Terminology - P
P.C. Sum
The first cost or provisional sum allowed in a contract for a specific item. (ACE)
or
See PRIME COST SUM (ACE)
Packaged Plant
Manufactured machinery or other equipment forming a self-contained process unit to be installed by vendor on existing foundations. (ACE)
or
Manufactured machinery or other equipment which can form a self-contained process unit to be installed by the vendor and whose cost therefore includes the cost of the equipment and the cost of installing it on existing foundations. (ACE)
Packaged Unit
Entire unit of equipment, complete with associated piping, instrumentation, etc. (ACE)
or
Complete unit of equipment, e.g. small boiler unit, air compressor set, etc. (ACE)
Parameter
A definable characteristic of a system which may assume either constant or variable values, but usually the assumed value remains unchanged for a specific run of a simulation model. Parameters are attributes of a "Transaction". (FLUOR)
Path
An unbroken sequence of arrows in a network. (FLUOR)
Payback Period
Time calculated to recover the original fixed investment from earned profit after allowing for depreciation and taxes. (ACE)
Pay-out Time
See PAYBACK PERIOD. (ACE)
or
The time calculated to recover the original fixed investment from earned profit after allowing for depreciation and taxes, based on measured performance and sales capacity. Also called "pay-oil" or "payback" period. It is not satisfactory for comparing projects with different lives or patterns of cost and earnings. (ACE)
or
The time required to recover the original fixed investment from profit and depreciation. Usually, but not always, after taxes and based on capacity operations. Most recent practice is to base pay-out time on an actual sales projection. Also called pay-off or payback period. It is simple to calculate and can be used for evaluating many projects. It is not satisfactory for comparing projects with different lives or patterns of cost and earnings. (FLUOR)
Payroll Burden
Employer's indirect payroll costs, such as national insurance, holidays, etc., usually applied as an overall percentage on salaries or wages. (ACE)
Peak Manpower
Time or period of highest manning level. (ACE)
Pending Change
Actual or anticipated change yet to be authorised. (ACE)
Per Unit Quantities
The amount of each constituent component of material or operation per end product. (ACE)
Percent Complete
Measurement of physical completion expressed as a percentage. (ACE)
or
The degree of completeness for an activity of project which is determined by an estimate of the amount of actual physical work that has been accomplished. (FLUOR)
Percent Complete (Piping Progress Report)
Work units completed divided by the total units required. or units completed divided by the units released (as a default after final M.T.O.) (FLUOR)
Performance
Expression of productivity in respect of actual achievement compared to budget. (ACE)
Performance Bond
See SURETY BOND. (ACE)
Performance Factor
Factor expressing productivity as a direct budget multiplier, i.e. the inverse of PRODUCTIVITY FACTOR, and obtained by dividing actual work time taken by budgeted work time. (ACE)
Period Cost
Actual cost committed, incurred or recorded within a specific period of time. (ACE)
Permanent Assets
Fixed capital represented by plant, buildings, land, etc., not readily convertible into cash. (ACE)
or
Fixed capital represented by plant, buildings and land, etc., owned by a person or company which are not readily convertible into cash. (ACE)
Permanent Entity
An entity that exists throughout the simulation period. See "Entity" and "Equipment". (FLUOR)
Permanent Investment
Usually refers to the total value assigned to the buildings, together with fixed apparatus, and equipment, plus the value assigned to auxiliary equipment such as trucks, cranes and office furniture. (ACE)
Permanent Material
