CAPM Glossary Pt. 1

Question 1

A planning heuristic for creating the work breakdown structure (WBS). This rule states that the work package in a WBS must take no fewer than 8 hours of labor to create, and no more than 80 hours of labor to create

Answer 1

8/80 rule

Question 2

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

Answer 2

A Guide to the Project Management Body of Knowledge (PMBOK Guide)

Question 3

Treating others with conduct that may result in harm, fear, humiliation, manipulation, or exploitation. For example, berating a project team member because he/she has taken longer than expected to complete a project assignment may be considered humiliation.

Answer 3

Abusive manner

Question 4

The process of accepting a risk because no other action is feasible, or because the risk is deemed to be of small probability, impact, or both, and a formal response is not warranted. This risk response is appropriate for both positive and negative risks but is often used for smaller risks within a project.

Answer 4

Acceptance

Question 5

The receiver signals that the message has been received. Receipt of the message is shown, but not necessarily agreement with the message.

Answer 5

Acknowledgment

Question 6

The receiver confirms that the message is being received through feedback, questions, prompts for clarity and other signs of confirmation.

Answer 6

Active listening

Question 7

The observer interacts with the worker to ask questions and understand each step of the work being completed. In some instances, the observer could serve as an assistant in doing the work

Answer 7

Active observation

Question 8

Begins with problem definition - the ability to discern between the cause and effect of the problem. Root-cause analysis looks beyond the immediate symptoms to the cause of the symptoms–which then affords opportunities for solutions.

Answer 8

Active problem solving

Question 9

The primary output of breaking down the WBS packages. Also known as schedule activities.

Answer 9

Activity list

Question 10

A diagram, such as the project network diagram, that shows the flow of the project work.

Answer 10

Activity network diagram

Question 11

The actual amount of monies the project has spent to date.

Answer 11

Actual cost (AC)

Question 12

Life cycles can be either iterative or incremental. Change is highly probably, and the project team will be working closely with the project stakeholders. You might also know this approach as agile or change-driven.

Answer 12

Adaptive life cycle

Question 13

Once the project is done, either the team moves on to other assignments as a unit, or the project team is disbanded and individual team members go on to other work.

Answer 13

Adjourning

Question 14

A diagram that breaks down ideas, solutions, causes, and project components and groups them together with other similar ideas and components. When stakeholders create a large number of ideas, you can use this diagram to cluster similar ideas together for further analysis.

Answer 14

Affinity diagram

Question 15

The identification of more than one solution. Consider roles, materials, tools, and approaches to the project work.

Answer 15

Alternatives analysis

Question 16

When an issue or claim must be settled before the contract can be closed, the parties involved in the issue or claim will try to reach a settlement through mediation or arbitration rather than litigation.

Answer 16

Alternative dispute resolution

Question 17

A scope definition process of finding alternative solutions for the project customer while considering the customer’s satisfaction, the cost of the solution, and how the customer may use the product in operations.

Answer 17

Alternatives generation

Question 18

Risks that have an uncertain, unclear nature, such as new laws or regulations, marketplace conditions, and other risks that are nearly impossible to predict.

Answer 18

Ambiguity risks

Question 19

A somewhat unreliable estimating approach that relies on historical information to predict what current activity durations should be. However, this form of estimating is more reliable than team member recollections. It is also known as top-down estimating and is a form of expert judgment.

Answer 19

Analogous estimating

Question 20

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

Answer 20

Application area

Question 21

An assumption is something that is believed to be true or false, but has not yet been proven to be true or false. Assumptions that prove wrong can become risks for the project. All identified project assumptions are recorded in this document for testing and analysis.

Answer 21

Assumptions log

Question 22

Project management team members may have authority over other project team members, may have the ability to make decisions, and perhaps even sign approvals for project work and purchases.

Answer 22

Authority power

Question 23

A decision method where only one individual makes the decision for the group.

Answer 23

Autocratic

Question 24

A risk response to avoid the risk.

Answer 24

Avoidance

Question 25

The project manager refuses to act, get involved, or make decisions.

Answer 25

Avoiding power

Question 26

An organization where organizational resources are pooled into one project team, but the functional managers and the project managers share the project power.

Answer 26

Balanced matrix structure

Question 27

Comparing any two similar entities to measure their performance.

Answer 27

Benchmarking

Question 28

An example of a benefits comparison model. It examines the benefit-to-cost ratio.

