MAINTENANCE AND REPAIR COST - The total of labor, material, and other related costs incurred in conducting corrective and preventative maintenance and repair on a facility, on its systems and components, or on both. Maintenance does not usually include those items that cannot be expended within the year purchased. Such items must be considered as fixed capital. \[2\] (November 1990) MAJOR COMPONENTS - Part of the aggregation structure of a price index (e.g., a CPI can be subdivided into major components of food, housing, clothing, transportation, health and personal care, recreation, reading and education, tobacco and alcohol). (November 1990) MAJOR MILESTONE - The most significant milestones in the project's life or duration, representing major accomplishments or decision points; usually associated with the first breakdown level in the work breakdown structure. \[4\] (November 1990) MAJOR SYSTEM ACQUISITION PROJECTS - Those projects that are directed at and are critical to fulfilling a mission, entail the allocation of relatively large resources, and warrant special management attention. (November 1990) MANAGEMENT BY EXCEPTION - Issuance of management reports only when action is called for. Helps avoid wading through voluminous reports where progress is going according to plan. However, system may require subjective judgment by someone who is not as well placed to do so as the manager himself. Exception reports tend to be harbingers of bad news, lacking good news and hence seen as detrimental rather than beneficial. (June 2007) MANAGEMENT BY METHODS (MBM) - Level 2 of a five level dynamic baseline model in which those proficient in MBR build on their knowledge base, level 1 (MBR) with customized project management processes and procedures. At this level practitioners get acquainted with, and become proficient in the use of, standard project management tools, frameworks and templates. The work breakdown structure, the responsibility assignment matrix, scheduling techniques, cost/schedule performance control and monitoring and configuration management are the hallmarks of level 2 learning. At this level, an employee has the capacity to use the tools to analyze project performance data and to make recommendations for corrective actions accordingly. (June 2007) MANAGEMENT BY OBJECTIVES (MBO) - A management theory that calls for managing people based on documented work statements mutually agreed to by manager and subordinate. Progress on these work statements is periodically reviewed, and in a proper implementation, compensation is tied to MBO performance. Level 3 of a five level dynamic baseline model structure in which establishing and maintaining the project objectives as the reference point and managing and manipulating the methods at level 2 (MBM) and the rules at level 1 (MBR) as appropriate to that horizon. (June 2007) MANAGEMENT BY POLITICS (MBP) - A potential level 5 of a five level dynamic baseline model structure. This is an extrapolation of the model, which would lead to a management approach where the essential values of the corporation are a dynamic baseline. This would entail dealing with some higher order issues wherein project managers would contend with harmonizing various corporate agendas in a politicized environment. A level 5 MBP would be dealing with an intangible product with a focus on governance issues. The LML at level 5 would be in essence a politician. (June 2007) MANAGEMENT BY RULES (MBR) - Level 1 of a five level dynamic baseline model structure at which behavior is the first level of learning. MBR is indoctrination into the official operations for an organization. Employees are encouraged to develop a strong sense of affiliation with the organization’s institutional framework - rules, regulations, policies, procedures, directives, laws, acts, etc. At this level of learning, an employee is taught how to apply existing rules to conduct business, and on occasions, to interpret rules in some new way for the purpose of addressing project issues not readily covered in the existing framework. (June 2007) MANAGEMENT BY VALUES (MBV) - Level 4 of a five level dynamic baseline model structure in which an employee has the capacity to manipulate and evolve the objective throughout the project life cycle as appropriate to the overarching corporate values. MBV practitioners are expected to revisit and adjust project objectives with their attention focused on the corporate values horizon. In turn, this requires the capacity to manipulate the tools and the rules with the knowledge and experience to understand the implications as per level 3 (MBO). (June 2007) MANAGEMENT BY WALKING AROUND (MBWA) - Part of the Hewlett