Purchased equipment and material permanently incorporated into the finished project. (ACE)
Personal Cost Centre
An expenditure location consisting of a person or group of persons, to whom related expenditure can be charged and controlled. (ACE)
PERT
Programme Evaluation and Review Technique. (ACE)
PERT Diagram
(Program Evaluation & Review Techniques). The generic names for planning and control which are based on the arrow symbol networks analysis. (FLUOR)
PERT-Cost
A management information system used for the planning, scheduling and control of complex interrelated activities using PERT with special emphasis on cost control, based on a WORK BREAKDOWN STRUCTURE. See PROGRAM EVALUATION and REVIEW TECHNIQUE. (FLUOR)
Pessimistic Time Estimate (PT)
An estimate of the longest time an activity would require under the most adverse conditions. (FLUOR)
Phased Costs
Distribution of actual or forecast costs over time. (ACE)
Physical Completion
Progress completion assessed from physical measurement. (ACE)
Physical Life
The period which a plant could be or has been operated before shutdown due to physical deterioration. (ACE)
Physical Percentage Complete
A portion of the actual accomplishment of the work you are reviewing as of that date in time. Physical completion of any activity is the most accurate appraisal of the immediate supervisor tempered with judgement, experience and/or his departments historical data developed on that activity. Physical completion is in no way linked to man-hours budgeted or expended. (FLUOR)
PID
Piping and Instrument Diagram. (ACE)
Piece Work
A system of payment for each unit produced by a worker so that the worker's earnings depend on his output. (ACE)
Planning Network
A logic diagram used to establish the anticipated work flow in a project. (FLUOR)
Planning
The process of analysing a project and breaking it into its component and determining the logical sequence in parts which they should be performed. (FLUOR)
Plant
Main components of machinery and equipment permanently installed in a process or manufacturing facility. (ACE)
or
The main components of machinery and equipment permanently installed in a process or manufacturing establishment which become part of the fixed assets. (ACE)
Plant Construction Cost Index
An index published monthly by the C.P.E. Journal since 1958 now based on 1965, covering the construction industry (Pc). Defined and calculated thus
1= (0.5M + 0.IE + 0.2C + 0.2 W) x 100
Pc 11965
M = B.O.T. index for mechanical engineering.
E = B.O.T. index for electrical engineering.
C = B.O.T. index for construction materials.
W = M.O.L. index of construction wages.
Pc = Vbase x Ip x 100
Nc x Wc x PC1965
Vbase= Value of construction in Food, Drink and Tobacco and Chemicals and Allied Industries. The last base was 1958.
Ip = B.O.T. production index for construction industry.
Nc = M.O.L. figure of number employed in construction.
Wc = M.O.L. wage rate index for construction industry. (ACE)
Plant Exponent
.
Plant Location Study
The operation by which tangible and intangible factors at different geographical positions are compared in order to determine the most suitable site. (ACE)
Plant Overhead
Those costs in a manufacturing establishment which are not directly attributable to any one product or processing unit and therefore can be allocated on some arbitrary basis believed to be equitable. May include plant management salaries, payroll department, local purchasing and accounting. (ACE)
Plant Overhead (Factory Expense)
Those costs in a plant which are not directly attributable to any one product or processing unit and therefore can be allocated on some arbitrary basis believed to be equitable. Includes plant management salaries, payroll department, local purchasing and accounting. (FLUOR)
Post-Contract Change Estimate
See CONTROL ESTIMATE
Preliminary Estimate
See FEASIBILITY STUDY
Process Selection
.
