PMP Exam Guide Glossary

Question 0

Acquire Project Team

Answer 0

An executing process focused on getting the right people to work on the project at the right time. Acquire Project Team is executed according to the human resource plan.

Question 1

Acceptance

Answer 1

The act of approving the deliverables. Acceptance is usually performed by the project manager and the customer or sponsor at the end of the project, project phases, or at predefined milestones. Acceptance of the product, service, or result is formal.

Question 2

Activity

Answer 2

Also called Schedule activity. An activity is a task that must be performed in order to complete work on the project. Activities are created by further decomposing the work packages. Under current guidelines, the primary difference between a work package and an activity is that a work package is a component of the scope and describes some aspect of the deliverable, while an activity describes the work that must be done in order to complete the work package. Schedule activities are first defined, then sequenced and estimated for duration.

Question 3

Activity attributes

Answer 3

The informational components that accompany each schedule activity. These may include information on dependencies, leads and lags, assignments, accountability, requirements, constraints and
assumptions.

Question 4

Activity on Arrow (AOA)

Answer 4

A type of graphical project network diagram where schedule activities are represented by lines with arrows. The lines are connected by notes, usually represented by circles. AOA diagrams are seldom used in practice today and have been replaced by AON.

Question 5

Activity on Node (AON)

Answer 5

A type of graphical project network diagram where schedule activities are represented by nodes (usually rectangles), and their interdependencies are represented by lines with arrows.

Question 6

Activity List

Answer 6

The list of all schedule activities to be performed, derived by decomposing the work packages into their schedule components. The activity list is a primary output of the Define Activities Process.

Question 7

Activity Resource Requirements

Answer 7

The resources required to complete the activities in the activity list. Typically these are physical, human, and organizational resources but do not include financial resources.

Question 8

Actual Cost (AC)

Answer 8

Also know as Actual Cost of Work Performed (ACWP). A term used in earned value management. Actual Cost represents the amount that has been spent by the project up to a point in time. It is often contrasted with earned value to show the difference between the amount of value earned on the project (represented by the earned value) and what was spent to earn that value (represented by the actual cost).

Question 9

Actual Cost of Work Performed (ACWP)

Answer 9

Actual Cost of Work Performed represents the amount that has been spent by the project up to a point in time. It is often contrasted with earned value to show the difference between the amount of value earned on the project (represented by the earned value) and what was spent to earn that value (represented by the actual cost).

Question 10

Agreements

Answer 10

A document, defining intentions around the project or some component of the project, that has been accepted by both parties. It is helpful to think of agreements as contracts for purposes of the exam.

Question 11

Allowable Costs

Answer 11

Costs that are allowed under the terms of the contract. Typically, allowable costs become relevant under certain types of cost-reimbursable contracts where the buyer reimburses the seller’s allowable costs. If there are non-allowable costs in a contract, the buyer is not obligated to reimburse the seller for these.

Question 12

Alternatives Generation

Answer 12

A tool used in the Define Scope process to identify multiple possible approaches to solving a problem.

Question 13

Analogous Estimating

Answer 13

Also known as “Top-Down Estimating.” An estimating technique that uses the historical information from previously performed activities that are similar in nature, to estimate the effort, duration or cost needed to complete an activity.

Question 14

Analytical Techniques

Answer 14

A logical approach that looks at the relationship between outcomes and the factors that can influence them.

Question 15

Application (exam)

Answer 15

The application for the PMP or CAPM exam which requires the applicant to document an adequate combination of education and experience in project management. The application must be received and processed by the Project Management Institute before the applicant is eligible to schedule his or her certification exam.

Question 16

Arrow Diagramming Method

Answer 16

The method that produces activity on arrow (AOA) diagrams.

Question 17

Assumption

Answer 17

Anything that is considered to be true while planning. Assumptions should always be documented and validated, and they are often closely linked to constraints.

Question 18

Backward Pass

Answer 18

A technique used to calculate slack, or float, that begins with the last node of a project network diagram and logically works backward to the start. Using the backward pass technique, each schedule activity’s late start and late finish dates are determined.

