PM-Test-Glossary

PM@Siemens
Term/
Abbreviation

Version: 3.3; Date: 02.Apr.2010

Further information

Explanation

Activity

An element of work performed during the course of a project. An activity

normally has an expected duration, an expected cost, and expected
resource requirements.
Advance Payment A part of the securities to be provided by the supplier. An Advance
Bond
Payment Bond becomes due in conjunction with or shortly after contract
conclusion. Further securities are Performance Bond, Bid Bond and
Warranty Bond.
Agile Project
Control of projects and processes in a dynamic and flexible manner.
Management
Characteristics of agile PM are:
- People and communication are more important than processes and
tools
- Efficient software is more important than extensive documentation
- Close collaboration with the customer is more important than extensive
contract negotiations
- Immediate reaction to necessary changes is better than adhering strictly
to a plan

Arrow

Directed connecting line between two nodes in a network diagram.

Note 1: It symbolizes an activity in "activity-on-arrow"
Note 2: It symbolizes a dependency relationship in "activity-on-node"
Network diagram made up of events, activities and dependency
Arrow
relationships. The focus is on visualizing the activities. Events are of
Diagramming
Method (ADM), or minor importance. Arrows stand for activities and nodes for events.
Activity-on-Arrow
Asset
Probable future economic benefit obtained or controlled by a particular
entity as a result of past transactions. An asset has three essential
characteristics:
(a) it embodies a probable future benefit that involves a capacity, singly
or in combination with other assets, to contribute directly or indirectly to
future net cash flows;
(b) a particular entity can obtain the benefit and control others' access to
it; and
(c) the transaction or other event giving rise to the entity's right to or
control of the benefit has already occurred. An asset may be tangible or
intangible, current or fixed.
Audit
An independent, systematic investigation of processes, projects,
products or other relevant aspects of an organization.

Siemens LS Legal
Handbook

Siemens LS Legal
Handbook, p.297

Agile Project
Management on
Wikipedia

Wideman Glossary

Wideman Glossary

Siemens
FRG 05 / 06 / 07
financeTraining
Assets
Training (with PKI) &
eBook for Balance
Sheet and Cash
Flow Statement

Audit on Wikipedia

Autocratic
Leadership

The autocrat possesses virtually unlimited power and makes use of strict USA Today on
Money-Zine.com on
hierarchical leadership.
autocratic leadership autocratic leadership

Back-to-Back
Contract
Bar Chart/ Gantt
Chart

Subcontractor contract with the general reference that certain regulations

contained in the customer contract shall apply.
A graphic display of schedule-related information. In the typical bar chart,
activities or other project elements are listed down the left side of the
chart, dates are shown across the top, and activity durations are shown
as date-placed horizontal bars. Also known as Gantt Chart.

8/23/2014

PM-Test Glossar

PM@Siemens
Guide Module 5
Gantt Chart on
Wikipedia

Siemens LS Legal
Handbook p. 284
Ganttchart.com

Seite 1

PM-Test-Glossary
PM@Siemens
Term/
Abbreviation

Version: 3.3; Date: 02.Apr.2010

Further information

Explanation

This bar chart shows that activities 1 and 2 define the critical path (no
Another example
buffer). Activities 3 and 4 are not connected to the other activities. Activity (Glossary of Project
3 is needed for activity 4 and both are required for the project result.
Management)

W 1 W 2 W 3 W 4 W 5 W 6 W 7 W 8 W 9 W 10
Activity 1
Activity 2
Activity 3
Activity 4
Delivery Date

Bid Bond

Bottom-up
approach

Claim
Management
Completed
Contract Method

Consortium
Agreement

A part of the securities to be provided by the supplier. The purpose of a

Bid Bond is to protect the company issuing the tender against
unjustifiable refusal of contract conclusion by the bidder. Further
securities are Performance Bond, Advance Payment Bond and
Warranty Bond.
In the bottom-up model, individual parts of the system (tasks, work
packages) are analyzed in detail and evaluated. The parts are then linked
together to form larger components, which are in turn linked until a
complete system is formed. Strategies based on this bottom-up
information flow seem potentially necessary and sufficient because they
are based on the knowledge of all variables that may affect the elements
of the system. Compare Top-Down
A means of integrating the process of making and defending claims
(which arise during the processing of a contract) into the project
implementation process.
Under the Completed Contract Method, the issuance of billings for a
project (partial or final invoice) and thus the realization of sales and
profits is done after delivery to the customer.

