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Implementer

This role assists the project manager in designing a workable plan, and then implementing the plan by doing the work.

Indirect costs

Expenditures that are not necessarily due to the activity itself.

Individual commitment

It is determined by dividing an activity's individual effort estimate by its total duration.

Individual effort

The effort each person will contribute to the activity.

Initiating

The first of the five processes of project management. Initiating sets the foundation for the entire project. The PMBOK^® Guide defines initiating as the process of recognizing that a project should begin and committing to do so.

Integration management

According to the PMBOK^® Guide , project integration management includes the processes required to ensure that the various elements of the project are properly coordinated.

Internal Rate of Return (IRR)

The rate of return implied in the project. It is the rate that would make the NPV equal to 0. This calculation assumes that cash flow from the project will be reinvested at the same rate of return as that of the project.

Just in time (JIT) scheduling

see ALAP scheduling

Knowledge areas

According to the PMBOK^® Guide, the nine areas that describe project management in terms of its component processes. The nine areas consist of: scope management, time management, human resource management, procurement management, cost management, risk management, communications management, quality management, and integration management.

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Lag

A time delay before the successor activity can start. Also referred to as a gap.

Late finish (LF)

The latest an activity can finish without delaying project completion based on the end date.

Late start (LS)

The latest an activity can start without delaying project completion based on the project completion date. It can be determined by subtracting an activity's duration from the late finish (LF - duration). It is equal to the LF of its predecessor activity..

Lead

The time in an activity that allows the successor activity to start early (prior to the predecessor activity's finish).

Lessons Learned

A document used to summarize events that occured during the course of the project. This includes positive as well as negative experiences and presents better ways to complete similar tasks in the future.

Loop dependency error

A circular dependency relationship.

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Mandatory dependency

A mandatory cause of a dependency is inherent in the nature of the work; usually involves physical limitations. Also referred to as hard logic.

Material

This cost results when material or equipment required for the project.

Mitigation strategy

Organized and coordinated steps to reduce or eliminate a risk by either decreasing its probability of occurrence or by reducing its impact if it does occur.

Milestone

According to the PMBOK^® Guide , it is a significant event in the project, usually completion of a major deliverable.

Modified Internal Rate of Return (MIRR)

Same as IRR, but assumes returns will be invested at a rate of return that is different from that of the project. The financial analysis will assume reinvestment at the Company's weighted average cost of capital.

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Net Present Value (NPV)

A financial analysis technique that considers the timing of cash flows and the time value of money. Cash flows are discounted using the Company's cost of capital. Projects with a positive NPV are considered to add value to the firm. Those with negative NPV diminish value and should not be pursued.

Organizational breakdown structure (OBS)

A depiction of the project organization arranged so as to relate work packages to organizational units.

Outlook

Also called "Approved Plan". This is the budget adjusted for approved changes. It supersedes the budget and reflects the current financial objectives of the Company.

Out-Of-Plan Project

A project that is not included in the Outlook.

Outside Service

This cost includes bills for vendor services required for the project.

Overhead

This cost is often applied as an added percentage to cover the cost of employee benefits. This percentage may be adjusted each year. The project manager must consult the Accounting Cost Control Manager for the current percentage and further detail as needed.

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