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The Paradigm 360 Estimating & Project Management Glossary

with an emphasis and interest in the
Theory of Constraints, Lean, TQM and Six Sigma methodologies

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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5S - 5S is an important part of Lean Manufacturing. The 5S methodology focuses on effective work place organization and standardized work procedures. The five S’s are based on Japanese words that begin with “S”: Seiri, Seiton, Seiso, Seiketsu and Shitsuke. Several attempts have been made to translate the Japanese 5S’s to English words beginning with S. A translation is provided below:

• Sort – (Seiri) focuses on eliminating unnecessary items from the workplace.
• Set In Order - (Seiton) focuses on efficient and effective storage methods (a place for everything and everything in its place).
• Shine - (Seiso) to thoroughly clean the work area. Daily follow-up cleaning is necessary in order to sustain this improvement.
• Standardize - (Seiketsu) to concentrate on standardizing best practices in the work area.
• Sustain - (Shitsuke) to sustain focus on defining a new status quo and standard for work place organization.

7 Wastes of Production - There are 7 types of waste that describe all wasteful activity in a production environment. Elimination of the 7 wastes leads to improved profits. The 7 wastes are 1) Overproduction, 2) Materials Handling, 3) Motion, 4) Waiting, 5) Processing, 6) Inventory, and 7) Rework. (QMI Solutions' Glossary of World Class Manufacturing terms)

Absorption Costing- is the method under which all production costs, both variable and fixed, are treated as product costs with non-production costs, e.g. selling and administrative expenses, being treated as period costs. (ventureline.com Accounting Dictionary)

Across-the-Board Markup - the term used by authors and consultants Linda Case and Vicoria Downing to describe a markup methodolgy that places a markup to achive a prescribed Gross Profit on the sum of all the Labor, Materials, SubContractor, and Equipment costs. The same thing as a Total Volume Based Markup and an Uniform Percentage Markup.

Activity - A task or set of tasks that are carried out in order to create a deliverable Editor's Note: It should be noted that the term "activity" is used as a collection of tasks, synonymous with task or as a subset of a task. It is recommended that a "task" should be thought of as a subset of "activity".(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Activity - An element of work performed during the course of a project. An activity normally has an expected duration, an expected cost, and expected resource requirements. Activities are often subdivided into tasks.(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Activity-Based Budgeting (ABB) - An approach to budgeting where a company uses an understanding of its activities and driver relationships to quantitatively estimate workload and resource requirements as part of an ongoing business plan. Budgets show the types, number of and cost of resources that activities are expected to consume, based on forecasted workloads. The budget is part of an organization's activity-based planning process and can be used in evaluating its success in setting and pursuing strategic goals. (See Activity-Based Planning)

Activity-Based Costing (ABC)- Activity Based Costing attempts to ensure that every cent spent by an organisation, including direct and overhead costs, is allocated to the products or services in the most equitable way in order to realistically identify the cost to the organisation of delivering those products or services. (The Essence of ABC - The OffTech Approach)

Activity-Based Costing (ABC) - is a costing system that identifies the various activities performed in a firm and uses multiple cost drivers (non-volume as well as the volume based cost drivers) to assign overhead costs (or indirect costs) to products. ABC recognizes the causal relationship of cost drivers with activities.(ventureline.com Accounting Dictionary)

Activity-Based Costing (ABC) - ABC yields cost information that may be significantly different than what is provided when the traditional absorption cost method is used. ABC is another form of parametric modeling but it relies on current cost data defined through current cost estimates that consider procurement cost and resource demands. (SuccessfulProjects.com Project Management Glossary/Lexicon)

Activity-Based Costing (ABC) - A form of cost accounting that focuses on the costs of performing specific functions (processes, activities, tasks, etc.) rather than on the costs of organizational units. ABC generates more accurate cost and performance information related to specific products and services than is available to managers through traditional cost accounting approaches. (iSixSigma Dictionary)

Activity-Based Costing (ABC) - A methodology that measures the cost and performance of cost objects, activities and resources. Cost objects consume activities and activities consume resources. Resource costs are assigned to activities based on their use of those resources, and activity costs are reassigned to cost objects (outputs) based on the cost objects' proportional use of those activities. Activity-based costing incorporates causal relationships between cost objects and activities and between activities and resources.

Activity-Based Management (ABM) - A discipline focusing on the management of activities within business processes as the route to continuously improve both the value received by customers and the profit earned in providing that value. ABM uses activity-based cost information and performance measurements to influence management action. (See Activity-Based Costing .)

Activity-Based Planning (ABP) - Activity-based planning (ABP) is an ongoing process to determine activity and resource requirements (both financial and operational) based on the ongoing demand of products or services by specific customer needs. Resource requirements are compared to resources available and capacity issues are identified and managed. Activity-based budgeting (ABB) is based on the outputs of activity-based planning. (See Activity-Based Budgeting .)

Activity-Based Planning (ABP) - Activity-based planning (ABP) is an ongoing process to determine activity and resource requirements (both financial and operational) based on the ongoing demand of products or services by specific customer needs. Resource requirements are compared to resources available and capacity issues are identified and managed. Activity-based budgeting (ABB) is based on the outputs of activity-based planning. (See Activity-Based Budgeting .)

Activity Dictionary - A listing and description of activities that provides a common/standard definition of activities across the organization. An activity dictionary can include information about an activity and/or its relationships, such as activity description, business process, function source, whether value-added, inputs, outputs, supplier, customer, output measures, cost drivers, attributes, tasks, and other information as desired to describe the activity.

Activity Driver - The best single quantitative measure of the frequency and intensity of the demands placed on an activity by cost objects or other activities. It is used to assign activity costs to cost objects or to other activities.

Activity Duration - The best estimate of the time (hours, days, weeks, months, etc.) necessary for the accomplishment of the work involved in an activity , considering the nature of the work and resources needed for it. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Activity Duration - The length of time (hours, days, weeks, months) that it takes to complete an activity . This information is optional in the data entry of an activity .Work flow (predecessor relationships) can be defined before durations are assigned. Activities with zero durations are considered milestones or hammocks. (Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Allocation - A distribution of costs using calculations that may be unrelated to physical observations or direct or repeatable cause-and-effect relationships. Because of the arbitrary nature of allocations, costs based on cost causal assignment are viewed as more relevant for management decision-making. (Contrast with Tracing and Assignment)

Assignment - A distribution of costs using causal relationships. Because cost causal relationships are viewed as more relevant for management decision-making, assignment of costs is generally preferable to allocation techniques. (Synonymous with Tracing . Contrast with Allocation)

Average - A number that typifies a set of numbers of which it is a function. The value obtained by dividing the sum of a set of quantities by the number of quantities in the set. (See Mean)

Backward Pass - Backward pass computes the latest start time each event can start and have the project complete by a specified time

Backward Pass - Calculation of the latest finish times by working from finish to start for the uncompleted portion of a network of activities. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Backward Pass - Calculation of late finish times (dates) for all uncompleted network activities. Determined by working backwards through each activity .(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Backward Pass - Calculation of latest finish and start dates. Used in Critical Path Method scheduling .

Backward Pass - A procedure within time analysis to calculate the late start and late finish dates of all activities in a project .(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Balanced Scorecard (BSC) - A new approach to strategic management was developed in the early 1990's by Drs.  Robert Kaplan (Harvard Business School) and David Norton (Balanced Scorecard Collaborative). They named this system the 'balanced scorecard'.  Recognizing some of the weaknesses and vagueness of previous management approaches, the balanced scorecard approach provides a clear prescription as to what companies should measure in order to 'balance' the financial perspective.

