PMP Flashcards
Study for PMP cert exam
1
Q
360-degree appraisal
A
A performance review completed by a person’s peers, managers, and subordinates. It’s called 360-degree appraisal as it’s a circle of reviews by people at different levels of an organization.
2
Q
Acceptance
A
This is a response to a risk event, generally made when the probability of the event and/or impact are small. It is used when mitigation, transference, or avoidance are not selected.
3
Q
Active listening
A
This occurs when the receiver confirms the message is being received by feedback, questions, prompts for clarity, and other signs of having received the message.
4
Q
Activity attributes
A
Activities that have special conditions,
requirements, risks, and other conditions should be documented.
5
Q
Activity cost estimates
A
The cost of resources including materials, services, and when warranted, labor should be estimated.
6
Q
Activity list
A
A listing of all of the project activities required to complete each project phase or the entire project. This list is an input to the project network diagram.
7
Q
Activity on node
A
A network diagramming approach that places the activities on a node in the project network diagram.
8
Q
Activity sequencing
A
The process of mapping the project activities in the order in which the work should be completed.
9
Q
Actual costs
A
The amount funds the project has spent to date. The difference between actual costs and the earned value will reveal the cost variance.
10
Q
Adjourning
A
The final stage of team development; once the project is done, the team moves onto other assignments either as a unit or the project team is disbanded and individual team members go onto other work.
11
Q
Affinity diagram
A
Clusters like ideas together and allows for decomposition of ideas to compare and contrast project requirements.
12
Q
Analogous estimating
A
This relies on historical information to predict estimates for current projects. Analogous estimating is also known as top-down estimating and is a form of expert judgment.
13
Q
Application areas
A
The areas of discipline that a project may center upon. Consider technology, law, sales, marketing, and construction among many others.
14
Q
Assumption log
A
A document that clearly identifies and tracks assumptions that are made in the project. All assumptions need to be tested for their validity, and the outcome of the test should be recorded.
15
Q
Autocratic
A
The project manager makes all of the
decisions.
16
Q
Avoidance
A
This is one response to a risk event. The risk is avoided by planning a different technique to remove the risk from the project.
17
Q
Benchmarking
A
A process of using prior projects within or external to the performing organization to compare and set quality standards for processes and results
18
Q
Benefit measurement methods
A
Project selection methods that compare the benefits of projects to determine which project the organization should invest its funds.
19
Q
Benefit/cost analysis
A
The process of determining the pros and cons of any project, process, product, or activity.
20
Q
Benefit/cost ratios
A
Shows the proportion of benefits to costs; for example 4:1 would equate to four benefits and just one cost.
21
Q
Bid
A
A document from the seller to the buyer. Used when price is the determining factor in the decision-making process.
22
Q
Bidder conferences
A
A meeting with prospective sellers to ensure all sellers have a clear understanding of the product or service to be procured. Bidder conferences allow sellers to query the buyer on the details of the product to help ensure that the proposal the seller creates is adequate and appropriate for the proposed agreement.
23
Q
Bottom-up estimating
A
A technique where an estimate for each component in the WBS is developed and then totaled for an overall project budget. This is the longest method to complete, but it provides the most accurate estimate.
24
Q
Brainstorming
A
The most common approach to risk
identification; it is performed by a project team to identify the risks within the project. A multidisciplinary team, hosted by a project facilitator, can also perform brainstorming.
25
Budget at completion
The predicted budget for the project; what the project should cost when it is completed. Budget at completion represents 100 percent of the planned value for the project’s completion.
26
Cause-and-effect diagrams
Used for root cause analysis of what factors are creating the risks within the project. The goal is to identify and treat the root of the problem, not the symptom.
27
Centralized contracting
All contracts for all projects need to be approved through a central contracting unit within the performing organization.
28
Change Control Board
A group of decision makers that review
proposed project changes.
29
Change Control System
A predefined set of activities, forms, and procedures to entertain project change requests.
30
Change log
As changes to the project time, cost, or scope enter the project they should be recorded in the change log for future reference.
31
Change management plan
When changes are approved for a project, including time, cost, scope, or contract, then there needs to be a plan on how the project team will manage these new changes within the project.
32
Chart of accounts
A coding system used by the performing organization's accounting system to account for the project work.
33
Checklists
A listing of activities that workers check to ensure the work has been completed consistently; used in quality control.
34
Closing
The fifth of five project management process groups. It contains the processes responsible for closing a project, a project phase, or the procurement relationships.
35
Coercive power
The project manager uses fear and threats to manage the project team.
36
Collective bargaining agreements
These are contractual agreements initiated by employee groups, unions, or other labor organizations; they may act as a constraint on the project.
37
Communications formula
The formula “N (N – 1) / 2” shows the number of communication channels in a project. N represents the total number of stakeholders.
38
Communications management plan
A plan that documents and organizes the stakeholder needs for communication. This plan covers the communications system, its documentation, the flow of communication, modalities of communication, schedules for communications, information retrieval, and any other stakeholder requirements for communications
39
Composite structure
An organizational structure that uses a blend of the functional, matrix, or projectized organization to operate and manage projects.
40
Compromising
A conflict resolution method; this approach
requires both parties to give up something.
The decision ultimately made is a blend of
both sides of the argument. Because neither
party completely wins, it is considered a loselose solution.
41
Confidentiality
A project manager should keep certain
aspects of a project confidential; consider
contract negotiations, human resource issues,
and trade secrets of the organization.
42
Configuration management
The control and documentation of the
project’s product features and functions.
43
Conflict of interest
A situation where the project manager could
influence a decision for personal gain.
44
Constrained optimization methods
Complex mathematical models to determine
the likelihood of projects success in order to
determine if the organization should invest its
funds into the project.
45
Constraints
Anything that limits the project manager’s
options; for example, time, cost, and scope
are always project constraints.
46
Contingency reserve
A time or dollar amount allotted as a response
to risk events that may occur within a project.