Question 19

Bar Chart

Answer 19

A term in project management that equates to a Gantt Chart. In a bar chart, horizontal bars represent lengths of time for schedule activities. A calendar of dates represents the horizontal (X) axis.

Question 20

Baseline

Answer 20

The original approved scope, cost, or schedule, plus all approved changes. Baselines represent the approved plan, and they are especially useful for measuring how actual results deviate from the plan. It is important to remember that the baselines can, and typically do, change throughout the life of the project as changes are approved. Baselines occasionally apply to other measured areas such as performance and quality.

Question 21

Basis of Estimates

Answer 21

The backup detail showing how cost or schedule estimates were derived, where they came from, who was involved, what information was used, and what estimating technique was used.

Question 22

Benchmarking

Answer 22

Using data from other projects, departments, or organizations to measure performance of the project or product.

Question 23

Bottom-up Estimating

Answer 23

A technique for estimating overall project duration, effort, or costs by estimating the lowest levels of the schedule or work breakdown structure (WBS) and and aggregating those numbers up to the summary nodes on the WBS. Bottom-up estimating is widely considered to be a relatively accurate, but often tedious, technique for estimating. This technique is the opposite of top-down or analogous estimating.

Question 24

Bidder Conference

Answer 24

A meeting for potential sellers to come and understand the work they are considering bidding on. In a bidder conference, all bidders are given the same information and are kept on a level playing field.

Question 25

Brainstorming

Answer 25

A technique to gather ideas that involves getting ideas from many participants in a rapid-fire and non-judgmental environment. Ideas are not evaluated until after they have all been gathered.

Question 26

Budget

Answer 26

Also known as Cost Baseline. The cost baseline is a time-phased plan for when funds will be disbursed on a project. It helps the performing organization anticipate cash flow needs for the project life-cycle. Accuracy is dependent upon a well-defined project scope and schedule, although a summary-level cost baseline is typically supplied with the project charter before the scope and schedule are fully defined.

Question 27

Budgeted at Completion (BAC)

Answer 27

The planned (budgeted) amount for the total project. The BAC represents what the project should cost at the point it is completed if everything proceeds according to plan.

Question 28

Budgeted Cost of Work Performed (BCWP)

Answer 28

Also known as Earned Value. Earned Value is a cost accounting term representing the value of the work that has actually been completed up to a point in time. Earned Value (EV) is different from Actual Cost (AC) because EV measures what was actually done and how much that is worth, which is different from what has been spent. For instance, if the project spent $100,000 but got $200,000 of value out of that, the EV would be $200,000, while the AC would only be $100,000.

Question 29

Budgeted Cost of Work Scheduled (BCWS)

Answer 29

Also known as Planned Value (PV). An earned value management term representing the value that should have been realized on the project at a given point in the schedule. Planned Value (PV) is contrasted with Earned Value (EV).

Question 30

Buffer

Answer 30

Extra time or money added to the schedule or budget to allow for unanticipated overruns. Buffers are useful since they allow for some slippage without affecting the overall schedule or budget.

Question 31

Business Case

Answer 31

The social, economic, or business outcomes that justify undertaking this project or part of the project.

Question 32

Cause-and-Effect Diagrams

Answer 32

Also known as an Ishikawa diagram, or a fishbone diagram. Cause and effect diagrams graphically show the relationships between causes and effects. They are primarily used in risk and quality to help uncover the causes of risks, problems, or issues.

Question 33

Certified Associate in Project Management (CAPM)

Answer 33

A project management credential created and managed by the Project Management Institute. The CAPM is for anyone who works on a project, can demonstrate the required education, and can demonstrate an adequate understanding of the PMBOK guide.

Question 34

Change Control

Answer 34

Deliberately managing change to a project, whether that change is to the scope, cost, schedule, or quality baseline. In change control, change requests go through a formal process before they are approved or rejected. See Perform Integrated Change Control in chapter 4 for more information on the specific process associated with change control

Question 35

Change Control Board

Answer 35

A group with formal responsibility for evaluating project change requests. The change control board makes up a part of the overall change control system.