The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When fully deployed, the balanced scorecard transforms strategic planning from an academic exercise into the nerve center of an enterprise. (biztroubleshooter.com/Glossary)

Balanced Scorecard (BSC) - A tool that translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. (Balanced Scorecard Collaborative Glossary)

Balance Sheet - A balance sheet is a financial "snapshot" of your business at a given date in time. It includes your assets and liabilities and tells you your business's net worth. Also called a statement of financial position, a balance sheet is a financial "snapshot" of your business at a given date in time. It lists your assets, your liabilities, and the difference between the two, which is your owner's equity, or net worth. The accounting equation (assets = liabilities + owner's equity) is the basis for the balance sheet.(CCH Business Owners Toolkit)

Baseline - The value or condition against which all future measurements will be compared.(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Baseline - A copy of the project schedule for a particular time (usually before the project is started) that can be used for comparison with the current schedule .(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Baseline Schedule - A fixed project schedule that is the standard by which project performance is measured. The current schedule is copied into the baseline schedule which remains frozen until it is reset. Resetting the baseline is done when the scope of the project has been changed significantly, for example after a negotiated change . At that point, the original or current baseline becomes invalid and should not be compared with the current schedule. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Benchmark - A standard by which something can be measured or judged.

Benchmarking - The concept of discovering what is the best performance being achieved, whether in your company, by a competitor, or by an entirely different industry.

Benchmarking is an improvement tool whereby a company measures its performance or process against other companies' best practices, determines how those companies achieved their performance levels, and uses the information to improve its own performance.

Benchmarking is a continuous process whereby an enterprise measures and compares all its functions, systems and practices against strong competitors, identifying quality gaps in the organization, and striving to achieve competitive advantage locally and globally. (iSixSigma Dictionary)

Benchmarking - A review of what others are doing in the same area. For those who appear to be particularly successful, what they do and how they do it are taken to be examples that should be emulated, i.e. used as "benchmarks".(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Bid - An offer to perform the work described in a set of bid documents at a specified cost .(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Bill of Activities - A listing of activities required by a product, service, process output or other cost object. Bill of activity attributes could include volume and or cost of each activity in the listing.

Bill of Materials - Bill of Materials A list of items or components used for fabrication, shipping, receiving, and accounting purposes.

Bill of Materials - A complete listing of all parts and raw materials that go into an article showing the quantity of each item required to make the unit.

A listing of all the subassemblies, parts, and raw materials required to make an assembly. Wideman Comparative Glossary of Comon Project Management Terms v2.1)

Bill of Resources - A listing of resources required by an activity. Resource attributes could include cost and volumes.

Bottleneck- A bottleneck is a resource with capacity that is not sufficient to produce the quantities that the market demands. In this way the bottleneck prevents the company from making more money. (p.153 Critical Chain) (see also CCR)

An hour lost at a Bottleneck is an hour lost for the entire system. The Bottleneck determines the factory capacity. To lose time here loses throughput. An hour saved at a non-Bottleneck is a mirage

Bottom-up Estimating - An estimating method where the base costs of individual work items or resources are calculated into task, resource, and project cost totals. (Wimincken.com PM Glossary)

Bottom Up Estimating - Overall estimates for the project are built up from the detailed level and aggregated to give totals for the project as a whole. The opposite of Top Down. (Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Buffer - Buffers are designed quantities of time and/or dollars, sized and applied to a project's schedule and/or budget to protect what is important to the success of that project.(see also Project Buffer, Feeding Buffer, Capacity Buffer, and Resource Buffer) (Frank Patrick's Focused Performance Critical Chain FAQ)

Business Case - The purpose of a business case is to capture the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argumentation. The logic of the business case is that any time resources such as money or effort are consumed, they should be in support of the business. An example could be that a software upgrade might improve system performance but the "business case" is that better performance would improve customer satisfaction. (Wikipedia - Business Case)

Business Ecosystem - Business Ecosystem is a strategic planning concept originated by James F. Moore and widely adopted in the high tech community, starting in the early 1990s. The basic definition comes from Moore's book, The Death of Competition: Leadership and Strategy in the Age of Business Ecosytems (HarperBusiness, 1996). Moore wrote - "An economic community supported by a foundation of interacting organizations and individuals--the organisms of the business world. This economic community produces goods and services of value to customers, who are themselves members of the ecosystem. The member organizations also include suppliers, lead producers, competitors, and other stakeholders. Over time, they coevolve their capabilities and roles, and tend to align themselves with the directions set by one or more central companies. Those companies holding leadership roles may change over time, but the function of ecosystem leader is valued by the community because it enables members to move toward shared visions to align their investments and to find mutually supportive roles." (Wikipedia-Business Ecosystem)

Capacity Based Markup - The expression coined by builder and author David Gerstel to describe a markup methodolgy that places the responsibilty of recovering overhead costs solely on the labor or available production capacity a company has. Also know as a PROOF Type Markup or Indexed Markup, Differential Markup, or Labor Based Markup.

Capacity Buffer - Capacity buffers are used in multi-project environments to help isolate the impact of variation of key resource performance in one project from subsequent projects.(Frank Patrick's Focused Performance Critical Chain FAQ)

Capacity Constraint Buffer - The buffer used in the drum schedule to buffer the use of the drum resource in one project to its use in the next project. The net result of the capacity constraint buffer is to sequence the start of projects, rather than start them all at once. (Advanced Projects Institute)

Capacity Constraint Buffer - Is established to maintain the schedule of a constraint resource handling multiple projects. It ensures that all the required project activities are completed, before the constraint resource begins a scheduled specific activity. The scheduling becomes complicated when there are several constraint resources handling multiple projects. (MangementMentor.com)

Capital Expenditure - The cost of an asset, including the cost to put it in place. Capital expenditure for equipment, for example, means the net invoice price of the equipment, including the cost of any modifications, attachments, accessories, or auxiliary apparatus necessary to make it usable for the purpose for which it was acquired.(http://www.foundation.csulb.edu/fndgrant/sections/GLFEB97.HTM)

Capital Expenditure - An expenditure made for assets with useful lives of more than one year. Usually capital expenditures may not be deducted in the year they are paid, even if they are paid in connection with a trade or business. In other words, they are capitalized and generally may be depreciated or amortized. (www.bookkeeperlist.com/definitionsc.shtml)

Capital Expenditure - An expenditure that is recorded as an asset because it is expected to benefit more than the current period.(http://www.finet.com.hk/accounting/c.htm)

Capitalize - to capitalize means to record an expenditure on the balance sheet as an asset, to be amortized over the future. The opposite is to expense. For example, research expenditures can be capitalized or expensed. If expensed, they are charged against income when the expenditure occurs. If capitalized, the expenditure is charged against income over a period of time usually related to the life of the products or services created by the research.(see also Expense) (Glossary of Important Financial Accounting Terms from How To Keep Score in Business by Robert Follett)

Constraint - Any element or factor that prevents a system from achieving a higher level of performance relative to its goal. Constraints can be physical/logistical, managerial/procedural or behavioral/psychological. (http://www.rbvollum.com/resource.htm)

Constraint - Anything that limits a system from achieving higher performance, or throughput . Alternate: That bottleneck which most severely limit the organization's ability to achieve higher performance relative its purpose/goal. (http://www.vmec.org/manufacturingglossary.html)

