Predictive PMP Terms

Question 1

8/80 Rule

Answer 1

each work package should take between 8 hours and 80 hours in order to avoid work packages being too narrow or too broad

Question 2

Accelerated Depreciation

Answer 2

depreciates faster than straight-line depreciation

Question 3

Acceptance Response

Answer 3

passively accepting a threat or opportunity (risk) by doing nothing other than creating a contingency plan and allocating time and cost reserves

Question 4

Acceptance Terms and Conditions

Answer 4

in a contract, how you will know work is acceptable

Question 5

Acceptance Test

Answer 5

• represents some expected result from the system
• customers are responsible for verifying the correctness of the acceptance tests and reviewing test scores to decide which failed tests are of highest priority

Question 6

Acknowledgement

Answer 6

• in the communication model, confirmation of receipt of a message
• does not indicate agreement with message

Question 7

Active Job Shadowing

Answer 7

shadow employee and ask questions or try work to gather requirements

Question 8

Activity

Answer 8

• a particular piece of work scheduled for a project
• you should expect to manage to the activity level as a project manager

Question 9

Activity-on-Node (AON)

Answer 9

• type of network diagram that shows flow of project with precedence diagramming method
• predecessors are upstream and successors are downstream
• activities are nodes that are connected with arrows

Question 10

Actual Cost

Answer 10

as of today, what is the actual cost incurred for the work accomplished?

Question 11

Administrative Closure

Answer 11

• when closing a project, make sure
  
  • deliverables are signed off on
  • close project accounts
  • reassign personnel
  • deal with excess material
  • reallocate facilities and other equipment
  • create final reports
  • index lessons learned and other historical records

Question 12

Affinity Diagrams

Answer 12

• ideas generated by other requirements gathering techniques grouped by similarity
• each group is given a title which makes it easier to see additional areas of scope or risk that have not yet been identified

Question 13

Agent Terms and Conditions

Answer 13

in a contract, who is an authorized representative of each party

Question 14

Agreement

Answer 14

• documents or communications that outline internal or external relationships and their intentions
• not all agreements are contracts
• the charter and project management plan are examples of agreements that aren’t contracts

Question 15

Ambiguity Risks

Answer 15

• risks caused by lack of understanding
• type of non-event based risk

Question 16

Analytical Management Style

Answer 16

• depends on manager’s own technical knowledge and ability project managers often make the technical decisions for the project and then communicate those decisions to their team
• effective for resolving conflicts, negotiating, prioritizing, and other decision-making activities

Question 17

Apportioned Effort Activities

Answer 17

activities that support the project, such as quality assurance and integrated change control

Question 18

Arbitration Terms and Conditions

Answer 18

• in a contract, method to resolve disputes by third parties
• usually paid for by the parties and generally faster and cheaper than the courts

Question 19

Assignable Cause (Special Cause Variation)

Answer 19

a data point or series of data points require the project manager to investigate the cause of the variation

Question 20

Assignment Terms and Conditions

Answer 20

in a contract, refers to the circumstances under which one party can assign its rights or obligations under the contract to another

Question 21

Assumption Testing

Answer 21

• in identify risks, use what-if analysis to determine if assumption is valid or not
• will assumption cause delay or extra costs?
• is the information the assumption is based on reliable?

Question 22

Assumptions

Answer 22

• what is believed to be true about the project but is not a fact; incorrect assumptions introduce risk and thus they are recorded in the assumption log
• examples are team member availability and that they will do a good job

Question 23

Authority Terms and Conditions

Answer 23

in a contract, who has the authority to do what

Question 24

Autocratic Management Style

Answer 24

• top-down approach; manager may coach or delegate, but everyone does what the manager says
• can create challenges for project team

Question 25

Autocratic Voting

Answer 25

single person is assigned to make decision for entire group

Question 26

Avoiding Power

Answer 26

project manager refuses to act or get involved

Question 27

Balanced Matrix

Answer 27

• power is shared between functional manager and project manager
• project manager is often part-time and manages a part-time team
• team members report to project manager and functional manager
• may have part-time administrative help
• project manager and functional manager share authority over staff and budget

Question 28

Barriers

Answer 28

• in the communication model, anything that completely blocks communication
• more than just noise

Question 29

Beneft to Cost Ratio

Answer 29

• in project selection, compares the cost of the project to the expected benefit (revenue) it could bring
• greater than one = benefit outweighs the cost
• less than one = cost outweighs the benefit
• the ratio is how many times over the revenue outweighs (or does not) the cost
  
  • example: a benefit to cost ration of 1.7 means the revenues brought in by the project are 1.7 times the cost

Question 30

Bid (Quotation)

Answer 30

• from seller to buyer
• price is the determining factor in the decision making process

Question 31

Bidder Conference

Answer 31

• meeting in which the seller gets to ask questions of the buyer and gather information about the buyer
• all questions and answers are documents and added as addenda to bid documents.

Question 32

Bonds Terms and Conditions

Answer 32

• in a contract, payment or performance bonds that must be purchased
• ex: a payment bond would protect the buyer from claims of nonpayment by the seller

Question 33

Breach/Default Terms and Conditions

Answer 33

• in a contract, occurs when any obligation of a contract is not met
• a breach on the seller’s part cannot be fixed by a breach on the buyer’s part
• for example failure to complete an item in the SOW cannot be handled by the buyer stopping all payments

Question 34

Budget at Completion (BAC)

Answer 34

how much did we budget for the total project effort?

Question 35

Budget Estimate

Answer 35

• based on scope
• more accurate than ROM but not as accurate as definitive estimate
• narrowed range before you begin iterating the plan
• typically in the range of -10% to +25%

Question 36

Bureaucratic Management Style

Answer 36

• following procedures exactly
• effective for work in which details are critical or when specific safety or other regulations must be strictly adhered to

Question 37

Business Requirements

Answer 37

higher-level needs of the organization

Question 38

Ceiling Price

Answer 38

in a contract, the highest price a buyer will pay

Question 39

Centralized Contracting

Answer 39

• there is one procurement department and procurement manager reports organizationally to the head of the procurement department and not the project manager

Question 40

Change Control System

Answer 40

• part of PMIS
• standardized forms, reports, processes, procedures, and software for managing change requests

Question 41

Changes Terms and Conditions

Answer 41

in a contract, how changes will be made, what forms will be used, and what are the timeframes for notice and turnaround

Question 42

Charismatic Management Style

Answer 42

• energize and encourage their teams in project work
• in this style, project success may become dependent on the presence of a charismatic leader, with the team relying on the leader for motivation
• can create challenges for project team

Question 43

Checklists

Answer 43

when the same work is done repeatedly, checklists ensure the work is done the same way each time

Question 44

Coaching Management Style

Answer 44

project manager advises and makes recommendations, helping the team and other stakeholders achieve their goals

Question 45

Code of Accounts

Answer 45

numbering system assigned to control accounts in the WBS

Question 46

Collaborative Problem Solving

Answer 46

• team members will work together to resolve conflict
• it does not matter who is right or who is wrong
• win/win situation
• preferred method for PMI

Question 47

Commercial Risks

Answer 47

• customer stability, terms, and conditions within the project vendors

Question 48

Communication Blockers

Answer 48

• factors that cause miscommunication and can lead to disagreement, such as noisy surroundings, distance between those trying to communicate, improper encoding, language differences, cultural differences

Question 49

Communication Channels

Answer 49

• when you add one more person to the team, there is a substantial increase in communication channels, not just one
• n = the number of stakeholders
• n(n – 1 ) / 2

Question 50

Composite Organization

Answer 50

• made up of multiple organizational structures
• an example is one where the organization is mostly functional but creates a project team where the project manager has the authority to accomplish a temporary result
• do not confuse with hybrid organization

Question 51

Compromising/Reconciling Problem Solving

Answer 51

• neither party gets what they want
• lose/lose situation

Question 52

Confidentiality Terms and Conditions

Answer 52

in a contract, what information should not be given to third parties

Question 53

Configuration Identification

Answer 53

identification and documentation of the product and its components

Question 54

Configuration Status Accounting

Answer 54

• documentation of the product information
• includes the metrics and specifications that the customer will inspect against

Question 55

Configuration Verification and Auditing

Answer 55

concerned with performance and functional attributes of the product; is the functionality acceptable?

