Project Management Acronyms

The total cost actually incurred for the work performed during a specific time period. AC is one of three base measurements in earned value management, compared against EV and PV to determine whether a project is over or under budget. Formerly called ACWP (Actual Cost of Work Performed).

A structured decision making technique that breaks complex choices into a hierarchy of criteria and alternatives, then uses pairwise comparisons to assign weights. Commonly used in vendor selection, project prioritization, and risk ranking when multiple stakeholders need to converge on a single decision.

The total authorized budget for the project, representing the sum of all planned value across every work package. BAC serves as the baseline against which all earned value calculations are measured. It does not change unless a formal change request is approved through the CCB.

The original term for Earned Value (EV). Represents the budgeted amount for the work that has actually been completed. PMI replaced BCWP with the simpler term EV in the 5th Edition of the PMBOK Guide, though BCWP still appears in some government and defense project contexts.

The original term for Planned Value (PV). Represents the budgeted amount for work that was scheduled to be completed by a specific date. Like BCWP, this older term has been replaced by PV in current PMI standards but remains in use in some regulated industries.

A financial metric comparing total expected benefits to total expected costs. A BCR greater than 1.0 means benefits exceed costs. Used during project selection and business case development to compare competing investment options. Higher BCR projects are generally preferred when capital is constrained.

A formal document describing the high level business needs that a project must address, typically written from the stakeholder’s perspective rather than the technical implementation view. The BRD feeds into the FRD (Functional Requirements Document) and is owned by the business analyst or product owner.

PMI’s entry level certification for individuals with less project management experience than the PMP requires. The CAPM requires a secondary degree and 23 hours of PM education, with no minimum project experience. It demonstrates foundational knowledge of the PMBOK Guide and is valid for three years.

A formally constituted group responsible for reviewing, evaluating, approving, delaying, or rejecting changes to the project. The CCB typically includes the project sponsor, project manager, key stakeholders, and subject matter experts. All scope, schedule, and budget changes flow through the CCB for decision.

The ratio of earned value to actual cost (CPI = EV / AC), measuring cost efficiency. A CPI of 1.0 means the project is exactly on budget. Below 1.0 means over budget; above 1.0 means under budget. CPI is the most reliable early predictor of final project cost because cost overruns rarely recover.

A scheduling technique that identifies the longest sequence of dependent activities in a project, determining the shortest possible project duration. Activities on the critical path have zero float, meaning any delay directly extends the project end date. CPM drives resource allocation and schedule compression decisions.

A formal proposal to modify a project document, deliverable, or baseline. Change requests are submitted to the CCB for evaluation and can include corrective actions, preventive actions, defect repairs, or updates to any component of the project management plan. Every CR should document the impact on scope, schedule, cost, and risk.

A Scrum Alliance certification validating knowledge of the Product Owner role, including backlog management, stakeholder communication, and value maximization. Requires attending a two day course taught by a Certified Scrum Trainer. Does not include a formal exam in most cases.

A Scrum Alliance certification for individuals serving as Scrum Masters. Requires a two day in person or live online course with a Certified Scrum Trainer, followed by a 50 question online exam. CSM validates understanding of Scrum theory, practices, and the Scrum Master’s facilitation role.

The difference between earned value and actual cost (CV = EV minus AC). A positive CV means the project is under budget; a negative CV means it is over budget. CV is an absolute dollar amount, while CPI gives the same insight as a ratio. Both are reported together in EVM status updates.

A shared checklist of criteria that a product backlog item must meet before the Scrum team considers it complete. The DOD typically includes coding standards, testing requirements, documentation updates, and review approvals. It creates transparency and prevents the accumulation of undone work across sprints.

A set of criteria that a product backlog item must satisfy before it can be pulled into a sprint. A typical DOR includes acceptance criteria written, dependencies identified, design reviewed, and story sized. The DOR prevents the team from committing to work that has not been sufficiently refined.

A forecast of the total project cost based on current performance. The most common formula is EAC = BAC / CPI, which assumes current cost efficiency will continue. Alternative formulas account for schedule performance or atypical variances. EAC replaces BAC as the realistic cost expectation once performance data exists.

The expected cost to finish all remaining project work from the current point forward. Calculated as ETC = EAC minus AC. ETC is the forward looking complement to AC (which looks backward). Project managers use ETC to determine how much additional funding is needed to reach completion.