Constraint - TOC claims that a change to most of the variables in an organization will have only a small impact on the global performance – on the bottom line. There are very few variables, perhaps only one, where a significant change in local performance causes a significant change in global performance. Such a variable is called a constraint. (http://www.ciras.iastate.edu/toc/)

Constraint - Anything that limits a system from achieving higher performance, or throughput. Alternate: That bottleneck which most severely limit the organization's ability to achieve higher performance relative its purpose/goal. (The SearchManufacturing.com Glossary)

Constraint - A restriction that must be balanced with all other constraints to achieve project success. The four primary and universal project constraints are scope, quality grade, time and resources. (Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Constraint - Applicable restriction which will affect the scope. Any factor which affects when an activity can be scheduled. (see also Restraint) (Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Contingency - As a result of risk analysis sums of money or amounts of time may be set aside as contingency which may be used in the event of risks occurring. Editor's Note: Contingency should be shown in the plan as a separate item and not hidden in activities as "an extra 10%" on duration or cost .(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Contingency - A Contingency is the planned allotment of time and cost for unforeseeable elements with a project . Including contingencies will increase the confidence of the overall project .(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Contingency - An amount of design margin ,time , or money inserted into the corresponding plan as a safety factor to accommodate unexpected and presently unknown occurrences that judgment suggests will occur during the project .(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Contingency - A component of the authorized appropriation or estimated cost at completion for the project is scope of work or a particular cost class . Contingency is an estimator's allowance for the cost of unknowns, change s to make things work or estimating error . The anticipated award price of a cost class may also contain allowance for escalation . However, a reserve for scope changes is not a contingency in the same sense. A Scope Change Reserve is an allowance from which transfers can be made into specific cost classes when the scope of work in the class is amended by the owner . The appropriation for that class should be amended accordingly following the transfer. (Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Contingency - Time ,effort or money added to the project plan to compensate for uncertainty .(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Contingency - A risk premium factor or amount that is added to the project budget and/or the schedule, by any party to the contract, to allow/compensate for uncertainty or risk in project implementation. (Probabilistic Risk Analysis for Turnkey Construction: A Case Study: Glossary)

Contingency Allowance - Specific provision to cover variations which may occur in the expected value s of elements of cost or schedule, but not scope or quality .Note the distinction from Contingency Reserve (Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Contingency Reserve - A provision held by the project sponsor for possible changes in project scope or quality. Scope and quality change s constitute changes in the project manager 's mandate and will affect the project 's cost and schedule .Note the distinction from Contingency Allowance (Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Continuous Data - Continuous data is information that can be measured on a continuum or scale. Continuous data can have almost any numeric value and can be meaningfully subdivided into finer and finer increments, depending upon the precision of the measurement system.

As opposed to discrete data like good or bad, off or on, etc., continuous data can be recorded at many different points (length, size, width, time, temperature, cost, etc.). Continuous data is data that can be measured and broken down into smaller parts and still have meaning. Money, temperature and time are continous. Volume (like volume of water or air) and size are continuous data.

Let's say you are measuring the size of a marble. To be within specification, the marble must be at least 25mm but no bigger than 27mm. If you measure and simply count the number of marbles that are out of spec (good vs bad) you are collecting attribute data. However, if you are actually measuring each marble and recording the size (i.e 25.2mm, 26.1mm, 27.5mm, etc) that's continuous data, and you actually get more information about what you're measuring from continuous data than from attribute data.(iSixSigma Dictionary) (Also see Discrete Data for alternative data type.)

Common Cause Variation - variation resulting from typical fluctuations within the system. Every system will have some amount of variation of results. The way to improve common cause variation is to change the system. The two most common mistakes that are made in reducing, understanding, or treating variation is treating a common cause as special and a special cause as common. Common Cause Variation is hard to link to any particular source whereas Special Cause Variation can be assigned to an identifiable source. Common Cause Variation is also the variation that occurs in and around a nominal task time also known as Statistical Fluctuation. (JJH) (see also Special Cause Variation)

Common-cause variation: Random variation within the capability of the system. Treating common cause variation as special cause variation degrades system performance.(Advanced Projects Institute TQM Dictionary)

Common Cause Variation - Common Cause Variation is fluctuation caused by unknown factors resulting in a steady but random distribution of output around the average of the data. It is a measure of the process potential, or how well the process can perform when special cause variation removed.

Common cause variability is a source of variation caused by unknown factors that result in a steady but random distribution of output around the average of the data. Common cause variation is a measure of the process's potential, or how well the process can perform when special cause variation is removed. Therefore, it is a measure of the process technology. Common cause variation is also called random variation, noise, non-controllable variation, within-group variation, or inherent variation. Example: Many X's with a small impact.(iSixSigma.com dictionary) (see also Special Cause Variation)

Cost Accounting - Cost accounting is an organization's internal method to measure efficiency. Since no one outside the organization uses such internal accounts for investment or other decisions, any methods that an organization finds helpful can be used. (From the Wikipedia definiion of Throughput Accounting)

Cost Buffer - The cost buffer accounts for variation in project task cost. You should estimate it using methods similar to sizing the Project time Buffer, but consider all tasks in the project as cost does sum for all tasks in the project. The cost buffer requires a variational element and a bias element. (Stevens Institute of Technolgy NASA Strategic Multi-Project Resource Management "CC-Lite" page)

Cost Driver - A Cost Driver is any activity that causes a cost to be incurred. The Activity Based Costing (ABC) approach relates indirect cost to the activities that drive them to be incurred. In traditional costing the cost driver to allocate indirect cost to cost objects was volume of output. With the change in business structures, technology and thereby cost structures it was found that the volume of output was not the only cost driver. (Wikipedia-Cost Driver)

Cost Driver - Any situation or event that causes a change in the consumption of a resource, or influences quality or cycle time. An activity may have multiple cost drivers. Cost drivers do not necessarily need to be quantified; however, they strongly influence the selection and magnitude of resource drivers and activity drivers.

Cost Driver Analysis - The examination, quantification, and explanation of the effects of cost drivers. The results are often used for continuous improvement programs to reduce throughput times, improve quality, and reduce cost.

Cost Element - The lowest level component of a resource, activity, or cost object.

Cost Estimating Relationship (CER) - A technique used to estimate a particular cost or price by using an established relationship with an independent variable. See also Parametric Estimating.(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Cost Estimating Relationship (CER) - CERs are mathematical expressions of varying degrees of complexity expressing cost as a function of one or more cost-driving variables. The relationship may utilize cost-to-cost variables, such as manufacturing hours to quality assurance hours, or cost-to-noncost variables, such as engineering hours to the number of engineering drawings. (NHYSoft.com)

Cost Object - Any product, service, customer, contract, project, process or other work unit for which a separate cost measurement is desired.

Cost Object Driver - The best single quantitative measure of the frequency and intensity of demands placed on a cost object by other cost objects.

Cost Of Conformance (COC) - A component of the *Cost Of Quality* for a work product. Cost of conformance is the total cost of ensuring that a product is of good *Quality*. It includes costs of *Quality Assurance* activities such as standards, training, and processes; and costs of *Quality Control* activities such as reviews, audits, inspections, and testing. COC represents an organization's investment in the quality of its products.(.iSixSigma.com dictionary)

Cost Of Non-Conformance (CONC) - The element of the *Cost Of Quality* representing the total cost to the organization of failure to achieve a good *Quality* product. CONC includes both in-process costs generated by quality failures, particularly the cost of *Rework*; and post-delivery costs including further *Rework*, re-performance of lost work (for products used internally), possible loss of business, possible legal redress, and other potential costs.(iSixSigma.com dictionary)

Cost of Poor Quality - (COPQ) - consists of those costs which are generated as a result of producing defective material. This cost includes the cost involved in fulfilling the gap between the desired and actual product/service quality. It also includes the cost of lost opportunity due to the loss of resources used in rectifying the defect. This cost includes all the labor cost, rework cost, disposition costs, and material costs that have been added to the unit up to the point of rejection. COPQ does not include detection and prevention cost.

