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By Barbee Davis, MA, PHR, PMP My team is confused. We see terms that appear to be interchangeable, but other teams treat them as though they have specific, unique meanings. How can we find out what the terms mean?
Answer C. There is no one source that defines every project management term, but the PMBOK® Guide glossary is a great resource for accurate definitions of many of them. Project managers use the same terms and the same processes regardless of their location in the world. However, the following PMBOK® Guide terms are often confused with one another. EV vs. EVM. Earned Value (EV), a term used in Earned Value Analysis (EVA), is a way to calculate the progress of the project schedule and budget. By comparing periodic results to the original plan or baseline, the project manager has an early warning about project problems. By contrast, Earned Value Methodology (EVM) is a risk management technique to help choose which projects will produce the best return on investment. Project A has a 10% chance of losing $2,000 and a 70% chance of making $10,000. Project B has a 50% chance of earning $16,000. (.50 x $16,000 = +$8,000 value for Project B). Therefore, Project B would be the better investment. Delayed vs. Late. An activity on a project is delayed when it doesn’t start as planned. An activity is late if it isn’t finished as planned. Quality vs. Grade. Quality means an item or service is what it was intended to be, meets the specifications and is fit for use. Grade means a category or rank. A BMW and a Kia can both be quality cars. They meet the specifications set out by the manufacturer. However, usually a BMW is considered a higher rank or grade of vehicle. Direct Cost vs. Fixed Cost. A direct cost can be tied to a specific project deliverable. It directly benefits the project. Paper for a training project would be a direct cost. A fixed cost is one that does not change with the level of activity or production. The cost of a computer is fixed. It costs the same no matter how often or how long you run it. Schedule vs. Baseline. The schedule is the planned dates that the team will perform the activities of the project. Once the advanced planning is done for schedule and budget, a snapshot of the schedule is set in place as the schedule baseline. The actual progress of the schedule will be compared to the baseline to see if the work is keeping pace with the plan. Quality Assurance vs. Quality Control. These two quality processes are often confused. Quality Assurance is a series of activities to make sure that the project employs all the processes needed to have a quality project. It is about monitoring the way the project is done, not about the product that results at the end of the project. By contrast, the Quality Control process is monitoring the results or outcomes of the project to see if they meet the quality standards set out. Do the toasters toast without electrocuting the user? If you clearly understand the correct meanings of these often-confused terms, you’ll be able to communicate more specifically with project teams in your own organization and around the world.
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Barbee Davis, MA, PHR, PMP, is a reviewer for the global PMI Registered Education Provider Review Team. She owns Davis Consulting and is a published author, speaker, writer of training materials and an innovator in presentation skill workshops for corporate trainers. She holds a Black Belt in MS Project and teaches at the university level. Ms. Davis encourages your | Home BACK TO TOP
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