Question 56

Connectivity Risk Parameter

Answer 56

indicates how one risk is connected to another risk

Question 57

Consensus Approach

Answer 57

achieves general agreement about a decision and those who prefer a different option are willing to accept the decision supported by most members of the group

Question 58

Consensus Management Style

Answer 58

• project manager encourages problem-solving in a group and makes decisions based on group agreement
• effective for resolving conflicts, negotiating, prioritizing, and other decision-making activities

Question 59

Constraints

Answer 59

• factors that limit options such as time, cost, risk, scope, quality, resources, customer satisfaction
• can be policies and procedures, regulations, predetermined budgets and schedules, resource utilization, requirements, and approaches to work
• use them to evaluate competing demands
• management either directly or indirectly sets priority of constraints
• consider how changing one constraint affects another
• changes to the project generally impact multiple constraints

Question 60

Consultative Management Style

Answer 60

• bottom-up approach
• uses influence to achieve results
• project manager considers others’ opinions and acts as servant-leader to team
• effective for resolving conflicts, negotiating, prioritizing, and other decision-making activities

Question 61

Context Diagram

Answer 61

• used to define and model scope
• shows boundaries of product scope by highlighting the product and its interfaces with people, processes, or systems
• shows flow of data through a system and actors

Question 62

Contingency Reserves

Answer 62

• typically associated with cost
• reserves allocated for the identified risks remaining after the Plan Risk Responses process – think of these as known unknowns
• they are included in the project schedule (or cost) baseline
• developed by looking at identified risks, multiplying the probability of the risk happening (decimal) by the financial impact (dollars), which yields the expected value of each risk
  
  • adding all of the expected values is the how the contingency reserve is calculated

Question 63

Contingent Risk Responses

Answer 63

• fall-back plan for worst-case scenario
• document triggers for this contingency plan

Question 64

Contract

Answer 64

• a type of agreement that can be written or verbal
• created with an external entity and involve exchange of goods or services for some type of compensation

Question 65

Control Account

Answer 65

• tool that allows you to collect and analyze work performance data regarding costs, schedule,and scope at a higher level than a work package
• control account usually has more than one work package assigned to it, but a work package is assigned to only one control account
• assigned unique identifiers with the code of accounts

Question 66

Controlling PMO

Answer 66

• provides support and guidance in the organization on how to manage projects
• trains others in project management and related systems
• assists with specific project management tools
• ensures compliance to organizational practices and through framework and governance
• can coordinate and prioritize all projects within the organization
• moderate level of control

Question 67

Corporate Knowledge Base

Answer 67

• indexed historical records and lessons learned from previous knowledge and is available to all
• a knowledge base is an OPA

Question 68

Corrective Action

Answer 68

• brings project performance in line with the baselines established in the project management plan
• result of deviation from the project performance measurement baseline
• requires a change request to implement

Question 69

Corrective Action Change Requests

Answer 69

• bring expected future project performance in line with project management plan
• typically undertaken to adjust performance within the existing baselines but do not change the baselines

Question 70

Cost

Answer 70

• how much an item costs the seller to create, develop, or purchase
• buyer’s costs include the seller’s cost and profits

Question 71

Cost Contract

Answer 71

cost-reimbursable contract that provides for payment to the seller of actual costs plus a negotiated fee fixed before work begins

Question 72

Cost of Prevention

Answer 72

• what is the cost of preventing a risk versus the cost of the impact, considering also how likely it is for risk to happen and other possible costs of a risk such as schedule delays

Question 73

Cost of Quality (COQ)

Answer 73

• ensuring project is not spending too much to achieve a particular level of quality
• costs of conformance should be lower than costs of nonconformance; includes prevention, appraisal—time and money to audit and evaluate, and failure—the cost of non-conformance such as redoing work and fines

Question 74

Cost Plus Award Fee Contract (CPAF)

Answer 74

• a type of incentive contract in which the buyer pays all costs and a base fee plus an award amount (bonus) based on performance
• similar to CPIF but the incentive is a potential award and there is no possibility of a penalty
• award amount is usually determined in advance and apportioned depending on performance

Question 75

Cost Plus Fee (CPFP)/Cost Plus Percent of Costs (CPPC) Contracts

Answer 75

• require the buyer to pay for all costs plus a percentage of costs as a fee
• generally not allowed for government contracts
• bad for buyers because seller profit is based on a percentage of everything billed—no incentive to control costs

Question 76

Cost Plus Incentive Fee Contract (CPIF)

Answer 76

a cost-reimbursable contract that provides for seller to be paid for actual costs plus a fee that will be adjusted based on whether specific performance objects stated in the contract are met * original estimate is made (target cost) and a fee for work is determined (target fee)

Question 77

Cost Variance (CV)

Answer 77

• difference between the earned value and the actual cost
• shows variance in cost; the negative is over budget
• positive is under budget
• EV = earned value
• AC = actual cost
• CV = EV – AC

Question 78

Cost-Reimbursable Contract (CR)

Answer 78

• used when the exact scope of work is uncertain and thus costs cannot be estimated accurately enough to use a fixed-price contract
• provides for the buyer to pay the seller allowable incurred costs to the extent prescribed
• requires seller to have an accounting system that can track costs by project
• buyer has the MOST risk because of the unknowns
• seller provides an estimate but it’s not binding
• research and development and information technology projects in which the scope is unknown are typical examples

Question 79

Crashing

Answer 79

• adding or adjusting resources in order to compress the schedule while maintaining the original project scope
• always results in increased cost, may result in increased risk
  trades time for money, and law of diminishing returns must be considered

Question 80

Critical Path

Answer 80

• longest duration path or paths through a network diagram and thus determines the shortest time it could take to complete the project
• there can be multiple criticals paths but that increases risk
• activities on the critical path have zero float unless they are completed earlier OR they are behind and have negative float
  
  • cannot leave project with negative float – must compress schedule
  • if schedule cannot be compressed, must adjust baseline

Question 81

Dangerous Stakeholders

Answer 81

• in salience model of stakeholder assessment, dangerous stakeholders possess both power and urgency
• type of expectant stakeholder
• they can have disastrous impacts on a project

Question 82

Decentralized Contracting

Answer 82

• there is no procurement department and the project manager may be responsible for conducting and monitoring all work on procurements.

Question 83

Decoding

Answer 83

• in the communication model, translating the message into meaningful thoughts and ideas

Question 84

Dedicated Teams

Answer 84

• most of the team members work full-time exclusively for the project
• easiest form of team to work with as team members can dedicate most of their energy to the project and often directly report to the project manager
• most common in projectized organizations

Question 85

Defect Repair

Answer 85

• rework
• modifies nonconformance to project requirements
• requires a change request

Question 86

Defect Repair Change Requests

Answer 86

rework if component of project does not meet specifications

Question 87

Definitive Estimate

Answer 87

• most refined estimate as a result of planning process
• typically +/- 10%

Question 88

Delegating Management Style

Answer 88

• project manager establishes goals and then gives the project sufficient authority to complete the work
• for basic project management, the manager involves the team in the planning process and assigns or delegates planning and executing work to team members

Question 89

Urgent Stakeholders

Answer 89

• in the salience model of stakeholder analysis, urgent stakeholders have significant interest but not legitimacy or power
• type of latent stakeholder
• often a squeaky wheel

Question 90

Demanding Stakeholders

Answer 90

• in salience model of stakeholder assessment, they possess all three attributes – urgency, power, and legitimacy

Question 91

Deming’s PDCA

Answer 91

Plan, Do, Check, Act in quality management

Question 92

Democratic (Participative) Management Style

Answer 92

• encouraging team participation in the decision-making process
• team members “own” the decisions made by the group, resulting in improved team cooperation
• effective for resolving conflicts, negotiating, prioritizing, and other decision-making activities

Question 93

Dependent Stakeholders

Answer 93

• type of expectant stakeholder
• in the salience model of stakeholder assessment, dependent stakeholders have legitimacy and urgency but not power
• often depend on dominant stakeholders for their interests in project

Question 94

Design Statement of Work

Answer 94

• conveys exactly what work is to be done, including materials used and how work should be completed
• often used for construction and equipment purchases

Question 95

Detectability Risk Parameter

Answer 95

indicates how easily the risk can be detected

Question 96

Development Life Cycle

Answer 96

• phases of the project associated with the producing the product, service, or result of the project
• development life cycle performed within the project life cycle
  
  • predictive development life cycle/waterfall
  • iterative development life cycle
  • incremental development life cycle
  • hybrid development life cycle

Question 97

Direct Costs

Answer 97

costs that can be directly attributed to the work on the project, such as wages, materials, and team travel

Question 98

Directing Management Style

Answer 98

project manager uses expertise to guide team members in what to do

Question 99

Directive PMO

Answer 99

• prioritizes projects
• provides project managers and manages all projects throughout the organization
• responsible for results of projects
• high level of control

Question 100

Discrete Effort Activities

Answer 100

• activities that are required to complete the project scope
• focused on creating the deliverable

Question 101

Discretionary Stakeholders

Answer 101

• in the salience model of stakeholder assessment, discretionary stakehodlers have legitimacy but not power or urgency

Question 102

Discretionary Dependencies (Soft Logic)

Answer 102

activities for which order can be changed but there are generally best practices

Question 103

Dispute Resolution Terms and Conditions

Answer 103

in a contract, how disputes regarding the contract will be settled; generally either courts or arbitration

Question 104

Distributive Negotiation

Answer 104

reach a deal through tactics so both parties receive the highest amount of value possible

Question 105

Dominant Stakeholders

Answer 105

• type of expectant stakeholder
• in the salience model for stakeholder analysis, dominant stakeholders have power and legitimacy
• they will have an impact on your project so you will want to keep them very involved

Question 106

Dormant Stakeholders

Answer 106

• in the salience model of stakeholder assessment, dormancy is the idea that there are stakehodlers who have power but do not have interest in your project
• dormant stakeholders are one of the three types of latent stakeholders

Question 107

Dormancy Risk Parameter

Answer 107

anticipated time between when a risk occurs and its impact is felt on the project

Question 108

Driver Management Style

Answer 108

• manger with a driver style is constantly giving directions
• competitive attitude drives team to win; can create challenges for project team

Question 109

Duration

Answer 109

how long an activity takes

Question 110

Earned Value Management

Answer 110

• measures project performance against the scope, schedule, and cost baselines
• indicates whether there any potential deviations from the performance measurement baseline
• forecasts future performance and project completion dates and costs

Question 111

Economic Value Added (EVA)