Packard legacy and popularized by management theorist Tom Peters. MBWA works on the assumption that a manager must circulate to fully understand the team's performance and problems. The best managers, according to Peters, spend 10 percent of their time in their offices, and 90 percent of their time talking and working with their people, their customers, and their suppliers. (June 2007) MANAGEMENT CONTROL POINT - A point in the project life cycle, usually separating major phases or stages, at which senior management has the opportunity to confirm or deny continuation into the next phase or stage. See also: CONTROL GATE. (June 2007) MANAGEMENT CONTROL SYSTEMS - The systems (e.g., planning, scheduling, budgeting, estimating, work authorization, cost accumulation, performance measurement, etc.) used by owners, engineers, architects, and contractors to plan and control the cost and scheduling of work. \[4\] (November 1990) MANAGEMENT RESERVE – (1)An amount added to an estimate to allow for discretionary management purposes outside of the defined scope of the project, as otherwise estimated. May include amounts that are within the defined scope, but for which management does not want to fund as contingency or that cannot be effectively managed using contingency. Syn.: RESERVE; RESERVE ALLOWANCE. (2)In earned value management according to the ANSI EIA 748 standard, an amount held outside the performance measurement baseline to handle unknown contingency at the total program level. Management reserve has no scope, is not identified to specific risks, and is not time-phased. It is typically not estimated or negotiated and is created in the budget development process. (October 2013) MANAGEMENT SCHEDULE RESERVE (MSR) - A designated amount of time to account for risks that cannot be quantified and/or managed with contingency, or to allow time for management discretionary purposes and the use of management reserve generally requires a formal baseline change. Management reserves are generally not related to schedule contingency. See also: MANAGEMENT RESERVE (MR). (October 2013) MANAGEMENT SCIENCE - The application of methods and procedures including sophisticated mathematical techniques to facilitate decision making in the handling, direction, and control of projects and manufacturing operations. (November 1990) MANDATORY DEPENDENCY - Dependency inherent in the nature of the work being done, such as a physical limitation. Used in hard logic. \[8\] (June 2007) MANPOWER LOADING CHART - Histogram showing the allocation of labor by period. See also: RESOURCE HISTOGRAM. (June 2007) MANPOWER PLANNING - Process of forecasting an organization's manpower needs over time, in terms of numbers and skills, and obtaining the human resources required to match an organization’s needs. See also: RESOURCE PLANNING. (June 2007) MANUFACTURING COST - The total of variable and fixed or direct and indirect costs chargeable to the production of a given product, usually expressed in cents or dollars per unit of production, or dollars per year. Transportation and distribution costs, and research, development, selling and corporate administrative expenses are usually excluded. See also: OPERATING COST. (November 1990) MANUFACTURING RESOURCE PLANNING (MRP II) - A method for the effective planning of all the resources of a manufacturing company. Ideally, it addresses operational planning in units, financial planning in dollars, and has a simulation capability to answer "what if" questions. It is made up of a variety of functions, each linked together: business planning, production planning, master production scheduling, material requirements planning, capacity requirements planning, and the execution systems for capacity and priority. Outputs from these systems would be integrated with financial reports such as the business plan, purchase commitment report, shipping budget, inventory projections in dollars, etc. Manufacturing resource planning is a direct outgrowth and extension of material requirement planning (MRP). Syn.: MRP II. See also: MATERIAL REQUIREMENTS PLANNING (MRP). (November 1990) MAPI METHOD – (1)A procedure for replacement analysis sponsored by the Machinery and Allied Products Institute. (2)A method of capital investment analysis which has been formulated by the Machinery and Allied Products Institute. This method uses a fixed format and provides charts and graphs to facilitate calculations. A prominent feature of this method is that it explicitly includes obsolescence. (November 1990) MARGINAL ANALYSIS - An economic concept concerned with those incremental elements of costs and revenue which are associated directly with a specific course of