COPQ should contain the material and labor costs of producing and repairing defective goods, you can include a portion of the appraisal cost if you have an inspection point, but never should you include prevention costs.

Suppliers can generally affect our cost due to: a) Producing defective material. b) Damaging material during delivery.
The COPQ will generally cover the followings: 1) Cost of labor to fix the problem. 2) Cost of extra material used. 3) Cost of extra utilities . 4) Cost of lost opportunity a) Loss of sales/revenue (profit margin) b) Potential loss of market share and c) Lower service level to customers/consumers (iSixSigma.com dictionary)

Cost Of Quality (COQ) - The cost associated with the quality of a work product. As defined by Crosby ("Quality Is Free"), Cost Of Quality (COQ) has two main components: *Cost Of Conformance* and *Cost Of Non-Conformance* (see respective definitions). Cost of quality is the amount of money a business loses because its product or service was not done right in the first place. From fixing a warped piece on the assembly line to having to deal with a lawsuit because of a malfunctioning machine or a badly performed service, businesses lose money every day due to poor quality. For most businesses, this can run from 15 to 30 percent of their total costs.(iSixSigma.com dictionary)

Crashing - Action to decrease the duration of an activity or project by increasing the expenditure of resources

Crashing - In project planning , an activity can be conducted at a normal pace or at an accelerated pace, known as 'crashing' the activity of the project . Crashing is completed at a greater cost than a normal-paced project

Crashing - Taking action to decrease the total project duration by analyzing a number of alternatives to determine how to get the maximum duration compression for the least cost .

Critical Capacity Resource (CCR) - A CCR is a resource that may prevent the system moving closer towards its goal.  A CCR may not be a bottleneck but all CCRs usually need to be taken into account when producing a schedule. (http://www.toc.co.uk/glossary.htm)

Capacity Constrained Resource (CCR) - Not necessarily a bottleneck, but a resource that may become a bottleneck if it is not carefully managed .(http://www.tocpractitioner.com/tocglossary.asp)

Critical Chain (CC) - The critical chain, in project management, is the sequence of both precedence- and resource-dependent terminal elements that prevents a project from being completed in a shorter time, given finite resources. If resource availability is not a constraint, then a project's critical chain becomes the same as its critical path (just like Einstein's theory reduces to Newton's under conditions of low speeds and gravity).(Wikipedia, the free encyclopedia)

Critical Chain (CC) - That set of tasks which determines the overall duration of a project , after taking resource capacity into account . It is typically regarded as the constraint or leverage point of a project . See also Theory of Constraints .http://www.maxwideman.com/pmglossary/PMG_C13.htm#Critical%20Chain

Critical Chain (CC) - The longest set of dependent activities, with explicit consideration of resource availability, to achieve a project goal. The Critical Chain is NOT the same as you get from performing resource leveling on a critical path schedule. The Critical Chain defines an alternate path which completes the project earlier by resolving resource contention up front. (http://www.advanced-projects.com/TOC/Defs.html)

Critical Chain (CC) - This is the longest dependent chain of events in a project plan when both resource dependency and task dependency are taken into account. (www.toc.co.uk/glossary.htm)

Critical Chain (CC) - Part of Critical Chain Project Management. That set of tasks which determines the over-all duration of a project. Usually it requires taking resource capacity into account. It is typically regarded as the constraint or leverage point of a project.(http://www.tocpractitioner.com/tocglossary.asp)

Critical Chain (CC) -The critical chain is explicitly defined as a resource-leveled set of tasks. (Frank Patrick's–Critical Chain FAQ)

Critical Chain Project Management (CCPM) - Critical Chain Method is a project scheduling and management methodology developed by Eliyahu Goldratt based on concepts from the Theory of Constraints (and described in his book Critical Chain). With Critical Chain scheduling, uncertainty is primarily managed by (a) using average task duration estimates; (b) scheduling backwards from the date a project is needed (to ensure work that needs to be done is done, and it is done only when needed); (c) placing aggregate buffers in the project plan to protect the entire project and the key tasks (also known sometimes as Shared Contingency); and (d) using buffer management to control the plan.

Critical Path Method (CPM) - A method for determining the minimum project duration by identifying the critical path based on task interrelationships and duration. It assumes there is no wasted time for the activities that are on the critical path. (see also PERT)

Critical Path Method (CPM) - A technique used to predict project duration by analyzing which sequence of activities has the least amount of scheduling flexibility .Early dates are figured by a forward pass using a specific start date and late dates are figured by using a backward pass starting from a completion date .(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Critical Path Method (CPM) - A network analysis technique used to predict project duration by analyzing which sequence of activities (which path) has the least amount of scheduling flexibility (the least amount of float). Early dates are calculated by means of a forward pass using a specified start date. Late dates are calculated by means of a backward pass starting from a specified completion date (usually the forward pass 's calculated project early finish date). (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Critical Path - The longest sequence of activities in a network. Usually, but not always, a sequence with zero float. The critical path is an accident of arithmetic. It may be the longest sequence of activities, but there may be others that have such minimal float as to be inconsequential. It does not account for resource constraints. Once resource leveling has been performed, slack and the critical path are no longer valid calculation. (All paths usually contain gaps.) The Project Management Institute's definition of critical path notes that it changes as the project progresses.(Critical Chain Project Management by Lawrence P. Leach Feb 2000)

Critical Path - The series of tasks that must finish on time for the entire project to finish on schedule . Each task on the critical path is a critical task .(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Critical Path - In a project network diagram, the path with the longest duration. The critical path may change from time to time as activities are completed ahead of or behind schedule . See critical path method .(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Critical Path - The line of project activities having the least float, especially when float is close to, or below zero. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Critical Path - The route through the network that has only critical activities.(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Critical Path - The series of consecutive activities that represent the longest path through the project. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Critical Path - In a network diagram , the longest path from start to finish or the path without any slack , and thus the path corresponding to the shortest time in which the project can be completed. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Critical Path - The critical path is the path (sequence) of activities which represent the longest total time required to complete the project. A delay in any activity in the critical path causes a delay in the completion of the project. There may be more than one critical path depending on durations and work flow logic. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Critical Path - The term critical path means a sequence of tasks for a given project, such that a delay in any task causes a delay in the overall project. All critical path tasks are important because if any critical path task should slip, then the entire project will slip by the same amount. (The Joy of VB - Critical Path Analysis)

Critical Ratio - A ratio that measures an important characteristic . This ratio is often plotted or tracked in some way to determine priorities among items or events. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Critical Ratio - Defined as the time remaining until an order is due divided by the processing time remaining on an order. (Implementing Theory Of Constraints In A Job Shop Environment by John T. Tagawa)

Deliverables - The physical items to be delivered for a project. This may include organization attributes, reports and plans, as well as physical products or objects. (Wideman Comparative Glossary of Common Project Management Terms v2.1)(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Delphi Technique - A process where a consensus view is reached by consultation with experts. Often used as an estimating technique.

