PM Fundamental Terms

Question 1

A Guide to the Project Management

Body of Knowledge (PMBOK Guide)

Answer 1

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

Question 2

Application areas

Answer 2

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

Question 3

Business value

Answer 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.

Question 4

Cultural and social environment

Answer 4

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.

Question 5

Deliverable

Answer 5

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

Question 6

General management skills

Answer 6

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

Question 7

International and political environment

Answer 7

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.

Question 8

Interpersonal skills

Answer 8

The ability to interact, lead, motivate, and

manage people.

Question 9

Iron Triangle of Project Management

Answer 9

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. The Iron Triangle of Project
Management is also known as the Triple
Constraints of Project Management, as all
projects are constrained by time, cost, and
scope.

Question 10

Physical environment

Answer 10

The physical structure and surroundings

that affect a project’s work.

Question 11

Process groups

Answer 11

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.

Question 12

Program

Answer 12

A collection of related projects working in

unison toward a common deliverable.

Question 13

Progressive elaboration

Answer 13

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.

Question 14

Project

Answer 14

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

Question 15

Project benefits management plan

Answer 15

A documented created and maintained by the project sponsor and the project
manager.

The project benefits management plan defines:

• what benefits the project will create
• when the benefits will be realized
• how the benefits will be measured.

Question 16

Project business case

Answer 16

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

Question 17

Project environment

Answer 17

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.

Question 18

Project Management Institute (PMI)

Answer 18

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

Question 19

Project life cycle

Answer 19

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

Question 20

Project management office (PMO)

Answer 20

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

Question 21

Project Management Professional (PMP)

Answer 21

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

Question 22

Project portfolio management

Answer 22

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.

Question 23

Subprojects

Answer 23

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

Question 24

Triple Constraints of Project

Management

Answer 24

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

Question 25

Work performance data

Answer 25

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

Question 26

Work performance information

Answer 26

Work performance information is the
processed and analyzed data that will help
the project manager make project
decisions.

Question 27

Work performance reports

Answer 27

Work performance reports 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.