Answer 28

Benefit/cost ratio (BCR) model

Question 29

A document the seller provides to the buyer. An estimate provided by a company when RFP does not contain clear scope or the requirements are not clearly defined. Price is the determining factor in the decision-making process.

Answer 29

Bid

Question 30

A meeting of all the project’s potential vendors to clarify the contract statement of work and the details of the contracted work.

Answer 30

Bidders conference

Question 31

An estimating approach that starts from zero, accounts for each component of the WBS and arrives at a sum for the project cost estimate. It is completed with the project team and can be one of the most time-consuming and most reliable methods to predict project costs. Produces a definitive estimate.

Answer 31

Bottom-up estimating

Question 32

A data-gathering technique that is similar to brainstorming, but provides brainstorming meeting participants with the questions and topics for brainstorming before the stakeholder identification meeting.

Answer 32

Brain writing

Question 33

The most common approach to risk identification; usually completed by a project team with subject matter experts to identify the risks within the project.

Answer 33

Brainstorming

Question 34

A broad estimate that is used early in the planning processes and also in top-down estimates. The range of variance for this estimate can be from -10 percent to +25 percent.

Answer 34

Budget estimate

Question 35

Risks that affect the business and that may have negative or positive outcomes. Examples include using a less experienced worker to complete a task, allowing phases or activities to overlap, or forgoing the expense of formal training for on-the-job education.

Answer 35

Business risks

Question 36

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 36

Business value

Question 37

A ranking approach to identify the probability and impact by using a numerical value, such as from .01 (very low) to 1.0 (certain).

Answer 37

Cardinal scale

Question 38

Diagrams that show the relationships between variables within a process and how those relationships may contribute to inadequate quality. The diagrams can help organize both the process and team opinions, as well as generate discussion on finding a solution to ensure quality. An Ishikawa diagram is an example.

Answer 38

Cause-and-effect diagram

Question 39

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

Answer 39

Certified Associate in Project Management (CAPM)

Question 40

A committee that evaluates the worthiness of a proposed change and either approves or rejects the proposed change.

Answer 40

Change control board (CCB)

Question 41

A documented system that communicates the process for controlling changes to the project deliverables. This system works with the configuration management system and seeks to control and document proposals to change the project’s product. Documented in the scope management plan, this system defines how changes to the project scope are managed and controlled.

Answer 41

Change control system (CCS)

Question 42

A log in which all changes that enter into a project are recorded. The characteristics of the change, such as the time, cost, risk, and scope details, are also recorded.

Answer 42

Change log

Question 43

A plan that details the project procedures for entertaining change requests, including how change requests are managed, documented, approved or declined.

Answer 43

Change management plan

Question 44

The leader is motivating, has high-energy, and inspires the team through strong convictions about what’s possible and what the team can achieve. Positive thinking and a can-do mentality are characteristics of this kind of leadership.

Answer 44

Charismatic leadership

Question 45

A simple list approach to ensure that work is completed according to the quality policy (done the same way each time).

Answer 45

Checklist

Question 46

The best modality to use when communicating that is relevant to the information being communicated.

Answer 46

Choice of media

Question 47

A disagreement between the buyer and the seller, usually regarding a change, who made the change, and even whether a change has occurred. Also called disputes and appeals, and are monitored and controlled through the project in accordance with the contract terms.

Answer 47

Claim

Question 48

A final process group of the project management life cycle that is responsible for closing the project phase or project. This is where project documentation is archived and project contracts are also closed.

Answer 48

Closure processes

Question 49

A numbering system for each item in the WBS. The PMBOK Guide is a great example because each chapter and its subheadings follow a logical numbering scheme. For example, PMBOK 5.3.3.2 identifies an exact paragraph in the PMBOK guide.

Answer 49

Code of accounts

Question 50

The project manager has the authority to discipline the project team members if they don’t follow orders. The project team feels threatened or coerced into doing the project assignments. Also known as penalty power.

Answer 50

Coercive power

Question 51

A preferred method of conflict resolution that confronts problems head-on. Multiple viewpoints and perspectives contribute to the solution.

Answer 51

Collaborate/problem-solving

Question 52

Contracts and agreements with unions or other employee groups that may serve as constraints on the project.

Answer 52

Collective bargaining agreement constraints

Question 53

A cost-estimating approach that uses a database, typically software driven, to create the cost estimate for a project.