Dependency - The next task or group of tasks cannot begin until preceding work has been completed, thus the word "dependent" or "dependency".

Dependency - A relation between activities, such that one requires input from the other.

Direct Job Costs - (aka Direct Project Costs) The costs directly attributable to a project, including all personnel, goods and/or services together with all their associated costs, but not including indirect project costs, such as any overhead and office costs incurred in support of the project. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Discrete Data - Discrete data is information that can be categorized into a classification. Discrete data is based on counts. Only a finite number of values is possible, and the values cannot be subdivided meaningfully. For example, the number of parts damaged in shipment.

Attribute data (aka Discrete data) is data that can't be broken down into a smaller unit and add additional meaning. It is typically things counted in whole numbers. There is no such thing as 'half a defect.' Population data is attribute because you are generally counting people and putting them into various categories (i.e. you are counting their 'attributes'). I know, you were about to ask about the '2.4 kids' statistic when they talk about average house holds. But that actually illustrates my point. Who ever heard of .4 of a person. It doesn't really add addition 'meaning' to the description.(iSixSigma.com dictionary)(Also see Continuous Data for alternative data type.)

Drum - Part of Drum-Buffer-Rope Scheduling. A name given to the rate of production of a physical constraint. The beat of the drum dictates the rate that material should flow into the system.(http://www.tocpractitioner.com/tocglossary.asp)

Drum - The Drum refers to the CCR that is used to build the schedule around in an operation. (http://www.toc.co.uk/glossary.htm)

Drum-Buffer-Rope (DBR) - This is the term applied to the “Constraint Management” approach to scheduling in manufacturing systems, developed by Eli Goldratt and popularized in the novel, “The Goal.”   The “drum” refers to the rate at which the primary bottleneck, or determining constraint, can move items down the line.  Buffer refers to the placing of a time-buffer equivalent to the amount of time which could be lost by a contingency in the production line leading up to the constraint.  A buffer of items corresponding to this delay is kept in front of the constraint, which provides some slack or “rope” to the overall line. (The Supply Chain Dynamics Glossary)

Drum Buffer - Is only used in multi-project implementations. Its purpose is to exploit the early availability of the drum resource by assuring all of the input tasks are complete if the drum resource completes its task in the predecessor project early.

Duration - The period of time over which a task takes place, in contrast to effort, which is the amount of labor hours a task requires. Duration establishes the schedule for a project. Effort establishes the labor costs. Each task in a project has a duration, usually specified in work days or portions of work days, that may or may not be different than the amount of effort (or labor) required to complete the task.(http://www.spiremedia.com/spire.spm?cid=13)

Duration - The calendar time it takes to create a deliverable. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Duration -The Amount of elapsed time an activity is estimated to take. (Critical Chain Project Management by Lawrence P. Leach)

Early Start - The Early Start date is defined as the earliest calculated date on which an activity can begin. It is dependent on when all predecessor activities finish. Most PM software calculates early dates with a forward pass from the beginning of the project to the end.(Wideman Comparative Glossary of Common Project Management Terms v2) (see also Late Start)

Early Finish - The earliest calculated date on which an activity can end. It is based on the activity's Early Start which depends on the finish of predecessor activities and the activity's duration. (See Early Start). Most PM software calculates early dates with a forward pass from the beginning of the project to the end.(Wideman Comparative Glossary of Common Project Management Terms v2.1) (see also Late Finish)

Earned Value Analysis - Analysis of project progress where the actual money budgeted and spent is compared to the value of the work achieved.(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Earned Value Management - Earned value is a project management technique that relates resource planning to schedules and to technical cost and schedule requirements. All work is planned, budgeted, and scheduled in time-phased ''planned value'' increments constituting a cost and schedule measurement baseline. There are two major objectives of an earned value system: to encourage contractors to use effective internal cost and schedule management control systems; and to permit the customer to be able to rely on timely data produced by those systems for determining product-oriented contract status. (BalancedScorecard.org Definitions)

Earned Value Management - A management technique that relates resource planning to schedules and to technical cost and schedule requirements. All work is planned, budgeted, and scheduled in time-phased increments constituting a cost and schedule measurement baseline. (Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Effort - The amount of work or labor (in hours or work days) required to complete a task. Effort is used to establish the labor costs associated with a project. Effort is in contrast to duration, which is the span of time over which the effort takes place. (Complete Idiot's Guide to Project Management)

Effort - The number of labor units necessary to complete the work . Effort is usually expressed in staff hours, staff days or staff weeks and should not be confused with duration .(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Estimate - An evaluation of all the costs of the elements of a project or effort as defined by an agreed-upon scope . See order of magnitude estimate, budget estimate, and definitive estimate. (Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Estimate - An assessment of the likely quantitative result. Usually applied to project costs and durations and should always include some indication of accuracy (e.g., + or - 15%). Usually used with a modifier (e.g., preliminary, conceptual, feasibility). Some application areas have specific modifiers that imply pre-set accuracy ranges (e.g., order of magnitude estimate, budget estimate, and definitive estimate in construction). (Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Expense - an expenditure which is chargeable against revenue during an accounting period. An expense results in the reduction of an asset. All expenditures are not expenses. For example, a company buys a truck. It trades one asset - cash - to acquire another asset. An expenditure has occurred but no expense is recorded. Only as the truck is depreciated will an expense be recorded. The concept of expense as different from an expenditure is one reason financial reports do not show numbers that represent spendable cash. The distinction between an expenditure and an expense is important in understanding how accounting works and what financial reports mean. (To expense is a verb. It means to charge an expenditure against income when the expenditure occurs. The opposite is to capitalize.(see Capitalize)(Glossary of Important Financial Accounting Terms from How To Keep Score in Business by Robert Follett)

Expense - A decrease in equity resulting from the costs of materials and services used to produce the businesss or organization's revenue.(Book: Cost Accounting for the Construction Firm by Bill G. and Whiteman, Daniel E. Eppes)

Expensed - An accounting term. To write off as an expense as opposed to classifying as a capital asset.(knownet.hhs.gov glossary)

Failure Mode and Effect Analysis - Failure mode and effects analysis (FMEA) is a disciplined approach used to identify possible failures of a product or service and then determine the frequency and impact of the failure. (iSixSigma.com dictionary)

Feeding Buffer - A time buffers placed in project chains (paths) that tie in to the critical chain. Their purpose is to help insure that the successor task on the critical chain has all of its inputs with about a 50% probability. Size the feeding buffers based on the tasks in the feeding chain. The buffer size is the sum of a buffer for bias plus a buffer for variation. (Advanced Projects Institute)

Feeding Buffer - Feeding Buffers protect the ability of the critical chain to maintain its relay race performance by buffering the variation of non-critical tasks and chains where they feed into or merge with critical chain tasks. With a properly sized feeding buffer inserted, the critical chain task that relies inputs from that non-critical chain has an improved chance of being able to start as soon as it predecessor critical task is complete.(Frank Patrick's Focused Performance Critical Chain FAQ)

Feeding Buffer - Is the extra time provided for activities on the non-critical path, which merge with the critical chain. The feeding buffer provides a guard against delays in non-critical paths affecting the critical chain. The feeding buffer, as a thumb rule is normally assumed half of the time removed from activities on the feeding path. (MangementMentor.com)

Financial Accounting - generation of accounting information for external reporting (Thomson Nelson; Managerial Accounting Glossary)(see also ManagerialAccounting)

Finish-to-Start - The Logical Relationship as a result of a dependency between two project activities where the "from" activity must finish before the "to" activity can start. (see also Start-to-Start and Start-to-Finish)