action, normally using available current costs and revenue as a base and usually independent of traditional accounting allocation procedures. (November 1990) MARGINAL COST (BENEFIT) - Syn.: INCREMENTAL COST (BENEFIT). (November 1990) MARKETING - The broad range of activities concerned primarily with the determination of consumer or user demands or desires, both existing and potential; the satisfaction of these demands or desires through innovation or modification; and the building of buyer awareness of product or service availability through sales and advertising efforts. (November 1990) MARKETING COST ANALYSIS - The study and evaluation of the relative profitability or costs of different marketing operations in terms of customer, marketing units, commodities, territories, or marketing activities. Typical tools include cost accounting. (November 1990) MARKETING RESEARCH - The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services. Such research may be undertaken by impartial agencies or by business firms, or their agents. Marketing research is an inclusive term which includes various subsidiary types: 1.MARKETING RESEARCH, MARKET ANALYSIS - Of which product potential is a type, which is the study of size, location, nature, and characteristics of markets. 2.MARKETING RESEARCH, SALES ANALYSIS (OR RESEARCH) - Which is the systematic study and comparison of sales (or consumption) data along the lines of market areas, organizational units, products or product groups, customers or customer groups, or such other units as may be useful. Typical analyses would include: a) Promotion Evaluation; b) Quota Assignment; and c) Territory Assignment. 3.MARKETING RESEARCH, CONSUMER RESEARCH - Of which motivation research is a type which is concerned chiefly with the discovery and analysis of consumer attitudes, reactions, and preferences. (November 1990) MARKET VALUE - The monetary price upon which a willing buyer and a willing seller in a free market will agree to exchange ownership, both parties knowing all the material facts but neither being compelled to act. The market value fluctuates with the degree of willingness of the buyer and seller and with the conditions of the sale. The use of the term market suggests the idea of barter. When numerous sales occur on the market, the result is to establish fairly definite market prices as the basis of exchanges. (November 1990) MARK-UP - As variously used in construction estimating, includes such percentage applications as general overhead, profit, and other indirect costs. When mark-up is applied to the bottom of a bid sheet for a particular item, system, or other construction price, any or all of the above items (or more) may be included, depending on local practice. (November 1990) MASTER PRODUCTION SCHEDULE (MPS) - In manufacturing, for selected items, a statement of what the company expects to manufacture. It is the anticipated build schedule for those selected items assigned to the master scheduler. The master scheduler maintains this schedule and, in turn, it becomes a set of planning numbers which "drives" MRP. It represents what the company plans to produce expressed in specific configurations, quantities, and dates. The MPS should not be confused with a sales forecast, which represents a statement of demand. The master production schedule must take forecast plus other important considerations (backlog, availability of material, availability of capacity, management policy and goals, etc.) into account prior to determining the best manufacturing strategy. (November 1990) MASTER SCHEDULE - A consolidated schedule incorporating multiple, related projects or parts of a project so that they may be monitored and controlled as a unit. See also: LEVEL OF SCHEDULES, MANAGEMENT SUMMARY SCHEDULE (LEVEL 1 SCHEDULE). (June 2007) MASTER SCHEDULE ITEM - In manufacturing, a part number selected to be planned by the master scheduler. The item would be deemed critical in terms of its impact on lower level components and/or resources such as skilled labor, key machines, dollars, etc. A master schedule item may be an end item, a component, a pseudo number, or a planning bill of material. (November 1990) MASTER SCHEDULER - The person who manages the master project or production schedule. (June 2007) MATERIAL COST - The cost of everything of a substantial nature that is essential to the construction or operation of a facility, both of a direct or indirect nature. Generally, includes all manufactured equipment as a basic part. (November 1990) MATERIAL DIFFERENCE - A change that is important to the performance of the work or that will have a measurable influence or effect on the time, cost of, or procedures