damage caused by a problem.
- Constraint - A condition or occurance that might limit, restrict, or regulate the project.
- Contra Accounts - These accounts are used in a general ledger and come with a balance opposite the normal balance for a related account.
- Contract Bounce - The sum payed when the seller meets certain goals decided in the Cost Plus Incentive Fee.
- Contract Manufacturer - A third-party manufacturer of parts or products for a company.
- Contract Savings - The savings that is divided between the seller and the buyer based on agreed ratio for the cost saved by the seller against the origional estimated cost.
- Corrective Action/Protective Action - Investigates and solves problems, identifies causes, and takes corrective action to solve the problem.
- Corrective Action Request - Sent to a supplier when an item or process needs a remedy.
- Cost - Expenses, overhead or the price of a product or service.
- Cost Baseline - The approved version of work package cost estimates and contingency reserve that can be changed using formal change control procedures.
- Cost Benefit Analysis - The relationship between the costs of undertaking a task or project, and the benefits likely to arise from the changed situation.
- Cost Benefit Ratio - The costs and benefits of a project to determine its viability.
- Cost of Capitol - A company's cost of all its debt plus the cost of all its equity.
Cost of Debt - The debt a company owes its lenders.
Cost of Equity - The rate of return a company expects on their equity inestments to compensation for the risk profile of the asset.
Cost of Goods Sold - The compared inventory at the start of a given period to the end of a given period.
- Cost Plus Contracts - This involve payment to the seller for seller’s actual costs, plus a fee typically representing seller profit. Cost reimbursable contracts place more risk on the buyer.
- Cost Plus Fixed Fee - The seller is reimbursed for allowable costs for performing the work and also receives a fixed fee payment that is calculated as a percentage of the initial estimated project costs. The fee amount would only change if there was a change to the project scope.
- Cost Plus Incentive Fee - The seller is reimbursed for allowable costs and the seller receives an incentive fee based on achieving certain performance objectives.
- Cost Plus Award Fee - The seller is reimbursed for allowable costs. The majority of the fee is only earned based on the satisfaction of identified broad subjective performance criteria. The performance criteria is defined and included in the contract and the fee determination is based solely on the determination of seller performance by the buyer and is usually not subject to appeals.
- Cost of Quality - The sum of all costs associated with conformance and nonconformance.
Cost per Unit - How much is spent producing a single unit of a single product or service.
- Cost Management Plan - A component of a project or program management plan that describes how costs will be planned, structured, and controlled.
- Cost Overrun - The actual cost that exceeds the estimated cost in the budget. It usually is unexpected and unwanted as it requires finding new resources to cover these unseen expenses.
- Cost Performance Index - A measure of the cost efficency of budgeted resources expressed as the ratio of earned value to actual cost.
- Cost Variance - The amount of budget deficit or surplus at a given point in time.
- Credit - Credit refers to any record of money that is flowing out of an account.
- Credit Card Reconciliation - The process by which the information in a credit card statement is confirmed to be correct and accurate.
- Critical Activity - A critical activity has zero or negative float. This activity has no allowance for work slippage.
- Critical Chain Project Management - A management approach that integrates the set of tasks, timelines, and resources required to ensure the timely completion of a project within the budget.
- Critical Path - The path in a project schedule that has the longest duration.
- Critical Path Method - The path in a project schedule that has the longest duration.
- Critical Path Activity - Any activity on the critical path in a project schedule.
Current Ratio - A company's ability to pay their short-term obligations with their current assets.
- Cycle Time - The time it takes one part to be processed at an individual process step.
- Daily Accured Interest - The interest amounts are added to the account balance every day.
- Days Payable Outstanding - The number of average days from when a company purchases inventory and materials until the supplier is paid.
- Debit - Any record of money that is flowing into an account. A debit can also be a record of any asset your business receives.
Debt Ratio - The difference between total assets and total debt.
Debt to Capital Ratio - Indicates how leveraged a company is by dividing its intrest-bearing debt with its total capital.
Debt to Equity Ratio - How much debt a business has compared to its equity.
- Debt to Income Ratio - A percentage that tells lenders how much money you spend on monthly debt payments versus how much money you have coming.
- Debtor - The debtor is the person that owes another person or entity money.
Degree of Financial Leverage - Used to measure the sensitivity of a corporations earnings per share to its equity capital.
- Deliverable - Any unique and verifiable product, result, or capability to perform a service that is performed to complete a process, phase, or project.
- Depreciation - The process of deducting the cost of a business asset over a long perion of time.
- Design Deliverables - Technical drawings and schematics, presentations, reports, and specifications for engineering.