Siemens LS Legal
Handbook

A consortium agreement usually describes a contractual relationship in

which two or more companies agree to work together on a particular
project. Frequently for large-scale projects, especially in projects
business, collaboration on a consortium basis is imperative to be able to
offer and perform the entire range of services required by the customer.

Siemens LS Legal
Handbook

Top-down and
bottom-up design on
Wikipedia

PM@Siemens
Guide Module 2

Siemens LS Legal
Handbook

Siemens
financeTraining
Training (with PKI) &
eBook for
Constraction
Contracts

FRG 04 Revenue
Recognition 02
Construction
Contracts

Consultative
Leadership
Contract
Administration

The supervisor decides preliminarily, gathers opinions and then finalizes. Open Site on
Leadership
Managing the relationship with the seller.
Also known as contract management. Structuring, analyzing, concluding
and amending of contracts with due observance of the interdependencies
with change and claim management and the monitoring of contract
fulfilment.
Contract Effective At this point, all contractual conditions to start with the project execution PM@Siemens
Date
have been fulfilled.
Guide Module 2
Risk on Wikipedia
Corrective
Term of the risk management. The aim of a corrective measure is the
measure
reduction of the consequences after the damage occured. Compare
Preventive Measure

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PM-Test Glossar

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PM-Test-Glossary
PM@Siemens
Term/
Abbreviation
Critical Path

Current
Calculation/
Concurrent
Costing (MiKa)

Delphi method

Dependency
relationship

Version: 3.3; Date: 02.Apr.2010

Further information

Explanation
The series of activities that determines the duration of a project. In a
deterministic model, the critical path is usually defined as those activities
with float (=buffer) less than or equal to a specified value, often zero. It is
the longest path through the project. Critical resources are the bottleneck
resources used on the critical path.
Concurrent costing (MiKa) allows the user to monitor and carry forward
the calculation methods used for the order intake calculation. In the case
of long-term contracts, it is essential that a current overview of the
deadline/cost situation be obtained on an ongoing basis. In doing so, the
achieved performance contents shall be taken into consideration
accordingly. MiKa is updated throughout the entire processing period.
Responsibility for the correct and up-to-date reproduction and recording
of the opportunity and risk situation rests with the project manager.

Wideman Glossary

The Delphi method has traditionally been a technique aimed at building

an agreement, or consensus about an opinion or view, without
necessarily having people meet face to face, such as through surveys,
questionnaires, emails, etc. Both variants, the Delphi method and the
Wideband Delphi method, necessitate significant time and resources.
A link arrow used in a network diagram to represent the dependency
relationships of elements (events, activities) in a project. There are four
different interrelationships: normal sequence (Finish-to-Start), start
sequence (Start-to-Start), finish sequence (Finish-to-Finish) and jump
sequence (Start-to-Finish). See also Precedence Diagramming
Method (PDM)

Delphi method on
Wikipedia

Critical path method 4

on Wikipedia

FRG 04 Revenue
Recognition 02
Construction
Contracts

Precedence
relationship at
Wideman Glossary

Dependency on
Wikipedia

Finish-to-Start:
A FS B = B doesn't start
before A is finished

Finish-to-Finish:
A FF B = B doesn't finish
before A is finished

Start-to-Finish:
A SF B = B doesn't finish
before A starts

Start-to-Start:
A SS B = B doesn't start
before A starts

Division

A subordinate organizational unit of a sector.

Event-on-Node

Network diagram made up of events and dependency relationships.