for the work under the contract. (November 1990) MATERIAL REQUIREMENTS PLANNING (MRP) - A system which uses bills of material, inventory and open order data, and master production schedule information to calculate requirements for materials. It makes recommendations to release replenishment orders for material. Further, since it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Syn.: MRP. See also: MANUFACTURING RESOURCE PLANNING (MRP II). (November 1990) MAXIMUM OUT-OF-POCKET CASH - The highest year-end negative cash balance during project life. (November 1990) MEANS AND METHODS - Syn.: METHOD OF PERFORMANCE. (June 2007) MECHANICAL COMPLETION - Unit is essentially complete for startup operation and test run. All major work is completed. Minor work not interfering with operation may not be completed, such as punch list and minor touchup work. Acceptance letter will have been submitted to the client. Precise definition may vary and is usually a contractual provision. Client custody may commence. It is important that this definition be clearly defined in the contract. (June 2007) MERGE BIAS - In PERT and other deterministic schedule analysis methods, a bias that is introduced because the method does not recognize that parallel slack paths can contribute to risk at the merge points. (December 2011) MERGE NODE - Syn.: MERGE POINT (October 2017) MERGE POINT - In a network diagram, a node at which two or more activities precede the start of subsequent activity. Syn.: MERGE NODE. (October 2017) MERIT SHOP - Syn.: OPEN SHOP. (November 1990) METALANGUAGE (RISK) - In risk identification, a structured description of cause, risk and effect. For example: “Due to <cause>, there is a threat/opportunity that <risk> may occur, which may lead to <effect>.” (December 2011) METHOD OF MEASUREMENT - The procedure, usually standardized, according to which the quantities of work expressed in a bill of quantities (BOQ) shall be measured. See also: BILL OF QUANTITIES (BOQ); RULES OF CREDIT. (June 2007) METHOD OF PERFORMANCE - Manner in which the specified product or objective is accomplished, which is left to the discretion of the contractor unless otherwise provided in the contract. If the owner orders the contractor to modify the construction procedure, this constitutes a change in method. If the imposition of this modification results in additional cost to the contractor, the contractor may be entitled to recovery under the changes clause. Syn.: MEANS AND METHODS. (June 2007) MICRO-SCHEDULING - Scheduling of activities with a duration less than one day (in minutes, hours or fractional days). (June 2007) MILESTONE - A zero duration activity or event which is used to denote a particular point in time for reference or measurement. Milestones are not true activities in that they do not consume time or resources. Often used for management summary reporting. A milestone should be capable of validation by meeting all of the items prescribed in a defining checklist as agreed with the stakeholders. See also: KEY ACTIVITY; KEY EVENTS. (June 2007) MILESTONE DICTIONARY - A description of exactly what is required to satisfy each milestone. (June 2007) MILESTONE FLAG - A numeric code that may be entered on an event to flag the event as a milestone. (November 1990) MILESTONE LEVEL - The level of management at which a particular event is considered to be a key event or milestone. (November 1990) MILESTONE, PAYMENT - Those milestones on which payments fall due. (June 2007) MILESTONE PLAN - A plan containing only milestones that highlight key activities or events of the project. See also: MILESTONE SCHEDULE. (June 2007) MILESTONE REPORT - An output report at a specified level showing the latest allowable date, expected date, schedule completion date, and the slack for the successor event contained on each activity or event name flagged as a milestone at the level specified. (November 1990) MILESTONE SCHEDULE - A schedule comprised of key events or milestones selected as a result of coordination between the client's and the contractor's project management. These events are generally critical accomplishments planned at time intervals throughout the project and used as a basis to monitor overall project performance. The format may be either network or bar chart and may contain minimal detail at a highly summarized level. (November 1990) MISREPRESENTATION - Inaccurate factual information furnished by either party to a contract, even if done unintentionally. Syn.: SUPERIOR KNOWLEDGE. (November 1990) MITIGATION - A risk response strategy for threats intended to reduce consequences and/or the probability of occurrence. In contracting, refers to the affirmative obligation