- Design History File - Contains or references the records necessary to demonstrate that the design was developed in accordance with the approved design plan.
- Device Master Record - A record of all information about how a product was produce, including drawings, instructions, and any other records.
- Direct Costs - Costs specifically attributed to an activity or group of activities without apportionment.
- Discounted Cash Flow - The future cash flows and outflows over the life of a project or operation to a common base value.
- Diversification - Helps your business manage risk, letting you allocate capital across various assets.
- Dividends - These refer to profits that a company gives to shareholders.
- Document Control - The function of management and controlling product documentation.
- Double Entry Accounting - A double entry accounting system consists of a chart of accounts where every financial transaction is recorded into at least two of the accounts, once as a debit and once as a credit. This is done to add an additional layer of verification to further ensure the accuracy of the accounting.
- Down Day - A day when the facility, entire shop floor, or a specific work place is not in production.
- Downtime - The amount of time that equipment is not operating or out of service, as a result of equipment failure.
- Duration - The length of time required or planned for the execution of a project activity.
- Earned Value - The measure of work performed in terms of the budget authorized for that work.
Earned Value Management - Provides parameters for evaluating the progress of a project against schedule and budgetary allocation.
Earnings per Share - How much money a company makes for each shares.
Economic Order Quantity - The ideal order quantity that a company should make for its inventory given a set cost of production.
Effective Tax Rate - The tax you actually pay versus the income you earn.
- Employee Management & Time Tracking - Time tracking software manages labor availability, work order time tracking, reporting, costs on work orders, etc.
- Engineering Bill of Materials - Specifies parts or assemblies designed by the engineering department.
- Engineering Change Notice - A form that communicates the details of an approved change to someone who needs to know about the change.
- Engineering Change Request - A suggestion that can be submitted to management to solve a problem or make improvement to a product.
- Engineering Work Order - Initiates an engineering investigation, engineering design activity or engineering modifications to an item of equipment.
- Enterprise Asset Management - A type of maintenance software that collects and analyzes data for physical assets during all phases of the asset cycle, including the acquisition, maintenance, and disposal phase.
- Entry - An amount recorded in an account as debit or credit.
- Equity - The value left over after liabilities have been removed.
- Equity Ratio - Measures the value of the asses which are financed using the owner's equity.
- Estimate - A calculation of a financial transaction where no precise value can be determined.
- Estimated Plant Replacement Value - The approximate cost to replace the existing assets with new assets to ahieve the same production capability.
- Estimate at Completion - The sum of the actual cost to date and the estimated sum to complete the project.
- Estimate to Complete - , abbreviated as ETC, is the expected cost to finish all the remaining project work.
- Estimating - An approximation of project time and costs targets that is refined throughout the project life cycle.
- Expected Monetary Value - A tool used to predict how much money will be made by making a specific decision.
Expense Ratio - The measures the expense incured to manage the fund as a porportion of the total investment.
- Expenses - The costs to run your business. Expenses can be broken into four categories: fixed expenses, variable expenses, accrued expenses, and operating expenses.
- Facilities - Buildings that are built, installed or established to serve a particular use.
- Failure Rate - The anticipated number of times that an asset or piece of equipment fails in a specific period of time.
- Fast Tracking - A schedule compression technique in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration.
- Feasibility Study - A way to ascertain whether the proposed plan or methodology prescribed is practical in terms of fulfilling the goals of a project.
- Fill Order - An order that has had all its requirements met and can be closed.
- Fill Rate - The percentage of orders that are shipped in full and on time and were met through current available stock.
- Financial Leverage - There are two forms of leverage applied to companies to bring in an increase of profits to its owners: operating leverage and financial leverage. Operating leverage balances the mix of fixed and variable costs in its operations. Financial leverage is the degree to which a company utilizes borrowed money. All companies employs some degree of financial leverage. The manipulation of costs and investments allows companies to maximize their profit.
- Financial Operstions - Transactions are one of the basic functions of business, as goods and services are exchanged for currency or cash.
- Finished Goods - An item that is manufactured for sale.
- Fixed Asset - A long-term tangible asset or piece of equipment that a business owns and uses in its operations to generate income.
- Fixed Expenses - Fixed expenses cost the same amount each month. Examples include rent, property taxes, or insurance premiums.
- Float - The amount of time that a schedule activity can be delayed without delaying the early start date of any successor or violating a schedule constraint.
- Flowchart - It connects segments of a project and enhances the flow and processing of information.
- Forecast - An estimate of how much of an item should be produced over a specific period of time.