Answer 53

Commercial database

Question 54

Anything that the project management team believes to be true but that hasn’t proven to be true. For example, it may be assumed that all of the project team can be reached via cell phone, although some parts of the world don’t have cell signals.

Answer 54

Communication assumption

Question 55

Anything that prohibits communication from occurring.

Answer 55

Communication barrier

Question 56

N(N-1)/2, where N represents the number of identified stakeholders within a project.

Answer 56

Communication channels formula

Question 57

Anything that limits the project management team’s communication options. This can include geographical locales, incompatible communications software, and even limited communications technology.

Answer 57

Communication constraint

Question 58

A project management subsidiary plan that defines the stakeholders who need specific information, the person who will supply the information, the schedule for the information to be supplied, and the approved modality in which to provide the information.

Answer 58

Communications management plan

Question 59

An attribute that defines what talents, skills, and capabilities are needed to complete the project work.

Answer 59

Competency

Question 60

A negotiating approach that requires both parties to give up something.

Answer 60

Compromising

Question 61

Includes the labeling of the components, how changes are made to the product, and the accountability of the changes.

Answer 61

Configuration identification

Question 62

A system that defines how stakeholders are allowed to submit change requests, the conditions for approving a change request, and how approved change requests are validated in the project scope. This system also documents the characteristics and functions of the project’s products and any changes to a product’s characteristics.

Answer 62

Change management system

Question 63

The organization of the product materials, details, and prior product information.

Answer 63

Configuration status accounting

Question 64

The scope verification and completeness auditing of project or phase deliverables to ensure that they are in alignment with the project plan.

Answer 64

Configuration and verification auditing

Question 65

A situation in which a project manager may have two competing duties of loyalty. For example, purchasing software from a relative may benefit the relative, but it may do hard to the performing organization.

Answer 65

Conflict of interest

Question 66

A diagram that shows the relationships between elements of an environment. For example, this type of diagram would illustrate the networks, servers, workstations, and people that interact with the elements of the environment.

Answer 66

Context diagram

Question 67

An allowance to account for overruns in costs. These are used at the project manager’s discretion and with management’s approval to counteract cost overruns for scheduled activities and risk events.

Answer 67

Contingency reserve

Question 68

A formal agreement between the buyer and the seller. Can be oral or written - through written is preferred.

Answer 68

Contract

Question 69

A system that defines the procedures for how a contract may be changed. The process for changing the contract includes the forms; documented communications; tracking; conditions within the project, business, or marketplace that justify the needed change; dispute resolution procedures; and the procedures for getting the changes approved within the performing organization.

Answer 69

Contract change control system

Question 70

The formal verification of the contract completeness by the vendor and the performing organization.

Answer 70

Contract closure

Question 71

A document that requires that the seller fully describe the work to be completed and/or the product to be supplied. This becomes part of the contract between the buyer and the seller.

Answer 71

Contract statement of work (SOR also CSOW)

Question 72

A WBS entry that considers the time, cost, and scope measurements for the deliverables within the WBS. The estimated performance is compared against the actual performance to measure overall performance for the deliverables within. The specifics are documented in a plan.

Answer 72

Control account

Question 73

A quality control chart that maps the performance of project work over time.

Answer 73

Control chart

Question 74

An inspection-driven process that measures work results to confirm that the project is meeting the relevant quality standards.

Answer 74

Control quality (quality control)

Question 75

A predetermined range of acceptable variances, such as +/- 10 percent off schedule. Should the variance exceed this, project control processes and corrective actions will be enacted.

Answer 75

Control threshold

Question 76

Costs are parallel to each WBS work package. The costs of each work package are aggregated to their corresponding control accounts. Each control account is them aggregated to the sum of the project costs.

Answer 76

Cost aggregation

Question 77

A time-lapse exposure of when project monies are to be spent in relation to cumulative values of the work completed in the project. This is the aggregated costs of all of the work packages within the work breakdown structure (WBS).

Answer 77

Cost basline

Question 78

The cost aggregation achieved by assigning specific dollar amounts for each of the scheduled activities or, more likely, for each of the work packages in the WBS. This applies the cost estimates over time.

Answer 78

Cost budgeting

Question 79

A documented system that examines any changes associated with scope changes, the cost of materials, and the cost of any other resources, and the associated impact on the overall project cost.

Answer 79

Cost change control system

Question 80

A plan that details how the project costs will be planned for, estimated, budgeted, and then monitored and controlled.