Nodes stand for events and arrows show the sequence in which the
events are to be completed.
Acceptance at the factory (e.g. of technical equipment)

Factory
Acceptance Test
(FAT)

8/23/2014

PM-Test Glossar

Wideman Glossary

Acceptance test on
Wikipedia

Seite 3

PM-Test-Glossary
PM@Siemens
Term/
Abbreviation
FIDIC (Federation
Internationale des
IngenieursConseils)

Final Acceptance
Certificate (FAC)
Free buffer time/
Free Float

Further information

Explanation
The FIDIC standard form contracts all have a similar structure. They
consist of three parts:
- General Conditions
- Guidance for the Preparation of Particular Conditions
- Forms of Letter of Tender, Contract Agreement and Dispute
Adjudication Agreement.
Document to be requested and handed over at PM700 which confirms
final acceptance of the product or service.
The Warranty Period ends with the FAC in most cases.
The time period which is available for starting a project activity later than
planned without causing delay in the following activities. Compare Total
Buffer Time

Intercultural
Competence

The project leader has the entire responsibility for the project, including
the authority over the team members, i. e. their respective functional
managers do no longer have authority over them. This way, decisions
can be made more quickly than in a Matrix. Synonyms are autonomous
project management, pure or absolute project organization. Compare
Matrix Organization
The ability of an individual to communicate effectively in an intercultural
environment. Compare Social Competence

ISO 9000/9001

International framework for quality managment systems.

Laissez-faire
Leadership

Laissez-faire leadership provides the employees with a great deal of

freedom. They decide about their work, tasks and organization on their
own. It is not really a leadership style because the manager just lets
things slide.
The learning gained from the process of performing the project. Lessons
learned may be identified at any point. Also referred to as a project
record. The main objective is to pass on tips, Best Practices and
measures that may prove helpful in other projects. An effective means for
structuring the lessons learned is the project analysis.
The Letter of Empowerment assigns responsibility and authorities to the
Project Manager and makes them clearly visible in the corporate
organization. PM@Siemens recommends inclusion of the following in the
Letter of Empowerment:
- Project designation and period of validity of the Letter of Empowerment
- Assignment of authorities and obligations for handling of the project in
conformity with the contract (also worded precisely
in the enclosed target agreement)
- Assignment of responsibility for results; customer and employee
satisfaction must also be included
- Reference to the valid project management method according to
PM@Siemens (process manual)
- Provision of resources by the responsible and supporting offices (if
required, enclose as appendix)
- Right and duty to submit reports (regular controlling, special incidents)

Independent
Project
Organization

Lessons Learned

Letter of
Empowerment

8/23/2014

Version: 3.3; Date: 02.Apr.2010

PM-Test Glossar

Siemens LS Legal
handbook p.8,290

Siemens LS Legal
Handbook, p.2
Wideman Glossary

Example:
Calculation of free
float. Also click on
"next page"
1

Intercultural
Competence on
Wikipedia
ISO 9000 on
Wikipedia
Money-Zine.com on Laissez-faire on
laissez-faire
Wikipedia

PM@Siemens
Guide Module 8

PM@Siemens
Guide Module 6

Seite 4

PM-Test-Glossary
PM@Siemens
Term/
Abbreviation

Version: 3.3; Date: 02.Apr.2010

Further information

Explanation

The LoI is a written (usually bilateral) declaration used to express a

fundamental willingness to conclude a contract prior to or at the start of
complex negotiations. In general, the LoI describes the object or aim of
the negotiations and the time schedule for the intended measures. The
LoI and MoU are aimed at creating trust between the parties and at
structuring nego-tiations.In practice, the terms are frequently not
differentiated.
Life Cycle Costs
All costs for development, manufacturing, maintenance, operation and
recycling of a product.
Limits of Authority The purpose of the LoA is to establish a structured and comprehensible
(LoA)
procedure for decision making in the bidding process. It sets the limits of
decision making for diverse hierarchic levels, within which each
authorized responsible person has to decide whether or not to release
the procedure further. According to PM@Siemens the LoA process
serves for the management of the risk contained in the bid, safeguards
agreement with the business strategy and manages the business
portfolio. In addition, it enables nonconformance costs to be clearly
reduced and the project results to be improved.
LoP-List
List of open Points (LoP) created during the project. It contains work
steps yet to be completed, questions still to be clarified, etc.
Management-by- Concept based on the formulation of objectives that employess have to
Objectives (MbO) achieve. In the first step of the MbO process, employee objectives are
set (either through negotiation or by the manager). In the performance
phase, the manager is responsible for supporting the employee,
controlling the results, analyzing deviations and making the personnel
review. A target/actual comparison follows in the third step, the
Master Agreement/ Contract which defines terms of supply and prices with a supplier.
Framework
Agreement