Free Cash Flow - How much cash a business generates after capitol expenditures during a given period of time.
Free Cash Flow to the Firm - The available cash flow for investors.
- Free Float - The net duration of time by which the completion of an activity can be delayed without affecting the early start date of the next activity.
- Future Value - The value of an investment at a point in the future based on the rate at which that investment is estimated to grow.
- General Ledger - The basis for all accounting reports. Tracks all financial transactions.
- Goal - The desired or projected state of affairs of a particular enterprise or activity towards which all stakeholders should strive in order to attain success. Generally goals are associated with a timeline that has to be adhered to.
- Good Manufacturing Practice - A system of processes, procedures, and documents that help ensure that the products are consistantly produces and controlled according to quality standards.
- Gross Margin - The ratio or percentage of revenue that exceeds your business's costs of goods.
- Gross Profit - Measures the amount of sales that exceded the cost of the goods sold.
- Gross Profit Percentage - The ratio of the cost of sales to the revenue.
- Historical Data - Information on archived projects, including documents and reports.
- Hours per Shift - The amount of time per shift actually spent working on the assigner task.
- Improvement Rate - The percentage of increase from one number to another.
- Initiation - The first phase in the lifecycle of a project.
- Income Statement - Sometimes called a profit and loss statement. This financial statement shows your expenses, revenues, and profits over a specific accounting period.
- Incurred Costs - Sum of actual and committed costs, whether invoiced/paid or not, at a specific time.
- Indirect Cost - Costs associated with a project that cannot be directly attributed to an activity or group of activities.
- Indirect Labor - The time spent on tasks that are not directly related to filling a specific manurfacturing order.
- Information Systems Steering Committee - A committee that provides management representatives from all the key organizations across the institution.
Interest Coverage Ratio - How many times a company can pay its interest expenses from its earnings.
Internal Growth Rate - The highest rate of growth a company is able to achieve without using any external funds.
- Interest - Interest is any amount of money you pay on a line of credit or loan that is in addition to the principal balance.
- Interest Rate - The amount a lender charges a borrower and is a percentage of the principal—the amount loaned.
- Inventory - The assets that a company has purchased to sell to its customers that remain unsold.
Inventory Turnover - The number of times a business sells or uses inventory over the course of a defines time period.
- Item Type - A code to designate the accounting class for the item, such as discontinued, inventory, and miscelaneous charges.
- Just-in-time Manufacturing - A production model in which items are created to meet demand, not created in surplus of in advance of need.
- Key Performance Indicators - Calculations that helps you measure the sucess about the performance of the line, plant, and/or company.
- Kick Off Meeting - The first meeting to formally start a project and usually involves key stakeholders, team members and clients, depending on the nature of the project.
- Kit - A group of finished items that compose a set.
- Kitten - A process where assemblers are given containers of all parts needed for the production of a product.
- Labor Costs per Unit - The total of all wages, benifits, and taxes a company pays to produce a single item.
Labor Force Participation Rate - The porporation of the total working age population that is available to work as part of the labor market.
- Labor Hourly Rate - The total of all benifits, travel, per diem, and overhead a company pays to a single employee.
- Labor Time - The number of employee hours required to complete the operation.
- Lag - A modification within a network which directs a delay towards the succeeding task.
- Lead Time - The time between a customer's initial purchase and the delivery of the product.
- Lean Manufacturer - A practice that shortens the time between the customer order, the product built and shipment, by eliminating sources of waste.
- Lessons Learned - A set of statements captured after completion of a project or a portion of a project.
- Liability - All debts that a company has yet to pay.
- Liquidity - The rate at which something can be converted into cash.
- Liquidation - The act of dissolving a business by converting assets into cash to pay off debts.
- Loan - A sum of money obtained from an individual or financial institution to be repaid at an agreed date, usually with interest.
- Logic - A complete collection of the inter-dependencies between projects to define the project network diagram.
- Machinability Index - Used to compare the machinability of different materials in the various cutting process.
- Made to Order - An order fulfillment method for made items.
- Made to Spec - A term that describes a product that is made ot the specification of an internal design or by a supplier.
- Maintenance Backlog - Maintenance that has not been performed yet.
- Maintenance Inspection - The process of evaluation the condition of an asset or piece of equipment.
- Maintenance Log - A detailed document that records all maintenance tasks that have been performed on an asset or piece of equipment.
- Maintenance Planning - A defined process used to develope an action plan that includes all maintenance, repair, and construction work.
- Maintenance Schedule - The routine maintenance and/or inspections that are preformed during a given time frame to repair and upkeep assets and equipment.
