Terminology.
Step. An atomic action, which either successful, either failed.
Process. A set of steps.
Project. A definition of a process, options, input and output files and everything other to build the documentation.
The text refers to the variabes defined in the scons build files. These references look so:
Simple reference: $(variable_name).
Several variables at once: $(tmpdir)/$(filename).
There are also functions in the form $(function parameters): $(basename $(in_file)).
Three functions are defined:
nodir returns the file name without the directory. For example, $(nodir in/guilde.xml) results in "guide.xml".
basename returns the file name without the directory and the extension. For example, $(basename in/guilde.xml) results in "guide".
noext returns the file name without th extension. For example, $(noext in/guilde.xml) results in "in/guide".
Note that this syntax is used only in this Guide. Actual substitutions in the scons build files look different.