Siemens LS Legal
Handbook, p.178

Matrix
Organization

Wideman Glossary

Letter of Intent
(LoI)

Memorandum of
Understanding
(MoU)

Milestone Trend
Analysis (MTA)

8/23/2014

Any organizational structure in which the project manager shares

responsibility with the functional managers for assigning priorities and for
directing the work of individuals assigned to the project and in which
every project team member remains assigned under his or her superior in
the line (= vertical) while, at the same time, fulfilling project
responsibilities and taking instructions from the project manager (=
horizontal). The result is a matrix. Compare Independent Project
Organization
The MoU is a written declaration used by the parties to stipulate the
negotiation status thus achieved, as well as further intended steps in a
more or less detailed fashion. The LoI and MoU are aimed at creating
trust between the parties and at structuring negotiations. In practice, the
terms are frequently not differentiated.
A method for systematic milestone monitoring in a project. The MTA
chart is one of the most important tools in project management. It has two
time-axes. The x-axis shows the moments of observation, the y-axis the
expected (scheduled) dates of each milestone in chronological order from
bottom to top.

PM-Test Glossar

Life Cycle Costs on

Wikipedia
Siemens LS Legal
Siemens
Handbook, p.209
financeTraining
Training (with PKI)

Management by
objectives on
Wikipedia

LoA
V_CR_4_
2009

Matrix management 1
on Wikipedia

Siemens LS Legal
Handbook, p.178

MTA tool

Seite 5

PM-Test-Glossary
PM@Siemens
Term/
Abbreviation

Version: 3.3; Date: 02.Apr.2010

Further information

Explanation
An MTA may look like this example. Milestone no. 2 is reached earlier
than scheduled, while milestone no. 4 is delayed. The other milestones
are exactly on schedule.

5
4
3
2
1

Milestones
Node
Nonconformance
Costs (NCC)

Obstruction Note

Order Income
Calculation

PACT

Participative
Leadership

Events of special importance. Often they are located at the transition of

one phase to another.
One of the defining points of a network. An event in an activity on arrow
network or the activity box in a precedence network.
Nonconformance costs (NCC) are costs which are found to deviate from
the calculated order costs of the AEK over the whole period of the
project, including the warranty period, i.e. NCC are additional costs
(including provisions for the future), less cost reductions and any cost
reimbursements arising from claims.
Empirical data show that 60% to 70% of these costs, however, originate
in the bidding phase.
Term used in claim management. An obstruction note has to be
submitted without delay, must include causes, location and
consequences of the obstruction and must be sent directly to the
contractual partner.
Refers to the update of the bid calculation which follows negotiations with
the customer or upon contract conclusion.
No later than 4 weeks after the contract becomes effective (Contract
Effective Date), the bid calculation shall be adapted to the agreed scope
of supplies and services, as well as to the agreed terms and conditions,
with changes being documented by the project manager. In addition, it
represents a basis for the project controlling process.
Siemens recommends to conduct so-called PACT Workshops with the
goal to facilitate the process of passing on knowledge. The acronym
stands for "Project Acceleration by Coaching and Teamwork".

PM@Siemens
Guide Module 2

FRG 04 Revenue
Recognition 02
Construction
Contracts

PM-Test Glossar

PM@Siemens
Guide Module 3

PM@Siemens
Guide Module 8

ChangingMinds.org
on participative
leadership
Recognizing revenues and expenses on a job, project, order, or contract Siemens
Percentage of
in proportion to the costs incurred for the period divided by the total costs financeTraining
Completion
expected to be incurred for the job or order ("cost to cost"):
Method (PoC)
Training (with PKI) &
(costs incurred for the period (by deadline)/total costs expected to be
eBook for
incurred (for entire project))*100
Constraction
Contracts
Siemens LS Legal
Performance Bond A part of the securities to be provided by the supplier. A Performance
Bond applies throughout the contract term. Further securities are
Handbook, p.304
Advance Payment Bond, Bid Bond and Warranty Bond.