- Maintenance Shut-down - A temporary closure of a building or department to perform maintenance.
- Maintenance Troubleshooting - The process of identifying problems when the issue is not immediately obvious.
- Management - A discipline involving organization, recruitment, control and guidance of a group of people and other tangible resources in order to complete a goal or reach a collective vision.
- Management Developement - All aspects of staff planning, recruitment, developement, training and assessment.
- Management Process - The process of controlling any activity or event so that risks are minimized and the resources are leveraged to the optimum extent in order to produce great results.
- Manufacturing Bill of Materials - A list of all sub-assemblies or items essential to produce a shippable finished product.
Manufacturing Overhead - All indirect costs incured during the production process that can not be traced to the object cost.
- Marginal Cost - The increade or decrease in cost to prodicing one more unit or sreving one more customer.
- Marginal Product of Labor - The additional production a company experiences by adding one unit of labor.
- Market Share - The percentage of sales of a product in units, or dollors relative to all sales of a product.
- Markup - A markup of price spread is the difference between the selling price of a product and the cost incured to manifacture it.
- Material Test Report - A quality assurance document in the steelmaking industry that certifies a material's compliance with approperate ASTM standards, applicable dimensions, and physical and chemical specifications.
- Mega Project - It is an investment project on an extremely large scale.
- Merchandise Inventory Turnover Ratio - Measures how well a company is turning their inventory into sales.
- Milestone - It points out a significant event in project development and helps a team to track its progress as compared to its goals.
- Mission Statement - A brief summary, approximately one or two sentences, that sums up the background, purposes and benefits of the project.
- Mitigation - Actions taken to eliminate or reduce risk by reducing the probability and/or impact of occurrence.
- Monitoring - A phase in the project management lifecycle, specifically the act of continuous awareness of the course of a project plan.
Monthly Compound Interest - Solves for the future value of your investment.
- Multi-level Bill of Materials - A list of all components directly or indirectly involved in building the parent part, togeather with the required quantity for each item.
- Negotiation - Satisfying needs by reaching agreement or compromise with other parties.
Net Asset Value - How much an asset will sell for.
Net Cash Flow - The cash generated or lost by a business over a certain period of time.
- Net Economic Value - The difference between the sum of the present values of all cash flows from assets and the sum of the present values of all cash flows from liabilities.
- Net Credit Sales - The sales a company makes to its customers on credit, minus the value of any returned items and allowances.
- Net Fixed Asset Turnover Ratio - Measures the productivity and efficiency of fixed assets in generating revenue.
- Net Income - The amount of profit made by a company after paying all of its expenses.
- Net Income Percentage - See Net Profit Percentage
- Net Increase in PP&E - The increase or decrese in the value of PP&E between the current year and the previous year.
- Net Intrest Income - The amount of interest income that is left after covering interest expenses.
Net Interest Margin - Can determine weather the earning assets are actually making enough money to justify the interest expense or if the company would of been better off just paying off its debt to decrease the interest expense.
- Net Margin - See Net Profit Margin
Net Operating Profit After Taxes - How much profit a company generates by looking at its operating income minus taxes.
- Net Present Value - The current net worth of a project.
- Net Profit - Your business’s gross profit minus taxes, interest, depreciation, and various other expenses.
Net Profit Margin - The percentage of revenue left after all expenses have been deducted from sales.
Net Profit Percentage - The percentage of profits after paying all expenses.
Net Sales - The total sales after accounting for discounts given, items returned, and allowances (adjustments for damaged goods).
- New Product Developement - The total process that takes a service or a product from concept to market.
- New Product Introduction - All the activities within an organization to define, develope and launch a new or improved product.
- Nonintrest Expense - Operating expense from sources other than interest expense.
- Nonintrest Income - Operating income from sources other than interest income.
- Objective - Something towards which work is to be directed.
- Off the Shelf - An item that is producedfrom a supplier as-is, with no modifications.
Operating Cash Flow - How much cash a business generates after capitol expenditures during a given period of time.
Operating Cash Flow Ratio - The ability of a company to meet its short-term obligations.
Operating Cost - The day-to-day costs associated with operating a buisness.
- Operating Expenses - Operating expenses are expenses that are paid as part of a business’s day-to-day operations. This includes equipment, inventory, payroll, and marketing costs.
- Operating Income - The revenue after deducting all the operating expenses.
- Operating Leverage - Balances the mix of fixed and variable costs in its operations.
- Operating Profit - The total profit a company generates in a given accounting period from all its operations.
- Operating Profit Percentage - The total profit a company generates in a given accounting period from all its operations compared to its revenue.