Answer 111

whether or not the project returns to the company more than the initiative costs

Question 112

Effort

Answer 112

• billable time for labor
• not the same time as duration

Question 113

Effort-Driven Activity

Answer 113

• an activity that can be finished more quickly with additional labor
• crashing can be used to speed up these activities

Question 114

Emergent Risks

Answer 114

• risks which we are unable to see because they are outside our experience or mind set, so we don’t know that we should be looking for them
• also known as unknown unknowns which are things that we do not know but where we are unaware of our ignorance
• require project resilience
• frequent reviews can reveal triggers for emergent risks

Question 115

Encoding

Answer 115

in the communication model, translating ideas into language, usually written or verbal language

Question 116

Enterprise Environmental Factors

Answer 116

• generally outside control of the project team
• governmental and other rules and regulations
• internal factors
  
  • structure
  • culture
  • systems
  • location
  • available resources such as documentation of skills and preapproved external resources
  • resource management system
  • quality management system
  • procurement system

Question 117

Enterprise Environmental Factors (EEFs)

Answer 117

company culture and existing systems that the project will have to deal with or can make use of; think of company baggage; outside of control of the team

Question 118

Escalation Response

Answer 118

responding to a threat or opportunity (risk) by moving it up the chain of responsibility when it is outside of the scope of the project or beyond the project manager’s authority

Question 119

Escaped Defects

Answer 119

defects reported after the delivery by the customer

Question 120

Exceptional Management Style

Answer 120

reward the top employees and punish the bottom employees but don’t treat everyone equally; not preferred

Question 121

Expectant Stakeholders

Answer 121

• in the salience model of stakeholder assessment, expectant stakeholders have two of the three attributes
• power + legitimacy = dominant
• power + urgancy = dependent
• legitimacy + urgency = dangerous

Question 122

Expert Power

Answer 122

• power comes from being the technical or project management expert
• team members look to past record for authority

Question 123

Explicit Knowledge

Answer 123

• fact-based
• easily communications
• lessons learned are part of this knowledge category

Question 124

External Dependencies

Answer 124

activities for which sequencing depends on an external constraint, such as waiting on a vendor

Question 125

External Risks

Answer 125

• risks originating from outside the project
  
  • regulatory, environmental, or governmental issues
  • market shifts
  • weather problems with project sites

Question 126

Facilitating Management Style

Answer 126

project manager enables communication and helps remove roadblocks

Question 127

Fast-Tracking

Answer 127

• taking critical path activities that were originally planned in a series and doing them instead in parallel (overlapping)
• increases risk
• sometimes results in rework
• requires more attention to communication

Question 128

Feasibility Study

Answer 128

• often the first phase of a waterfall project
• can determine whether the project is
  
  • worth undertaking
  • will be profitable
  • will meet safety regulations
• completion of feasibility study and subsequent approval triggers beginning of requirements phase

Question 129

Feedback/Response

Answer 129

• in the communication model, after the communication has been received and understood
• the receiver may send a message with thoughts and ideas about the message

Question 130

Finish-to-Finish Activity

Answer 130

• an activity must finish before successor can finish
• example: must finish interface testing so you can finish documentation

Question 131

Finish-to-Start Activity

Answer 131

• activity must finish before successor can start
• example: you must finish digging a hole before you plant a tree

Question 132

Five Cs of Communication

Answer 132

• these enhance the likelihood that communications will be correctly interpreted
  
  • correct grammar and spelling
  • concise and well-crafted
  • clear and purposeful
  • coherent and logical
  • controlled flow of words and ideas

Question 133

Fixed Cost

Answer 133

cost that does not change with production or work, such as setup, rent, and utilities

Question 134

Fixed-Duration Activity

Answer 134

activity that cannot be done more quickly even if more labor is added, like testing or paint drying

Question 135

Fixed-Price Contracts (FP)

Answer 135

• should be used for acquiring goods, products, or services will well-defined specifications
• if costs are more than the agreed upon amount, the SELLER bears the additional cost * least risk to buyer
• seller most concerned about statement of work because it helps determine their bid to make a profit
• profit not revealed to seller
• seller might try to reduce scope of work if profit is threatened

Question 136

Fixed-Price Incentive Fee Contracts (FPIF)

Answer 136

fixed-price contract with incentives so the profit can be adjusted based on the seller meeting specific performance criteria, such as getting the work done faster, cheaper, or better

Question 137

Fixed-Price with Economic Price Adjustments Contract

Answer 137

fixed-price contract with a long life because the future cost of supplies and equipment might be unpredictable

Question 138

Force Majeure Terms and Conditions

Answer 138

• in schedule, an assumption that it won’t happen but it could
• in a contract, what acts of nature are allowable excuses for either party not meeting contract requirements
• considered to be neither party’s fault
• who pays for the cost of items destroyed in force majeure

Question 139

Forcing/Directing Problem Solving

Answer 139

• authority makes the decision
• win/lose situation

Question 140

Formal (Legitimate/Positional) Power

Answer 140

power based on your position

Question 141

Formal Verbal Communication Type

Answer 141

• planned meetings and stakeholder briefings
• can be face-to-face or remote

Question 142

Formal Written Communication Type

Answer 142

• project management plan and other formal documents such as charter
• can be both physical and electronic

Question 143

Four Types of Emotional Intelligence

Answer 143

• inboud
  
  • self-management
  • self-awareness
• outbound
  
  • social awareness
  • relationship management

Question 144

Free Float

Answer 144

• amount of time an activity can be delayed without the start date of its successor(s) and still adhering to any imposed schedule constraints

Question 145

Fringe Benefits

Answer 145

standard benefits given to all employees

Question 146

Functional or Resource Manager

Answer 146

• manager who is responsible for human and physical resources in a department
• works with the project manager to meet the needs of the project

Question 147

Functional Organizational Structure

Answer 147

• most common form of organization
• grouped by areas of specialization
• projects generally occur in single department
• employees go through department heads to transmit requests from other departments
  
  • otherwise communication stays within the project
• project team members complete normal work and project work
• functional manager controls the budget and resources
• project manager is part-time and often called a coordinator or expeditor
• advantages
  
  • easier management of specialists
  • team members only report to one supervisor
  • similar resources are centralized
  • there are clearly defined career paths in specialization areas
• disadvantges
  
  • people place more emphasis on their functional speciality to the detriment of the project
  • limited career path in project management
  • project manager has little to no authority

Question 148

Functional Requirements

Answer 148

solution requirements such as new features, bug fixes, and new or different behavior for a product

Question 149

Functional Statement of Work (SOW)

Answer 149

• conveys the end purpose or result rather than the specific procedures or approach
• example: “design a car with 10 cup holders”

Question 150

Funding Limit Reconciliation

Answer 150

• reconcile the planned versus the actual costs
• if they don’t match, we have cost variances and we need to request changes

Question 151

Generalizing Specialists

Answer 151

individuals do many different roles on a team in an adaptive environment

Question 152

Gold-Plating

Answer 152

adding extra features not originally in the scope of project because money is left over at the end of the project

Question 153

Governance Frameworks

Answer 153

defines what you can and cannot do in an organization such as the rules and policies, procedures for activities, cultural norms, and systems and processes

Question 154

Grade

Answer 154

• refers to a general category or classification of a deliverable or resource that indicates common function, but varying technical specification
• low grade products can be of acceptable quality to meet quality requirements and high grade products can be of unacceptable quality if it does not meet standards

Question 155

Graduated Fixed-Price Contract

Answer 155

• commonly used in adaptive environments
• no sandbagging; focus on results and not hourly rate
• both parties share the risk and reward
  
  • on-time, they get paid their hourly rate
  • early delivery means a higher hourly rate
  • late delivery means a lower hourly rate

Question 156

Guilt-Based Power

Answer 156

project manager makes the team feel guilty to gain compliance

Question 157

Halo Effect

Answer 157

tendency for positive impressions of a person, company, brand or product in one area to positively influence one’s opinion or feelings in other areas

Question 158

Herzberg’s Two-Factor Theory of Motivation

Answer 158

• motivators
  
  • recognition
  • varied work
  • sense of achievement
• demotivators
  
  • poor pay
  • company policies
  • continual pressure
• motivation is influenced by hygiene factors
• poor hygiene destroys motivation but improving them does not improve motivation
  
  • working conditions
  • salary
  • personal life
  • wor
  • relationships
    security
  • status

Question 159

Heuristics

Answer 159

in estimating, it’s a generally accepted rule, such as the 80/20 rule

Question 160

High-Uncertainty Work

Answer 160

• subject matter experts collaborate and solve problems to create a new design or solution
• exploratory work with high rates of change, complexity, and risk

Question 161

Hybrid Life Cycle

Answer 161

• combination of predictive and adaptive life cycles
• often predictive is used to manage project requirements that are well-defined while adaptive is to manage requirements that are less clear

Question 162

Hybrid Organization

Answer 162

• uses a mix of predictive and agile development techniques
• teams might be using predictive processes but then put incremental delivery goals in the processes
• do not confuse with composite organization

Question 163

Incentives Terms and Conditions

Answer 163

in a contract, possible benefits seller might receive for meeting buyer’s objectives in risk, cost, etc.