47
Continuous process improvement
A goal of quality assurance to improve the
project’s processes and deliverables; meshes
with the project’s Process Improvement Plan.
48
Contract
A legal, binding agreement, preferably written,
between a buyer and seller detailing the
requirements and obligations of both parties.
Must include an offer, an acceptance, and a
consideration.
49
Contract administration
The process of ensuring that the buyer and
the seller both perform to the specifications
within the contract.
50
Contract change control system
Defines the procedures for how contracts may
be changed. Includes the paperwork, tracking,
conditions, dispute resolution procedures, and
the procedures for getting the changes
approved within the performing organization.
51
Contract closeout
A process for confirming that the obligations
of the contract were met as expected. The
project manager, the customer, key
stakeholder, and, in some instances, the seller
complete the product verification together to
confirm the contract has been completed.
52
Contract file
A complete indexed set of records of the
procurement process incorporated into the
administrative closure process. These records
include financial information as well as
information on the performance and
acceptance of the procured work.
53
Control charts
These illustrate the performance of a project
over time. They map the results of inspections
against a chart. Control charts are typically
used in projects or operations that have
repetitive activities such as manufacturing,
test series, or help desk functions. Upper and
lower control limits indicate if values are
within control or out of control.
54
Cost baseline
This shows what the project is expected to
spend. It's usually shown in an S-curve and
allows the project manager and management
to predict when the project will be spending
monies and over what duration. The purpose
of the cost baseline is to measure and predict
project performance.
55
Cost budgeting
A process of assigning a cost to an individual
work package. This process shows costs over
time. The cost budget results in an S-Curve
that becomes the cost baseline for the
project.
56
Cost change control
This is part of the Integrated Change Control
System and documents the procedures to
request, approve, and incorporate changes to
project costs.
57
Cost control
An active process to control causes of cost
change, to document cost changes, and to
monitor cost fluctuations within the project.
When changes occur, the cost baseline must
be updated.
58
Cost estimating
The process of calculating the costs, by
category, of the identified resources to
complete the project work.
59
Cost management plan
Explains how variances to the costs of the
project will be managed. The plan may be
based on a range of acceptable variances and
the expected response to variances over a
given threshold.
60
Cost of conformance
The cost of completing the project work to
satisfy the project scope and the expected
level of quality. Examples include training,
safety measures, and quality management
activities. Also known as the cost of quality.
61
Cost of nonconformance
The cost of not completing the project with
quality; included wasted time for corrective
actions, rework, wasted materials. Could also
mean loss of business, loss of sales, lawsuits.
Also known as the cost of poor quality.
62
Cost performance index
The process of calculating the costs, by
category, of the identified resources to
complete the project work
63
Cost Plus Award Fee
This contract requires the buyer to pay for all
the project costs and give the seller an award
fee based on the project performance,
meeting certain project criteria, or other goals
established by the buyer. The award fee can
be tied to any factor the buyer determines
and the factor doesn’t have to be exact.
64
Cost variance
The difference between the earned value and
the actual costs.
65
Cost-reimbursable contracts
A contract that pays the seller for the product.
In the payment to the seller, there is a profit
margin the difference between the actual
costs of the product and the sales amount.
66
Crashing
A duration compression technique that adds
project resources to the project in an effort to
reduce the amount of time allotted for effortdriven activities
67
Critical chain method
A network diagramming approach that
considers the availability or project resources
and the project’s promised end date to
determine the critical path(s) in the project.
68
Critical path method
A network diagramming approach that
identifies the project activities which cannot
be delayed or the project completion date will
be late.
69
Cultural norm
The accepted practices, culture, ideas, vision,
and nature of an organization.
70
Culture shock
The initial reaction a person experiences when
they’re in a foreign environment.
71
Decision tree analysis
A type of analysis that determines which of
two decisions is the best. The decision tree
assists in calculating the value of the decision
and determining which decision costs the
least.
72
Decoder
This is a part of the communications model; it
is the inverse of the encoder. If a message is
encoded, a decoder translates it back to
usable format.
73
Decomposition
The breakdown of the project scope
statement into the project’s work breakdown
structure. The smallest item of the project’s
decomposition into the WBS is called the work
package.
74
Deliverable
A thing that a project creates; projects
generally create many deliverables as part of
the project work.
75
Delphi Technique
A method to query experts anonymously on
foreseeable risks within the project, phase, or
component of the project. The results of the
survey are analyzed and organized and then
circulated to the experts. There can be several
rounds of anonymous discussions with the Delphi
technique. The goal is to gain consensus on
project risks, and the anonymous nature of the
process ensures that no one expert's advice
overtly influences the opinion of another
participant.
76
Democratic
The project team is involved in the decisionmaking process.
77
Design of experiments
This relies on statistical “what-if” scenarios to
determine which variables within a project
will result in the best outcome; it can also be
used to eliminate a defect. The design of
experiments approach is most often used on
the product of the project, rather than the
project itself.
78
Dictatorship
A group decision process where the person
with the most power forces the decision even
though the rest of the group may oppose the
decision.
79
Direct costs
Costs incurred by the project in order for it to
exist. Examples include equipment needed to
complete the project work, salaries of the
project team, and other expenses tied directly
to the project's existence.
80
Discretionary dependencies
The order of the project activities do not have
to completed in a particular order so they can
be done in the order of the project manager
or the project team’s discretion.
81
Duration estimates
The prediction of how long the project work
will take to complete.
82
Earned value
The value of the work that has been
completed and the budget for that work:
EV=%Complete X BAC.
83
Earned value management
Earned value management integrates scope,
schedule, and cost to give an objective,
scalable point-in-time assessment of the
project. EVM calculates the performance of
the project and compares current
performance against plan. EVM can also be a
harbinger of things to come. Results early in
the project can predict the likelihood of the
project's success or failure.
84
Effective listening
The receiver is involved in the listening
experience by paying attention to visual clues
by the speaker and to paralingual intentions
and by asking relevant questions.