8/23/2014

The supervisor identifies a problem, defines the scope of decision and

the group decides afterwards.

Milestone on
Wikipedia
Wideman
Glossary
PM@Siemens
Guide Module 3

Role of Managers

FRG 04 Revenue
Recognition 02
Construction
Contracts

Seite 6

PM-Test-Glossary
PM@Siemens
Term/
Abbreviation
PM@Siemens

Further information

Explanation

PM@Siemens
The PM@Siemens Initiative was introduced as a significant means of
improving profitability, with the aim of giving Siemens a clear edge over
competition through a standardized scale of qualifications for its Project
Managers. The exchange of Best Practices is especially important for the
desired continuous improvement of project management.

A multiple dependency network. An activity-on-node network in which a

sequence arrow represents one of four forms of precedence relationship,
depending on the positioning of the head and the tail of the sequence
arrow. See also Depedency Relationship
Preferred suppliers are suppliers of particular strategic importance to
Siemens that were appointed preferred suppliers for their relevant
material area on the basis of the supplier evaluation.
Preventive
Term of the risk management. The aim of a preventive measure is the
Measure
reduction of the probability of occurance and the prevention of the risk.
Compare Corrective Measure
Project Analysis
Structured method for gathering all information on the project in order to
write the final project report. Among other things, Lessons Learned
workshops at the end of the project are considered useful by
PM@Siemens and shall consist of the assessment of project experience,
customer satisfaction, supplier evaluations, and final evaluation of the
causes of NCCs and improvement of planning costs.
Project Closure
The aim of systematic project closure is to identify critical success
factors, obstacles and Good Practices. The interdisciplinary project team
and other parties to the project such as customers and partners are also
involved here. Essential elements of systematic project closure include:
project results, final settlement, controlling, project documentation, final
project report, assessment of project experience.
Project Controlling The process of comparing actual performance with planned performance,
i.e. time, effort/costs, and performance/quality (for project control),
analyzing variances, evaluating possible alternatives, and taking
appropriate corrective action as needed.
Precedence
Diagramming
Method (PDM), or
Activity on Node
Preferred Supplier

Project
Environment
Project
Management

Version: 3.3; Date: 02.Apr.2010

The surrounding in which the project is formulated, executed and

assessed and which directly or indirectly affects the project and/or is
affected by the project.
All the leadership tasks, organization, knowledge, skills, tools, and
techniques needed to meet the project requirements.

Wideman Glossary

Risk on Wikipedia

PM@Siemens
Guide Module 9

Siemens
financeTraining
Training (with PKI) &
eBook for
Constraction
Contracts
Wideman article
"What is the Project
Environment?"
Project Management
on Wikipedia

PM@Siemens
According to PM@Siemens, the following tools are recommended:
- SAP module PS (especially for the regional units: SPIRIDON solution
Guide Module 9
for "Solution Business"
- MS Project (for projects/ office applications with less than 500 activities)
- Primavera Enterprise (for projects with more than 500 activities for multiproject or multi-user assignments)

Project Network
Diagram

Any schematic display of activities, events, dependency relationships and Wideman Glossary
decisions as well as their interdependencies. Always drawn from left to
right to reflect project chonology. Often referred to as PERT Chart
(Program Evaluation and Review Technique).
Continuous integration of procurement over the entire project term from PM@Siemens
project acquisition through to the end of the warranty period is required
Guide Module 5
for optimum project controlling.