Question 36

Change Control System

Answer 36

The procedures for evaluating and managing requested changes to the project. This system varies from project to project and from organization to organization.

Question 37

Change Log

Answer 37

The list of all changes, whether or not they were requested, made to the project. The change log is used as an input to various processes to ensure that the impacts of changes are properly reviewed and evaluated.

Question 38

Change Request

Answer 38

Any requested change to a documented baseline. Change requests are typically only implemented once the scope, cost, schedule, or quality is “baselined.” Since change requests are formal, before project baselines exist a less formal method is generally used. Change requests are processed according to the change control system.

Question 39

Charter

Answer 39

The document that formally starts the project. The charter typically is issued by the sponsor and names the project manager. Additionally, it may list the high-level project requirements, the high-level milestones and a summary-level preliminary budget. The charter is a formal document created in the Develop Project Charter process. It authorizes the project manager to expend organizational resources in order to accomplish the project objective.

Question 40

Checklist

Answer 40

Any set of procedural instructions used to ensure that product or component quality is achieved. Checklists are created in the Plan Quality Management process and are used in the Perform Quality Control process.

Question 41

Claim

Answer 41

An issue with performance against the contract brought by one party against another. Claims could be made by the buyer against the seller for non-performance, or by the seller against the buyer for untimely payment. Claims must be resolved before the contract can be properly closed out.

Question 42

Close Procurements

Answer 42

One of two closing processes that focuses on making sure the procurement is completed, the product or service is accepted, and the contract is closed. Even if a contract is terminated early, the process of Close Procurements should be carried out.

Question 43

Close Project or Phase

Answer 43

The closing process that administratively closes a phase or the overall project. In Close Project or Phase, all final project documentation and project files are completed, and lessons learned are documented

Question 44

Closing Processes

Answer 44

The group of processes that focus on closing out the project or an individual phase. Closing processes focus on closing out the contract(s), releasing resources, delivering the product, and gaining formal stakeholder approval.

Question 45

Collect Requirements

Answer 45

A planning process in scope management that documents the stakeholders’ needs for the project. The resulting requirements documentation focuses on how the requirement, once it is built, will satisfy the underlying need or meet the opportunity that drove it.

Question 46

Colocation

Answer 46

The act of physically locating everyone on a project team in the same space or general area. Colocation is used to break down distance barriers and facilitate team-building. A war room where all project team members work together is an example of colocation.

Question 47

Communication

Answer 47

The act of accurately encoding, sending, receiving, accurately decoding, and verifying a message. Communication between a sender and a receiver may be formal, informal, oral, or written.

Question 48

Communication Channels

Answer 48

The number of possible formal or informal paths of communication on a project. The concept of communication channels is particularly helpful in understanding how the addition of a small number of people to a project team can complicate the project manager’s job of controlling communication channels is:
n(n-1)/2
where n= the number of people in the communication model

Question 49

Communication Model

Answer 49

The formal paths of communication that will be used on the project. The traditional communication model involves a sender, a receiver, and a message, and both sender and receiver have responsibilities as to how they act upon the message.

Question 50

Communications Management Plan

Answer 50

The component of the project plan that specifies communications requirements and how those requirements will be addressed by the project. The communications management plan describes what communications will be provided, to whom, in what format, and how often.

Question 51

Conduct Procurements

Answer 51

The executing process in procurement management, where the seller responses are gathered, a seller is selected, and the contract is awarded. Conduct Procurements will only be performed on projects that procure goods or services from outside the organization, but on those projects it may be performed multiple times as needed.

Question 52

Conflict

Answer 52

Difference of opinion or agenda on a project among team members or stakeholders. While not all conflict can be resolved to everyone’s satisfaction, it is primarily the project manager’s job to drive conflict resolution so that the project is not jeopardized.

Question 53

Consensus

Answer 53

A group decision technique where the group agrees to support an outcome, even if the individuals do not all agree with the decision.