Productivity
The measurement o labour efficiency when compared to an established base. It is also used to measure equipment effectiveness, drawing productivity, ect. (Wideman)
or
The actual rate of output or production per unit of time worked. (Wideman)
or
The rate of output of a workman, or group of workers, per unit of time, usually compared to an established standard or expected rate of output. (Wideman)
Progress Weighting
Method of relating different activities in respect of a common base, in order to achieve an overall progress measurement. (ACE)
Project
Term variously used to denote a particular facility to be built, a defined service to be provided or an individual contract to be executed. (ACE)
or
A scheme, which must be developed before approval, can be given by management, or in the case of a contractor, by a client. (ACE)
or
The combination of related investments proposed for approval in a single evaluation. (ACE)
or
Is defined as the process of developing an idea from inception until it is either discarded or until the product of the idea has been accepted by the ultimate user. In Engineering Management Services Ltd., a project is a number of people gathered together to produce a specified engineering concept. (EMS)
or
One or more related undertakings that extend over a period of time, and are intended to accomplish a significant scientific, technical or commercial goal. (FLUOR)
Project Area
Is defined as that part of the project which geographically or functionally forms a unique entity. (EMS)
Project Code of Accounts
CODE OF ACCOUNTS as established for a specific project. (ACE)
Project Control
Is defined as that function of the project management team that controls the performance of the elements producing the final product. This is normally understood to be the functions of PLANNING and COST ENGINEERING. (EMS)
or
The supplementation of an information system that will give management a warning of deviation from the cost and schedule plans. The essence of the system is early detection and prompt remedial action. (FLUOR)
Project Control Estimate
A forecast of fixed investment prepared from completely specified equipment lists, finished engineering flow sheets, final plot plans, and general arrangements, together with reasonably complete site and auxiliary facilities information. Such estimates should have confidence limits of 5% and are in sufficient detail to be the basis for sound job cost control. (ACE)
Project Cost
Is defined as the ultimate amount of money that the client will pay for the completed project. This is the same as PROJECT VALUE or TOTAL INSTALLED VALUE. (EMS)
Project Cost Summary
A monthly report that summarises all costs. The budget is shown versus expenditures to date, and indicated total costs. (FLUOR)
Project Engineering
The planning, procurement, construction and commissioning of a facility based on a process flow sheet. (ACE)
Project Level Schedule
The middle amount of detail. (FLUOR)
Project Life
Overall project duration, from inception to completion. (ACE)
or
Total years of operation or economic period of usefulness of any facility. Sometimes, but not necessarily, equal to depreciable life.
1. The period during which an asset remains capable of fulfilling satisfactorily the purpose for which it was intended. (ACE)
Project Life (Economic Size)
Total years of operation for any facility. Sometimes, but not necessarily, equal to depreciable life. (FLUOR)
Project Management Costs
Are defined as the salaries and reimbursable of the personnel involved in the management of the project, but excluding the Engineering Management and Construction Management. (EMS)
Project Network
A network depicting an entire project, either in a detailed or in a summarised format. (FLUOR)
Project Network Analysis (PNA)
A group of techniques for presenting information to assist the planning and controlling of projects. The information, usually represented by a network. includes the sequence and logical inter-relationships of all project activities. The group includes techniques for dealing with time, resources and costs. (FLUOR)
Project Overheads
The sundry indirect expenses incurred by a promoter or contractor during the construction of new plant. Typical items are insurance, licence, testing, commissioning, supervision and documentation. (ACE)
Project Planning
Involves development of a master plan, which considers the inseparable ingredients - time and money. At the beginning of each project a cost plan and a schedule plan are established. (FLUOR)
Project Profit
The accounting approximation of the earnings for executing a project. Includes project fee and home office payroll overhead allocated to project. (FLUOR)
Project Value
See PROJECT COST. (EMS)
Project-Control Estimate
An estimate of fixed investment prepared from complete equipment lists, finished engineering flow sheets, frozen plot plans and general arrangements, together with reasonably complete site and auxiliary facilities information. Such estimates should fall within 10% of the actual fixed investment and are in sufficient detail to be the basis for sound job cost control. (FLUOR)
Projected Overrun
A budgetary condition such that the LATEST REVISED ESTIMATE exceeds the BUDGET. See OVERRUN. Contrast with PROJECTED UNDERRUN. (FLUOR)
Projected Underrun
A budgetary condition such that the BUDGET exceeds the LATEST REVISED ESTIMATE. See UNDERRUN. Contrast with PROJECTED OVERRUN. (FLUOR)
Proposal
Is defined as an offer to execute a project at a cost to be agreed. (EMS)
Proposal Schedule
It is a Master type schedule prepared during the proposal stage of a contract. It is converted to the Master Schedule upon award of contract. (FLUOR)
Prorates
Term occasionally used in respect of indirect costs to indicate prorate distribution over direct cost accounts. (ACE)
Provision
Allowance in estimate or forecast for a specific item or occurrence for which a cost may or may not be incurred. (ACE)
Provisional Sum
Specified sum allowed in contract for item of work or supply that may or may not be required. (ACE)
