Vocabulary - An Alphabet Soup
Perhaps what is most confusing in the 4th Edition is the myriad of terms used,
many of which are synonymous with other terms, but not clearly equated with each
other. Figure 2 attempts to make clear where
equivalent terms are used, and the paragraphs they are used in.
For example, funding requirements presented as part of the process, Estimate Costs,[8] becomes the total budget in the process, Determine Budget,[9] assuming that the funding requirements identified in the Estimate Costs process are adopted as the total budget figure. Note that the total budget[10] is different from the project budget.[11] The total budget includes both contingency reserves and management reserves, whereas the project budget does not include either one. To not include contingency reserves in the project cost baseline is a significant change in going from the 3rd Edition to the 4th Edition.
Even more confusing are the following terms, all of which appear to be synonymous:[12]
- Project budget
- Cost baseline
- Authorized budget
- Project cost baseline
- Earned value baseline
8. Ibid, para 7.1.2.6
9. Ibid, para 7.2.2.2
10. Ibid
11. Ibid, para 7.2
12. Ibid, see paras 7.2 and 7.2.2.2
|
Cost Management as Described in the Guide 4th Edition
