Z94.4 - Cost Engineering & Project Management

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OBJECTIVE EVENT. An event that signifies the completion of a path through the network. A network may have more than one objective event.

OBSOLESCENCE. The condition of being out of date. A loss of value occasioned by new developments which place the older property at a competitive disadvantage. A factor in depreciation; (2) a decrease in the value of an asset brought about by the development of new and more economical methods, processes, and/or machinery; (3) the loss of usefulness or worth of a product or facility as a result of the appearance of better and/or more economical products, methods or facilities.

OFFSITES. General facilities outside the battery limits of process units, such as field storage, service facilities, utilities, and administrative buildings.

OMISSION. Any part of a system, including design, construction and fabrication, that has been left out,  resulting in a deviation. An omission requires an evaluation to determine what corrective action is necessary.

ON-STREAM FACTOR. The ratio of actual operating days to calendar days.

OPEN SHOP. An employment or project condition where either union or non-union contractors or individuals may be working. Open shop implies that the owner or prime contractor has no union agreement with workers. Also referred to as merit shop.

OPERATING COSTS. The expenses incurred during the normal operation of a facility, or component, including labor, materials, utilities, and other related costs. Includes all fuel, lubricants, and normally scheduled part changes in order to keep a subsystem, system, particular item, or entire project functioning. Operating costs may also include general building maintenance, cleaning services, taxes, and similar items. (See MANUFACTURING COST.)

OPTIMISTIC TIME ESTIMATE. The minimum time in which the activity can be completed if everything goes exceptionally well. It is generally held that an activity would have no more than one chance in a hundred of being completed within this time.

OPTIMUM PLANT SIZE. The plant capacity which represents the best balance between the economics of size and the cost of carrying excess capacity during the initial years of sales.

ORGANIZATIONAL CODES. Numerical or alphabetized characters that the user specifies for the system to associate with a particular activity for sorting purposes.

ORIGINAL DURATION. The initial accepted estimate of an activity duration used in the original baseline schedule.

OVER-HAUL. The distance in excess of that given as the stated haul distance to transport excavated material.

OVERHEAD. A cost or expense inherent in the performing of an operation, ie, engineering, construction, operating or manufacturing, which cannot be charged to or identified with a part of the work, product or asset and, therefore, must be allocated on some arbitrary base believed to be equitable, or handled as a business expense independent of the volume of production. Plant overhead is also called factory expense.

OVER (UNDER) PLAN. The planned cost to date minus the latest revised estimate of cost to date. When planned cost exceeds latest revised estimate, a projected underplan condition exists. When latest revised estimate exceeds planned cost, a projected overplan condition exists.

OVERRUN (UNDERRUN). The value for the work performed to date minus the actual cost for that game work. When value exceeds actual cost, an underrun condition exists. When actual cost exceeds value, an overrun condition exists.

OWNER. The public body or authority, corporation, association, firm or person with whom the contractor has entered into the agreement and for whom the work is to be provided.

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