Question 164

Incremental Life Cycle

Answer 164

• early planning of high-level scope sufficient to allow for preliminary estimate of time and cost
• scope is developed a little more with each iteration
• delivers a complete, usable portion of the product for each iteration
• detailed scope is elaborated for each iteration
• example: a project to build a website would involve prioritizing requirements into iterations that deliver a fully functioning part of the site at the end of each iteration

Question 165

Indemnification (Liability) Terms and Conditions

Answer 165

in a contract, who is liable for personal injury, damage, or accidents

Question 166

Independent Contractor

Answer 166

in a contract, the seller is not an employee of the buyer

Question 167

Indirect Cost

Answer 167

overhead cost such as taxes, fringe benefits, janitorial services

Question 168

Individual Project Risks

Answer 168

specific risk events on a project

Question 169

• Influence Management Style

Answer 169

project manager emphasizes teamwork, team building, and team decision-making, and works with their team to influence collaborative, successful project implementation

Question 170

Influencing

Answer 170

• project manager actively listens to differing viewpoints expressed by team members
• acknowledging viewpoints helps project develop mutual trust with team and eventually agreement

Question 171

Informal Verbal Communication Type

Answer 171

unscheduled meetings and conversations

Question 172

Informal Written Communication Type

Answer 172

email, handwritten notes, text messages, instant messaging, social media, and websites

Question 173

Informational Power

Answer 173

control of data and distribution of information

Question 174

Ingratiating Power

Answer 174

• project manager uses flattery to motivate the team
• wears down over time

Question 175

Inspection Terms and Conditions

Answer 175

in a contract, does anyone have a right to inspect work during the execution of a project and when

Question 176

Inspection

Answer 176

keeping errors out of the customers’ hands by routinely auditing product and taking corrective action when quality is out of bounds

Question 177

Intangible Business Value

Answer 177

projects that add intangible business value do not create new things but instead new ideas, concepts, and experiences, such as goodwill, brand recognition, strategic alignment

Question 178

Intangible Reward

Answer 178

saying thank you, public recognition, training throughout the project life cycle

Question 179

Integrated Risk Management

Answer 179

• risks are owned by each project within a program or portfolio
• some risks might be escalated to higher levels

Question 180

Intellectual Property Terms and Conditions

Answer 180

in a contract, who owns the intellectual property used in connection with or developed as part of the contract

Question 181

Interactive Communication

Answer 181

reciprocal and involves two or more people; three main components: * the sender encodes the message and the receiver decodes the message * the receiver acknowledges receipt of the message * both the sender and receiver are responsible for confirming the message has been correctly interpreted by the receiver

Question 182

Internal Dependencies

Answer 182

type of hard logic which occurs when activities depend on something within the organization, such as waiting for a team member to return from vacation

Question 183

Internal Rate of Return (IRR)

Answer 183

• used when organizations are evaluating which projects to do
• tells which project is going to yield the highest return
• discount rate that makes the net present value of all cash flows from a project equal to zero
• choose projects with the highest IRR value

Question 184

Internal Risks

Answer 184

schedule, scope, or budget changes; inexperienced team members; issues with staffing or equipment

Question 185

Invitation for Bid (IFB)

Answer 185

requests a total price to do all the work; form of RFP where the work described in the procurement statement of work is detailed enough for the bidders to determine a total price

Question 186

Invoicing Terms and Conditions

Answer 186

in a contract, when invoices will be sent and specific documents required

Question 187

Joint Application Design (JAD) Sessions

Answer 187

facilitated sessions in software development involve eliciting input and requirements to enhance the processes of developing the software

Question 188

Just in Time (JIT)

Answer 188

a production strategy that strives to improve a business’ return on investment by reducing in-process inventory and associated carrying costs.” JIT was first developed and used by the Toyota Motor Corporation

Question 189

Kickoff Meeting

Answer 189

• AFTER THE PROJECT PLAN IS APPROVED
• last stage of developing the project management plan
• meeting with all key parties involved
• announce start of project
• provide overview of details
• ensure commitment from everyone

Question 190

Lag

Answer 190

positive time that extends the schedule; waiting time between activities; example: paint doesn’t dry a quickly as expected so exhedule has to be pushed out because other activities require dry paint; ADD

Question 191

Laissez-Faire Management Style

Answer 191

project manager is not directly involved with the work of the team but manages and consults as necessary; this can be appropriate for a highly-skilled team

Question 192

Latent Stakeholders

Answer 192

• in the saliency model of stakeholder assessment, latency is the idea that there are stakeholders who hold only one of the three attributes – power, urgency, or legitimacy
  
  • dormant latent stakeholders have power but not urgency or legitimacy
  • discretionary latent stakeholders have legitimacy but not urgency or power
  • demanding latent stakeholders have urgency but do not have power or legitimacy and are often the squaky wheel

Question 193

Law of Diminishing Returns

Answer 193

after a certain point, adding more input (such as staff) will not produce a proportional increase in productivity

Question 194

Lead

Answer 194

negative time that occurs when we allow activities to overlap; an activity that can start before its predecessor finishes and allows schedule compression; example: priming the walls of one room while painting walls that have already been primed in another; SUBTRACT

Question 195

Leading

Answer 195

art of establishing direction aligning people, and motivating the project team to complete the project

Question 196

Learning Curve

Answer 196

time required to learn how to do new work; associated with estimating schedule and cost because learning curve for new technology should be added to schedule but once something has been learned you can subtract time when doing analogous estimating

Question 197

Legitimate Stakeholders

Answer 197

• in the salience model of stakehodler assessment, stakeholders with legitimacy have a legitimate need or interest

Question 198

Lessons Learned

Answer 198

document that includes what was done right and what was done wrong and what would be done differently if the project could be redone; collect and review lessons learned before starting a new project; once project is underway you add lessons learned to the company database (OPAs)

Question 199

Letter of Intent

Answer 199

• also known as memorandum of understanding
• not a legally-binding contract, but a letter stating that the buyer intends to hire the seller
• gives the seller confidence that the contract will be signed soon so they can hire people or order materials

Question 200

Level of Effort (LEO) Activities

Answer 200

support activities, such as reporting and budgeting, that don’t contribute to scope but are necessary to manage the project

Question 201

Life Cycle Costing

Answer 201

determine costs over the entire life of the product, not just the cost of the project to create the product; this includes maintenance costs and determining if a cheaper product will actually be more expensive to maintain over the life of the product

Question 202

Liquidated Damages Terms and Conditions

Answer 202

in a contract, estimated damages for specific defaults described in advance

Question 203

Logical Data Models

Answer 203

description of the quality needs of the project; use an entity relationship diagram—method of representing and analyzing data

Question 204

MacGregor’s Theory of X and Y

Answer 204

all workers fit into two categories; X is managers believe people need to be watched every minute as employees are incapable, avoid responsibility, and avoid work; Y is managers who believe people are willing to work without supervision and want to achieve; PMI encourages the Y perspective

Question 205

Majority Voting

Answer 205

group chooses the decision that more than half the members support

Question 206

Manageability and Controllability Risk Parameter

Answer 206

indicates level of difficulty involved in dealing with an identified risk, should it occur

Question 207

Management Requirements Terms and Conditions

Answer 207

in a contract, what attendance is required at meetings and who approves the staff assigned to a project

Question 208

Management Reserves

Answer 208

• additional funds and time to cover unforeseen risks
• excluded from schedule and cost baselines but part of overall project duration or budget
  
  • in the project budget, management reserves make up the difference between the cost baseline and budget
• require approval of a formal change request to use them

Question 209

Management Reviews

Answer 209

• milestones for when management and stakeholders will compare project progress to what was planned and ID needed changes to any of the plans
• built into the project management plan

Question 210

Mandatory Dependencies (Hard Logic)

Answer 210

activities that must happen in a specific order

Question 211

Maslow’s Hierarchy of Need

Answer 211

employees are not motivated most by security or money but highest motivation in work is for people to contribute and use their skills; created the pyramid below * self-actualization is when workers achieve self-fulfillment, growth, learning * esteem is when there is accomplishment, respect, attention, appreciation * social is love, affection, approval, friends, and association * safety is security, stability, freedom from harm * physiological is need for air, water, food, housing, clothing

Question 212

Material Breach

Answer 212

breach of contract that is so large it may not be possible to complete the work

Question 213

Matrix Organizational Structure

Answer 213

• an attempt to maximize the strengths of both functional and project-oriented structures
• communication goes from team members to both managers
• team members do project work in addition to normal department work
• types of matrix organizations
  
  • strong: power rests with project manager
  • weak: power rests with functional manager
  • balance: power is shared between functional manager and project manager
• advantages
  
  • highly visible project objectives
  • project manager has more control over resources than in functional organizations
  • more support from functional areas
  • better coordination
  • maximum utilization of scarce resources
  • better horizontal and vertical dissemination of information
  • team members maintain a “home”
• disadvantages
  
  • extra administration is required
  • project team members have more than one manager
  • more complex to monitor and control
  • resource allocation is more complex
  • extensive policies and procedures are necessary
  • functional managers may have different priorities than project managers
  • higher potential for conflict

Question 214

McClelland’s Theory of Needs (Acquired Needs Theory)

Answer 214

people are motivated by one of three needs and they should all be managed differently * achievement: people who should be given projects that are challenging but reachable; they like recognition * affiliation: people who work best when cooperating with others; seek approval instead of recognition * power: people whose need for power is socially oriented, rather than personally oriented, are effective leaders and should be allowed to manage others; they like to organize and influence

Question 215

McGregor’s Theory of X and Y

Answer 215

as proposed by Douglas McGregor, Theory X and Theory Y describe two different types of workers and how they should be managed. Theory X states that management believes that workers will do as little as possible to get by, and thus need a great deal of direction. Theory Y states that management believes that workers are interested in doing their best and, given the freedom, will perform well.