- Operational Expenditure - The amount of money that needs to be spent after a projects completion to continue its use.
- Operating Expense Ratio - The ratio between the cost of operation to the net revenue.
- Operations Management - The department of the business that is in charge of producing goods and services. It also facilitates distribution of the goods and services.
- Operative Rule - The business rules an organization chooses to enforce as a matter of policy.
- Opportunity Gap - The difference between what an asset is capable of producing and what it actually produces.
- Organization - An autonomous unit within an enterprise under the management of a single individual or board.
- Organization Breakdown Structure - This is a hierarchical model which relates work to organizational units. It establishes the framework for resource allocation, time and schedule management, and most importantly work management.
- Organization Development - The structure which governs the growth, expansion and diversification of an organization in keeping with industry norms and enterprise vision.
- Organization Modeling - An analysis technique used to describe roles, responsibilities and reporting structures that exist within an organization.
- Organizational Process Asset - All materials used by groups within an organization to define, implement, tailor and maintain their processes.
- Organizational Unit - A recognized association of people in the context of an organization or enterprise.
- Original Equipment Manufacturer - A company that manufacturers a product that is sold to another company.
- Output - The number of parts produced during a given time.
- Outsourced Service - A service that is part of the manufacturing processes that is purchased from the vender.
- Overhead - Costs incured that cannot be directly related to the prducts or serviced produced.
- Overall Equipment Effectiveness - Measures the efficiency and effectiveness of a process.
- Overhead - Costs incured that cannot be directly related to the prducts or serviced produced.
- Overhead Rate - The proportion of a company’s revenue allocated to overhead costs, directly affecting its profit margins.
- Owner's Equity - The resources of a business that are owned by the common an perferred stock shareholders of a company.
- Parent Item - An item that contains another item in the bill of materials.
- Part Name - A unique name assigned to a part.
- Part Number - A unique numerical value assigned to a part.
Payback Period - The time in which the initial investment is expected to recover through the cash inflows generated by the investment.
- Payroll - Payroll is a list of employees and the hourly wage or salary they are to be paid. Payroll also refers to the entire process by which employers pay their employees.
- Peer Review - A validation technique in which a small group of stakeholders evaluates a portion of a work product to find errors to improve its quality.
- Percent Complete - The percentage of a project that has been completed.
- Petty Cash - A business can keep cash in a safe place for the purpose of making small purchases.
- Pick-to-ship Cycle Time - The period from when an order is released to be picked until the time the order has shipped.
- Performance - Anything that causes the manufacturing process to run at less than maximum possible speed.
- Planned Maintenance - Scheduled maintenance activities carried out according to a documented plan of tasks, skills, and resources.
- Plant Maintenance - A set of activities that are necessary to keep machinery, parts, and types of equipment in good operating conditions to avoid production stoppage and loss.
- Point of Total Assumption - The difference between the ceiling and target prices, divided by the buyer’s portion of the share ratio for that price range, plus the target cost.
- Point of Use - Ensures people have exactly what they need to do their job, the right work instructions, parts, tools and equipment.
- Policy - A set of ideas, course of principles of action adopted by or proposed for a system or organization.
- Posting - The act of recording entries in a ledger.
- Posting Payrool - Depending on the size of the company, it may choose to outsource its payroll and taxes to a company that specializes in these fields.
Predetermined Overhead Rate - The allocation rate that is assigned to products or job orders at the beginning of a project.
- Present Value - The time value of money and the value of a future cash flow.
- Preventative Maintenance - Maintenance activities performed by machine operators at regularly scheduled intervals to keep equipment in good working order.
- Price to Earnings Ratio - A way of gauging wheather the stock price is high or low compared to the past or to other companies.
- Principle - The amount borrowed.
- Prime Cost - Any expenditure that directly relates to the production of finished goods.
- Process - Also called procedure, an operation or an activity.
- Process Center - A resource or collection of resources, commonly people or machines, where an operation or set of operations is performed.
- Process Control - The monitoring of the production process through software.
- Process Management - The act of planning, coordinating, and overseeing processes with a view to improving outputs and reducing costs.
- Process Map - A graphical flowchart identifying the operations in a process, steps in each operation and work time for each step.
- Process Model - A visual model or representation of the sequencial flow and control logic of a set of related activities or actions.
- Process Time - The time a job spends at an individual station in a production system from the time the station begins working on it, till the time the station finishes.
- Product - Something that is produced.
- Product Data Management System - System used to hold mechanical CAD files, including parts and assembly models as well as drawing files.