Question 54

Constraint

Answer 54

Any external factor that limits the ability to plan. The most common constraints are scope, time, and cost, but they could be any factor, such as the law, weather, or resource availability. Constraints and assumptions are often closely linked

Question 55

Context Diagram

Answer 55

A means of diagramming the scope where people and systems are shown along with how other people and systems will interact with them.

Question 56

Contingency

Answer 56

Also known as reserve, contingency is padding time and / or money to the project’s schedule or budget to help manage overruns. Contingency may or may not be communicated to project stakeholders, and it may be added at an activity level at any node on the WBS or even at an overall project level.

Question 57

Contract Change Control System

Answer 57

The formal system for managing changes to the contract so that all changes are tracked and processed and all relevant parties are notified of the changes.

Question 58

Contract

Answer 58

A legal document that specifies the relationship between two parties. In project management, these two parties are most often referred to as buyer and seller.

Question 59

Control

Answer 59

See Monitoring and Controlling

Question 60

Control Account

Answer 60

Also known as a “cost account,” a control account is a node on the WBS where the scope, time and cost are measured. Control accounts contain one or more work packages and are used to measure earned value. A project may have numerous control accounts placed on the WBS at nodes where it would be particularly meaningful to measure the earned value of those parts of the project.

Question 61

Control Account Manager

Answer 61

The individual accountable for the delivery of the work contained in the control account to the scope, budget, and schedule.

Question 62

Control Chart

Answer 62

A specialized chart used in statistical process control to help determine whether or not a process is in control. Control charts are often associated with control limits, specification limits, means, standard deviations, and the rule of seven.

Question 63

Control Costs

Answer 63

The process to monitor and control project costs to ensure they align with the plan. Control costs is proactive to anticipate change and risk factors, as well as reactive to actual factors that affect project costs.

Question 64

Control Account Plan (CAP)

Answer 64

The plan for how a given control account will be performed and measured. Since each control account is a division of the overall project, each CAP functions essentially like a mini-project plan for that division of work.

Question 65

Control limits

Answer 65

The upper and lower limits, used in statistical process control, that determine whether or not a process is in control. Upper and lower control limits are set at prescribed intervals and measured in standard deviations, above and below the mean. As long as the data points fall between the control limits, the process is in control.

Question 66

Control Procurements

Answer 66

The monitoring and controlling process performed by the buyer to ensure compliance by the seller or other party. Administer Procurements compares performance against terms and conditions specified in the contract to make certain that the seller meets his or her contractual obligations. The seller’s performance is typically rated or evaluated by the buyer and is communicated back to the seller.

Question 67

Control Quality

Answer 67

The monitoring and controlling process that focuses on work product quality. Control Quality is different from Perform Quality Assurance in that Control Quality inspects actual work products and tests them against requirements, while Perform Quality Assurance looks at the overall quality process to ensure that it is being followed and that it is working effectively.

Question 68

Control Risks

Answer 68

The process that reviews the risks that have and have not occurred on the project and evaluates how the execution of the risk management plan lines up to the plan itself.

Question 69

Control Schedule

Answer 69

A monitoring and controlling process where the planned schedule is compared with the work performance information. If the project is ahead of schedule or behind schedule, corrective action in the form of change requests or updates to the plan may be necessary.

Question 70

Control Scope

Answer 70

A monitoring and controlling process that ensures that changes to the scope baseline are properly controlled.

Question 71

Corrective Action

Answer 71

Any action taken to bring future results in line with the plan. Corrective action may change the plan or the way the plan is executed.

Question 72

Cost

Answer 72

Any project expenditure. Costs are tracked on numerous levels, but usually tie back to a chart of accounts and nodes on the work breakdown structure.

Question 73

Cost Account

Answer 73

Also known as Control Account. A control account is a node on the WBS where the scope, time and cost are measured. Control accounts contain one or more work packages and are used to measure earned value. A project may have numerous control accounts placed on the WBS at nodes where it would be particularly meaningful to measure the earned value of those parts of the project.