Question 216

Medium

Answer 216

in the communication model, means of conveying the message; sometimes the medium is referred to as the channel

Question 217

Meeting Rules

Answer 217

* set a time limit and keep it * create an agenda with team input * distribute agenda beforehand * stick to agenda * let attendees know responsibility beforehand * bring the right people together * chair and lead the meeting with a set of rules * assign deliverables and time limits for all work assignments that result from meetings * document and publish meeting notes

Question 218

Memoranda of Agreement (MOA)

Answer 218

• a written document describing a cooperative relationship between two parties wishing to work together on a project or to meet an agreed upon objective
• serves as a legal document and describes the terms and details of the partnership agreement
• more formal than a verbal agreement, but less formal than a contract
• organizations can use an MOA to establish and outline collaborative agreements, including service partnerships or agreements to provide technical assistance and training

Question 219

Milestones

Answer 219

significant events within project schedule; have no duration; could be required checkpoint, phase gate, customer-imposed due date for interim deliverables

Question 220

Murder Board

Answer 220

In benefits measurement when deciding whether or not to do a project, it’s a committee that asks every possible question about a project to determine whether or not it should be selected

Question 221

Must Start/Finish On

Answer 221

most restrictive schedule constraint

Question 222

Near-Critical Path

Answer 222

path is closest in duration to the critical path; becomes critical if something shortens the critical path or lengthens the near-critical path; the closer in length they are, the most risk the project has

Question 223

Negative Risk Responses

Answer 223

escalate (management or someone higher up handles the risk), avoidance (don’t do that portion of the project; change the plan or reduce scope), transference (hire someone else to own the risk), mitigation (reduce the probability and/or the impact of the risk), acceptance (don’t take action; usually reserved for low-impact risks); documented in risk register

Question 224

Net Present Value (NPV)

Answer 224

• total benefits (income or revenue) minus costs over many time periods
• accept a project when NPV > 0
  reject a project is NPV is less than zero
• while comparing two projects always select the project with a higher NPV

Question 225

Network Diagram

Answer 225

• visualization of the flow of project activities and the order in which they will be performed
• helps plan parallel activities, leads, and lags
• helps justify project manager’s estimate for project
• helps control project
• shows interdependencies and thus risk
• shows sequence of work for the team
• helps identify opportunities for schedule progression
• can be used for project progress in reporting

Question 226

Noise

Answer 226

in the communication model, anything that interferes with the transmission of the message, including static, distractions, preconceptions and stereotypes, cultural norms, malfunctioning transmitting equipment, or anything that deteriorates or causes a barrier to successful transmission

Question 227

Non-Functional Requirements

Answer 227

sometimes called quality attributes, they’re things expected in deliverables that aren’t features, such as performance, reliability, error handling, and ease of use

Question 228

Nondisclosure Agreement (NDA)

Answer 228

identifies the information or documents that should be kept confidential during procurement

Question 229

Nonfunctional Requirements

Answer 229

solution requirement that describes the environmental condition or qualities of the product or deliverable

Question 230

Notice Terms and Conditions

Answer 230

in a contract, to whom certain correspondence should be sent

Question 231

Observation

Answer 231

job shadowing or participating in work

Question 232

Oligopoly

Answer 232

marketplace is so tight that the actions of one seller affects the price and availability of others

Question 233

OPM3

Answer 233

organizational project management maturity model to help organizations determine their level of maturity

Question 234

Opportunity Cost

Answer 234

• what is given up by selecting one project over another
• equals the value of the project not selected
  
  • example: project A will bring in $95,000 in revenue and project B will bring in $45,000 in revenue
    
    • the opportunity cost for not selecting project B is $45,000

Question 235

Opportunity Responses

Answer 235

in risk management, you make the most of risks that are opportunities by exploiting, enhancing, or sharing; exploiting means adding work or change to make sure the opportunity occurs; enhancing means increasing the likelihood of the opportunity or positive impact of it; sharing means allocating ownership or partial ownership to whom is best able to achieve the opportunity

Question 236

Order of Ethical Responsibilities

Answer 236

1) laws of the country 2) company policies 3) customs 4) personal ethics

Question 237

Organic (Simple) Organizational Structure

Answer 237

• work groups in organization are flexible
• people work alongside each other despite roles
• project manager has little or no authority over project
• resources dedicated to project are low
• owner in charge of budget

Question 238

Organizational Governance

Answer 238

• the overall structure of an organization that supports its specific culture and attributes
• includes the policies and procedures for how work will be performed to meet strategic goals and support organizational operations and decision-making
  
  • external governance: generally a board of directors ensures work comforms to government or regulatory standards
  • internal governance: the policies and procedures regarding portfolio, program, project, and operations work

Question 239

Organizational Hierarchy

Answer 239

typically organizations are organized by operational, middle management, and strategic

Question 240

Organizational Knowledge Repositories

Answer 240

• one of the two types of OPAs
• information that can be used to plan and manage projects to avoid mistakes from the past and standards and templates
  
  • activities
  • baselines
  • backlogs
  • benchmarks
  • configuration management
  • correspondences
  • documents
  • estimates
  • financia data
  • issues logs
  • lessons learned
  • metrics
  • plans
  • prototypes
  • WBSs
  • reports
  • retrospective findings
  • risks and risk response plans

Question 241

Organizational Process Assets (OPAs)

Answer 241

• organizations’ information that provide direction and guidance in planning and help the project benefit from past company experience
• two categories of OPAs
  
  • processes, policies, and procedures
  • organizational knowledge bases

Question 242

Organizational Project Management (OPM)

Answer 242

a framework for keeping the organization as a whole focused on the overall strategy and provides direction on how portfolios, programs, projects, and other organizational work should be prioritized, managed, executed, and measured to best achieve strategic goals

Question 243

Organizational Systems

Answer 243

define how work is done at your organization as defined by management; provides structure and governance; provides permissions such as the work authorization system

Question 244

Out of Control

Answer 244

process for creating deliverable is out of a state of statistical control and the deliverables show a lack of consistency and predictability in the process results; happens when 1) data point falls outside the upper or lower control limits or 2) there are outliers within upper and lower limits

Question 245

Overall Project Risk

Answer 245

overall project risk exposure; how risky the project is to an organization

Question 246

Ownership Terms and Conditions

Answer 246

in a contract, who owns the tangible items, such as materials and equipment, used in connection with or developed as part of the contract

Question 247

Paralingual Communication

Answer 247

communication beyond words; pitch, tone, and inflections

Question 248

Pareto Principle (80/20 Rule)

Answer 248

states that 80% of problems are due to 20% of the root causes

Question 249

Parking Lot

Answer 249

storage place for ideas that distract from the main goal during a meeting.

Question 250

Parkinson’s Law

Answer 250

states that work will expand to fulfill the time allotted to it; bloated tasks will take all the time allotted; use management reserve instead

Question 251

Part-Time Teams

Answer 251

team members spend a portion of their time working on the project while also working on other projects and/or their regular work; most often seen in functional organizations

Question 252

Participatory Decision Models

Answer 252

stakeholders involvement in decision making with techniques such as a simple vot

Question 253

Partnership Teams

Answer 253

teams come from multiple organizations participating in a project together plus the project manager for the organization taking the lead;

Question 254

Passive Job Shadowing

Answer 254

shadow employee to gather requirements without asking questions

Question 255

Payback Period

Answer 255

• how long it takes for organization to recover the investment in a project before it starts accumulating a profit
• does not consider the time value of money — cash coming in five years from now is worth less than it is today, which is why banks charge interest on loans
• consider other factors in addition to payback period when performing project selection

Question 256

Payments Terms and Conditions

Answer 256

in a contract, when payments will be made, what are reasons for nonpayment; can include stop payments for certain parts of work

Question 257

Penalty (Coercive) Power

Answer 257

power stems from ability to penalize team members

Question 258

Performance Statement of Work

Answer 258

what final product should accomplish rather than how it should be built; ex: car that will go from zero to 120 km per hour in 4.2 second

Question 259

Performance Statement of Work (SOW)

Answer 259

describes what the final product should accomplish instead of how it will be built or the design characteristics; ex: build a car that will go 80 mph in 4.2 seconds

Question 260

Persuasive Power

Answer 260

project manager gives a sales pitch for a specific outcome

Question 261

Phase Gate (Kill Point)

Answer 261

required end of phase event during which results of the complete phase are analyzed by comparing the results with the business documents, the project charter, and project management plan; reviews the cost of that phase and if it was on track with the baseline; based on that, a decision is made with the options of * redoing the same phase * moving forward to the next phase * terminating the project

Question 262

Plan-Driven (Predictive/Traditional/Waterfall) Life Cycle

Answer 262

* scope, schedule, and cost are determined early in the project, before work begins to produce deliverables * know many aspects of the project up before work gets started * changes to scope are tightly controlled and thus change averse

Question 263

Planned Value

Answer 263

as of today, what is the estimated value of the work planned to be done? * PV = planned value * BAC = budget at completion * PV = % planned x BAC

Question 264

Planning Package

Answer 264

tool that allows you to collect and analyze work performance data regarding costs, schedule, and scope at a higher level than a work package