- Product Scope - The features and functions that characterize a product, service, or result.
- Production Lifecycle Management - Management of the products records, including bill of materials, specifications, changes and revisions from beginning to end.
- Production Planning - The process of devising or estimating the conversion of resources and information to achieve an end.
- Productivity - A measure of work effectiveness that businesses.
- Profit - A company's earnings relative to its revenue.
Profit per Unit - The subtracted cost of the product from tha sale price of the item.
- Profit & Loss Report - An accounting report that calculates a business’s profit by subtracting cost of goods sold from income.
- Project - An activity with a defined start and end date.
- Project Charter - A statement of the scope, objectives and participants in a project, the document makes everyone involved in the project aware of its purpose and goals.
- Project Future - Add up the projected cash inflow minus expenses until you reach the initial investment. The shorter the better.
- Project Life Cycle - A process that a project follows from its inception to its end. This process includes analysis, budget, design, implementation, and project planning.
- Project Management - The application of knowledge, skills, and principles to a program to achieve the program objectives.
- Project Management Lifecycle - The length of a project from conception to completion and all steps in-between.
- Project Management Plan - A document that integrates the program's plan and establishes the management controls and overall plan for intergrating and managing the program's individual components.
- Project Management Professional - A valued certification in project management that rigorously tests knowledge and skill in managing all of the triple constraints: time, cost and scope.
- Project Manager - The stakeholder assigned by the performing organization to manage the work required to achieve the project objectives.
- Project Plan - A formal and approved document outlining course of project from start to finish.
- Project Team - Any group of people engaged in helping a project come to completion.
- Project Timeline - A chronological ordering of a project’s key events and tasks to ensure they run on schedule. It captures and communicates deadlines, task dependencies, specific tasks, and projected task durations to various stakeholders.
- Promise date - The date that the customer has been told to expect to receive the order.
- Protective Device - Assets and devices used to protect equipment, machinery, components to reduce the consequences of equipment failure.
- Prototype - A sample built of a product.
- Pull Production - The process in which products are made only when the customer has ordered a product, and not before.
- Purchase - When a business buys goods or services.
- Purchase Order - A commercial document submitted by a buyer requesting a vendor or supplier to provide goods and/or services.
- Push Production - The process in which products are made using customer estimates rather than the customer has ordered a product, and not before.
- Quality - The ratio between good count produced and the total units that were started.
- Quality Assurance - The degree of excellence related to project as well as a process to adhere to quality measures.
- Quality Control - The procedure or set of procedures by which one ensures that a product or service is aligned to its defined goals and meets with the client’s or customer’s approval.
- Quantity to Fill - An amount of a product that was ordered but has not been received.
- Quality Management System - A framework for product and service developement that optimizes for the continuous improvement of quality.
- Quarterly Statement - These statements may resemble an annual report. However, there are some major differences. For various reasons, estimations are made for most key figures on the quarterly reports which are more accurately depicted in the annual report.
- Quick Ratio - Measures the ability of an individual or business to pay for current liabilities.
- Quote - When a business needs services or parts they can shop around and ask for suppliers to provide a written cost for the parts or services.
- Reactive Risk Response - An action or set of actions to be taken after a risk event has occurred.
- Rate of Return - The return an investor expects from his investment.
- Rebuild - Restoring an item to an acceptable condition in accordance with the origional design.
- Receipt - A written acknowledgment showing that payment has been made or a given sum of money received.
- Receivable - Accounts that are due to be paid by the customers of a business.
- Reconcile - The process of matching one set of figures or documents with another set of figures or documents.
- Refund - A refund can be provided to or from another business if bills have been overpaid.
- Refurbish - Clean, refine, reconditioned, renovated parts to make the parts usable.
- Reimbursement - Method by which a contractor will be paid for the work they have undertaken.
- Replaced Item - An item in a mass uptate to bill of materials that is removed from the bills of materials.
- Reserve - The planned allotment of time and cost or other resources for unforeseeable elements with a project.
- Resource - Who or what is required to fulfill a project. This can refer to people or machines or a room rental, etc, that typically bills on an hourly basis.
- Resource Allocation - The act of assigning tasks to the available resources dedicated to a project, usually within a defined budget.
- Resource Management - The process of managing teams and other resources on projects, and often includes managing their time, cost, performance and quality as it relates to defined project goals.
- Resource Scheduling - A process that ensures that resources are available when needed and where possible are not underutilised.
- Retained Earnings - An entry on Profit/Loss taken from the previous financial year.
Retention - A part of payment withheld until the project is completed in order to ensure satisfactory performance or completion of contract terms.