Answer 80

Cost management plan

Question 81

The cost associated with the monies spent to attain the expected level of quality. Also known as the cost of quality.

Answer 81

Cost of conformance to quality

Question 82

The cost associated with not satisfying quality expectations. Also known as the cost of poor quality.

Answer 82

Cost of nonconformance to quality

Question 83

The monies spent to recover from not adhering to the expected level of quality. Examples include rework, defect repair, loss of life or limb because safety precautions were not taken, loss of sales, and loss of customers. Also known as the cost of non-conformance to quality.

Answer 83

Cost of poor quality

Question 84

The monies spent to attain the expected level of quality within a project. Examples include training, testing, and safety precautions.

Answer 84

Cost of quality

Question 85

A formula that measures the project based on its financial performance. The formula is CPI = EV/AC.

Answer 85

Cost performance index (CPI)

Question 86

A contract type that pays the vendor all costs for the project, but also includes a buyer-determined award fee for the project work.

Answer 86

Cost plus award fee contract

Question 87

A contract type that requires the buyer to pay for the cost of the good and services procured plus a fixed fee for the contracted work. The buyer assumes the risk of a cost overrun.

Answer 87

Cost plus fixed fee contract

Question 88

A contract type that requires the buyer to pay a cost for the procured work, plus an incentive fee, or a bonus, for the work if terms and conditions are met.

Answer 88

Cost plus incentive fee

Question 89

A contact type that requires the buyer to pay for the costs of the goods and services procured plus a percentage of the costs. The buyer assumes all of the risks for the cost overruns.

Answer 89

Cost plus percentage of costs

Question 90

The difference between the earned value amount and the cumulative actual costs of the project. The formula is CV = EV - AC.

Answer 90

Cost variance (CV)

Question 91

A process to study the tradeoffs between costs and the benefits realized from those costs.

Answer 91

Cost-benefit analysis

Question 92

A schedule compression approach that adds more resources to activities on the critical path to complete the project earlier. When crashing a project, costs are added because the associated labor and sometimes resources (such as faster equipment) cause costs to increase.

Answer 92

Crashing

Question 93

The path in the project network diagram that cannot be delayed without affection the project completion date. There can be more than one, but the activities therein have no float.

Answer 93

Critical path

Question 94

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

Answer 94

Cultural and social environment

Question 95

The culture and the styles that exist in an organization. Examples such as work ethics, hours, view of authority, and shared values, can affect how the project is managed.

Answer 95

Cultural norms

Question 96

The consideration of the risk ranking scores that takes into account any bias, the accuracy of the data submitted, and the reliability of the nature of the data submitted.

Answer 96

Data precision

Question 97

A method to determine which of two or more decisions is the best one. The model examines the costs and benefits of each decision’s outcome and weights the probability of success for each of the decisions.

Answer 97

Decision tree

Question 98

A device that decodes a message as it is being received.

Answer 98

Decoder

Question 99

One of the most accurate estimate types. It’s used late in the planning processes and is associated with bottom-up estimating. You need the WBS to create this estimate. The range of variance for the estimate can be from -5 percent to +10 percent.

Answer 99

Definitive estimate

Question 100

A product, service, or result created by a project. Projects can have multiple.

Answer 100

Deliverable

Question 101

An anonymous method of querying experts about foreseeable risks within a project, phase, or component. The results of the survey are analyzed by a third party, organized, and then circulated to the experts. There can be several rounds of anonymous discussion without fear of backlash or offending other participants in the process. The goal is to gain consensus on project risks within the project.

Answer 101

Delphi Technique

Question 102

An approach that relies on statistical scenarios to determine what variables within a project will result in the best outcome.

Answer 102

Design of experiments

Question 103

Costs that are attributed directly to the project work and cannot be shared among projects. Examples include the equipment needed to complete the project work, salaries of the project team, airfare, hotels, long-distance phone charges, and other expenses tied directly to the project’s existence.

Answer 103

Direct costs

Question 104

Dependencies that determine the preferred order of activities. Project managers should use these relationships at their discretion and should document the logic behind the decision. These dependencies enable activities to happen in a preferred order because of best practices, conditions unique to the project work, or external events. Also known as preferential or soft logic.

Answer 104

Discretionary dependencies

Question 105

A project manager’s responsibility to be loyal to another person, organization, or vendor. For example, a project manager should promote the best interests of an employer rather than the best interests of the vendor.

Answer 105

Duty of loyalty