Question 265

Planning Process Group

Answer 265

* detailed analysis of whether the objectives in the project charter and expected benefits can be achieved * decide how objectives will be accomplished * determine what processes are appropriate and tailoring them * all stakeholders are involved in planning * project formally authorized when sponsor signs project charter * project management plan produced and approved by sponsor * projects can move back to planning throughout the project

Question 266

Plurality Voting

Answer 266

group chooses decision with most supporters; majority not necessary

Question 267

PMI Code of Ethics

Answer 267

* must be honest and truthful on the exam application and on test items * report PDUs honestly * report violations with clear and factual violations * cooperate PMI audits * disclose appearance of conflict of interest * truth in advertising and sales * comply with laws, regulations, and ethical standards of country where project is being held * respect intellectual property of others * customer is in charge in a project * confidentiality (privity) with customers * refrain from accepting inappropriate compensation

Question 268

PMI Talent Triangle

Answer 268

• technical: apply project management knowledge to deliver objectives of project and define critical success factors
• strategic: describe business needs of project and understand how they align to organization’s goals
• leadership: impart vision, gain consensus for strategic goals, establish direction, and motivate others

Question 269

Point of Total Assumption

Answer 269

amount above which the seller bears all the loss of a cost overrun * costs over the PTA are assumed to be due to mismanagement * only relates to fixed price incentive fee contracts * PTA = ((Ceiling Price – Target Price)/Buyers Share Ratio) + Target Cost

Question 270

Portfolio

Answer 270

• a group of programs, projects, and other related operational work that are prioritized and implemented to achieve a specific business goal
• portfolio approach can optimize the use of resources, enhance benefits, and reduce risk
• all about ROI

Question 271

Portfolio Manager

Answer 271

responsible for governance at an executive level; get best return on resources invested; manage projects that might be largely unrelated to each other

Question 272

Positive Risk Response

Answer 272

escalate (management or someone higher up handles the risk), exploit (make everything right in a project to take advantage of a positive risk), share (partner with another organization to take advantage of a risk you could not handle on your own), enhance (put the odds in favor of the positive risk happening), accept; documented in risk register

Question 273

Power/Interest Grid Stakeholder Map

Answer 273

group stakeholders by level of power and their interest in the project’s outcome

Question 274

Precendence Diagramming Method

Answer 274

• creating a network diagram that shows predecessors and successors; arrows represent relationship between activities and dependencies; where a = predecessor and b = successor
• Finish-to-Start: activity a must finish so activity b can start
• Start-to-Start: activity a must start so activity can start; two activities happen at the same time but typically a starts a little bit before b; example: start developing the training and once they are in training the software is pushed out
• Finish-to-Finish: activity a must finish before activity b can finish; example: finish installing the network cable so the computers can be connected; two activities finish at about the same time; chase each other
• Start-to-Finish: cyclic production; activity a must start for b to finish

Question 275

Precision

Answer 275

measure of exactness but does not mean accuracy; something can be precise but not accurate

Question 276

Prerequisites (Perks)

Answer 276

some employees receive special rewards

Question 277

Present Value

Answer 277

* value today of future cash flows * present value = future value / ((1 + interest rate) ^ number of time periods)

Question 278

Pressure-Based Power

Answer 278

project manager restricts choices for team to get them to do the work

Question 279

Prevention

Answer 279

keeping errors out of the project management and product development process to ensure quality requirements are met

Question 280

Preventive Action

Answer 280

• action to deal with anticipated or possible deviations
• ensures future project performance will not be compromised
• requires a change request to implement
• example: changing a resource because the resource’s last activity nearly failed to meet the acceptance criteria

Question 281

Preventive Action Change Requests

Answer 281

• deal with anticipated or possible deviations from performance measurement baseline and other actions
• typically do not change baselines

Question 282

Privity

Answer 282

a contractual relationship

Question 283

Procurement Statement of Work (SOW)

Answer 283

scope of work to be done on each procurement * break down the project scope baseline into the work the project team will do and the work purchased from the seller * include all work and activities the seller is to complete * finalized by the time the contract is signed and is considered part of the contract

Question 284

Product Backlog

Answer 284

product scope in an adaptive environment; always prioritized before the current sprint

Question 285

Product Scope

Answer 285

requirements that relate to the product, service, or result of project; also defined as product deliverables and their associated features and functions; derived from collect requirements; measured against project requirements; confirmed in validate scope

Question 286

Profit (Fee)

Answer 286

amount gained by the seller as a result of work; in a fixed-price and time and materials contracts, profit is defined but in cost-plus contracts the profit is negotiated by the buyer and seller

Question 287

Program

Answer 287

• a group of related projects that is focused on the interdependencies between projects and may help achieve decreased risk, economies of scale, and improved management

Question 288

Program Manager

Answer 288

manages a group of related projects; there to provide control, support, and guidance

Question 289

Progressive Elaboration

Answer 289

start very broad in planning and use deductive reasoning to get more specific * start with a very broad idea * formulate the idea with information gathering * create the business case * perform a feasibility study * execute the project

Question 290

Project

Answer 290

• a temporary endeavor (ends when project is closed) and creates a unique service or result
• projects drive change (MACD)
  
  • move
  • add
  • change
  • delete

Question 291

Project Calendar

Answer 291

shows when project can take place

Question 292

Project Coordinator

Answer 292

• similar to a project expediter but has some power to make decisions and reports to higher-level manager
• most likely to be found in functional organizations

Question 293

Project Documents

Answer 293

any project-related documents that are not part of the project management plan; mostly created by project manager and are not shown to or approved by sponsor; must be updated frequently

Question 294

Project Expediter

Answer 294

• acts as a staff assistant and communication coordinator
• cannot personally make or enforce decisions
• most likely to be found in functional organizations

Question 295

Project Float

Answer 295

amount of time a project can be delayed without delaying the externally imposed project complete date required by the customer or management

Question 296

Project Governance

Answer 296

• an organization’s established criteria, procedures, and guidelines to make sure projects meet the organization’s strategic goals
  
  • predictive: typically involves formal documentation and upfront analysis and agreement
  • agile: less structured but still aligns with necessary policies and procedures
• can be established and administered by a PMO
• ECO task 14 in Process domain: establish project governance structure

Question 297

Project Information System (PMIS)

Answer 297

software, shared workspaces for file storage or distribution, and repositories for historical information; a PMIS is an EEF

Question 298

Project Life Cycle

Answer 298

what you need to do the work; an organization or department’s methodology for managing a project; logical breakdown of what needs to be done to produce the deliverables; either or plan or change driven

Question 299

Project Management

Answer 299

manages change in organizations and all of the logistics in the change

Question 300

Project Management Office (PMO)

Answer 300

is an office and not a single person * centralizes and standardizes the management of projects * manages interdepencies * integrates information * provides resources * recommends termination of project when appropriate * monitors compliance * gathers lessons learned * provides templates * provides centralized communication * provides project governance

Question 301

Project Manager

Answer 301

responsible for managing the project to meet the project objectives and deliver value and benefits to the organization

Question 302

Project Requirements

Answer 302

required actions, processes, or other conditions of the project

Question 303

Project Resilience

Answer 303

awareness of project unknowable unknowns – risks that can only be identified after they happened

Question 304

Project Scope

Answer 304

work the project team will do to deliver the product of the project; all of the required work and only the required work to obtain project objectives; defined at beginning in predictive environment and resistant to change but developed through iterations and changes are expected in adaptive; measured against the project plan at completion

Question 305

Project Sponsor/Initiator

Answer 305

provides financial resources for the project, provides support, protects project from unnecessary changes; approves changes in project deliverables; protect project from termination; approve additional work if it affects the schedule or cost

Question 306

Project-Based Organization (PBO)

Answer 306

organizations that create temporary frameworks around their projects that allow them to circumvent any obstacles inherent in their existing organizational structure

Question 307

Project-Oriented Organizational Structure

Answer 307

• also known as “projectized”
• entire company is organized by projects
• project manager has control of the project
• personnel are assigned and report to project manager
• team members only complete project work and do not have a home department
  
  • assigned to a project ends, they are assigned to a new project
• communication generally happens within the project
• advanages
  
  • efficient project organization
  • team loyalty to project
  • more efficient communications in project
  • project manager has power to make decisions
• disadvantages
  
  • no home for project team members when project ends
  • lack of specialization in disciplines
  • duplication of facilities and job functions
  • could result in less efficient use of resources

Question 308

Prompt Lists

Answer 308

list of categories that have been identified as possible sources of risk to the project

Question 309

Propinquity Risk Parameter

Answer 309

indicates how key stakeholders perceive the risk

Question 310

Proposal

Answer 310

from seller to buyer; contains more than just price; also includes ideas

Question 311

Prototypes

Answer 311

model of product presented to stakeholders for feedback

Question 312

Proximity Risk Parameter

Answer 312

indicated how long before the risk affects a project objective

Question 313

Pull Communication

Answer 313

the sender places the information in a central location and recipients are responsible for retrieving it from that location

Question 314

Purchase Order

Answer 314

fixed-price contract that is the simplest and most straightforward; only type of contract that is unilateral – signed by only one party – as opposed to bilateral – signed by both parties; becomes a contract when the buyer accepts the goods

Question 315

Pure (Insurable) Risks

Answer 315

risks of loss, such fire, theft, or personal injury; risk that only has a downside

Question 316

Push Communication

Answer 316

one-way stream of information; sender provides information to the people who need it but do not expect feedback; examples include status reports and company memos.