Question 74

Cost Aggregation

Answer 74

Adding activity-level costs or cost estimates to get the cost or cost estimate for a work package.

Question 75

Cost-Benefit Analysis

Answer 75

An analysis of potential scope changes and the forecasted benefits of making these changes and the costs involved. Quality is the section on the exam where this is most relevant, and in quality management, benefits should always outweigh cost.

Question 76

Cost Forcasts

Answer 76

Cost Estimates adjusted for performance There are several ways to do this, including using the Estimate At Complete, the Estimate To Complete, the Budgeted at Completion, the Cost Performance Index and others.

Question 77

Cost Baseline

Answer 77

Also known as Budget. The cost baseline is a time-phased plan for when funds will be disbursed on a project. It helps the performing organization anticipate cash flow needs for the project life-cycle. Accuracy is dependent upon a well-defined project scope and schedule, although a summary level cost baseline is typically supplied with the project charter before the scope and schedule are fully defined.

Question 78

Cost Management Plan

Answer 78

The plan for how project costs will be measured, monitored, and controlled. The cost management plan is created in the Develop Project Management Plan process.

Question 79

Cost of Quality (COQ)

Answer 79

The sum of all project costs expended associated with achieving quality. Cost of Quality includes a complete analysis that includes planning, execution, control, the costs of potential alternatives, and the costs of quality failure.

Question 80

Cost Performance Index (CPI)

Answer 80

Expressed as CPI = EV ÷ AC, the CPI is an earned value calculation borrowed from the discipline of cost accounting. The CPI can be useful for predicting future performance based on previous history, as well as for plotting trends over time. Conventional wisdom dictates that a CPI >= 1 is preferable since that indicates that the project is earning value at a cost that is better than planned, while a CPI < 1 is undesirable since it indicates that performance lags the plan.

Question 81

Cost-Plus-Fee (CPF)

Answer 81

Also known as Cost-Plus-Percentage-Of-Cost (CPCC), it is a type of contract where the buyer pays the seller’s costs for performing contractual duties plus a fee that is tied to the costs. Typically this fee is calculated as a percentage of costs. This contract type places a large portion of the risk on the buyer, as the seller stands to be financially rewarded when costs run high.

Question 82

Cost-Plus-Fixed-Fee (CPFF)

Answer 82

A type of contract where the buyer pays the seller’s allowable costs for performing contractual duties plus a fixed sum for performing the work. The buyer bears much of the risk by paying the seller’s allowable costs; however, this contract type places some of the burden on the seller, since the seller’s profit is fixed regardless of how long or expensive the contract work is.

Question 83

Cost-Plus-Incentive-Fee Contract (CPIF)

Answer 83

A type of contract where the buyer pays the seller’s allowable costs for performing contractual duties plus an incentive fee tied to the seller’s performance. The incentive is often calculated by the seller’s performance at keeping costs down. This contract type distributes the risk between the buyer and the seller.

Question 84

Cost-Reimbursable Contract (CRC)

Answer 84

A type of contract where project costs incurred by the seller are reimbursed by the buyer. In addition, the buyer typically pays the seller an additional fee for the seller’s profit. Cost reimbursable contracts often include incentives to the seller to keep costs down, where the seller would share a percentage of the cost savings with the buyer. The share of risk distributed to the buyer and seller depends upon the specifics of the contract.

Question 85

Cost Variance

Answer 85

Commonly abbreviated as CV, cost Variance is the earned value minus the actual costs, expressed as CV = EV-AC. Cost variance is useful to represent how project spending is tracking against the plan. A positive cost variance is generally considered to be a good thing, and a negative cost variance indicates overspending and is considered to be undesirable.

Question 86

Crashing

Answer 86

Applying additional resources to one or more activities in order to complete the work more quickly. Crashing usually increases cost more than risk and can lead to the law of diminishing returns as resource allocation passes optimal levels. Compare with Fast Tracking.

