A threshold is an upper or lower limit dependent upon what context it is used in. Thresholds may be used to define the limit of an acceptable cost or expenditure in project management. It may be used to indicate the maximum amount of time in which an action or process may take place. It may refer to the minimum level of quality allowed for any product or work completed. Threshold specifications may be included on any product to indicate the maximum and minimum temperature which the product can withstand according to project management guidelines. Threshold may indicate the maximum length of time which a product can remain operational without service or repairs. It could show the greatest and weakest sources of power with which said product can be supplied and function safely. A threshold will also define the maximum stress level or workload which the product can function under without reducing its efficiency and/or increasing the chances that said product will malfunction or breakdown.
Should the threshold in any context be surpassed at any time it is mandatory to generate an exception report indicating in what way said threshold was surpassed and for what reason. Based on these reports appropriate disciplinary measures will be considered on a case-by-case basis by project management.
This term is defined in the 3rd and the 4th edition of the PMBOK.