or
1. An allocation in a financial summary reserved for a specific item of expense.
2. An allocation in a financial summary reserved for a specific item of expense, the details of which cannot, at present, be completely defined. (ACE)
The first cost or provisional sum allowed in a contract for a specific item. (ACE)
or
See PRIME COST SUM (ACE)
Packaged Plant
Manufactured machinery or other equipment forming a self-contained process unit to be installed by vendor on existing foundations. (ACE)
or
Manufactured machinery or other equipment which can form a self-contained process unit to be installed by the vendor and whose cost therefore includes the cost of the equipment and the cost of installing it on existing foundations. (ACE)
Packaged Unit
Entire unit of equipment, complete with associated piping, instrumentation, etc. (ACE)
or
Complete unit of equipment, e.g. small boiler unit, air compressor set, etc. (ACE)
Parameter
A definable characteristic of a system which may assume either constant or variable values, but usually the assumed value remains unchanged for a specific run of a simulation model. Parameters are attributes of a "Transaction". (FLUOR)
Path
An unbroken sequence of arrows in a network. (FLUOR)
Payback Period
Time calculated to recover the original fixed investment from earned profit after allowing for depreciation and taxes. (ACE)
Pay-out Time
See PAYBACK PERIOD. (ACE)
or
The time calculated to recover the original fixed investment from earned profit after allowing for depreciation and taxes, based on measured performance and sales capacity. Also called "pay-oil" or "payback" period. It is not satisfactory for comparing projects with different lives or patterns of cost and earnings. (ACE)
or
The time required to recover the original fixed investment from profit and depreciation. Usually, but not always, after taxes and based on capacity operations. Most recent practice is to base pay-out time on an actual sales projection. Also called pay-off or payback period. It is simple to calculate and can be used for evaluating many projects. It is not satisfactory for comparing projects with different lives or patterns of cost and earnings. (FLUOR)
Payroll Burden
Employer's indirect payroll costs, such as national insurance, holidays, etc., usually applied as an overall percentage on salaries or wages. (ACE)
Peak Manpower
Time or period of highest manning level. (ACE)
Pending Change
Actual or anticipated change yet to be authorised. (ACE)
Per Unit Quantities
The amount of each constituent component of material or operation per end product. (ACE)
Percent Complete
Measurement of physical completion expressed as a percentage. (ACE)
or
The degree of completeness for an activity of project which is determined by an estimate of the amount of actual physical work that has been accomplished. (FLUOR)
Percent Complete (Piping Progress Report)
Work units completed divided by the total units required. or units completed divided by the units released (as a default after final M.T.O.) (FLUOR)
Performance
Expression of productivity in respect of actual achievement compared to budget. (ACE)
Performance Bond
See SURETY BOND. (ACE)
Performance Factor
Factor expressing productivity as a direct budget multiplier, i.e. the inverse of PRODUCTIVITY FACTOR, and obtained by dividing actual work time taken by budgeted work time. (ACE)
Period Cost
Actual cost committed, incurred or recorded within a specific period of time. (ACE)
Permanent Assets
Fixed capital represented by plant, buildings, land, etc., not readily convertible into cash. (ACE)
or
Fixed capital represented by plant, buildings and land, etc., owned by a person or company which are not readily convertible into cash. (ACE)
Permanent Entity
An entity that exists throughout the simulation period. See "Entity" and "Equipment". (FLUOR)
Permanent Investment
Usually refers to the total value assigned to the buildings, together with fixed apparatus, and equipment, plus the value assigned to auxiliary equipment such as trucks, cranes and office furniture. (ACE)