of each party to a contract to take action to decrease, lessen or minimize damages (time and money) to the other party. (December 2011) MITIGATION OF DAMAGES - To take all possible measures to avoid damage and delay and, if not avoidable, to reduce or lessen the extra costs incurred due to occurrence of the event. (November 1990) MODEL PRICING - The techniques of using verbal, symbolic, or analog models to depict cost relationships, and the form which they take. Mathematics and computers are basic analytical tools for model pricing. (November 1990) MODELING - Creation of a physical representation or mathematical description of an object, system or problem that reflects the functions or characteristics of the item involved. Model building may be viewed as both a science and an art. Cost estimate and CPM schedule development should be considered modeling practices and not exact representations of future costs, progress and outcomes. (June 2007) MODIFICATION, BILATERAL - An agreement negotiated by and entered into by both parties for a modification of the existing contract terms of a mutually agreed time or price adjustment. (November 1990) MODIFICATION, UNILATERAL - A modification to the contract issued by the owner without the agreement of the contractor as to the time or price adjustment. (November 1990) MONETARY EQUIVALENTS - The expression or valuation of various objectives and requirements of the enterprise (e.g., environmental, safety, etc.) in terms of monetary units to provide a single measure to be used in decision modeling. (December 2011) MONITORING - Periodic gathering, validating and analyzing various data on contract status to determine any existing or potential problems. Usually one accomplishes this through use of the data provided in contractor reports on schedule, labor, cost and technical status to measure progress against the established baselines for each of these report areas. However, when deemed necessary, on-site inspection and validation and other methods can be employed. (November 1990) MONTE CARLO SIMULATION - A computer sampling technique based on the use of “pseudo-random numbers” that selects samples for a simulation of a range of possible outcomes. See also: LATIN HYPERCUBE. (December 2011) MONTHLY GUIDE SCHEDULE - A detailed two-month schedule used to detail the sequence of activities in an area for analysis or to plan work assignments. This schedule is usually prepared on an "as needed" basis or within a critical area. Syn.: SHORT-TERM ACTIVITIES. (November 1990) MONTH-TO-MONTH PRICE INDEX - A price index for a given month with the preceding month as the base period. (November 1990) MOST LIKELY TIME - The most realistic time estimate for completing an activity under normal conditions. Used in probabilistic scheduling. See also: PERT (PROGRAM (OR PROJECT) EVALUATION AND REVIEW TECHNIQUE). (June 2007) MOST LIKELY VALUE - In risk analysis, usually refers to the mode of a distribution. If the distribution is multimodal, uniform or complex, this may express the estimator’s judgment. (December 2011) MOVING AVERAGE - Smoothing a time series by replacing a value with the mean of itself and adjacent values. (November 1990) MRP - Syn.: MATERIAL REQUIREMENTS PLANNING (MRP). (November 1990) MRP II - Syn.: MANUFACTURING RESOURCE PLANNING (MRP II). (November 1990) MULTI-PROJECT SCHEDULING - Technique used to consolidate multiple projects’ CPM schedules into a master schedule. The technique is used to monitor and control an overall program. See also: PROGRAM (June 2007) MULTIPLE FINISH NETWORK - A network that has more than one finish activity or finish event. (November 1990) MULTIPLE START NETWORK - A network that has more than one start activity or event. (November 1990) MULTIPLE STRAIGHT-LINE DEPRECIATION METHOD - A method of depreciation accounting in which two or more straight line rates are used. This method permits a predetermined portion of the asset to be written off in a fixed number of years. One common practice is to employ a straight-line rate which will write off 3/4 of the cost in the first half of the anticipated service life; with a second straight line rate to write off the remaining 1/4 in the remaining half life. (November 1990) MUST FINISH - Date an activity must finish by. It is a constraint date. See also: IMPOSED FINISH DATE. (June 2007) MUST FINISH BY DATE - Date used by scheduling software to calculate the final completion status of the project. Without the imposition of a must finish by date, the end of the project would float out to its natural completion. (June 2007) MUST START - Date an activity must start by. It is a constraint date. See also: IMPOSED START DATE. (June 2007)