- Retention Ratio - Measures the amount of earnings retained by a company after dividends have been paid out.
- Return - An item or merchandise returned by a customer to your company.
Return on Asset - A company's net income divided by its average total assets.
Return on Capital Employed - How efficient a company is at using its capital to generate profits and use its capital efficiently.
- Return on Equity - The ability of a firm to generate profits from its shareholders investments in the company.
Return on Invested Capitol - How good a company is at turning capital into profits.
- Return on Investment - The benefit an investor will receive in relation to their investment cost.
- Return on Sales - How efficiently a company can generate operating profit from its revenue.
- Revenue - The total amount of income generated by the sale of goods and services to its customers and clients.
- Risk - A future event or problem that exists outside of the control of the project that will have an adveres impact on the project if it occures.
- Risk Acceptance - A risk response technique that indicates that the project manager has decided to accept the risk and subsequent consequences if the risk occurs.
- Risk Analysis - The examination of risk areas or events to access the propbale consequences for each event, or combination of ecents.
- Risk Avoidance - A risk response strategy whereby the project team acts to eliminate the threat or protect the project from its impact.
- Risk Impact - The harm or consequences for a project of a risk if it occures.
- Risk Management - A process to access potential problems, determine which risks are important to deal with, and impliment strategies to reduce consequences.
- Risk Mitigation - A risk response strategy whereby the project team acts to decrease the probability of occurance or impact of a threat.
Risk Owner - The individual or group best placed to assess and manage a risk.
- Risk Prevention - A risk response technique that involves eliminating the potential cause of risk, before it can become an issue.
Risk Reduction - Action taken to reduce the likelihood and impact of a risk.
- Risk Response - An action or set of actions to reduce the probability or impact of a threat, or to increase the probability or impact of an opportunity.
- Root Cause Analysis - The process of discovering the root causes of problems in order to identify appropriate solutions.
- Rough Order of Magnitude - Usually one of the first estimates to be conducted during the project's life cycle.
- Run Time - The scheduled production time and its running.
- Running Maintenance - Can be done while equipment is still operating.
- Running Maintenance Tasks - Tasks that are performed on a regular basis.
- Run-to-failure - No scheduled maintenance plan beyond replacement ehen if fails.
- Safety - A measure and practice taken to protect against emotional, financial, physical, social and other types of accidents or damage to an individual or individuals.
- Sales Bill of Materials - Provides information about a product in the sales stage.
- Sales Order - A request for goods or services.
- Salvage Value - The effective life usage got equipment such as machinery. vehicles, etc.
- Schedule - Simply a collection of tasks defined by their start and end dates within a project plan.
- Schedule Performance Index - Represents the ratio of earned value to planned value.
- Schedule Variance - Measure schedule performance that indicates whether a project's schedule is on track or not.
- Scheduled Maintenance - Pre-planned tasks performed on a maintenance schedule to keep assets in good operating condition.
- Scheduled Operating Time - The percentage of time when an asset is scheduled to be in operation and is available to operate.
- Scheduled Work Order - A work order that has been planned and included on a maintenance schedule.
- Scope - Work that must be performed to deliver a product, service, or their related functions.
- Scope Change - Any change to the project scope, which includes any adjustment to the cost, quality, or schedule.
- Scope Creep - Adding features and functions to the project scope without approval.
- Scope Model - A model that defines the boundaries of a business domain or solution.
- Setup Time - The number of hours needed to prepare the work area prior to the operation.
- Shipping Date - The date when a sales order leaves your warehouse or office.
- Shipping Method - The manner in which the items are transported from the supplier to be manufacturer.
- Shrinkage - The loss of materials.
- Shutdown - The period of time that equipment is out of service.
- Shutdown Maintenance - Maintenance that can only be done while equipment is shutdown.
- Single Level Bill of Materials - A simple list of of parts, not ment for a complex product list.
- SKU - A unique numerical sales stock identifier usually controlled by the business side if the company.
- Spare Parts Inventory - Having the right stock of critical parts available while keeping the costs of inventory parts and supplies at a minimum.
- Specifications - Detailed statements of project deliverables that result from requirements and design.
- Stakeholder - A person or group who has vested intrests that may be affected by the outcome of the project.
- Standard Operating Procedure - A set of clearly written instructions which outline the steps or tasks needed to complete a job.
- Start-to-finish - A logical relationship in which a succesor activity cannot finish until a predecessor activity has started.
- Start-to-start - A logical relationship in which a succesor activity cannot start until a predecessor activity has started.
- Standby - Assets installed or available but not being used.