Question 87

Create WBS

Answer 87

The planning process for Creating the work breakdown structure. This process decomposes all of the work necessary to perform the project and organizes it into the work breakdown structure (WBS). The WBS dictionary, which provides expanded information on the WBS is also an output of this process

Question 88

Criteria

Answer 88

Objective Measures for acceptance or judging quality.

Question 89

Critical Activity

Answer 89

Any schedule activity that appears on the project’s critical path. An activity is designated as critical if its delay would delay the overall project assuming all other activities finished as planned.

Question 90

Critical Chain Method

Answer 90

A technique for managing a project’s schedule that focuses on managing the constraints caused by limited human and material resource availability. Based on the Theory of Constraints, the critical chain method manages schedule buffers and emphasizes flexibility and keeping all resources fully working.

Question 91

Critical Path

Answer 91

One or more combinations of activities from start to finish in a project network diagram, any one of which delayed would delay the completion of the entire project

Question 92

Critical Path Method

Answer 92

A technique of schedule analysis, where the schedule activities are evaluated to determine the float (or slack) for each activity and the overall schedule. The critical path method uses forward pass, backward pass and float analysis to identify all network paths, including the critical path. The reason this technique is known as the critical path method is that the path of least flexibility and highest risk (i.e. the critical path) is identified so that it may be managed appropriately.

Question 93

Decision Tree

Answer 93

A tool used in risk management to analyze risk and the expected monetary value of a decision or event to evaluate the outcome of certain scenarios. Decision trees are used to evaluate uncertainty.

Question 94

Decomposition

Answer 94

A technique for progressively breaking down the scope into smaller and smaller components. Decomposition is performed on nodes of the work breakdown structure and typically stops when the decomposed pieces are small enough to be assigned and estimated for time and cost. These smaller nodes (work packages) are later decomposed further into schedule activities.

Question 95

Defect

Answer 95

An issue when the project’s product, service or result does not match the documented scope. Defects are often costly and require rework.

Question 96

Define Activities

Answer 96

The planning process that takes work packages from the work breakdown structure (WBS) and further decomposes then into schedule activities.

Question 97

Define Scope

Answer 97

The planning process that results in the project scope statement. The goal of this process it to develop a detailed understanding of he scope and to document that understanding

Question 98

Deliverable

Answer 98

A part of the product, or the product itself, that is presented to the customer or stakeholders for acceptance.

Question 99

Delphi Technique

Answer 99

A form of expert judgement where a group of stakeholders is asked a question or opinion in a way that prevents the people being polled from knowing who the others are. Named after the blind oracle at Delphi in ancient Greece, the Delphi Technique is often use to prevent highly opinionated stakeholders from influencing the rest of the group

Question 100

Dependency

Answer 100

A relationship between two or more activities where one activity must be started or completed before another related activity may be started or completed. Considering two activities of “Purchase Laptops” and “Configure Laptops,” the start activity “Configure Laptops” might be said to be dependent upon the finish of activity “Purchase Laptops.” A Dependency may be mandatory, discretionary, or external to the organization. It is also known as a logical relationship between nodes. See entries on START-FINISH, START-START, FINISH-FINISH, and FINISH-START.

Question 101

Design of Experiments(DOE)

Answer 101

A technique using data analysis to determine optimal condition. It is most often used when there are multiple variables to be considered, and this technique analyzes how factors influence and change these variables. An Engineer might use DOE to evaluate and determine the right combination of transmission gearing , wheel size, and tires for a new automobile within the cost constraints he or she has been given.

Question 102

Determine Budget

Answer 102

The planning process where the individual cost estimates are compiled into the cost baseline. The cost baseline is a time-phased representation of costs so that stakeholders can see what funds will be needed and when they will be needed.

Question 103

Develop Project Charter

Answer 103

An initiating process where the project charter is produced. This process typically occurs very early in the project, but also may take place at the beginning of each project phase. the output of this process formally authorizes the project to begin, names the project manager, and provides resources for the project.

Question 104

Develop Project Management Plan

Answer 104

The planning process in which all subsidiary components of the project plan are integrated into a single plan that will drive the rest of the project.

