Top 50 Project Management Terminologies Explained

Project management terminology can help leaders manage their tasks and communicate with everyone involved. Using standardized terms supports clarity when onboarding new team members, reporting project progress to leadership or collaborating in cross-functional environments.

In Indeed’s guide to project management terminologies, find out more about terms and definitions for 50 essential phrases.

What is project management terminology?

It’s the standardized set of phrases and concepts used in planning, implementing and monitoring projects. Project management terms create a shared language that helps align participants and streamline communication. For example, cross-functional teams can benefit from using consistent definitions across departments. 

Benefits of using consistent project management terms include:

• Fewer misunderstandings across teams and departments
• Faster decision-making based on clear, recognized terms and meanings
• Smoother onboarding for team members and customers, as they’re likely familiar with many of the terms you’re using
• More streamlined documentation for tracking and reporting project outcomes

Project management glossary

Consider the common project management terminology in the glossary below.

1. Actual cost (AC)

The total cost incurred for work completed on a project at a specific point in time. It includes expenses such as labor, materials and overhead. AC can help you understand whether a project is adhering to its budget.

2. Agile methodology

A flexible, iterative project management approach that focuses on delivering work in small, manageable increments. It emphasizes collaboration, adaptability and continuous improvement throughout the project lifecycle. Agile is especially common in technical project management roles. For example, a software developer may make code changes as they receive customer feedback to ensure the final product is user-friendly.

3. Billable utilization

The percentage of an employee’s time spent on tasks that can be billed to a client. It can help measure productivity and how well project teams generate revenue. Calculate this metric by dividing billable time by the total time worked or available for work.

4. Capability

An organization’s ability to achieve specific goals using available skills, processes and tools. Understanding capability usually indicates a clear idea of a team or department’s potential for driving value or completing a project.

5. Change control

This process oversees changes at an organizational level, which might include identifying improvement opportunities and defining projects to address them.

6. Change management

This process oversees changes at an organizational level, which might include identifying improvement opportunities and defining projects to address them.

7. Contingency plan

A proactive strategy that outlines alternative actions in case unexpected issues or risks arise. It helps teams prepare for disruptions and maintain project progress.

8. Cost performance index (CPI)

A project management metric that measures cost efficiency by dividing earned value by actual cost. A CPI greater than one typically indicates that the project is under budget, while a CPI less than one may suggest that the project is over budget.

9. Cost variance (CV)

The difference between a project’s earned value and actual cost. It indicates whether the project is staying within budget or overspending.

10. Critical path method (CPM)

A scheduling technique that identifies the longest sequence of dependent tasks. The critical path method helps project leaders understand the shortest possible duration of a successful project, allowing them to set realistic timeline expectations.

11. DMAIC

An acronym for Define, Measure, Analyze, Improve and Control, which are the five phases of many Six Sigma or continuous improvement projects.

12. Earned value (EV)

A measurement of the value of work completed at a defined point in the project schedule compared to the overall budget for the work. Project managers can use this metric to help track project performance.

13. Float

The amount of time a task can be delayed before it negatively impacts the overall project’s completion date. Identifying float helps teams understand critical task deadlines and where the schedule is flexible.

14. Gantt chart

A visual tool used to display a project schedule. The chart can include tasks, start and end dates, dependencies and the critical path. Gantt charts help project managers plan and communicate timelines.

15. Hammock activity

A group of small tasks that need to occur between two larger tasks or project milestones. The term “hammock activity” refers to how these tasks await completion until those other major tasks in the project schedule are finished.

16. Hierarchical coding structure

A system project team may use it to organize elements of a project. It’s usually structured in a tree-like format with parent-child categories with tasks or other elements coded to support data analysis. 

17. Implementation phase

Occurring after the exploration and installation phase, the period when the project is executed. During implementation, teams complete planned tasks. They may work toward a final deliverable or a continuous improvement goal.

18. Imposed start

A start date for a task set by an external constraint and not fully up to the project manager or team. Examples of imposed starts might include client requirements and regulatory deadlines. 

19. Imposed finish

A fixed end date for a task established by external constraints, such as collaborator investment, that can’t be adjusted by the Senior Project Manager and their estimated timeline. Examples include seasonal and market demands.

20. Just-in-time (JIT)

An inventory strategy that ensures products and resources arrive exactly when needed to reduce waste and storage costs. JIT is often used in lean process management, and project managers may use this tactic to promote efficient resource use.

21. Key performance indicators (KPIs)

Measurable values used to track how well a project performs against defined goals. KPIs help project managers and teams evaluate success and make data-driven decisions about costs, quality, schedule adherence and customer satisfaction.

22. Master schedule

An overview of major project milestones with deadlines. Leaders use master schedules to coordinate efforts across teams and departments and understand resource needs and timing for multiple active projects.

23. On-time completion percentage

Tracks the percentage of project tasks completed on time. Understanding this metric helps project managers identify potential delays and better manage project resources and schedules.

24. Percent complete

The measure of how much work is finished at a specific time. Percent complete can be measured for each project task, groups of tasks or the entire project. Project managers and business leaders often use this metric to assess a project’s performance compared to schedule expectations.

25. Planned value (PV)

The cost of work budgeted to a specific point in a project. Teams often compare PV to EV to evaluate how a project is performing financially.

26. Project burn rate

The rate at which a project is using up resources or budget. Project managers use this metric to determine whether a project is at risk of exceeding its budget or requiring more resources than initially planned.

27. Project charter

A document that formally outlines goals, team members, collaborators, authority levels and resources for a project. Typically, the project charter is used to authorize and launch a project and ensure everyone is aligned on project scope.