The budgeted amount for the work that has actually been completed at a given measurement date. EV answers the question: based on what we have accomplished, how much of the budget should we have spent? It is the central metric in earned value management, connecting schedule progress to cost performance.

An integrated project management methodology that combines scope, schedule, and cost baselines into a single measurement framework. EVM uses three data points (PV, EV, and AC) to generate performance indices and variance analyses that predict final cost and schedule outcomes. Required on most US government contracts above $20 million.

A logical dependency where the successor activity cannot finish until the predecessor activity finishes. One of four dependency types in network diagrams, alongside FS, SS, and SF. Example: testing cannot finish until coding finishes, though testing may start before coding is complete.

A contract type where the seller agrees to deliver the specified scope for a set price, absorbing all cost risk. The buyer’s cost is predictable, but the seller bears the risk of cost overruns. FFP contracts work best when the scope is well defined and unlikely to change significantly during execution.

A systematic technique for identifying potential failure points in a process, product, or system, then evaluating the severity, likelihood, and detectability of each failure. Each risk receives a Risk Priority Number (RPN) that guides mitigation priorities. Widely used in manufacturing, aerospace, and healthcare PM.

A contract type with a fixed ceiling price but includes an incentive fee structure that rewards the seller for delivering under target cost. The savings or overruns are shared between buyer and seller according to a predetermined ratio. Balances the buyer’s cost certainty with the seller’s motivation to control costs.

A document that translates business requirements from the BRD into specific functional behaviors the system must perform. Where the BRD says ‘users need to track expenses,’ the FRD specifies data fields, validation rules, and workflow triggers. The FRD is the primary input for technical design and development.

The most common logical dependency type, where the successor activity cannot start until the predecessor activity finishes. Example: you cannot pour concrete until the forms are built. Approximately 90% of dependencies in a typical project schedule are finish to start relationships.

The discount rate at which the net present value of all cash flows from a project equals zero. Used during project selection to compare investment alternatives. A project with an IRR higher than the organization’s hurdle rate (minimum acceptable return) is considered financially viable.

A measurable value that demonstrates how effectively a project or team is achieving its objectives. Good KPIs are specific, measurable, and tied to outcomes rather than activities. Examples include on time delivery rate, budget variance percentage, defect density, and stakeholder satisfaction score.

A type of schedule activity that does not produce a discrete deliverable but supports other work. Examples include project management oversight, quality assurance monitoring, and vendor coordination. LOE activities consume resources and budget but are measured by time elapsed rather than deliverables completed.

A prioritization technique that classifies requirements into four categories: Must have (non negotiable), Should have (important but not critical), Could have (desirable if time permits), and Won’t have (explicitly excluded from this release). Originated in the DSDM Agile framework and is widely used in product and project prioritization.

The smallest version of a product that delivers enough value to early adopters and generates validated learning for future development. The concept comes from Lean Startup methodology and is central to Agile product management. An MVP is not a half finished product but a deliberately scoped experiment.

The difference between the present value of expected cash inflows and the present value of cash outflows over a project’s life. A positive NPV means the project is expected to generate more value than it costs, adjusted for the time value of money. NPV is the gold standard for project financial analysis.

A hierarchical chart showing how work packages from the WBS are assigned to organizational units or departments. The OBS maps responsibility to structure, making it clear which group owns which deliverables. It is typically cross referenced with the RACI matrix and the WBS to create the responsibility assignment matrix.

A goal setting framework where teams define qualitative Objectives (what they want to achieve) and measurable Key Results (how they will know they achieved it). Each objective typically has 3 to 5 key results. Originally developed at Intel and popularized by Google. Increasingly used alongside traditional PM KPIs.

Any item in the product backlog, including user stories, bugs, technical tasks, and knowledge acquisition work. PBIs are ordered by the Product Owner based on value, risk, and dependencies. Each PBI should have clear acceptance criteria before entering a sprint through the team’s Definition of Ready.

A hierarchical decomposition of the final product into its component parts, sub assemblies, and deliverables. Unlike the WBS (which breaks down work), the PBS breaks down what is being built. Used heavily in engineering and construction PM to ensure completeness of the deliverable scope.