- Statement - A report that displays financial information.
- Stock - A set of complete transformations or entities.
- Successor Activity - A dependent activity that logically comes after another activity in the schedule.
- Supplier - A person or company that supplies goods or services to a manufacturer.
- Supply Chain - A sequence of processes involved in the manufacturing, transportation and selling of a product.
Target Completion Date - The date planned to complete an activity or project.
- Target Price - The expected selling price of the product minus the desired profit from selling it.
- Task - Things to be done, typically one action required to accomplish a problem.
- Task Analysis - The breakdown of a task or activity from the timeline so that it can be scrutinized in terms of resources required for completion, its impact and other consideration.
- Task Management - The project management process of monitoring and evaluating the individual line items, or tasks, within a project.
- Taxes - Contributions mandated by the local, state, and/or federal government that individuals and business owners must pay every year
- Tax Deduction - Tax deductions are expenses individuals and businesses can “write off,” meaning they can count certain expenses against their taxable income.
- Timeline - A timeline or chronology is the graphical representation of the logical sequence of events or activities to lead a project to completion.
- To Complete Performance Index - Represents the ratio of earned value to planned value.
- Top Down Cost Estimating - The total project cost is estimated based on historical costs and other project variables and then subdivided down to individual activities.
- Total Cost - The total of all expenses associated with the manufacturing order.
- Total Cost of Ownership - All costs direct or indirect incurred in the acquisition and maintenance of an asset over a lifetime.
- Total Material Costs - All the manufacturing raw or direct material costs for a given product or a certain service.
- Trial Balance - The balance of accounts in all nominal ledgers. The total sum of the debit side should balance with that of the credit side.
- Triple Constraint - A four components group, time, scope, cost and quality of the product, represented by a triangle with time, scope and cost at corner side and quality at the central theme. There must a balance among all these components as the change in any one will impact the other components.
Turnaround Report - A report created especially for the various managers responsible to enter their progress status against a list of activities that are scheduled to be in progress during a particular time window.
- Turnkey Contract - A comprehensive contract in which the contractor is responsible for the complete supply of a facility, usually with responsibility for fitness for purpose, training operators, pre-commissioning and commissioning. It usually has a fixed completion date, a fixed price and guaranteed
- Unemployment Taxes - An employer is required to pay a portion of Social Security and Medicare taxes. Likewise, the employer is required to pay unemployment tax. The unemployment tax is partially based on employees’ salaries. Most employers pay both a federal and state unemployment tax.
- Unit Cost - The value of resources and time consumed to create one unit of product.
- User - A stakeholder, person, device, or system that directly or indirectly accesses a system.
- Validation - The process of checking a product to ensure that it satisifies its intended use and confronts to its requirements.
- Variable Cost - Those costs that change as your business or the market changes.
- Variance - The difference between two values like estimated and calculated expenses.
- Variance at Completion - The difference between the budget at completion and the estimate at completion.
Vendor - A company or person contractually committed to provide goods, either direct or through a supplier.
- Walkthrough - A type of peer review in which participants present, discuss, and step through a work product to find errors.
- Warehouse Racking - A system of shelves, configurations and location of the physical structure needed to store inventory.
- Warranty - A promise given by a contractor to the client or owner regarding the nature, usefulness or condition of the supplies or services delivered under the contract.
- Weighted Average Cost of Capital - Helps in calcularing a firm's cost of financing by combining the cost debt and cost of equity structure togeather.
- Work Around - An immediate or temporary response to an issue for which a prior response had not been planned.
- Work Flow - The relationship of the activities in a project from start to finish.
- Work in Progress - The set of entities that are partially transformed within any given process.
- Work Load - The amount of work units assigned to a resource over a period of time.
- Work Package - A deliverable at the lowest level of the work breakdown structure, when that deliverable may be assigned to another person.
- Work Plan - An outline of a group of goals with the help of which project team can reach those goals. The aim of the project work plan is to promote efficiently, systematized and completion of the project according to budget, schedule, and requirements.
- Work Product - The document, collection of notes or diagrams used by the business analyst during the requirements developement process.
- Working Capital - The money or assets you have immediately available to you to keep your business operating.
- Workpiece - A piece being worked on.
- Workplace Safety - The working environment at a company, that includes the health, safety, and well-being of it's employees.
- Worksheet - Usually a spreadsheet that includes a business’s list of accounts, account balances, adjustments, and adjusted balances.
- Year End Accounting - The process of closing the books by making sure all accounts are balanced, and all income, revenue, expenses, assets, and liabilities have been properly recorded.