85
Encoder
Part of the communications model; the device
or technology that packages the message to
travel over the medium.
86
Enhance
To enhance a risk is to attempt to modify it
probability to and/or its impacts to realize the
most gains from the identified risk.
87
Estimate at completion
A hypothesis of what the total cost of the
project will be. Before the project begins, the
project manager completes an estimate for
the project deliverables based on the WBS. As
the project progresses, there will likely be
some variances between what the cost
estimate was and what the actual cost is. The
EAC is calculated to predict what the new
estimate at completion will be.
88
Estimate to complete
Represents how much more money is needed
to complete the project work: ETC=EAC-AC.
89
Estimating publications
Typically a commercial reference to help the
project estimator confirm and predict the
accuracy of estimates. If a project manager
elects to use one of these commercial
databases, the estimate should include a
pointer to this document for future reference
and verification.
90
Ethics
Describes the personal, cultural, and
organizational interpretation of right and
wrong; project managers are to operate
ethically and fairly.
91
Ethnocentrism
Happens when individuals measure and
compare a foreigner’s actions against their
own local culture. The locals typically believe
their own culture is superior to the foreigner’s
culture.
92
Evaluation criteria
Used to rate and score proposals from sellers.
In some instances, such as a bid or quote, the
evaluation criterion is focused just on the
price the seller offers. In other instances, such
as a proposal, the evaluation criteria can be
multiple values: experience, references,
certifications, and more.
93
Exceptional
The project manager only pays attention to
the top ten percent of the project performers
and the bottom ten percent of the project
team performers.
94
Executing
The project management process group that
carries out the project management plan to
create the project deliverables.
95
Expectancy Theory
People will behave on the basis of what they
expect as a result of their behavior. In other
words, people will work in relation to the
expected reward of the work.
96
Expert power
A type of power where the authority of the
project manager comes from experience with
the area that the project focuses on.
97
Exploit
The organization wants to ensure that the
identified risk does happen to realize the
positive impact associated with the risk event.
98
Facilitated workshops
A collection of stakeholders from around the
organization that come together to analyze,
discuss, and determine the project
requirements.
99
Fast tracking
A schedule compression technique that allows
phases to overlap in order to compress the
schedule and finish the job faster. Fast tracking
does increase project risk.
100
Feedback
Sender confirmation of the message by asking
questions, requesting a response, or other
confirmation signals.
101
Finish-to-finish
A relationship between project activities
where the predecessor activities must finish
before successor activities may finish.
102
Finish-to-start
A relationship between project activities
where the predecessor activities must finish
before the successor activities may start; this
is the most common network diagramming
relationship type.
103
Fixed costs
Costs that remain the same throughout the
project.
104
Fixed Price with Economic Price
Adjustment Contracts
A contract for long-term projects that may
span years to complete the project work. The
contract does define a fixed price with caveats
for special categories of price fluctuation.
105
Fixed-price contracts
Fixed-price contracts are also known as FirmFixed-Price and Lump-Sum contracts. These
contracts have a pre-set price that the vendor
is obligated to perform the work or provide
materials for the agreed price.
106
Float
A generic term to describe the amount of time
an activity may delayed without delaying any
successor activities start date.
107
Flowcharting
A chart that illustrates how the parts of a
system occur in sequence.
108
FNET
A project constraint that requires an activity to
finish no earlier than a specific date.
109
Focus groups
A conversation of stakeholders led by a
moderator to elicit project requirements.
110
Force majeure
A powerful and unexpected event, such as a
hurricane or other disaster.
111
Forcing
A conflict resolution method where one
person dominates or forces their point of view
or solution to a conflict.
112
Forecasting
An educated estimate of how long the project
will take to complete. Can also refer to how
much the project may cost to complete.
113
Formal power
The type of power where the project manager
has been assigned by senior management to
be in charge of the project.
114
Forming
The initial stage of team development; the
project team meets and learns about their
roles and responsibilities on the project.
115
Fragnets
A portion of the project that is usually
contracted to a vendor to complete yet the
project work is still represented in the project
network diagram.
116
Function analysis
Related to value engineering, this allows team
input to the problem, institutes a search for a
logical solution, and tests the functions of the
product so the results can be graphed.
117
Functional managers
The managers of the permanent staff in each
organizational department, line of business, or
function such as sales, finance, technology.
Project managers and functional managers
interact on project decisions that affect
functions, projects, and operations.
118
Functional structure
An organization that groups staff according to
their expertise. Entities that have a clear
division regarding business units and their
associated responsibility. Project managers in
functional organization have little power and
report to the functional managers and the
project team all exist within one department.
119
Future value
A formula to predict the current amount of
funds into a future amount of funds. The
formula is: Future Value = Present Value(1+i)n
where i is the value of return and n is the
number of time periods.
120
Halo effect
When one attribute of a person influences a
decision.
121
Hard logic
The project activities must be completed in a
particular order; this is also known as
mandatory dependencies.
122
Herzberg’s Theory of Motivation
Posits that there are two catalysts for workers:
hygiene agents and motivating agents. Hygiene
agents do nothing to motivate, but their absence
demotivates workers. Hygiene agents are the
expectations all workers have: job security,
paychecks clean and safe working conditions, a
sense of belonging, civil working relationships,
and other basic attributes associated with
employment. Motivating agents are components
such as reward, recognition, promotion, and
other values that encourage individuals to
succeed.
123
Histogram
A bar chart; A Pareto diagram is an example of
a histogram.
124
Historical information
Any information created in the past that can
the current project succeed.
125
Human resources plan
Defines the management of the project
human resources, timing of use, and
enterprise environmental factors the project
manager must adhere to in the organization
when it comes to human resources
management.
126
Indirect costs
These costs can be shared across multiple
projects that use the same resources—such as
for a training room or piece of equipment.
