Project Management Fundamental Terms

Question 1

Application areas

Answer 1

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

Question 2

Business value

Answer 2

A quantifiable return on investment. The return can be tangible, such as equipment, money, or market share. The return can also be intangible, such as brand recognition, trademarks, and reputation.

Question 3

Cultural and social environment

Answer 3

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

Question 4

Deliverable

Answer 4

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

Question 5

General management skills

Answer 5

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

Question 6

International and political environment

Answer 6

The consideration of the local and international laws, languages, communication challenges, time zone differences, and other non-collocated issues that affect a project’s ability to progress.

Question 7

Interpersonal skills

Answer 7

The ability to interact, lead, motivate, and manage people.

Question 8

Iron Triangle of Project Management

Answer 8

A triangle with the characteristics of time, cost, and scope. Time, cost, and scope each constitute one side of the triangle; if any side of the Iron Triangle is not in balance with the other sides, the project will suffer. The Iron Triangle of Project Management is also known as the Triple Constraints of Project Management, as all projects are constrained by time, cost, and scope.

Question 9

Physical environment

Answer 9

The physical structure and surroundings that affect a project’s work.

Question 10

Process groups

Answer 10

A collection of related processes in project management. There are five process groups and 49 project management processes. The five process groups are Initiating, Planning, Executing, Monitoring and Controlling, and Closing.

Question 11

Program

Answer 11

A collection of related projects working in unison toward a common deliverable.

Question 12

Progressive elaboration

Answer 12

The process of gathering project details. This process uses deductive reasoning, logic, and a series of information-gathering techniques to identify details about a project, product, or solution.

Question 13

Project

Answer 13

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

Question 14

Project benefits management plan

Answer 14

A documented created and maintained by the project sponsor and the project manager. The project benefits management plan defines what benefits the project will create, when the benefits will be realized, and how the benefits will be measured.

Question 15

Project business case

Answer 15

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

Question 16

Project environment

Answer 16

The location and culture of the environment where the project work will reside. The project environment includes the social, economic, and environmental variables the project must work with or around.

Question 17

Project Management Institute (PMI)

Answer 17

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

Question 18

Project life cycle

Answer 18

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

Question 19

Project management office (PMO)

Answer 19

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

Question 20

Project Management Professional (PMP)

Answer 20

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

Question 21

Project portfolio management

Answer 21

The management and selection of projects that support an organization’s vision and mission. It is the balance of project priority, risk, reward, and return on investment. This is a senior management process.

Question 22

Subprojects

Answer 22

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

Question 23

Triple Constraints of Project Management

Answer 23

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

Question 24

Work performance data

Answer 24

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

Question 25

Work performance information

Answer 25

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

Question 26

Work performance reports

Answer 26

Work performance reports is the formatted communication of work performance information. Work performance reports communicate what’s happening in the project through status reports, memos, dashboards, or other modalities.