28. Project deliverables

The outputs produced by project efforts can be tangible items, such as actual products or intangibles, such as software programs or measurable process improvements. For example, a project deliverable for a marketing company generally includes written content for clients as a blog post, an ebook or website landing pages. 

29. Project documentation

The written material related to a project, including the project plan, charter, reports and meeting notes. Project documentation is often templated to streamline communication.

30. Project Management Institute (PMI)

A global association for project managers. The Project Management Institute sets industry project management standards, offers certifications for professionals and publishes resources related to the field.

31. Project management life cycle

The cycle of a project from start to finish. Typically, it includes four phases: initiation, planning, execution and closure. Depending on the type of project management methodology used, the phases may be further divided (as with DMAIC).

32. Project Management Professional (PMP)

PMPs generally have core skills, such as leadership, risk management, conflict resolution, budgeting and quality management. Some PMPs may pursue a credential for this title, which demonstrates experience and skills in managing project resources, using common project management tools and leading project teams.

33. Project manager roles and responsibilities

The duties of a professional in a project manager role. Relying on project and time management skills, these tasks can include creating standard operating procedures (SOPs), analyzing project metrics, coordinating teams and resources and communicating with collaborators.

34. Project management software

Technical tools used to help plan, track and complete projects. 

Examples for tech teams: 

• Scoro
• Notion
• Adobe Workfront
• Microsoft Project
• Jira
• Wrike

Examples for creative teams: 

• ClickUp
• monday.com
• Mira
• Asana
• Figma
• Trello

Examples for construction teams: 

• Build
• Contractor Foreman
• Buildertrend
• Fieldwire
• PlanGrid
• Autodesk Construction Cloud

35. Project planning process

The process by which a team defines the steps, timelines, resources and risks related to a potential project. The planning stage is when teams create project goals and set schedules, usually with a variety of project planning tools, such as kanban boards, that help visually organize tasks and deadlines.

36. Project scope

The defined boundaries of a project, such as what is included and excluded. A clearly defined scope helps teams manage expectations and stay focused, avoiding scope creep that can cause a project to go over budget or be delayed.

37. Project timeline

A visual representation of project tasks in chronological order. Visual timelines can help teams understand deadlines and better plan resources across the entire project.

38. Request for change (RFC)

A formal proposal to modify something about the project, typically related to resources, schedules or scope. RFCs are reviewed through the formal change control process, with a team of decision-makers typically determining whether the change is possible and sensible. 

39. Resource allocation

The process of assigning resources, such as people, tools, budget and materials, to project tasks. Strong resource allocation helps ensure the right resources are available at the right time to support project efficiency.

40. Resource utilization rate

A metric that evaluates whether resources are used effectively. It’s calculated by dividing the time worked by the time available for each resource or an entire team. Project leaders can use this metric to make decisions about adjusting workloads or reducing burnout risks. 

41. Risk management

The process of identifying and analyzing potential problems that might impact a project and addressing them proactively. Effective risk management can help project teams reduce negative outcomes and stay on schedule. 

42. Risk register

A document that lists all identified project risks. It usually includes perceived severity, the potential impact on the project, and the likelihood of the risk occurring. Many teams also include planned responses for each item on the project risk register.

43. Schedule performance index (SPI)

A measure of the efficiency of the project schedule. It compares EV to PV by dividing EV by PV. If the quotient equals one, it indicates the project is on schedule. A result above one suggests the project may be ahead of schedule, while an answer less than one could mean the project is falling behind.

44. Schedule variance (SV)

Schedule variance (SV) provides another way to evaluate project efficiency by subtracting PV from EV. A positive number indicates the project may be ahead of schedule. However, if the difference is a negative number, it suggests potential delays.

45. Scope creep

A situation that occurs when tasks or requirements not included in the initial project charter or plan are added to the project. Typically, this happens without proper planning or approval. Scope creep can lead to confusion, negative schedule variance and budget overruns.

46. S-curve

A graph that plots a project’s progress over time. It can display work completed, costs or other key metrics and is used to provide insight into overall project performance.

47. Collaborator

Any person, group, business or organization that might be affected by a project’s outcome. Collaborators can include the project participants, customers, company leaders and other departments or employees with an interest in the project.

48. Verification

A quality process designed to ensure that project deliverables meet requirements. Businesses may assign a third party or someone not involved with the project to verify the deliverables. In some cases, the client or customer verifies the deliverables by formally accepting them.

49. VUCA (Volatility, Uncertainty, Complexity, Ambiguity)

A framework that describes unpredictable business or marketing environments that make project planning challenging. Experienced project managers use specific communication and planning strategies to adapt to VUCA environments and enhance the likelihood of success.

50. Work breakdown structure (WBS)

A chart that breaks a project down into smaller, more manageable tasks. The structure follows a hierarchy to help organize work and track progress.

Frequently asked questions

How can standardized project management terminology improve cross-functional collaboration?

When people from different departments or companies use the same terms, it reduces confusion and speeds up processes. It also supports decision-making backed by actionable insights, fosters strong collaboration and reduces misunderstandings about timelines, budgets, scope and other critical project factors. 

You might help ensure new hires and existing employees understand standardized project management terms by including a glossary in training documents or onboarding materials. 

How can you introduce project management phrases to non-project team members?

Use simple explanations and visual examples during meetings or onboarding.  Encourage non-project team members to use the appropriate terms when discussing projects to improve collaboration across departments. For example, scope may have different meanings per department or industry, depending on the project and priorities.