8/23/2014

PM-Test Glossar

FRG 04 Revenue
Recognition 02
Construction
Contracts

PM@Siemens
Guide Module 8

Project
Management
Software

Project
Procurement
Department

Details on Project
Analysis

Wideman article
"The Internal Project
Culture"
Wideman Glossary

Project network on
Wikipedia

Seite 7

PM-Test-Glossary
PM@Siemens
Term/
Abbreviation
Project
Procurement
Manager (PPM)

Project Target
Hierarchy
Provisional
Acceptance
Certificate (PAC)

QM Plan

Q-Plan

Quality Gate

Risk

Risk Contingency

SMART criteria

Social
Competence

Stakeholder

8/23/2014

Version: 3.3; Date: 02.Apr.2010

Further information

Explanation

According to PM@Siemens the PPM performs a direct project role with PM@Siemens
the following tasks: procurement market analysis, procurement market
Guide Module 5
risk appraisal, calculation of material costs and implementation of global
procurement strategies. Furthermore, he is the interface to the Siemens
Procurement Network, i.e. to the pooling bodies, the use of master
agreements, the awarding to preferred suppliers, and the integration of
the procurement engineer. The Project Procurement Manager (PPM) was
formerly known as project purchaser.
Method for the prioritization of project targets.
Occurs at the end of trial operation. Provisional acceptance corresponds
to the German legal term Abnahme or taking over. The
Abnahmeprotokoll, translated here as taking-over certificate, which is
generally used in German works contracts is referred to as PAC
(Provisional Acceptance Certificate). With the PAC, the warranty period
begins.
The QM Plan refers to a document that contains all measures that secure
quality, incl. compliance with customer specifications as well as meeting
deadlines, costs and project-specific processes.
Term for a document of the quality management that has not yet been
normed. It refers to the quality-relevant features of a product and how
they are to be measured and assessed and when the results need to be
achieved.
Quality Gates are decision-making points at critical places in processes
and projects for checking whether all requirements of the customer or
client and all other project objectives are fulfilled or whether they can be
fulfilled using the planned method.
A risk is a threat that can be justified. A weakness is existing or
imaginable and a damage is possible which is of considerable value or
other consequences.
IFRS allows a risk contingency to be taken into consideration in the
calculation in order to cover risks which cannot be precisely defined as of
yet. The aim of such a risk contingency is the adequate presentation of
the project with respect to the risk situation prevailing at the qualifying
date. A risk contingency may contain:
Expenses for warranties
Processing risks
Penalties for default or delay on contracts, penalties for inadequate
performance
Other project risks
Used for the formulation of project goals
or when using Management by Objectives (MbO). Acronym stands for
Specific, Measurable, Achievable, Realistic and Time framed.
The ability to behave in a reasonable way which is appropriate for the
ongoing situation. A person with high social competence is able to put
through goals and plans by means of communication as well as to create
and maintain a good work climate. Compare: Intercultural Competence
Individuals and organizations that are actively involved in the project, or
whose interests may be positively or negatively affected as a result of
project execution or project completion. They may exert influence over
the project and its results. A synonym for stakeholder is "interested
party". Stakeholders may be customers, financiers, suppliers, NonGovernmental Organizations (NGOs), team members and other staff,
etc. In order to identify all relevant stakeholders of a project and to
evaluate their potential influence, a stakeholder analysis needs to be
conducted in the beginning of a project.

PM-Test Glossar

Siemens LS Legal
Handbook, p.8

PM@Siemens
Guide Module 4

PM@Siemens
Guide Module 4

Risk on Wikipedia

Siemens Enterprise
Risk Management
Circular

FRG 04 Revenue
Recognition 02
Construction
Contracts

SMART on Wikipedia

Social skills on
Wikipedia

Wideman article
"Identifying the
Project
Stakeholders"

Stakeholder
Management on
Wikipedia

Seite 8

PM-Test-Glossary
PM@Siemens
Term/
Abbreviation

Version: 3.3; Date: 02.Apr.2010

Further information

Explanation

Statt Dialogue
(EFA)

EFA is a German acronym standing for development, promotion and

recognition. All staff covered by collective agreements are assessed with
regard to performance on an annual basis. Staff not covered by collective
agreements and at tariff level 5 and above are assessed with regard to
performance and objectives achieved within the context of an EFA
dialogue which is binding. The EFA process promotes the intensive,
structured dialogue between a member of staff and his or her superior
with respect to tasks, scope of responsibility, competence and
performance conduct. During the EFA dialog the superior informs the
member of staff about the results of the EFA process and both agree and
finalize measures for further development of the employee's area of
competence. The EFA dialog thus concludes the preliminary EFA dialog
and confirms the results of the EFA process.