Question 105

Develop Project Team

Answer 105

The executing process of enhancing the project team. Develop Project Team focuses on improving the overall sense of teamwork and the individual skills and abilities of he project team members

Question 106

Develop Schedule

Answer 106

The planning process where the activities are arranged on a calendar to create a schedule. The project schedule may take several forms and have varying degrees of detail.

Question 107

Diagramming Techniques

Answer 107

Various means of depicting a system or a virtual concept such as a business or system process flow using drawings to show entities, relationships, and interactions

Question 108

Dictatorship

Answer 108

A group decision technique where one person makes the decisions for the entire group. This technique is generally not viewed favorably when it comes to the exam.

Question 109

Direct and Manage Project Work

Answer 109

A high level executing process as part of integration management that focuses on carrying out the project plan. Direct and Manage Project Work is closely tied to the process Monitor and Control Project Work, where he performance and quality of the execution is measured against the plan

Question 110

Direct Cost

Answer 110

A cost, usually measured and reported in Control Procurements, that is a direct project expense. Direct costs may include salaries of project workers, materials, and other expenses that are solely for the project. Generally, direct cost data is collected and reported as part of the Direct and Manage Project Execution process and becomes part of he Work Performance Information.

Question 111

Distribute Information

Answer 111

The executing process where information is distributed to the stakeholders according to the communications management plan.

Question 112

Document Analysis

Answer 112

A technique used in the Collect Requirements process to review existing documentation in order to gather requirements for a new product. An organization’s marketing lliterature developed for a product that does not yet exist would be a good example of a document that would be used for analysis.

Question 113

Dummy Activity

Answer 113

A part of Activity on Arrow (AOA) project network diagrams where a “false” schedule activity is assigned a duration of 0. A dummy activity, represented as a dashed line between two circular notes, is used to create logical relationships.

Question 115

Duration

Answer 115

The amount of time needed to complete a schedule activity or work package. Duration is different from effort, since duration is concerned with calendar time, while effort is concerned with work hours.
Ex:
a schedule activity that takes 8 workers 5 days, would require 40 days of effort, but may be possible to complete in the duration of only one work week. Durations are estimated during the Estimate Activity Durations process.

Question 116

Early Finish Date (EF)

Answer 116

• Used for schedule activities on project network diagrams
• the earliest date possible that an activity could be completed given all of the constraints, durations, and logical relationships that exist within a schedule.

Question 117

Early Start Date (ES)

Answer 117

• Used for schedule activities on project network diagrams
• the earliest date possible that an activity could stat given all of the constraints, durations, and logical relationships that exist within a schedule.

Question 118

Earned Value (EV)

Answer 118

• Also known as Budgeted Cost of Work Performed (BCWP)
• The cost accounting term representing the value of the work that has acutally been completed up the a point in time.
• Different from Actual Cost (AC) because EV measures what was actually done and how much that is worth, which is different from what has been spent.
• EX: if a project spent $100,000 but got $200,000 of value out of that, the EV would be $200,000, while the AC woudl be only $100,000

Question 119

Effort

Answer 119

• The amount of work needed to complete an activity.
• Effort is different from duration, as duration measures how long something will take on a calendar
• Effort is determined or estimated during the Estimate Activity Duration process
• EX: 3 people working on an activity for 2 weeks might spend approx 240 man hours of effort, but might require only 80 schedule hours (duration) to complete.

Question 120

Enterprise Environmental Factors (EEF)

Answer 120

Any factor outside of the project’s control that influences the project. This could include organisational attitudes, culture, reporting relationships, goverment, the economy, laws, etc.

Question 121

Estimate

Answer 121

A numerical representation of cost or time. Estimates should always specify the confidence and expecte margin of error.
- EX: an early estimate for the design of a software database might be represented as follows: Database Design, Preliminary Estimate =92 hours +/- 50%

Question 122

Estimate Activity Duration

Answer 122

Planning process which estimates how long a schedule activity should take. These estimates may be expressed as a specific number (eg 2 weeks) or as a range (eg 1 to 3 weeks). Activity durations are derived through a variety of methods, but are generally a function of the amount of work to be done, the resources applied to the task, expert judgement and historical info.

