GLOSSARY
Actual Cost (AC). The realized cost incurred for the work performed on an activity during a specific time period. This can be reported for cumulative to date or for a specific reporting period. Also known as actual cost of work performed (ACWP).
Actual Cost of Work Performed (ACWP). See Actual Cost (AC).
Actual Time (AT). The number of time periods from the start of the project to the project status date.
Apportioned Effort (AE). Effort applied to project work that is not readily divisible into discrete efforts for that work, but which is related in direct proportion to measurable discrete work efforts. The value for the apportioned effort is determined based on the earned value of the corresponding discrete activity.
Budget at Completion (BAC). The sum of all the budgets established for the work to be performed on a project, work breakdown structure component, control account, or work package. The project BAC is the sum of all work package BACs.
Budgeted Cost for Work Performed (BCWP). See Earned Value (EV).
Budgeted Cost for Work Scheduled (BCWS). See Planned Value (PV).
Contingency Reserve (CR). Budget within the performance management baseline that is allocated for identified risks that are accepted and for which contingent or mitigating responses are developed.
Control Account. A management control point where scope, budget, actual cost, and schedule are integrated and compared to earned value for performance measurement. Each control account may be further decomposed into work packages and/or planning packages. Control accounts can belong to only one WBS component and one organizational breakdown component.
Control Account Manager (CAM). The manager within the project's organizational breakdown structure (OBS) that has been given the authority and responsibility to manage one or more control accounts.
Cost Performance Index (CPI). A measure of the cost efficiency of budgeted resources expressed as the ratio of earned value to actual cost. It is the ratio of earned value (EV) to actual costs (AC). CPI = EV/AC. A value equal to or greater than one indicates a favorable condition and a value less than one indicates an unfavorable condition.
Cost Variance (CV). The amount of budget deficit or surplus at a given point in time. It is the difference between earned value (EV) and actual cost (AC). CV = EV – AC. A positive value indicates a favorable condition and a negative value indicates an unfavorable condition.
Discrete Effort. Work effort that can be planned and measured and that yields a specific output. Discrete effort is directly related to specific end products or services with distinct and measurable points, and outputs that result directly from the discrete effort.
Distributed Budget. The budget for project scope that has been identified to work breakdown structure (WBS) control accounts and also has an identified control account manager.
Earned Value (EV). The measure of the work performed, expressed in terms of the budget authorized for that work. Earned value can be reported for cumulative to date or for a specific reporting period. Also known as budgeted cost for work performed (BCWP).
Earned Schedule Measure (ES). The time duration where EV equals PV. It measures the scheduled work accomplished, expressed in the time based unit of measure being utilized (e.g., week, month). ES can be reported either cumulative to date or for a specified reporting period. ES (cumulative) is equal to C plus I where C is the number of PMB time periods for which EV is equal to or exceeds PV. When EV exceeds PVC, I is the fractional amount of ES for the subsequent incremental PV period. I is equal to (EV – PVC)/(PVC+1 – PVC).
Earned Schedule Method. A method for extracting time-based schedule information from EVM data.
Estimate at Completion (EAC). The expected total cost of completing all work expressed as the sum of the actual cost to date (AC) and the estimate to complete (ETC). EAC = AC + ETC.
Estimate at Completion (time) (EAC(t)). The expected total time of completing project work. EAC(t) is equal to the actual time (AT) plus the estimate to complete (time) (ETC(t)) for the remaining work. EAC(t) = AT + ETC(t).
Estimate to Complete (ETC). The estimated cost of completing the remaining work.
Estimate to Complete (time) (ETC(t)). The estimated duration of completing the remaining work.
Independent EAC. A mathematical or statistical approach to project an EAC or a range of EACs using EVM data. These EAC calculations are independent of any future project or environmental conditions, and are not a replacement for a derived (bottom-up) project EAC.
Independent EAC (time) (IEAC(t)). A mathematical or statistical approach to calculate a project duration or range of durations using EVM data. These IEAC(t) calculations are independent of any future project or environmental conditions, and are not a replacement for a derived (bottom-up) project completion date from the network schedule. Using earned schedule, the IEAC(t) is equal to the planned duration (PD) divided by SPI(t), referred to as the short-form formula, or the IEAC(t) is equal to actual time (AT) plus the planned duration of work remaining (PDWR) divided by a time-based performance factor (PF) or a combination of factors, referred to as the long-form formula.
Independent Estimate of the Completion Date (IECD). A mathematical or statistical approach to calculate a project completion date or range of completion dates using EVM data. These IECD calculations are independent of any future project or environmental conditions, and are not a replacement for a derived (bottom-up) project completion date from the network schedule. The IECD is equal to the project start date plus the IEAC(t).
Level of Effort (LOE). A method of measurement used for support-type activities which does not produce definitive end products that can be delivered or measured objectively. In this technique, earned value (EV) is measured by the passage of time.