Substantive Law

Substantive law defines the legal relationship of people with other people/ Substantive law on
firms with other firms or between them and the state. The rules of law
Wikipedia
governing the creation or enforcement of a contractual promise are
substantive in nature. Regarding customer or consortia contracts, the
rights and obligations of each member can be arranged freely.

Team
Development

Developing individual and group competencies to enhance project

performance. Often done by team building activities, i. e. common events
that enhance personal contacts and create a high-performing team. More
generally, team development also refers to the different phases a project
team goes through.
In the top-down model, an overview of the system is formulated without
going into detail for any part of it. Each part of the system is then refined
by designing it in more detail. Compare Bottom-Up
The time period which is available for starting a project activity later than
planned without causing delay in the overall project deadline. Compare
Free Buffer Time

Top-down
approach
Total buffer time/
Total Float

Method for the realization of the target "Quality" in an organization.

Important factors are, among others, the involvement of customers,
suppliers and employees, thinking in processes rather than
organizations, continuous improvement of systems and processes and
searching for the true reason of any problem.
IFRS (International Worldwide accepted accounting principles used at Siemens. They are
the basis for the Siemens Financial Reporting Guidelines and consist of
Financial
numerous guidelines for individual cases and emphasize owners' or
Reporting
investors' interests.
Guidelines)
Total Quality
Management
(TQM)

Warranty Bond

Work Breakdown
Structure (WBS)
Work Package
(WP)

8/23/2014

A part of the securities to be provided by the supplier. A Warranty Bond

generally follows a Performance Bond. Further securities are
Performance Bond, Advance Payment Bond and Bid Bond.
A hierarchical method that successively subdivides the work of the
project into smaller detail. A WBS may be designed product-oriented,
function-oriented, phase-oriented or mixed.
A generic term for a unit within a work breakdown structure (WBS) at the
lowest level of its branch, not necessarily at the lowest level of the whole
WBS. Its purpose is to bundle services for specification, tender, bid,
order, execution, settlement and make them easy to manage. It may be
divided into activities.

PM-Test Glossar

Wideman Glossary

Top-down and
bottom-up design on
Wikipedia
Wideman Glossary Example:
Calculation of total
float. Also click on
"next page"
Total Quality
Six Sigma on
Management
Wikipedia
on Wikipedia

IFRS on Wikipedia

Siemens Financial
Reporting Guidelines
(FRG)

Siemens LS Legal
Handbook, p.304
Wideman Glossary

Wideman Glossary

Work breakdown
structure on
Wikipedia
Work breakdown
structure on
Wikipedia

Seite 9

PM-Test-Glossary
PM@Siemens
Term/
Abbreviation

Version: 3.3; Date: 02.Apr.2010

Further information

Explanation

Project
Subproject
Task/ Main
W ork
Package

W ork Package
(Most
detailed
element of
W BS)

Activities
(only
contained in
Network
Diagram!)

List of References
Schelle, H.; Ottmann, R.; Pfeiffer, A.: ProjektManager, Gesellschaft fr Projektmanagement (GPM), Nrnberg, 2005.
1
2

Macharzina, K.: Unternehmensfhrung, 4., grundlegend berarbeitete Auflage, Gabler, Wiesbaden, 2003, p. 494f.

3
4
5

Stickney, C. P.; Weil, R. L.: Financial Accounting, 9. Auflage, The Dryden Press, 2000, p.865.
PMI: PMBOK Guide, Project Management Institute, Newton Square, Pennsylvania USA, 2000.
Schelle, H.; Reschke, H.; Schnopp, R.; Schub, A.: Projekte erfolgreich
managen, 22.Akt., TV Verlag, Kln, Mai 2004.

8/23/2014

PM-Test Glossar

Seite 10