Question 317

Qualitative Risk Probability Impact Matrix

Answer 317

lists each risk and then provides a rating of how likely the risk is to happen and how big of an impact there is if the risk happens; usually a scale or low, moderate, high or RAG; gives an overall risk score that’s also qualitative

Question 318

Quality Audit

Answer 318

document the best practices used, document variances, recommend best practices, implement recommendations for quality improvement, and document quality audit in lessons learned

Question 319

Quality Costs

Answer 319

prevention (quality assurance to ensure delivery of the exact project scope; appraisal (quality control to test, audit, and evaluate); failure (scrap and rework that results in loss of time and money)

Question 320

Quality Functional Deployment (QFD) Session

Answer 320

also known as Voice of the Customer (VoC), it’s a faciliated session to elicit and prioritize customer requirements in manufacturing

Question 321

Quality Management

Answer 321

creating and following the organizational policies and procedures and tailoring them to ensure the project also meets the needs of the customer

Question 322

Quality Process Map

Answer 322

alternative paths a process can take to help determine the cost of quality by mapping the expected monetary value of pursuing paths of conformance and nonconformance

Question 323

Quality Requirements

Answer 323

requirements to validate the successful completion of a project deliverable or fulfillment

Question 324

Quantitative Risk Probability Impact Matrix

Answer 324

Lists each risk event, numerical probability of the risk happening, monetary value of the impact, and then the expected value; sum the expected monetary value to get the contingency reserve

Question 325

RACI Chart

Answer 325

(Responsible, Accountable, Consult, Inform) a type of responsibility assignment matrix that clearly defines role assignments and designates people as one or more of the RACI; multiple people can be R, C, or I, but only one person is A

• Responsible: responsible for doing the work
• Accountable: accountable for the success of the task and is the decision-maker
• Consulted: who needs to be consulted for details and additional info on requirements; typically the person (or team) to be consulted will be the subject matter expert.
• Informed: who needs to be kept informed of major updates; typically senior leadership.

Question 326

Receiver

Answer 326

in the communication model, recipient of the message, responsible for decoding the message and providing feedback. The receiver is responsible for making sure that the entire message is received and understood by encoding a message back to the sender conveying that.

Question 327

Referent Power

Answer 327

power comes from another person liking or respecting you or wanting to be like you; power of charisma and fame

Question 328

Reporting Terms and Conditions

Answer 328

in a contract, what reports are required and when

Question 329

Request for Information (RFI)

Answer 329

might be used before bid documents are created; helps buyer identify which companies are qualified to handle the procurement or determine what work is possible

Question 330

Request for Proposal (RFP)

Answer 330

requests a detailed proposal with information on price, how work will be done, who will do it, and company experience

Question 331

Request for Quotation (RFQ)

Answer 331

request a price quote per item, hour, or other unit of measure

Question 332

Requirements

Answer 332

conditions or capabilities that must exist in a product, service, or result we create

Question 333

Residual Risk

Answer 333

new risk as a result of another risk response; for example, hiring a vendor to assume a risk

Question 334

Resource Breakdown Structure

Answer 334

shows organizational chart to assign resources for work packages

Question 335

Resource Calendar

Answer 335

different from the project calendar; shows what resources are available when

Question 336

Resource Leveling

Answer 336

• produce a resource-limited schedule
• lengthens the schedule and increases the cost to deal with a limited number of resources, resource availability, and other resource constraints

Question 337

Resource Smoothing

Answer 337

• limits labor except for critical path
• resources are leveled only within the float of their activities, so the complete dates of activities are not delayed
• the goal is to adhere to the deadline

Question 338

Retainage Terms and Conditions

Answer 338

in a contract, amount of money, usually 5% to 10%, withheld from each payment and given when final work is complete

Question 339

Reverse Shadowing

Answer 339

a more senior team member teaches a more inexperienced team member how to do something by watching them and coaching them through a task. This is more than just on the job training because of the coaching aspect.

Question 340

Reward Power

Answer 340

power stems from ability to give rewards

Question 341

Rewarding

Answer 341

making team feel values and promote good performance and behavior because people feel motivated when they are rewarded; must be formal and achievable for team; power to reward the team must be given to the project manager; only good work should be work not sloppy team members

Question 342

Risk Appetite (Risk Tolerance)

Answer 342

general, high-level description of the level of risk acceptable to an individual or organization; high profile projects typically have lower risk appetite or tolerance; typically set at the launch of the project

Question 343

Risk Categories

Answer 343

ways to lump similar risks together to create risk breakdown structure

Question 344

Risk Efficiency

Answer 344

organization’s approach to identifying and dealing with risks

Question 345

Risk of Loss Terms and Conditions

Answer 345

in a contract, allocates risk between the parties in the event goods or services are lost or destroyed

Question 346

Risk Reviews

Answer 346

meetings to discuss the effectiveness of planned risk responses that have been implemented on the project may result in identification of new risks, secondary risks, and risks that are no longer applicable.

Question 347

Risk Threshold

Answer 347

refers to the specific point at which a risk becomes unacceptable

Question 348

Risk Triggers

Answer 348

events that trigger the contingency response

Question 349

Rough Order of Magnitude (ROM)

Answer 349

made during project initiating; typical range is -25% to +75%

Question 350

Rule of Seven

Answer 350

if there is a group of seven or more outliers (nonrandom data points) on a control chart, the process is out of control; more than seven shows the data points are not random

Question 351

Schedule Bar Chart

Answer 351

good for reporting to customers and for control, but not an effective planning tool

Question 352

Schedule Control Threshold

Answer 352

at what point does schedule variance become an issue?

Question 353

Schedule Variance (SV)

Answer 353

shows variance between earned value and planned values; difference between earned value and planned value; negative is behind schedule; positive is ahead of schedule * EV = earned value * PV = planned value * SV = EV – PV

Question 354

Scope Management

Answer 354

process of defining what work is required and then making sure all of that work and only that work is completed

Question 355

Secondary Risk

Answer 355

domino effect of risk response; one risk if it happens creates another not necessarily smaller risk

Question 356

Seller Proposal (Price Quote or Bid)

Answer 356

seller’s response to the bid documents

Question 357

Sender

Answer 357

in the communication model, person who conveys a message and is responsible for making the content clear and complete; also responsible for confirming that the receiver understands the message correctly.

Question 358

Service Level Agreement (SLA)

Answer 358

• a contract between a service provider and its client
• outlines how the service is going to be performed and provided, as well as what is to happen if the company fails to provide the service
• often used in the IT industry

Question 359

Should-Cost Estimate

Answer 359

process of independent estimating; the independent estimate before taking bids is the mean used to compare vendors’ bids for the work

Question 360

Showing Ratio

Answer 360

in contracts, these incentives are typically expressed as a ratio such as 90/10; ratio described how cost savings or cost overrun will be shared; first number represents the buyer portion of the ratio and the second number represents the seller portion

Question 361

Single Source Procurement

Answer 361

buyer contracts directly with preferred seller without going through the bid process for procurement; buyer prefers to work with just one although there are multiple options

Question 362

Site Access Terms and Conditions

Answer 362

in a contract, requirements for access to site where the work will be completed

Question 363

Situational Leadership

Answer 363

a manager using different leadership styles based on the people and project work they are dealing with; project manager needs to be more directing at the beginning of the project and coaching, facilitating during executing

Question 364

Six Sigma

Answer 364

quality methodology for achieving organizational improvement and high levels of correctness with extremely reduced variances; standard deviation between 3 or 6 sigma

Question 365

Smoothing/Accommodating Problem Solving

Answer 365

downplay petty conflict and smooth them over

Question 366

Sole Source Procurement

Answer 366

there is only seller that can complete the work; ex: a company that owns a critical patent

Question 367

Solution Requirements

Answer 367

features, functions and characteristics of the product or service; can be functional or nonfunctional

Question 368

Special Provisions (Special Conditions)

Answer 368

additions, changes, or deletions for contracts determined by the project manager; result of meeting with procurement manager if there is one to determine final contract terms and conditions

Question 369

Stakeholder Engagement Levels

Answer 369

used in planning stakeholder engagement to create goals; unaware, resistant, neutral, supportive, leading

Question 370

Stakeholder Requirements

Answer 370

needs of a stakeholder or stakeholder group

Question 371

Stakeholder Stakes

Answer 371

ways in which stakeholders might a stake in a project * interest: how they are affected by the project * rights: legal and moral rights to the project * ownership: ownership of an asset used in the project * knowledge: knowledge that helps the project * contribution: funds or resources that support the project

Question 372

Stakeholders

Answer 372

any people or organizations whose interests may be positively or negatively impacted by the project or exert influence on the project * actively involved or have a more advisory role * internal or external to organization * keep stakeholders informed, solicit their input, and work to satisfy their needs and expectations

Question 373

Standard Contract

Answer 373

standard format for a contract that has been created by the buyer and used repeatedly; usually drafted or at least reviewed by lawyers; generally do not require additional review if used for the purpose for which they were intended

Question 374

Standard Deviation

Answer 374

distance from the normal bell curve; could be a way to measure possible range for the estimate; for example, an activity estimate of 30 hours that has a standard deviation of +/-2 is expected to take between 28 and 32 hours; also used in quality to determine the acceptable threshold for variation in quality