127
Influence diagram
An influence diagram charts out a decision
problem. It identifies all of the elements,
variables, decisions, and objectives—and how
each factor may influence another
128
Initiating
The start and authorization of the project; the
project manager is identified, the project is
authorized through the charter, and the
stakeholders are identified.
129
Internal rate of return
A benefit measurement formula to calculate
the when the present value of the cash inflow
equals the project’s original investment.
130
Interviews
A requirements elicitation process to collect
requirements from the project stakeholders.
131
Invitation for bid
A document from the buyer to the seller.
Requests the seller to provide a price for the
procured product or service.
132
Iron Triangle
A term used to describe the three constraints
of every project: time, cost, and scope. The
sides of the Iron Triangle must be kept in
balance or the quality of the project will
suffer.
133
ISO 9000
An international standard that helps
organizations follow their own quality
procedures. ISO 9000 is not a quality system,
but a method of following procedures created
by an organization.
134
Issue log
Issues are decision that are usually in
disagreement among two or more parties.
Issues are recorded in the issue log along with
an issue owner designation, an issue date for
resolution, and the eventual outcome of the
issue.
135
Issues
Any point of contention, debate, or decision
that has not yet been made in the project that
may affect the project’s success.
136
Iterative relationships of project
phases
Ideal for projects like research. The next phase
of the project is not planned until the current
phase of the project is underway. The
direction of the project can change based on
the current work in the project, market
conditions, or as more information is
discovered.
137
Kill point
An opportunity to halt the project based on
project performance in the previous phase.
Kill points typically come at the end of a
project phase and are also known as phase
gates.
138
Knowledge areas
There are nine knowledge areas within project
management; each knowledge area is a
specific portion of the project, and all nine
project management knowledge areas are
interrelated.
139
Lag
Time added to a project activity to delay its
start time; lag time is considered positive time
and it is sometimes called waiting time.
140
Laissez faire
The project manager has a hands-off policy
and the team is entirely self-led regarding the
decision-making process.
141
Lead
Time added to activity to allow its start time
to begin earlier than scheduled; lead time is
negative time as it moves the activities closer
to the project’s start date.
142
Lessons learned
Ongoing collection of documentation about
what has and has not worked in the project;
the project manager and the project team
participate in lessons learned creation.
143
Letter of intent
Expresses the intent of the buyer to procure
products or services from the seller. Not the
equivalent to a contract.
144
Majority
A group decision process where a vote is
offered and the majority wins.
145
Make-or-buy analysis
Used in determining what part of the project
scope to make and what part to purchase.
146
Management by Projects
An organization that uses projects to move the
company forward is using the Management by
Projects approach. These project-centric
entities could manage any level of their work
as a project.
147
Mandatory dependencies
Project activities must happen in a particular
order due to the nature of the work; also
known as hard logic.
148
Maslow’s Hierarchy of Needs
A theory that states that there are five layers
of needs for all humans; physiological, safety,
social, esteem, and the crowning jewel, selfactualization.
149
Matrix structure
An organization that groups staff by function
but openly shares resources on project teams
throughout the organization. Project
managers in a matrix structure share the
power with functional management. There
are three types of matrix structures: weak,
balanced, and strong to describe the amount
of authority for the project manager.
150
McClelland’s Theory of Needs
People have three needs: achievement,
affiliation, and power. One of the needs drives
the person’s actions.
151
McGregor’s Theory of X and Y
This theory states that “X” people are lazy,
don't want to work, and need to be
micromanaged. “Y” people are self-led,
motivated, and strive to accomplish.
152
Medium
Part of the communications model; this is the
path the message takes from the sender to
the receiver. This is the modality in which the
communication travels typically refers to an
electronic model, such as e-mail or the
telephone.
153
Mind mapping
A visual representation of like and opposing
ideas, thoughts, and project requirements.
154
Mitigation
Reducing the probability or impact of a risk.
155
Monitoring and controlling
The project management process group
responsible for ensuring that the project
execution is completed according to the
project management plan and expectations.
156
Monte Carlo analysis
A what-if scenario to determine how scenarios
may work out given any number of variables.
The process doesn't actually create out a
specific answer, but a range of possible
answers. When Monte Carlo is applied to a
schedule, it can present, for example, the
optimistic completion date, the pessimistic
completion date, and the most likely
completion date for each activity in the
project.
157
Murder boards
A group of decision makers that may
determine to “kill” a proposed project before
it is officially launched based on the board’s
findings on the likelihood of the project’s
success.
158
Net present value
A benefit measurement formula that provides
a precise measurement of the present value of
each year the project generates a return on
investment.
159
Network templates
A network diagram based on previous similar
projects that is adapted for the current project
work.
160
Nominal group technique
A group creativity technique that follows the
brainstorming model but ranks each
brainstorm idea.
161
Nonverbal
Approximately 55 percent of oral
communication is non-verbal. Facial
expressions, hand gestures, and body
language contribute to the message.
162
Norming
Project team members go about getting the
project work, begin to rely on one another,
and generally complete their project
assignments.
163
Observation
A requirements elicitation process where the
observer shadows a person to understand
how they complete a process. Observers may
be a participant observer or an invisible
observer.
164
Oligopoly
A market condition where the actions of one
competitor affects the actions of all the other
competitors.
165
Operational definitions
The quantifiable terms and values used to
measure a process, activity, or work result.
Operational definitions are also known as
metrics.
166
Operations
The ongoing work of the business. Operations
are a generic way to describe the activities
that support the core functions of a business
entity.
167
Operations management
Operation managers deal directly with the
income-generating products or services the
company provides. Projects often affect the
core business so these managers are
stakeholders in the project.
168
Organizational breakdown structure
Though these charts are similar to the WBS,
the breakdown is by department, units, or by
team.
169
Organizational charts
These show how an organization, such as a
company or large project team, is ordered,
reporting structures, and the flow of
information.
170
Ouchi’s Theory Z
This theory posits that workers are motivated
by a sense of commitment, opportunity, and
advancement. Workers will work if they are
challenged and motivated.