Finish-to-Finish -The Logical Relationship as a result of a dependency between two project activities where the "from" activity must finish before the "to" activity can finish .(see also Start-to-Start and Start-to-Finish)

First-Run Study - Trial execution of a process in order to determine the best means, methods, sequencing, etc. to perform it. First-run studies are done a few weeks ahead of the scheduled execution of the process, while there is time to acquire different or additional prerequisites and resources .(Lean Construction.org Glossary)

Fixed Overhead - Fixed Overhead costs are those regularly recurring expenses which are constant and do not normally fluctuate with the business volume or the number of production employees employed. (see also Variable Overhead)

Fixed Overhead - Overhead costs incurred in support of the manufacturing process that can not be directly allocated to specific items, and do not vary with production changes as do direct material and labor costs. (Bridgefield Group ERP/Supply chain Glossary)

Float - The difference between the time available for performing a task and the time required to complete it. If the total float for a task equals zero, then that task is on the critical path (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Float - Available time for activity execution less time taken by the activity .(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Float - The amount of time that an activity can slip past its duration without delaying the rest of the project . The calculation depends on the float type. See Start Float ,Finish Float ,Positive Float , and Negative Float . All float is calculated when a project has its schedule computed. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Float - A measure of the time flexibility available in the performance of an activity. Available in three flavors: total float, free float and independent float. The minimum amount of time by which an activity will be extended due to factors outside the project managers control. (see slack) (Critical Chain Project Management by Lawrence P. Leach)

Forward Pass - Calculating the earliest start dates moving from left to right along a network.(Wideman Comparative Glossary of Common Project Management Terms v2.1) (see also backward pass)

Functional Silo - A functional silo arises when each business function acts more as an independent entity versus a component of a much larger system in spite of the fact that numerous activities and data needs overlap.  In many cases, it seems as if there is little or no integration or interest from one function with regards to what the other is doing. (see also Silo)

Gannt Chart - A tool developed in the late 1940s to visualize the sequencing of tasks on a project.

Gannt Chart - A chart using time lines and other symbols that illustrates multiple, time-based activities or projects on a horizontal time scale.(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Gannt Chart - A Gantt chart is a time-phased graphic display of activity durations. It is also referred to as a bar chart. Activities are listed with other tabular information on the left side with time intervals over the bars. Activity durations are shown in the form of horizontal bars. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Gross Profit - Gross Profit equals Revenue minus Cost of Goods Sold. It identifies the amount available to cover other operating expenses. Also known as Gross Margin

Hammock - An aggregate or summary activity. All related activities are tied as one summary activity and reported at the summary level. A hammock groups activities, milestones, or other hammocks together for reporting . Most PM software calculates the duration of a hammock from the early and late dates of the activities to which it is link ed. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Hawthorne Effect - Initial improvement in a process of production caused by the obtrusive observation of that process. The effect was first noticed in the Hawthorne plant of Western Electric. Production increased not as a consequence of actual changes in working conditions introduced by the plant's management but because management demonstrated interest in such improvements

Heuristic - A procedure used to provide solutions to decision problems but which are not guaranteed as best or optimal because they often depend on good judgment in the first place. Literally, leading toward discovery, finding out. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Heuristic - A rule of thumb, simplification, or educated guess that reduces or limits the search for solutions in domains that are difficult and poorly understood. Unlike algorithms , heuristics do not guarantee optimal, or even feasible , solutions and are often used with no theoretical guarantee. (The Free On-line Dictionary of Computing )

Histogram - A graphical representation of a frequency distribution. The range of the variable is divided into class intervals for which the frequency of occurrence is represented by a rectangular column. The height of the column is proportional to the frequency of observations within the interval.

Inventory - "Inventory is all the money that the system has invested in purchasing things which it intends to sell." (chapter 8 The Goal)

Inventory - Stock on hand; often divided between raw materials inventory, work-in-process , and finished goods inventory. (Lean Construction Institute Glossary)

Inventory - “Inventory is both an asset and a liability. Too much inventory consumes physical space, creates a financial burden and increases the possibility of damage, spoilage and loss. Too little inventory disrupts manufacturing operations, engenders chaos on the shop floor and increases the likelihood of poor customer service.” (Benfield in APICS: The Performance Advantage February 1996)

Implementable Unrefusable Offer - The way to alleviate the constraint of low market demand for products. Method is to reverse engineer customer value to discover what product features will create the unrefusable offer that will generate sales. From "It's Not Luck".

Issue - Something in dispute or to be decided. An immediate problem requiring resolution. An issue is a major problem that will impede the progress of the project and cannot be resolved by the project manager and project team without outside help. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Job Shop - A business that produces on an order-by-order basis to meet customers’ specifications. A job shop generally secures work through a bidding process, and thus they tend to be highly competitive. They often serve other companies and/or distributors as opposed to consumers or end users. They are also often highly specialized. Product differentiation is generally limited to variations within a basic product category as opposed to product variety.

They can be extremely diverse in terms of output, technology, operations, and size. Output can range all the way from single parts to complex sub-assemblies. Materials can include metals, plastics, paper, rubber, cloth, ceramics… virtually any material with commercial applications. Production technologies are equally diverse.

Not all job shops are manufacturers. Printing, engineering services, architectural design, advertising agencies, construction companies, and others, all operate on a similar order-driven business model.(Superfactory.com Newsletter Volume 2 Number 7)

Job Shop - A manufacturing enterprise devoted to producing special or custom made parts or products usually in small quantities for specific customers. (appl.nasa.gov/resources/lexicon/terms_j.html)

Job Shop - Job shops are typically small manufacturing operations that handle specialized manufacturing processes such as small customer orders or small batch jobs. Job shops typically move on to different jobs (possibly with different customers) when each job is completed. By nature of this type of manufacturing operation, job shops are usually specialized in skill and processes. (Wilipedia)

Job Shop - A plant or shop floor given over to the manufacture of individual works orders, usually on a once-off basis. All work undertaken in the job shop is thus unique, or, at least, is individually undertaken. Many products in the job shop will have been specially designed and will thus have unique product routes. The length of time of manufacture in a job shop is typically days or weeks rather than hours. Repetitive or batch manufacture is not associated with work undertaken in the job shop. (Glossary of Manufacturing)

Job Shop Lean - Job Shop Lean describes a "flavor" or applcation of Lean Thinking or what's known as the Toyota Production System (TPS) that is more suitable and applicable for low-variety high-volume (LVHV) production systems which differ significantly from the typical larger high-variety low-volume (HVLV) manufacturer. It takes thestandard best practices of Lean, as embodied in the Toyota Production System, and tailors them to address the challenges of achieving flexibility, agility and reconfigurability which are vital and important in a Job Shop Environment..