Question 375

Start-to-Finish Activity

Answer 375

an activity must start before the successor can finish

Question 376

Start-to-Start Activity

Answer 376

activity must start before the successor can start; example: must start designing and wait for two weeks’ lag in order to have enough of the design completed to start coding

Question 377

Statement of Work (SOW)

Answer 377

describes the complete scope of a procurement; lays out all work and activities (including meetings, reports, and communications) the seller is to complete, acceptance terms; level of detail depends on the contract type

Question 378

Statistical Independence

Answer 378

probability of one event occurring does not affect the probability of another event occurring; mathematical tool to determine root cause

Question 379

Step Funding Requirements

Answer 379

represents funding at different phases of project added to cost baseline; shows infusions of money at each phase and then money spent in that phase

Question 380

Storytelling

Answer 380

team members and experts explain tacit knowledge during Manage Knowledge

Question 381

Straight-line Depreciation

Answer 381

same amount of depreciation is taken each year (item with a ten year useful life and no salvage value)

Question 382

Strategic Impact Risk Parameter

Answer 382

refers to the degree to which the occurrence of a risk would affect the strategic goals of the organization

Question 383

Strong Matrix

Answer 383

• power rests with project manager but project team has functional manager also
• project manager is full-time on projects
• project manager has more power and authority than functional managers
• often has full-time support staff

Question 384

Sunk Costs

Answer 384

• costs already expended
• should not be considered when deciding whether to continue with a troubled project

Question 385

Supporting Management Style

Answer 385

project manager encourages and provides assistance to team members and stakeholders in working through the situations they encounter

Question 386

Supportive PMO

Answer 386

• provides the policies, methodologies, templates and lessons learned
• attempts to promote consistency and streamline efforts
• consultative
• low level of control

Question 387

System Dynamics

Answer 387

relationship between components in an organization such as department, projects, people, bureaucracy, politics, and policies

Question 388

Tacit Knowledge

Answer 388

• emotions, experience, and ability, which are more difficult to communicate clearly and require an atmosphere of trust

Question 389

Tangible Business Value

Answer 389

projects that add tangible business value create new products and things, such as new hardware or software, or even bring in new money

Question 390

Tangible Reward

Answer 390

money

Question 391

Target Price

Answer 391

in procurement process, used to compare the end result (final price) with what was expected (target price); a measure of success * don’t confuse target price with target cost or target fee * target cost plus target fee = target price

Question 392

Team-Building

Answer 392

guiding, managing, and improving the interactions of team members and is the project manager’s responsibility; creating the WBS is a team-building activity because it allows the team to actively engage in planning the project and helps them take ownership of it; training is team building; define rules to handle team disagreements

Question 393

Technical Risks

Answer 393

changes in technology, technical processes, or interfaces

Question 394

Termination

Answer 394

stopping work before it is completed

Question 395

Termination for Convenience

Answer 395

buyer terminates a contract before the work is complete because they no longer want the work to be done

Question 396

Terms of Reference (TOR)

Answer 396

• for procurement of services rather than products
• includes the work seller will perform
• standards the seller is expected to achieve
• data and services that will be provided to the buyer

Question 397

Testing

Answer 397

tests the product against the quality standards in your discipline; done throughout the project not just before scope validation because that could be costly

Question 398

Theory of Constraints

Answer 398

identify the most limiting factor in processes and improve it so it’s not longer the most limiting factor

Question 399

Threat Responses

Answer 399

in risk management, you try to avoid, mitigate, or transfer; avoid means attempt to eliminate the cause of a threat, and this is used for risk that is particularly high-impact; mitigate reduces the probability or impact and is also used for higher-impact risks; transfer means you make a party outside of the project responsible and can be done by purchasing insurance or warranties or outsourcing work

Question 400

Tight Matrix

Answer 400

• co-located team

Question 401

Time and Material Contract (T&M)

Answer 401

buyer pays on a per-hour or per-item basis; used for time and materials in service efforts for which the level of effort cannot be defined when the contract is awarded; * * * has elements of fixed-price contract because hourly/per-item rate is fixed * has elements of cost-reimbursable contract in that materials and labor cost total is unknown * allows for quicker negotiations because terms and conditions are simpler * best used for small dollar amount work * seller’s profit is built into rate, so they have no incentive to get work done quickly or efficiently * often includes “not to exceed” clause * buyer has a MEDIUM amount of risk compared to cost-reimbursable or fixed-rate

Question 402

Time Is of the Essence Terms and Conditions

Answer 402

in a contract, delivery dates that are strictly binding; seller on notice that time is important and any delay is a material breach

Question 403

Time-Boxing

Answer 403

set a fixed deliver date for a project or release

Question 404

To Complete Performance Index (TCPI)

Answer 404

can you meet the BAC? can you meet the EAC? answers the question to stay within the budget, what rate do we need to meet for the remaining work? greater than one is bad; less than one is good * BAC = budget at completion * EV = earned value * AC = actual cost * TCPI = (BAC – EV) / (BAC – AC) * TCPI = (BAC – EV) / (EAC – AC)

Question 405

Tornado Diagram

Answer 405

shows the risks with the largest probability of happening and largest effects

Question 406

Total Float

Answer 406

asset that provides schedule flexibility; total float is the amount of time an activity can be delayed without delaying the project end or an intermediary milestone while still adhering to any imposed schedule constraints

Question 407

Transition Requirements

Answer 407

look at patterns that can predict future results; analyze delivery time, cost variance, and number of incorrect items; analyze whether or not corrective action has reduced errors

Question 408

Triangular (Simple Average) Estimating

Answer 408

(P + O + M)/3

Question 409

Tuckman Ladder Model

Answer 409

team-building happens in the following stages: * forming: people are brought together as team * storming: people position themselves to leaders or followers; disagreements as people learn to work together * norming: people accept their roles; project work begins; team members begin to build rapport * performing: team becomes efficient and works effectively together * adjourning: project ends and team is disbanded

Question 410

Uncertainty

Answer 410

lack of knowledge about an event that reduces confidence in conclusions drawn from data

Question 411

Unforseeable Risks

Answer 411

only a small portion of risks are truly unforeseeable, and then generally involve the customer, a lack of project management effort or knowledge, suppliers, or resistance to change

Question 412

Urgency Risk Parameter

Answer 412

indicates if the risk if likely to occur soon or if the risk requires a long time to plan a response; urgent risks may be moved directly into risk response planning

Question 413

Value Engineering

Answer 413

what’s the minimum amount of engineering or design to get the required value

Question 414

Variability Risks

Answer 414

• risks caused by inability to predict future changes, such as defects, weather, malfunctioning equipment, new technology, new laws, the complexity of the project
• type of non-event based risk

Question 415

Variable Cost

Answer 415

cost that changes with the amount of production or work, such as materials, supplies, and wages

Question 416

Virtual Team (Non-Collocated Team)

Answer 416

• team scattered around the country or world
• more inclusive because people with mobility issues can be on the project BUT communication is key

Question 417

Vroom’s Expectancy Theory

Answer 417

finding a less costly way to do the same work while maintaining scope

Question 418

Waivers

Answer 418

statements saying that rights under the contract may not be waived or modified other than express agreement of the parties

Question 419

Warranties

Answer 419

promises of quality for the goods or services delivered under the contract usually restricted to a certain time period

Question 420

Weak Matrix

Answer 420

• power rests with functional manager and project manager is comparable to that of a coordinator or expediter
• functional manager controls the budget
• project manager and project team are part-time

Question 421

Whole Cost

Answer 421

consider the entire cost of resources for the project, including things like shipping

Question 422

Withdrawal (Avoidance) Style of Conflict Management

Answer 422

parties retreat or postpone decision on a problem; not usually the best choice on exam, although there may be situations where necessary

Question 423

Work Authorization System

Answer 423

• component of the PMIS
• coordinates when and in what order work is performed so that work and people may properly interface with other work and people
• part of project management integration

Question 424

Work for Hire

Answer 424

work provided under the contract will be owned by the buyer

Question 425

Work Package

Answer 425

scope is broken down until each package can be realistically and confidently estimated including the activities, duration, and cost; advantages—can be completed quickly, can be completed without interruption or need for more information, may be outsourced; for example a particular function in a piece of software or a window in a room

Question 426

Work Performance Data

Answer 426

initial measurements and details about activities gathered during project work (executing)

Question 427

Work Performance Information

Answer 427

work performance data that have been analyzed to make sure they conform to the project management plan and to assess what they mean for the project (controlling)

Question 428

Work Performance Reports

Answer 428

work performance information that has been organized into reports and distributed to the various stakeholders (monitor and control)

Question 429

Work Shadowing

Answer 429

a knowledge management technique during which the learner follows the expert

Question 430

Working Capital

Answer 430

• an organization’s current assets minus current liabilities
• thus how much the organization has available to invest, including investing in projects

Question 431

Zero Sum Rewards

Answer 431

avoid these when developing a team; only one person can win zero sum awards

Question 432

Path Convergence

Answer 432

• activity on a project schedule network diagram with two more activities directly preceding it
• represents added risk to schedule

Question 433

Path Divergence

Answer 433

• activity on a project schedule network diagram with two more activities directly succeeding it
• represents added risk to schedule

Question 434

Specification Limits

Answer 434

• customer’s requirements for quality and performance
• unlike control limits, which are the organization’s quality standards

Question 436

Four Main Sources fo Team Problems

Answer 436

1. schedule
2. project priorities
3. resources
4. technical opinions