Permanent Material
Purchased equipment and material permanently incorporated into the finished project. (ACE)
Personal Cost Centre
An expenditure location consisting of a person or group of persons, to whom related expenditure can be charged and controlled. (ACE)
PERT
Programme Evaluation and Review Technique. (ACE)
PERT Diagram
(Program Evaluation & Review Techniques). The generic names for planning and control which are based on the arrow symbol networks analysis. (FLUOR)
PERT-Cost
A management information system used for the planning, scheduling and control of complex interrelated activities using PERT with special emphasis on cost control, based on a WORK BREAKDOWN STRUCTURE. See PROGRAM EVALUATION and REVIEW TECHNIQUE. (FLUOR)
Pessimistic Time Estimate (PT)
An estimate of the longest time an activity would require under the most adverse conditions. (FLUOR)
Phased Costs
Distribution of actual or forecast costs over time. (ACE)
Physical Completion
Progress completion assessed from physical measurement. (ACE)
Physical Life
The period which a plant could be or has been operated before shutdown due to physical deterioration. (ACE)
Physical Percentage Complete
A portion of the actual accomplishment of the work you are reviewing as of that date in time. Physical completion of any activity is the most accurate appraisal of the immediate supervisor tempered with judgement, experience and/or his departments historical data developed on that activity. Physical completion is in no way linked to man-hours budgeted or expended. (FLUOR)
PID
Piping and Instrument Diagram. (ACE)
Piece Work
A system of payment for each unit produced by a worker so that the worker's earnings depend on his output. (ACE)
Planning Network
A logic diagram used to establish the anticipated work flow in a project. (FLUOR)
Planning
The process of analysing a project and breaking it into its component and determining the logical sequence in parts which they should be performed. (FLUOR)
Plant
Main components of machinery and equipment permanently installed in a process or manufacturing facility. (ACE)
or
The main components of machinery and equipment permanently installed in a process or manufacturing establishment which become part of the fixed assets. (ACE)
Plant Construction Cost Index
An index published monthly by the C.P.E. Journal since 1958 now based on 1965, covering the construction industry (Pc). Defined and calculated thus
1= (0.5M + 0.IE + 0.2C + 0.2 W) x 100
Pc 11965
M = B.O.T. index for mechanical engineering.
E = B.O.T. index for electrical engineering.
C = B.O.T. index for construction materials.
W = M.O.L. index of construction wages.
Pc = Vbase x Ip x 100
Nc x Wc x PC1965
Vbase= Value of construction in Food, Drink and Tobacco and Chemicals and Allied Industries. The last base was 1958.
Ip = B.O.T. production index for construction industry.
Nc = M.O.L. figure of number employed in construction.
Wc = M.O.L. wage rate index for construction industry. (ACE)
Plant Exponent
.
Plant Location Study
The operation by which tangible and intangible factors at different geographical positions are compared in order to determine the most suitable site. (ACE)
Plant Overhead
Those costs in a manufacturing establishment which are not directly attributable to any one product or processing unit and therefore can be allocated on some arbitrary basis believed to be equitable. May include plant management salaries, payroll department, local purchasing and accounting. (ACE)
Plant Overhead (Factory Expense)
Those costs in a plant which are not directly attributable to any one product or processing unit and therefore can be allocated on some arbitrary basis believed to be equitable. Includes plant management salaries, payroll department, local purchasing and accounting. (FLUOR)
Post-Contract Change Estimate
See CONTROL ESTIMATE
Preliminary Estimate
See FEASIBILITY STUDY
Process Selection
.