Jonah - What is a Jonah? A Jonah employs a systematic and logical process that is a practical blend of the scientific method and the Socratic technique to answer the three questions essential to any successful change: What to Change?, What to Change To? and How to Cause a Change? This process is referred to as the Theory of Constraints (TOC) Thinking Processes (TP). Jonah refers to individuals who have gained a working knowledge of the TOC TP upon completion of The Goldratt Institute's Jonah SM Program. (http://www.goldratt.com/jp.htm)

Just In Time Production (JIT) - A production system to make what the customer needs when the customer needs it in the quantity the customer needs, using minimal resources of manpower, material, and machinery. The three elements to making Just-in-Time possible are Takt time, Flow production, and the Pull system. (QMI Solutions' Glossary of World Class Manufacturing terms)

Kaizen - Continuous, incremental improvement of an activity to create more Value with less Waste. Also known as Point Kaizen, and Process Kaizen.  Kaizen has been Americanized to mean "Continual Improvement." A closer definition of the Japanese meaning of Kaizen is "to take apart and put back together in a better way." According to Webster - blitz is short for blitzkrieg. And blitzkrieg is (b) -"Any sudden overpowering attack." Therefore, a Kaizen Blitz could be defined as 'a sudden overpowering effort to take something apart and put it back together in a better way." What is taken apart is usually a process, system, product, or service. (Superfactory Best practices enabling lean manufacturing excellence)

Kanban - A management tool in the pull scheduling system developed and used by Toyota. A method of Just-In-Time production that uses standard containers or lot sizes with a single card (Kanban) attached to each. It is a pull system in which work centers signal with a card that they wish to withdraw parts from feeding operations or suppliers. (Logisticsinsights.com)

Kanban - A method which during storage uses standard units or lot sizes with a single card attached to each. A pull system used at a stock point in which a supply batch is ordered only when a previous batch is withdrawn. Note: Kanban in Japanese means loosely translated 'card or sign'.(Eyefortransport Transportation Glossaryl)

Labor Burden - Labor burden, also sometimes referred to as payroll burden or just burden, is the extra cost of labor in addition to an employee's regular wages. Burden includes employer taxes, insurance, benefits, vacation time and any other un productive time that needs to be accounted for as a function of labor. Burden does not include employee withholding, since they are deducted from the employees gross wages.

Lag Time - The amount of time delay between the completion of one task and the start of its successor task .(Wideman Comparative Glossary of Common Project Management Terms v2.1 )

Lake Wobegon Effect,The: Lake Wobegon is a fictional town in Minnesota, the invention of author Garrison Keillor, where all the women are strong, all the men are good looking, and all the children are above average . The remarkable statistic relating to the children is the significance of Lake Wobegon's presence in this Glossary - in manufacturing quality, as Deming never tired of saying, there is an average and, as a result of common causes of variation, there is a statistical distribution above and below it. If the manager doesn't like the lower boundaries of performance of a system under his control, he should get to work and improve it. See The Manufacturing Manager, Ch. 13. (Glossary of Manufacturing.com)

Lake Wobegon Effect,The: The "Lake Wobegon Effect" takes its name from Garrison Keillor's town where "where the women are strong, the men are good-looking, and all of the children are above average." In short, everyone tends to think they are above average.(From Selling the invisible by Harry Beckwith)

Lake Wobegon Effect,The: People value that which they do well and tend not to notice that which they do poorly.  This explains the "Lake Wobegon" effect:  most workers think of themselves as above average.  A problem often occurs when managers try to get employees to do their full job, which includes things that the employee does less well.  A way to address this concern is to use the employee's strengths to solve the problem of that which is a weakness.  Acknowledge that the employee is above average in strengths and ask his/her input in a problem-solving mode to help devise strategies to ensure that the job aspects currently getting low priority get a higher priority.  This reduces defensiveness on the part of the employee and helps her/him realize the value of a task which tends to be done poorly.  It also increases the likelihood that the solution developed will be practiced.  As people practice skills, they get better at them, taking pride in doing the whole job we (http://www.synergisticorganizationalsolutions.com/pointers.htm)

Late Finish (LF) - The latest time an activity may be completed without delaying the project finish date. The latest dates by which an activity can finish to avoid causing delays in the project. Many PM software packages calculate late dates with a backward pass from the end of the project to the beginning. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Late Start (LS) - The latest time an activity may begin without delaying the project finish date of the network. This date is calculated as the late finish minus the duration of the activity. The latest dates by which an activity can start to avoid causing delays in the project. Many PM software packages calculate late dates with a backward pass from the end of the project to the beginning. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Last Planner™ - The person or group that makes assignments to direct workers. ‘Squad boss’ and ‘discipline lead’ are common names for last planners in design processes. ‘Superintendent’ (if a job is small) or ‘foreman’ are common names for last planners in construction processes. (Lean Construction Institute)

Lead Time - The total time a customer must wait to receive a product after placing an order. When a scheduling and production system is running at or below capacity, lead time and Throughput Time are the same. When demand exceeds the capacity of a system, there is additional waiting time before the state of scheduling and production, and lead time exceeds throughput time. (Lean Manufacturing Glossary)

Lead Time - The time required by one task before another task can begin.(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Lead Time - An overlap between tasks that have a dependency. For example, if a task can start when its predecessor is half finished, you can specify a finish-to-start dependency with a lead time of 50 percent for the successor task. You enter lead time as a negative lag value. (Wimincken.com PM Glossary)

Lead Time - The amount of time it takes for a shipment to arrive once an order has been placed. (http://erc.msh.org/fpmh_english/gloss/gloss_l.html)

Lead Time (a.k.a. overlap) - Task two starts before Task 1 ends in a controlled manner. A lead time is expressed by a negative (-) sign in MS Project. Units can have all duration labels from the duration table or can be a percentage (%).

Lead Time - An overlap between tasks that have a dependency. For example, if a task can start when the previous task is half finished, you can set up a finish-to-start dependency with a lead time of 50 percent. Lead time is entered as a negative lag value (http://www.techassoc.com/project2000/documents/project_glossary.pdf)

Lean Construction - A philosophy based on the concepts of lean manufacturing. It is about managing and improving the construction process to profitably deliver what the customer needs. Because it is a philosophy, lean construction can be pursued through a number of different approaches. The philosophy is based on the following principles:

• Precisely specifying value from the perspective of the ultimate customer
• Elimination of waste from the construction process
• Identifying the process that delivers what the customer values (the value stream)
• Eliminating all non-value adding steps in the construction process
• Make the remaining value adding steps flow without interruption
• Let the customer pull: don’t make anything until it is needed, then make it quickly

The principles of lean construction can only be applied fully and effectively by focusing on improving the whole construction process. This means all parties have to be committed, involved, and work to overcome obstacles that may arise from traditional contractual arrangements. In terms of skills implications, lean construction is important as it is an industry-wide philosophy which will have an impact upon skills in the industry. Lean ideas will in particular affect the way the industry is managed (the idea of the value stream).(CITB Construction Skills)

Lean Thinking - The Lean Thinking methodology says that only a small fraction of the total time and effort in any organization actually adds value for the end customer. By clearly defining Value for a specific product or service from the end customer's perspective, all the non value activities - or waste - can be targeted for removal step by step. For most production operations only 5% of activities add value, 35% are necessary non-value adding activities and 60% add no value at all. Eliminating this waste is the greatest potential source of improvement in corporate performance and customer service.

Lessons Learned - The capture of what went well as well as past errors of judgment resulting in material failures, wrong timing or other mistakes, all for the purposes of improving future performance.(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Lessons Learned Program (LLP) - A comprehensive process for managing organizational learning. A library of knowledge gained from experience, successful or otherwise, for the purpose of improving future performance. Implementation of an LLP is a key component in achieving continuous improvement, and can have a significant impact on achieving overall project success.

Loaded Labor Rate - A labor rate that takes into consideration, an is thereby "loaded with" all the Variable Overhead and Fixed Overhead costs and Net Profit associated with a unit of labor (wage/salary + benefits + overhead costs + profit margin).