Management Reserve (MR). An amount of the project budget base (PBB) withheld for management control purposes. These are budgets reserved for unforeseen work that is within scope of the project. The management reserve is not included in the performance measurement baseline (PMB).
Organizational Breakdown Structure (OBS). A hierarchical representation of the project organization that illustrates the relationship between project activities and the organizational units that will perform those activities.
Performance Measurement Baseline (PMB). An approved, integrated scope-schedule-cost plan for the project work against which project execution is compared to measure and manage performance. The PMB includes contingency reserve, but excludes management reserve.
Planned Duration (PD). The planned duration for the project.
Planned Duration of Work Remaining. The planned duration of the remaining work calculated using earned schedule. PDWR = PD – ES.
Planned Value (PV). The authorized budget assigned to scheduled work. Also known as budgeted cost for work scheduled (BCWS).
Planning Package (PP). Work and budget that have been identified to a control account but are not yet defined into work packages. This is a future effort for which detailed planning may not have been accomplished.
Project Budget Base (PBB). The total budget for the project, including any management reserve and estimated costs for work that has been authorized but is not yet fully defined. When the project is chartered by a contract, this is known as the contract budget base (CBB).
Responsibility Assignment Matrix (RAM). A structure that relates the project organizational breakdown structure to the work breakdown structure to help ensure that each component of the project's scope of work is assigned to a responsible person/team.
Schedule Performance Index (SPI). A meaure of schedule efficiency on a project. It is the ratio of earned value (EV) to planned value (PV). SPI = EV/PV. An SPI equal to or greater than one indicates a favorable condition and a value of less than one indicates an unfavorable condition.
Schedule Performance Index (time) (SPI(t)). A measure of time-based schedule efficiency on a project calculated using earned schedule. It is the ratio of earned schedule (ES) to actual time (AT). SPI(t) = ES/AT. An SPI(t) equal to or greater than one indicates a favorable condition and a value of less than one indicates an unfavorable condition. The SPI(t) will only revert to one at project completion if on time completion has been achieved.
Schedule Variance (SV). A measure of schedule performance on a project. It is the difference between the earned value (EV) and the planned value (PV). SV = EV – PV. An SV equal to or greater than zero indicates a favorable condition and a value of less than zero indicates an unfavorable condition.
Schedule Variance (time) (SV(t). A measure of schedule performance on a project calculated using earned schedule. It is the difference between the earned schedule (ES) and the actual time (AT). SV(t) is equal to ES minus AT. An SV(t) equal to or greater than zero indicates a favorable condition and a value of less than zero indicates an unfavorable condition. The SV(t) will only revert to zero at project completion if on-time completion has been achieved.
Summary Level Planning Budget (SLPB). A time-phased budget for far-term work that cannot be reasonably planned and allocated to control accounts. Also known as summary level planning packages (SLPPs).
To-Complete Performance Index (TCPI). A measure of the cost performance that must be achieved with the remaining resources in order to meet a specified management goal, such as the EAC or the BAC. For example: to-complete performance index = (remaining work)/(estimate to complete) = (BAC – EV)/(EAC – AC).
To-Complete Schedule Performance Index (TSPI). The calculated projection of schedule performance that must be achieved on remaining work to meet a specified goal, such as the EAC(t) or the PD calculated using earned schedule. For example: to-complete schedule performance index = (remaining time)/(estimate to complete (time)) = (PD – ES)/(EAC(t) – AT).
Undistributed Budget (UB). The budget for project scope that has not yet been identified to WBS elements and, below those, to control accounts. This budget has generally not been distributed to a responsible control account manager (CAM) and is not normally time-phased. Contingency reserve may also reside in UB.
Variance at Completion (VAC). A projection of the amount of budget deficit or surplus, expressed as the difference between the budget at completion (BAC) and the estimate at completion (EAC). VAC = BAC – EAC. It represents the amount of expected overrun or underrun.
Variance at Completion (time) (VAC(t)). The difference between the planned duration assigned to a project (PD) and the total estimate at completion (time) (EAC(t)). VAC(t) = PD – EAC(t). It represents the amount of expected delay or early completion.
Variance Threshold. A predetermined range of normal outcomes that sets the acceptable performance boundaries within which the team practices management by exception. Generally established for cost, schedule, and at-completion variances (CV, SV, and VAC).
Work Breakdown Structure (WBS). A hierarchical decomposition of the total scope of work to be carried out by the project team to accomplish the project objectives and create the required deliverables.
Work Breakdown Structure Dictionary. A document that provides detailed deliverable, activity, and schedule information about each component in the work breakdown structure.
Work Package. The work defined at the lowest level of the work breakdown structure for which cost and duration can be estimated and managed. Each work package has a unique scope of work, budget, scheduled start and completion dates, and may only belong to one control account.