Project Management Fundamental Terms

Question 1

A Guide to the Project Management Body of Knowledge (PMBOK Guide)

Answer 1

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

Question 2

Application areas

Answer 2

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

Question 3

Business value

Answer 3

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

Question 4

Certified Associate in Project Management (CAPM)

Answer 4

A person who has slightly less project management experience than a PMP, but who has qualified for and then passed the CAPM examination.

Question 5

Cultural and social environment

Answer 5

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 affect by the project.

Question 6

Deliverable

Answer 6

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

Question 7

General management skills

Answer 7

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 8

International and political environment

Answer 8

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 9

Interpersonal skills

Answer 9

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

Question 10

Iron Triangle of Project Management

Answer 10

A triangle with the characteristics of time, cost, and scope. Time, cost, and scope each constitutes 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 11

Physical environment

Answer 11

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

Question 12

Process groups

Answer 12

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 13

Program

Answer 13

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

Question 14

Progressive elaboration.

Answer 14

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

Question 15

Project

Answer 15

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

Question 16

Project benefits management plan

Answer 16

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 17

Project business case

Answer 17

Created and maintained by the project
sponsor and shows the financial validity
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
as a go/no-go decision point.

Question 18

Project environment

Answer 18

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 19

Project Management Institute (PMI)

Answer 19

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

Question 20

Project life cycle

Answer 20

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 21

Project management office (PMO)

Answer 21

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 22

Project Management Professional (PMP)

Answer 22

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

Question 23

Project portfolio management

Answer 23

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 24

Subprojects

Answer 24

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

Question 25

Triple Constraints of Project

Management

Answer 25

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

Question 26

Work performance data

Answer 26

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

Question 27

Work performance information

Answer 27

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

Question 28

Work performance reports

Answer 28

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.