Lookahead Planning - The middle level in the planning system hierarchy, below front end planning and above commitment planning, dedicated to controlling the flow of work through the production system.(LeanConstruction Glossary)

Lookahead Schedule - The output of lookahead planning, resulting from exploding master schedule activities by means of the activity definition model, screening the resultant tasks before allowing entry into the lookahead window or advancement within the window, and execution of actions needed to make tasks ready for assignment when scheduled. Lookahead schedules may be presented in list form or bar charts. (LeanConstruction Glossary)

Managerial Accounting - The process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization's goals.

The key difference between managerial and financial accounting is that managerial accounting information is aimed at helping managers within the organization make decisions. In contrast, financial accounting is aimed at providing information to parties outside the organization. This is also known as "cost accounting." (Investopedia Terms)(see also Financial Accounting)

Managerial Accounting - The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations in planning future operations, and in developing overall business strategies.(www.crfonline.org/orc/glossary/m.html)

Managerial Accounting (Management Accounting) the gathering and application of information used to plan, make decisions, evaluate performance, and control an organization (Thomson Nelson; Managerial Accounting Glossary)

Manufacturing Lead Time (MLT) : The amount of time each unit spends in the manufacturing process (sometimes called Throughput Time). This includes time spent actively being worked upon at each step of the process as well as any time spend waiting between steps. The concept of a lead time applies to the total time spent in any process in which the start and finish are well-defined events. We can talk about lead times, for example, in service operations, or in the entire order-to-delivery process. (http://hbswk.hbs.edu/pubcontent/toolkit/operations/glossary.html)

Margin - Any of the following:

1. A spare amount or measure or degree allowed or given for contingencies or special situations.
2. A bare minimum below which or an extreme limit beyond which something becomes impossible or is no longer desirable.
3. The difference which exists between net sales and the cost of merchandise sold and from which expenses are usually met or profit derived.(Wideman Comparative Glossary of Common Project Management Terms v2.1) (JJH- Margin is is calculated against Sales Price)

Marginal Cost - The cost of producing one additional unit. If the total cost of producing 10 units is $50, and if the total cost of producing 11 units is $54, then marginal cost at that level of output is $4. This is to be distinguished from "average" cost, the total dollar cost incurred during some relevant period of time, divided by the total number of units produced in that period. Here, for example, the average cost is approximately $4.91 ($54 total cost, divided by 11 units), or 91¢ more than the marginal cost. The one includes Fixed Cost (overhead), the other does not. "Constant" marginal costs, the absence of variation at different output levels, indicates the absence of both economies and diseconomies of scale in that output range. (www.compcom.co.za/thelaw/thelaw_glossary.asp)

Marginal Cost - In accounting, the additional total expense incurred as a result of producing one additional unit of an existing product or service. Also known as incremental cost. (www.minnesotamutual.com/news/glossary_pages/glossary_m.asp)

Markup - The amount added to estimate line items (or the percentage figure items are multiplied by-JJH) to cover payroll on-costs, supervision, administration and profit. Alternatively may just refer to the overhead and profit added to the bottom of an estimate for purposes of submitting a bid or invoice.(Wideman Comparative Glossary of Common Project Management Terms v2.1)(JJH- Markup is is calculated against Cost)

Markup - Markup, defined as the percentage added to cost to arrive at a selling price, is commonly used to price materials. If you want to mark up an item 20%, you add 20% of the item's cost to the cost. (Wickes.com LumberYardMath)

Masterformat - Masterformat is a list of numbers and titles for organizing requirements, products and activities into a standard sequence for use in the construction industry. The list covers 16 main divisions, themselves further subdivided down to the level of material and operations. (see also Uniformat)

Masterformat - The Masterformat / CSI (16 divisions) method is very useful and is the favorite of contractors and contracting managers but it makes the control of building yard schedules somewhat complicated and calculating the exact amount of extra works to be done imprecise, since any work to be done is described under separate and distant headings, hiding, as it were, the relations behind elements and their cost. (see also Uniformat)

Matrix Organization - A business structure in which people are assigned to both a functional group (departments, disciplines, etc.) and to projects or processes which cut across the organization and require resources from multiple functional groups (AllPM.com Project Management Basics™ Glossary)

Mean - The mean is the arithmetic average of the data being summarized.

Median - The median is the middle value, when all values are arranged from highest to lowest. The median is considered by statisticians to be a better indicator than the average or mean because it is less skewed by unusually high or low values. The number which rests between the upper 50% and the lower 50% of the data in a set of numbers

Mental Models - Mental models are deeply ingrained assumptions, generalizations, or even pictures or images that influence how we understand the world and how we take action (Peter Senge pg 8 The Fifth Discipline, see also Mental Models)

Mental Models - Mental models are deeply ingrained assumptions, generalisations, or even pictures or images that influence how individuals understand the world and take action. (Koninklijk Instituut voor de Tropen Glossary)

Milestone - A point in time representing a key or important intermediate event in the life of a project. A milestone should be capable of validation by meeting all of the items prescribed in a defining checklist as agreed with the stakeholders.(Wideman Comparative Glossary of Common Project Management Terms v2.1)

Monte Carlo Method - A statistical method using random numbers. When applied to static PERT scheduling (i.e. several hundred times by computer) it helps to predict how the real system might behave. The random numbers are applied to each activity in the network, and reveals the probability of an activity being on a particular critical path . In a schedule with many activities, it provides good insight into which activities should receive closer management attention. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Monte Carlo Simulation - A method for calculating the probabilities of outcomes by simulation, running a model many times, using a computer . A Monte Carlo model is an example of a "stochastic" model. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Monte Carlo Simulation- The technique used by project management applications to estimate the likely range of outcomes from a complex random process by simulating the process a large number of times. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Muda - The Japanese (or Lean Thinking) word for waste or any activity that does not add value to the customer.

Muda - Anything that interrupts the flow of products and services through the value stream and out to the customer is designated muda - or waste. (Advanced Manufacturing)

Muda - Any human activity which absorbs resources, but creates no real value.(searchmanufacturing.com)

Muda (waste) -...consumes resources but creates no value... activities and results to be eliminated. There are 7 categories of waste:

1. Excess production and early production
2. Delays
3. Movement and transport
4. Poor process design
5. Inventory
6. Inefficient performance of a process
7. Making defective items

Net Profit - Is gross profit, less selling costs and administrative overhead. It's the profit remaining in a business after all expenses have been taken out, but before taxation. Net Profit is a subset of a company' Gross Profit

Network Diagram - A schematic display of the sequential and logical relationship of the activities which comprise the project. Two popular drawing conventions or notations for scheduling are arrow and precedence diagramming. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Network Diagram - A view of project data in which the project logic is the sole determinant of the placements of the activities in the drawing. Frequently called a flowchart, PERT chart, logic drawing or logic diagram. (Wideman Comparative Glossary of Common Project Management Terms v2.1)

Network Diagram - A graphic representation of activity sequence and relationships. Activity boxes are connected together with one-way arrows to indicate precedence. The first activity is placed on the left side of the diagram with the last activity on the right side. Activity boxes are usually placed at different levels (not in a single row) to accommodate activities that are done simultaneously. (Wideman Comparative Glossary of Common Project Management Terms v2.1

Non Value Added - Activities or actions taken that add no real value to the product or service, making such activities or action a form of waste or muda. (See also Value Added)

Occam's Razor - a logical principle attributed to William of Ockham (1285-1349, also known as the law of parsimony, or the law of simplicity is often quoted in stronger forms as in the following statements:

• "If you have two theories which both explain the observed facts then you should use the simplest until more evidence