A network diagramming technique that uses boxes (nodes) to represent activities and arrows to show dependencies. PDM supports all four dependency types (FS, FF, SS, SF) and allows leads and lags. It replaced the older ADM (Arrow Diagramming Method) as the standard in modern scheduling software.

A scheduling method that uses three estimates per activity (optimistic, most likely, and pessimistic) to calculate an expected duration weighted toward the most likely value. The PERT formula is (O + 4M + P) / 6. Developed by the US Navy in 1958 for the Polaris missile program and still used when activity durations are uncertain.

PMI’s advanced certification for professionals managing multiple related projects as a coordinated program. Requires at least four years of project management experience plus four years of program management experience. The PgMP validates the ability to align projects to strategic objectives and manage cross project dependencies.

A timebox in SAFe (Scaled Agile Framework), typically 8 to 12 weeks, during which an Agile Release Train delivers incremental value. Each PI begins with a PI Planning event where all teams align on objectives, identify dependencies, and commit to deliverables. The PI is the primary planning and delivery cadence in scaled Agile.

PMI’s global standard and reference guide for project management, now in its 7th Edition. The PMBOK shifted from process based knowledge areas (Editions 1 through 6) to principle based performance domains in the 7th Edition. It is the foundation for the PMP and CAPM certification exams.

The world’s largest professional association for project management, founded in 1969. PMI publishes the PMBOK Guide, administers the PMP, CAPM, PgMP, PfMP, and PMI-ACP certifications, and publishes the annual Pulse of the Profession report. Membership exceeds 700,000 professionals worldwide.

PMI’s certification for practitioners using Agile approaches. Unlike the CSM (which focuses on Scrum), the PMI-ACP covers Scrum, Kanban, Lean, XP, and hybrid methodologies. Requires 2,000 hours of general project experience plus 1,500 hours working on Agile project teams and 21 contact hours of Agile training.

An organizational structure that standardizes project governance processes, provides support to project managers, and maintains portfolio visibility for leadership. PMOs range from supportive (providing templates and training) to directive (directly managing projects). Approximately 80% of organizations report having some form of PMO.

PMI’s flagship certification and the most widely recognized PM credential globally. Requires 36 months of project leadership experience (with a four year degree) or 60 months (with a secondary degree), plus 35 hours of PM education. The PMP exam covers people, process, and business environment domains. PMP holders earn a median 33% salary premium.

The Scrum role responsible for maximizing the value of the product by managing and prioritizing the product backlog. The Product Owner represents stakeholder interests, writes user stories, defines acceptance criteria, and decides which features to build and in what order. The PO is one person, not a committee.

A structured project management methodology developed by the UK government, widely used in Europe, Australia, and government organizations. PRINCE2 emphasizes defined roles, stage gates, management by exception, and continuous business justification. Includes Foundation and Practitioner certification levels.

The authorized budget assigned to scheduled work at a specific measurement date. PV represents what you planned to have accomplished by now, expressed in budget terms. Also called the performance measurement baseline. PV increases over time following the S curve of the project schedule.

A responsibility assignment matrix that clarifies roles for every task or deliverable. Responsible does the work. Accountable approves and owns the outcome (only one person per task). Consulted provides input before the work. Informed receives updates after decisions are made. RACI eliminates ambiguity about who does what.

A status reporting convention using traffic light colors to indicate project health at a glance. Red means the project has critical issues requiring escalation. Amber means risks or issues exist that need management attention. Green means the project is on track. RAG is the most common format for executive dashboards and portfolio reviews.

A tracking log that captures four categories of project concerns in a single register. Risks are uncertain events that may affect the project. Assumptions are conditions believed to be true but not confirmed. Issues are current problems requiring resolution. Dependencies are external factors the project relies on.

A grid that maps WBS work packages or activities to the individuals or groups responsible for performing them. The RACI matrix is the most common form of RAM, but simpler versions exist using just R (Responsible) and A (Accountable) for smaller teams or lower complexity projects.

A hierarchical framework that categorizes project risks by source, such as technical, external, organizational, and project management risks. The RBS helps ensure comprehensive risk identification by providing a checklist of risk categories during brainstorming and qualitative analysis sessions.

A preliminary procurement document sent to potential vendors to gather information about their capabilities, experience, and general approach before issuing a formal RFP. The RFI helps the buyer understand the market and refine requirements. It does not commit either party to a contract.