171
Overlapping relationship of phases
Allows project phases to overlap to compress
the project duration. This is also known as fast
tracking.
172
Paralingual
The pitch, tone, and inflections in the sender's
voice affect the message being sent.
173
Parametric estimating
Ideal for projects with repetitive work where a
parameter, such as five hours per unit, is used
to estimate the project duration.
174
Parametric modeling
A mathematical model based on known
parameters to predict the cost of a project.
The parameters in the model can vary based
on the type of work being done. A parameter
can be cost per cubic yard, cost per unit, and
so on.
175
Pareto diagrams
A Pareto diagram is related to Pareto's Law: 80
percent of the problems come from 20
percent of the issues (this is also known as the
“80/20 rule”). A Pareto diagram illustrates
problems by assigned cause, from smallest to
largest.
176
Parkinson’s Law
Work expands to fill the amount of time
allotted to it.
177
Payback period
The duration of time it takes a project to earn
back the original investment.
178
Performance reports
These formal reports define how the project is
performing on time, cost, scope, quality and
any other relevant information.
179
Performing
If a project team can reach the performing
stage of team development, they trust one
another, work well together, and issues and
problems get resolved quickly and effectively.
180
Planned value
The worth of the work that should be
completed by a specific time in the project
schedule.
181
Planning
The iterative process group where the
intention of the project is determined and
documented in the project management plan.
182
Plurality
A group decision process approach allows the
biggest section of a group to win even if a
majority doesn’t exist.
183
PMBOK Guide
The abbreviate definition for PMI’s A Guide to
the Project Management Body of Knowledge.
184
PMI Code of Ethics and Professional
Conduct
A PMI document that defines the expectations
of its members to act responsibly,
respectfully, fairly, and honestly in their
leadership of projects and programs.
185
PMIS
A project management information system is
typically a software system, such as Microsoft
Project, to assist the project manager in
managing the project.
186
PMP
Your goal. A PMP is certified by the Project
Management Institute as a Project
Management Professional.
187
Portfolio management review board
A collection of organizational decision makers,
usually executives, that review proposed
projects and programs for their value and
return on investment for the organization.
188
Precedence diagramming method
The most common method of arranging the
project work visually. The PDM puts the
activities in boxes, called nodes, and connects
the boxes with arrows. The arrows represent
the relationship and the dependencies of the
work packages.
189
Present value
A benefit measurement formula to determine
what a future amount of funds is worth today.
The formula is Present Value=Future
Value/(1+i)n where i is the value of return and
n is the number of time periods.
190
Problem solving
The ability to determine the best solution for a
problem in a quick and efficient manner.
191
Process adjustments
When quality is lacking, process adjustments
are needed for immediate corrective actions
or for future preventive actions to ensure that
quality improves. Process adjustments may
qualify for a change request and be funneled
through the Change Control System as part of
integration management.
192
Process improvement plan
Identifies methods to track and eliminate
waste and non-value–added activities.
193
Procurement
The process of a seller soliciting, selecting, and
paying for products or services from a buyer.
194
Procurement audits
The successes and failures within the
procurement process are reviewed from
procurement planning through contract
administration. The intent of the audit is to
learn from what worked and what did not
work during the procurement processes.
195
Procurement documents
All of the documents for purchasing, such as
request for quotes, invitation to bid, request
for proposal, and the responses are stored as
part of the project documentation.
196
Procurement management plan
Describes the procurement process from
solicitation to source selection. The plan may
also include the requirements for selection as
set by the organization.
197
Product life cycle
The unique life, duration, and support of the
thing a project creates. Product life cycles are
separate from the project life cycle.
198
Product scope
The attributes and characteristics of the
deliverables the project is creating.
199
Program manager
Coordinates the efforts of multiple projects
working together in the program. Programs
are comprised of projects, so the program
manager is a stakeholder in each of the
constituent projects within the program.
200
Programs
A collection of projects working in unison to
realize benefits that could not be achieved by
managing each project independently of one
another.
201
Progress reports
These provide current information on the
project work completed to date.
202
Progressive elaboration
The process of starting with a large idea and
through incremental analysis, actions, and
planning the idea becomes more and more
specific. Progressive elaboration is the
generally-accepted planning process for
project management, wherein the project
management team start very broad and work
towards a specific, detailed plan.
203
Project
An undertaking outside of normal operations
to create a unique product, service, condition,
or result. Projects are temporary while
operations are ongoing.
204
Project baselines
There are three baselines in a project which
are used to measure project performance:
cost, schedule and scope.
205
Project calendar
A calendar that defines the working times for
the project. For example, a project may
require the project team to work nights and
weekends so as not to disturb the ongoing
operations of the organization during working
hours. In addition, the project calendar
accounts for holidays, working hours, and
work shifts the project will cover.
206
Project charter
A document that authorizes the project,
defines the high-level requirements, identifies
the project manager and the project sponsor,
and provides initial information about the
project.
207
Project Communications Management
One of the nine project management
knowledge areas; it is the planning and
management of communication among
project stakeholders.
208
Project Cost Management
One of the nine project management
knowledge areas; it is the estimating,
budgeting, and controlling of the project
expenses.
209
Project customer/end user
The person or group that will use the project
deliverable. In some instances, a project may
have many different customers.
210
Project funding requirements
In larger projects this document identifies the
timeline of when capital is required for the
project to move forward. This document
defines the amount of funds a project needs
in order to reach its objectives and when the
project funds are needed.
211
Project governance
Defines the rules for a project and it’s up to
the project manager to enforce the project
governance to ensure the project’s ability to
reach its objectives. The project management
plan defines the project governance and how
the project manager, the project team, and
the organization will all follow the rules and
policies within the project.
212
Project Human Resource Management
One of the nine project management
knowledge areas; projects are completed by
people and the project manager generally
oversees the management of the human
resources on the project team.
213
Project Integration Management
One of the nine project management
knowledge areas; this knowledge area
coordinates the activities and completeness of
the other eight knowledge areas.