Productivity
The measurement o labour efficiency when compared to an established base. It is also used to measure equipment effectiveness, drawing productivity, ect. (Wideman)
or
The actual rate of output or production per unit of time worked. (Wideman)
or
The rate of output of a workman, or group of workers, per unit of time, usually compared to an established standard or expected rate of output. (Wideman)
Progress Weighting
Method of relating different activities in respect of a common base, in order to achieve an overall progress measurement. (ACE)
Project
Term variously used to denote a particular facility to be built, a defined service to be provided or an individual contract to be executed. (ACE)
or
A scheme, which must be developed before approval, can be given by management, or in the case of a contractor, by a client. (ACE)
or
The combination of related investments proposed for approval in a single evaluation. (ACE)
or
Is defined as the process of developing an idea from inception until it is either discarded or until the product of the idea has been accepted by the ultimate user. In Engineering Management Services Ltd., a project is a number of people gathered together to produce a specified engineering concept. (EMS)
or
One or more related undertakings that extend over a period of time, and are intended to accomplish a significant scientific, technical or commercial goal. (FLUOR)
Project Area
Is defined as that part of the project which geographically or functionally forms a unique entity. (EMS)
Project Code of Accounts
CODE OF ACCOUNTS as established for a specific project. (ACE)
Project Control
Is defined as that function of the project management team that controls the performance of the elements producing the final product. This is normally understood to be the functions of PLANNING and COST ENGINEERING. (EMS)
or
The supplementation of an information system that will give management a warning of deviation from the cost and schedule plans. The essence of the system is early detection and prompt remedial action. (FLUOR)
Project Control Estimate
A forecast of fixed investment prepared from completely specified equipment lists, finished engineering flow sheets, final plot plans, and general arrangements, together with reasonably complete site and auxiliary facilities information. Such estimates should have confidence limits of 5% and are in sufficient detail to be the basis for sound job cost control. (ACE)
Project Cost
Is defined as the ultimate amount of money that the client will pay for the completed project. This is the same as PROJECT VALUE or TOTAL INSTALLED VALUE. (EMS)
Project Cost Summary
A monthly report that summarises all costs. The budget is shown versus expenditures to date, and indicated total costs. (FLUOR)
Project Engineering
The planning, procurement, construction and commissioning of a facility based on a process flow sheet. (ACE)
Project Level Schedule
The middle amount of detail. (FLUOR)
Project Life
Overall project duration, from inception to completion. (ACE)
or
Total years of operation or economic period of usefulness of any facility. Sometimes, but not necessarily, equal to depreciable life.
1. The period during which an asset remains capable of fulfilling satisfactorily the purpose for which it was intended. (ACE)
Project Life (Economic Size)
Total years of operation for any facility. Sometimes, but not necessarily, equal to depreciable life. (FLUOR)
Project Management Costs
Are defined as the salaries and reimbursable of the personnel involved in the management of the project, but excluding the Engineering Management and Construction Management. (EMS)
Project Network
A network depicting an entire project, either in a detailed or in a summarised format. (FLUOR)
Project Network Analysis (PNA)
A group of techniques for presenting information to assist the planning and controlling of projects. The information, usually represented by a network. includes the sequence and logical inter-relationships of all project activities. The group includes techniques for dealing with time, resources and costs. (FLUOR)
Project Overheads
The sundry indirect expenses incurred by a promoter or contractor during the construction of new plant. Typical items are insurance, licence, testing, commissioning, supervision and documentation. (ACE)
Project Planning
Involves development of a master plan, which considers the inseparable ingredients - time and money. At the beginning of each project a cost plan and a schedule plan are established. (FLUOR)
Project Profit
The accounting approximation of the earnings for executing a project. Includes project fee and home office payroll overhead allocated to project. (FLUOR)
Project Value
See PROJECT COST. (EMS)
Project-Control Estimate
An estimate of fixed investment prepared from complete equipment lists, finished engineering flow sheets, frozen plot plans and general arrangements, together with reasonably complete site and auxiliary facilities information. Such estimates should fall within 10% of the actual fixed investment and are in sufficient detail to be the basis for sound job cost control. (FLUOR)
Projected Overrun
A budgetary condition such that the LATEST REVISED ESTIMATE exceeds the BUDGET. See OVERRUN. Contrast with PROJECTED UNDERRUN. (FLUOR)
Projected Underrun
A budgetary condition such that the BUDGET exceeds the LATEST REVISED ESTIMATE. See UNDERRUN. Contrast with PROJECTED OVERRUN. (FLUOR)
Proposal
Is defined as an offer to execute a project at a cost to be agreed. (EMS)
Proposal Schedule
It is a Master type schedule prepared during the proposal stage of a contract. It is converted to the Master Schedule upon award of contract. (FLUOR)
Prorates
Term occasionally used in respect of indirect costs to indicate prorate distribution over direct cost accounts. (ACE)
Provision
Allowance in estimate or forecast for a specific item or occurrence for which a cost may or may not be incurred. (ACE)
Provisional Sum
Specified sum allowed in contract for item of work or supply that may or may not be required. (ACE)
or
1. An allocation in a financial summary reserved for a specific item of expense.
2. An allocation in a financial summary reserved for a specific item of expense, the details of which cannot, at present, be completely defined. (ACE)