A formal procurement document inviting qualified vendors to submit detailed proposals for a defined scope of work, including their approach, timeline, team, qualifications, and pricing. The RFP is evaluated against predetermined criteria, and the winning proposal leads to contract negotiation.

A procurement document used when the scope is well defined and the primary selection criterion is price. Unlike the RFP (which evaluates approach and methodology), the RFQ asks vendors to provide pricing for a standardized set of deliverables. Common in commodity purchases and construction.

A financial metric calculated as (Net Benefit / Cost) multiplied by 100, expressing the percentage return generated by a project investment. ROI is simple and widely understood, making it effective for business case communication. However, it does not account for the time value of money (use NPV or IRR for that).

An enterprise framework for scaling Agile practices across multiple teams, programs, and portfolios. SAFe organizes teams into Agile Release Trains (ARTs) that plan and deliver in Program Increments (PIs). It includes four configurations: Essential, Large Solution, Portfolio, and Full SAFe, each adding organizational layers.

A dependency where the successor activity cannot finish until the predecessor activity starts. This is the rarest dependency type and appears almost exclusively in scheduling theory rather than practice. Example: the night shift cannot finish until the day shift starts, ensuring continuous coverage.

A high level process mapping tool used to define the scope of a process before detailed analysis begins. SIPOC identifies who supplies inputs, what those inputs are, the process steps, what the process produces, and who receives the output. Frequently used in Six Sigma and Lean project kickoffs.

The Scrum role responsible for facilitating Scrum events, removing impediments, and coaching the team on Scrum practices. The Scrum Master does not manage the team or assign tasks but serves as a servant leader who protects the team’s focus and helps the organization adopt Agile principles.

A document that describes the specific work to be accomplished under a contract or project, including deliverables, timelines, acceptance criteria, and applicable standards. The SOW is the foundation of project scope and feeds directly into the WBS. Ambiguous SOWs are the leading source of scope disputes.

The ratio of earned value to planned value (SPI = EV / PV), measuring schedule efficiency. An SPI of 1.0 means the project is exactly on schedule. Below 1.0 means behind schedule; above 1.0 means ahead. SPI is less reliable as a long term predictor than CPI because schedule delays can sometimes be recovered.

A dependency where the successor activity cannot start until the predecessor activity starts. Used when two activities must begin in parallel but one must initiate first. Example: documentation cannot start until testing starts, because documentation records test results as they occur.

The difference between earned value and planned value (SV = EV minus PV). A positive SV means the project is ahead of schedule; a negative SV means it is behind. Like cost variance, SV is expressed in dollar terms despite measuring schedule performance. SV always converges to zero at project completion.

A strategic analysis framework that evaluates internal factors (strengths and weaknesses) and external factors (opportunities and threats) affecting a project, product, or organization. SWOT is commonly used during project initiation, risk identification workshops, and business case development.

A contract type where the buyer pays for actual time spent (at agreed upon rates) plus materials consumed. T&M contracts are used when the scope cannot be precisely defined upfront, such as in discovery phases or support engagements. They shift cost risk to the buyer, so they often include a ceiling price.

The cost performance efficiency required on remaining work to meet a specific financial goal. TCPI based on BAC tells you the efficiency needed to finish on the original budget. TCPI based on EAC tells you the efficiency needed to finish on the revised forecast. A TCPI above 1.0 means you must be more efficient than planned.

A management philosophy focused on continuous improvement across all organizational processes, driven by customer satisfaction and employee involvement. TQM principles are embedded in PM quality management through techniques like process audits, control charts, and root cause analysis. Originated in Japanese manufacturing and was popularized by Deming and Juran.

The final testing phase where end users verify that a system meets business requirements and is ready for production deployment. UAT follows system testing and integration testing. Acceptance criteria from the BRD or user stories serve as the pass/fail benchmarks. UAT sign off is typically a gate to go live.

The projected budget surplus or deficit at project completion, calculated as VAC = BAC minus EAC. A positive VAC means the project is expected to finish under budget; a negative VAC means it will exceed the original budget. VAC gives stakeholders a single dollar figure for the expected final cost deviation.

A hierarchical decomposition of the total scope of work into manageable work packages. The WBS is the foundation of project planning because it defines what is included in (and excluded from) the project. Every deliverable, milestone, and task traces back to a WBS element. The 100% rule requires that each level captures all work in the level above it.