214
Project life cycle
Unique to each project and comprised of
phases of work. Project life cycles typically
create a milestone and allow subsequent
phases to begin.
215
Project management
The management of the projects within an
organization. It is the initiation, planning,
executing, monitoring and controlling, and
closing of the temporary endeavor of the
project.
216
Project management integration
A project management knowledge area that
coordinates all of the effort of the project’s
initiation, planning, executing, monitoring and
controlling, and closing.
217
Project Management Office (PMO)
Organizes and manages control over all
projects within an organization. PMOs may
also known as a program management office,
project office, or simply the program office.
Coordinate all aspects, methodology, and
nomenclature for project processes,
templates, software, and resource
assignment.
218
Project management team
People on the project team that are involved
with managing the project.
219
Project manager
The person accountable for managing the
project; guides the team through the project
phases to completion.
220
Project plan
A comprehensive document comprised of
several subsidiary plans that communicates
the intent and direction of the project.
221
Project portfolio management
A management process to select the projects
that should be invested in. Specifically, it is the
selection process based on the need,
profitability, and affordability of the proposed
projects.
222
Project Procurement Management
One of the nine project management
knowledge areas; this knowledge area
oversees the purchasing and contract
administration for a project.
223
Project Quality Management
One of the nine project management
knowledge areas; this knowledge area defines
quality assurance, quality control, and the
quality policy for the project.
224
Project risk management
A project management knowledge area that
creates the risk management plan, performs
qualitative and quantitative risk analysis, plans
risk responses, and monitors and controls the
project risks
225
Project scope management
A project management knowledge area
responsible for collecting project
requirements, defining the project scope,
create the WBS, performing scope verification,
and controlling the project scope. The project
scope statement includes the product scope
description, product acceptance criteria,
project deliverables, project exclusions,
project assumptions and the project
constraints.
226
Project sponsor
Authorizes the project. This person or group
ensures that the project manager has the
necessary resources, including monies, to get
the work done. The project sponsor is
someone within the performing organization
that has the power to authorize and sanction
the project work, and is ultimately
accountable for the project’s success.
227
Project team
The collection of individuals that will work
together to ensure the success of the project.
The project manager works with the project
team to guide, schedule, and oversee the
project work. The project team completes the
project work.
228
Project time management
A project management knowledge area that
defines the project activities, sequences
project work, estimates resources and activity
durations, and develops the project schedule.
This knowledge area is also responsible for
control the project schedule.
229
Projectized structure
Group of employees, collocated or not, by
activities on a particular project. The project
manager in a projectized structure may have
complete, or very close to complete, power
over the project team.
230
Proposal
A document from the seller to the buyer,
responding to a Request for Proposal or other
procurement documents. Proposals are an
expose on ideas, suggestion,
recommendations, and solutions to an
opportunity provided by a vendor for a seller.
Proposals include a price for the work and
document how the vendor would provide the
service to the buyer.
231
Prototypes
A mockup of the project deliverable to
confirm, adapt, or develop the project
requirements.
232
Qualified seller list
The performing organization may have lists of
qualified sellers, preferred sellers, or approved
sellers. The qualified sellers list generally has
contact information, history of past
experience with the seller, and other pertinent
information.
233
Qualitative risk analysis
An examination and prioritization of the risks
based on their probability of occurring and the
impact on the project if they do occur.
Qualitative risk analysis guides the risk
reaction process.
234
Quality assurance
An executing process to ensure that the
project is adhering to the quality expectations
of the project customer and organization. QA
is a prevention-driven process to perform the
project work with quality to avoid errors,
waste, and delays.
235
Quality audits
A quality audit is a process to confirm that the
quality processes are performing correctly on
the current project. The quality audit
determines how to make things better for the
project and other projects within the
organization. Quality audits measure the
project's ability to maintain the expected level
of quality.
236
Quality control
A process in which the work results are
monitored to see if they meet relevant quality
standards.
237
Quality function
A philosophy and a practice to fully
understand customer needs—both spoken
and implied—without gold-plating the project
deliverables.
238
Quality management plan
This document describes how the project
manager and the project team will fulfill the
quality policy. In an ISO 9000 environment,
the Quality Management Plan is referred to as
the “project quality system.”
239
Quality policy
The formal policy an organization follows to
achieve a preset standard of quality. The
project team should either adapt the quality
policy of the organization to guide the project
implementation or create its own policy if one
does not exist within the performing
organization.
240
Quantitative risk analysis
A numerical assessment of the probability and
impact of the identified risks. Quantitative risk
analysis also creates an overall risk score for
the project.
241
Quote
A document from the seller to the buyer; used
when price is the determining factor in the
decision-making process.
242
RACI chart
A chart designates each team member against
each project activity as either Responsible,
Accountable, Consult, or Inform (RACI). A RACI
chart is technically a type of responsibility
assignment matrix chart.
243
Receiver
Part of the communications model: the
recipient of the message.
244
Referent power
Power that is present when the project team
is attracted to, or wants to work on the project
or with, the project manager. Referent power
also exists when the project manager
references another, more powerful person,
such as the CEO.
245
Request for proposal
A document from the buyer to the seller that
asks the seller to provide a proposal for
completing the procured work or for providing
the procured product.
246
Request for quote
A document from the buyer to the seller
asking the seller to provide a price for the
procured product or service.
247
Requirements Documentation
A clearly-defined explanation of the project
requirements. The requirements must be
measurable, complete, accurate, and signed-off by the project stakeholders
248
Requirements Management Plan
Defines how requirements will manage
throughout the phases of the project. This
plan also defines how any changes to the
requirements will be allowed, documented,
and tracked through project execution.
249
Requirements traceability matrix
A table that identifies all of the project
requirements, when the requirements is due,
when the requirements created, and any
other pertinent information about the
requirements.
250
Residual risks
Risks that are left over after mitigation,
transference, and avoidance. These are
generally accepted risks. Management may
elect to add contingency costs and time to
account for the residual risks within the
project.