Question 123

Estimate Activity Resources

Answer 123

Planning process that estimates the material and human resources needed to perform a schedule activity to completion. This process may be performed before, after, or in parallel with the process of Sequence Activities.

Question 124

Estimate at Complete (EAC)

Answer 124

The forcasted amount a project should cost at its end, factoring in all of the performance metrics that have occurred at this point in the project. At a project’s beginning, the EAC should be equal to Budgeted at Complete (BAC); however, if the project performs better than expected, or if risk occurrence is lower than expected, EAC could be lower than BAC. EAC is calculated by using: EAC=BAC/CPI

Question 125

Estimate Costs

Answer 125

Planning Process of estimating the costs of activities which have not been performed. Estimate Costs is performed after the scope has been defined, the activities have been decomposed, and the duration and resources for each activity have been estimated. The cost estimates are later mapped back to the WBS and are used to create the budget.

Question 126

Estimate to Complete (ETC)

Answer 126

The forecasted amount it will take to finish a project from a point in time going forward. The ETC factors in known performance metrics. ETC answers the questions “how much more will it cost us to complete the project at this point?” ETC is calculated by using: ETC= EAC - AC

Question 127

Executing Process Group

Answer 127

ll executing processes and activities focus on carrying out some aspect of the project plan, and on most projects the majority of project costs are expended during executing processes.

Question 128

Exit Gate

Answer 128

A logical point at the end of a project phase, where an independent party reviews that phase’s deliverables to determine whether or not they were completed successfully and the subsequent project phase should be initiated. Commonly referred to as stage gates, phase gates, or kill points.

Question 129

Expected Monetary Value (EMV)

Answer 129

A method to calculate the value of potential future outcomes, factoring in the possible costs and probability of events. Decision Tree analysis is one method that uses EMV.

Question 130

Expert Judgement

Answer 130

Using knowledgeable groups or individuals to assist in project decisions. Expert judgement is a highly favored technique within Project Management.

Question 131

Facilitated Workshops

Answer 131

A meeting or series of meetings where a facilitator works with the project stakeholders from various disciplines to determine requirements. Joint Application Design (JAD) is an example of a specific type of facilitated workshop.

Question 132

Facilitation Techniques

Answer 132

A technique used in integration management to move early stakeholders toward consensus on the broad goals of the project.

Question 133

Fast Tracking

Answer 133

Performing project activities in parallel that would have been performed in sequence. It is most often the discretionary dependencies that are discarded in order to fast track activities. Usually results in the project schedule being completed in a shorter time frame, but INCREASES RISK

Question 134

Finish Date

Answer 134

The date that an activity is predicted (or permitted) to finish, based on the analysis of the schedule. The early finish date of a schedule activity is calculated by performing a forward pass on the project network diagram, and the late finish date is calculated by performing a backward pass.

Question 135

Finish-to-Finish (FF)

Answer 135

The logical relationship between nodes in a project network Diagram. A FF relationship between two schedule activities (eg. T & W) indicates that regardless of when activity W starts, it cannot finish before activity T does.

Question 136

Finish-to-Start (FS)

Answer 136

The most common logical relationship between nodes in a project network Diagram. A FS relationship between two schedule activities (eg. D & E) indicates that the successor activity (E) cannot be started until the preceding activity (D) has finished

Question 137

Fixed-Price-Incentive-Fee Contract

Answer 137

A type of contract where the seller is paid a fixed price for the contract but can also earn an incentive fee, paid by the buyer, for achieving predefined targets related to the seller’s contract performance.

Question 138

Fixed-Price Contract (AKA Lump Sum)

Answer 138

Also called Firm-Fixed-Price Contract. A contract that specifies a fixed price for the deliverable paid by the buyer to the seller. Firm-Fixed-price contracts transfer primary risk to the seller, since the seller is paid one price regardless of costs, efforts, or any other potential uncertainty. Ex: Purchase Order.