1. Project Management Fundamental Terms

Question 1

The PMI publication that defines widely
accepted project management practices.
The CAPM and the PMP exam are based
on this book.

Answer 1

A Guide to the Project Management

Body of Knowledge (PMBOK Guide)

Question 2

The areas of expertise, industry, or
function where a project is centered.
Examples of application areas include
architecture, IT, health care, and
manufacturing.

Answer 2

Application areas

Question 3

A quantifiable return on investment. The
return can be tangible, such as
equipment, money, or market share. The
return can also be intangible, such as
brand recognition, trademarks, and
reputation.

Answer 3

Business value

Question 4

A person who has slightly less project
management experience than a PMP, but
who has qualified for and then passed the
CAPM examination.

Answer 4

Certified Associate in Project

Management (CAPM)

Question 5

Defines how a project affects people and
how those people may affect the project.
These include the economic, educational, ethical,
religious, demographic, and ethnic
composition of the people affected by the
project.

Answer 5

Cultural and social environment

Question 6

A product, service, or result created by a

project. Projects can have multiple of these.

Answer 6

Deliverable

Question 7

These include the application of
accounting, procurement, sales and
marketing, contracting, manufacturing,
logistics, strategic planning, human
resource management, standards and
regulations, and information technology.

Answer 7

General management skills

Question 8

The consideration of the local and
international laws, languages,
communication challenges, time zone
differences, and other non-collocated
issues that affect a project’s ability to
progress.

Answer 8

International and political environment

Question 9

The ability to interact, lead, motivate, and

manage people.

Answer 9

Interpersonal skills

Question 10

A triangle with the characteristics of time,
cost, and scope. Time, cost, and scope
each constitute one side of the triangle; if
any side of the Iron Triangle is not in
balance with the other sides, the project
will suffer. It is also known as the Triple
Constraints of Project Management, as all
projects are constrained by time, cost, and
scope.

Answer 10

Iron Triangle of Project Management

Question 11

The physical structure and surroundings

that affect a project’s work.

Answer 11

Physical environment

Question 12

A collection of related processes in project
management. There are five process
groups and 49 project management
processes. The five process groups are
Initiating, Planning, Executing, Monitoring
and Controlling, and Closing.

Answer 12

Process groups

Question 13

A collection of related projects working in

unison toward a common deliverable.

Answer 13

Program

Question 14

The process of gathering project details.
This process uses deductive reasoning,
logic, and a series of information-
gathering techniques to identify details
about a project, product, or solution.

Answer 14

Progressive elaboration

Question 15

A temporary endeavor to create a unique
product, service, or result. The end result
of a project is also called a deliverable.

Answer 15

Project

Question 16

A documented created and maintained by
the project sponsor and the project
manager. It defines what benefits
the project will create, when the benefits
will be realized, and how the benefits will
be measured.

Answer 16

Project benefits management plan

Question 17

Created and maintained by the project
sponsor and shows the financial validity of
why a project is chartered and launched
within the organization. Typically, it is created before
the launch of the project and may be used
as a go/no-go decision point.

Answer 17

Project business case

Question 18

The location and culture of the
environment where the project work will
reside. The project environment includes
the social, economic, and environmental
variables the project must work with or
around.

Answer 18

Project environment

Question 19

An organization of project management
professionals from around the world,
supporting and promoting the careers,
values, and concerns of project managers.

Answer 19

Project Management Institute (PMI)

Question 20

The phases that make up the project.
These are unique to the type of
work being performed and are not
universal to all projects.

Answer 20

Project life cycle

Question 21

A central office that oversees all projects
within an organization or within a
functional department. It supports
the project manager through software,
training, templates, policies,
communication, dispute resolution, and
other services.

Answer 21

Project management office (PMO)

Question 22

A person who has proven project
management experience and has qualified
for and then passed the PMP
examination.

Answer 22

Project Management Professional (PMP)

Question 23

The management and selection of
projects that support an organization’s
vision and mission. It is the balance of
project priority, risk, reward, and return on
investment. This is a senior management
process.

Answer 23

Project portfolio management

Question 24

A smaller project managed within a larger,
parent project. Subprojects are often
contracted work whose deliverable allows
the larger project to progress.

Answer 24

Subprojects

Question 25

Also known as the Iron Triangle. This theory posits that time, cost, and scope are three constraints that every project has.

Answer 25

Triple Constraints of Project | Management

Question 26

``` Raw data, observations, and measurements about project components. It is gathered and stored in the project management information system. ```

Answer 26

Work performance data

Question 27

This is the processed and analyzed data that will help the project manager make project decisions.

Answer 27

Work performance information

Question 28

``` It s is the formatted communication of work performance information. Work performance reports communicate what’s happening in the project through status reports, memos, dashboards, or other modalities. ```

Answer 28

Work performance reports