251
Resource breakdown structure
This type of chart breaks down the project by
types of resources utilized on the project no
matter where the resource is being utilized in
the project.
252
Resource calendar
The resource calendar shows when resources,
such as project team members, consultants,
and SMEs, are available to work on the
project. It takes into account vacations, other
commitments within the organization,
restrictions on contracted work, overtime
issues, and so on.
253
Resource histogram
A bar chart reflecting when individual
employees, groups, or communities are
involved in a project. Often used by
management to see when employees are
most or least active in a project.
254
Resource leveling heuristics
A method to flatten the schedule when
resources are over-allocated or allocated
unevenly. Resource leveling can be applied in
different methods to accomplish different
goals. One of the most common methods is to
ensure that workers are not overextended on
activities.
255
Resource requirements
The identification of what resources are
needed to complete the project work is
needed as a supporting document for
planning. This includes people, materials,
equipment, facilities, and services.
256
Responsibility
The person that decides what will happen in a
project about a particular area of the project.
257
Responsibility assignment matrix chart
A chart type designates the roles and
responsibilities of the project team.
258
Reward power
The project manager's authority to reward the
project team.
259
Risk
An uncertain event that can have a positive or
negative influence on the project success. It
can affect the project costs, project schedule,
and often both. All risks and their status
should be recorded in the risk register.
260
Risk management plan
A subsidiary project plan for determining: how
risks will be identified, how quantitative and
qualitative analysis will be completed, how
risk response planning will happen, how risks
will be monitored, and how ongoing risk
management activities will occur through the
project lifecycle.
261
Risk owners
The individuals or groups responsible for a risk
response.
262
Risk register
A risk is uncertain event or condition that can
have a positive or negative effect on the
project. All risks, regardless of their probability
or impact, are recorded in the issue log and
their status is kept current.
263
Role
Who does what types of activities in a project.
264
Roles and responsibilities
Maps project roles to responsibilities within
the project; roles are positions on the project
team and responsibilities are project activities.
265
Run chart
Similar to a control chart, a run chart tracks
trends over time and displays those trends in
a graph with each plotted data mapped to a
specific date.
266
Sapir-Whorf hypothesis
A theory that suggest there’s a linkage
between the language a person (or culture)
speaks and how that person or culture
behaves in the world.
267
Scales of probability and impact
Used in a risk matrix in both qualitative and
quantitative risk analysis to score each risk’s
probability and impact.
268
Scatter diagram
Tracks the relationship between two or more
variables to determine if the one variable
affects the other. It allows the project team,
quality control team, or project manager make
adjustment to improve the overall results of
the project.
269
Schedule control
Part of Integrated Change Management,
schedule control is concerned with three
processes: the project manager confirms that
any schedule changes are agreed upon; the
project manager examines the work results,
conditions, and conditions to know if the
schedule has changed; and the project
manager manages the actual change in the
schedule.
270
Schedule management plan
A subsidiary plan of the overall project plan. It
is used to control changes to the schedule. A
formal Schedule Management Plan has
procedures that control how changes to the
project plan can be proposed, accounted for,
and then implemented Identifies
circumstances that may change the project
schedule, such as the completion of project
phases or the reliance on other projects and
outside resources.
271
Schedule performance index
This reveals the efficiency of work. The closer
the quotient is to 1, the better: SPI=EV/PV.
272
Schedule variance
The difference between the planned work and
the earned work.
273
Scope baseline
Comprised of the project scope statement, the
work breakdown structure, and the WBS
dictionary.
274
Scope management plan
Explains how the project scope will be
managed and how scope changes will be
factored into the project plan. Based on the
conditions of the project, the project work,
and the confidence of the project scope, the
scope management plan should also define
the likelihood of changes to the scope, how
often the scope may change, and how much
the scope can change.
275
Scope verification
An inspection-driven process led by the
project customer to determine the exactness
of the project deliverables. Scope verification
is a process that leads to customer acceptance
of the project deliverables.
276
Scoring models
A project selection method that assigns
categories and corresponding values to
measure project’s worthiness of investment.
277
Secondary risks
Risks that stem from risk responses. For
example, the response of transference may
call for hiring a third party to management an
identified risk. A secondary risk caused by the
solution is the failure of the third party to
complete its assignment as scheduled.
Secondary risks must be identified, analyzed,
and planned for just as any identified risk.
278
Sellers and business partners
Vendors, contractor, and business partners
that help projects achieve their objectives.
These business partners can affect the
project’s success and are considered
stakeholders in the project.
279
Sellers list
A listing of the vendors an organization does
business with. You might know this document
as a preferred vendors list in your company.
280
Sender
Part of the communications model: the person
or group delivering the message to the
receiver.
281
Sensitivity analysis
This examines each project risk on its own
merit to assess the impact on the project.
Each risk is analyzed independently to see
what its impact on the project may be while
all other risks in the project are set at a
baseline value.
282
Sequential relationship of phases
Each phase of a project relies on the
completion of the phase before it can begin.
283
Share
Sharing is nice. When sharing the risk
ownership is transferred to the organization
that can most capitalize on the risk
opportunity.
284
Should cost estimates
These estimates are created by the
performing organization to predict what the
cost of the procured product should be. If
there is a significant difference between what
the organization has predicted and what the
sellers have proposed, either the Statement of
Work was inadequate or the sellers have
misunderstood the requirements.
285
Simulation
This allows the project team to play “what-if”
games without affecting any areas of
production.
286
Single source
A specific seller that the performing
organization prefers to contract with.
287
Smoothing
A conflict resolution method that “smoothes”
out the conflict by minimizing the perceived
size of the problem. It is a temporary solution,
but it can calm team relations and reduce
boisterousness of discussions. Smoothing may
be acceptable when time is of the essence or
any of the proposed solutions would work.
288
SNET
A project constraint that demands that a
project activity start no earlier than a specific
date.
289
Soft logic
The preferred order of activities. Project
managers should use these relationships at
their “discretion” and document the logic
behind making soft logic decisions.
Discretionary dependencies allow activities to
happen in a preferred order because of best
practices, conditions unique to the project
work, or external events; also known as
discretionary dependencies.
290
Sole source
The only qualified seller that exists in the
marketplace.
291
Source selection criteria
A predefined listing of the criteria to
determine how a vendor will be selected. For
example, cost, experience, certifications, and
the like.
292
Staffing management plan
This subsidiary plan documents how project
team members will be brought onto the
project and excused from the project. This
plan is contained in the human resources plan.
293
Stakeholder analysis
A process that considers and ranks the project
stakeholders based on their influence,
interests, and expectations of the project.
294
Stakeholder register
A document defines each stakeholder, their
project requirements, influence on the
project, phases of interest, details on the
stakeholders’ contributions, and their contact
information for the project.
295
Start-to-finish
A relationship that requires an activity to start
so that a successor activity may finish; it is
unusual and is rarely used.
296
Start-to-start
A relationship structure that requires a task to
start before a successor task activity may start.
This relationship allows both activities to
happen in tandem.
297
Statement of work
This fully describes the work to be completed,
the product to be supplied, or both. The SOW
becomes part of the contract between the
buyer and the seller. The SOW is typically
created as part of the procurement planning
process and is used by the seller to determine
whether it can meet the project's
requirements.
298
Statistical sampling
A process of choosing a percentage of results
at random for inspection. Statistical sampling
can reduce the costs of quality control.
299
Status reports
These provide current information on the
project cost, budget, scope, and other
relevant information.
300
Storming
The second stage of team development; the
project team struggles for project positions,
leadership, and project direction.
301
Subprojects
A subproject exists under a parent project but
follows its own schedule to completion.
Subprojects may be outsourced, assigned to
other project managers, or managed by the
parent project manager but with a different
project team.
302
Supporting detail for estimates
The project manager should document how
time and cost estimates were created.
303
System or process flowcharts
These show the relation between components
and how the overall process works. They are
useful for identifying risks between system
components.
304
Systems engineering
Focuses on satisfying the customers’ needs,
cost requirements, and quality demands
through the design and creation of the
product. There is an entire science devoted to
systems engineering in various industries.
305
Teaming agreement
A contractual agreement that defines the
roles, responsibility, considerations, and
partnerships of two or more organizations
that works together in a project. It’s not unlike
a partnership or subcontractor relationship.
306
Three-point estimate
An estimate that uses optimistic, most likely,
and pessimistic values to determine the cost
or duration of a project component.
307
Time and materials
A contract type where the seller charges the
buyer for the time and the materials for the
work completed. T&M contracts should have a
not-to-exceed clause (NTE) to contain costs.
308
To-complete performance index
An earned value management formula that
can forecast the likelihood of a project to
achieve its goals based on what’s currently
happening in the project.
309
Top-down estimating
A technique that bases the current project's
estimate on the total of a similar project. A
percentage of the similar project's total cost
may be added to or subtracted from the total,
depending on the size of the current project
310
Transference
A response to risks in which the responsibility
and ownership of the risk is transferred to
another party (for example, through
insurance).
311
Trend analysis
Trend analysis is taking past results to predict
future performance.
312
Triggers
Warning signs or symptoms that a risk has
occurred or is about to occur (for example, a
vendor failing to complete its portion of the
project as scheduled).
313
Triple Constraints of Project
Management
Describes the required balance of time, cost,
and scope for a project. The Triple Constraints
of Project Management is also defined by the
Iron Triangle of Project Management.
314
Unanimity
A group decision process where all
participants are in agreement.
315
Utility function
A person's willingness to accept risk.
316
Value analysis
Similar to value engineering, this focuses on
the cost/quality ratio of the product. Value
analysis focuses on the expected quality
against the acceptable cost.
317
Value engineering
Deals with reducing costs and increasing
profits, all while improving quality. Its focus is
on solving problems, realizing opportunities,
and maintaining quality improvement.
318
Variable costs
Costs that vary depending on the conditions
within the project.
319
Variance
The time or cost difference between what
planned and what was actually experienced.
320
Virtual teams
Project team that are not collocated and may
rarely, if ever, meet face-to-face with other
project team members. The virtual team relies
on e-mail, video, and telephone conferences
to communicate on the project.
321
Voice of the customer
The initial collection of customer
requirements that serve as part of the quality
function deployment in a facilitated
workshop.
322
War room
A centralized office or locale for the project
manager and the project team to work on the
project. It can house information on the
project, including documentation and support
materials. It allows the project team to work
in close proximity.
323
Withdrawal
A conflict resolution method that is used
when the issue is not important or the project
manager is out-ranked. The project manager
pushes the issue aside for later resolution. It
can also be used as a method for cooling
down. The conflict is not resolved, and it is
considered a yield-lose solution.
324
Work breakdown structure (WBS)
A decomposition of the project scope
statement into work packages. The WBS is an
input to seven project management
processes: developing the project
management plan, defining the project
activities, estimating the project costs,
determining the project budget, planning the
project quality, identifying the project risks,
planning the project procurement needs.
325
Work breakdown structure dictionary
A companion to the WBS, this document
defines all of the characteristics of each
element of the WBS.
326
Work breakdown structure templates
Based on historical information, this is a WBS
from a past project that has been adapted to
the current project.
327
Work performance information
The current status of the project work;
includes the results of activities, corrective
and preventive action status, forecasts for
activity completion, and other relevant
information.
328
Work performance measurements
These are predefined metrics for measuring
project performance, such as cost variances,
schedule variances, and estimate to complete.
329
Workarounds
Workarounds are unplanned responses to
risks that were not identified or were
accepted.
330
Inappropriate compensation
The project manager is avoiding
compensation, such as bribes. The project
manager is to act in the best interest of the
project and the organization.
