Glossary | PMP Exam Cram 2. Project Management Professional

acceptance: The term formal acceptance is generally used in project management. This is the key output of scope verification and entails the project stakeholders formally agreeing that the project deliverables meet their satisfaction.

activity definition: Identifying the specific tasks that must be performed to produce the various project deliverables.

activity duration estimate: Estimating the number of work periods that will be needed to complete the individual activities.

activity list: After a work packet is decomposed, this is the list of tasks associated with the project that have to be completed.

activity sequencing: Identifying and documenting the logical relationships between project activities.

actual cost (AC): Total costs incurred over the specified reporting period.

actual cost of work performed (ACWP): A legacy earned value term that has been replaced with actual cost (AC).

administrative closure: Generating, gathering, and disseminating information to formalize phase or project completion.

analogous estimating: Also known as top-down estimating. This type of estimating uses historical data from one project to determine the duration of another, similar project.

application area: A category or type of project that has elements not common for all projects. An application area is usually defined by the product of the project (such as software development or commercial building construction) or the type of customer (such as government versus commercial).

Arrow Diagramming Method (ADM): A network diagramming technique in which activities are represented by arrows. The tail of the arrow represents the start of the activity, and the head represents the finish. Activities are connected at nodes (points) to illustrate the expected performance sequence. ADM uses dummy activities to show logical dependencies.

assumptions: Factors considered to be true that affect project planning. These factors should be identified, documented, and validated throughout the planning process and throughout the elaboration of the project.

bar chart: A graphic depiction of schedule-related information. Also called a Gantt chart. Normally, activities are listed down the left hand side of the chart, dates are list along the top, and activity durations are shown as date-placed horizontal bars.

baseline: The original approved plan. Types of project baselines include cost baseline, schedule baseline, and performance measurement baseline. Baselines are used to measure project performance.

bidder conference: A meeting of bidders that provides an opportunity to ask the customer questions and confirm expectations before the submission of a proposal for the project.

bottom-up estimating: A type of estimating where the project is broken into numerous smaller tasks and all the tasks are estimated. After all the estimates are completed, they are added together to calculate the estimate for the entire project.

budget at completion (BAC): The sum of the total budgets for the project.

budgeted cost of work performed (BCWP): A legacy earned value term that has been replaced with earned value (EV).

budgeted cost of work scheduled (BCWS): A legacy earned value term that has been replaced with planned value (PV).

change-control board (CCB): A formally constituted group of stakeholders responsible for approving or rejecting changes to the project baselines.

change requests: Documents that are prepared to describe the changes made to a project and the impact on the pricing and the timeline. The form usually requires approvals before it is incorporated into the project.

chart of accounts: Any numbering system used to monitor project costs by category (such as labor, supplies, materials, equipment, and so on). Usually based on the chart of accounts of the primary performing organization.

closing processes: Also known as project closeout processes. These are the activities associated with the closing out of a project.

code of accounts: Any numbering system used to uniquely identify each element of the Work Breakdown Structure (WBS).

collocation: The close physical proximity of team members, where they work together in a central location.

communication planning: Determining the information and communication needs of the project stakeholder who needs what information, when they will need it, and how it will be given to them.

confidential information: Secret or private information that is associated with the project.

configuration management: A supporting process that manages control, versioning, and tracking of changes to work products used, created, and maintained in executing a project.

conflict of interest: Whenever someone's personal interests exceed the interests of the project.

constraints: Factors that limit a project team's options. Examples include predefined budget, contractual provisions, and specific external requirements.

contingency (reserve): The amount of money or time needed above the estimate to reduce the risk of overruns of project objectives to an organizational acceptable level.

contingency plan: A management plan that identifies alternative strategies to be used to ensure project success if specified risk events occur.

contract: A mutually binding agreement that obligates the seller to provide the specified product or service and obligates the buyer to pay for it.

contract administration: Managing the relationship with the seller during project execution.

contract change-control system: The process by which a contract can be modified. It includes the forms, tracking procedures, dispute-resolution procedures, and approval levels for authorizing changes. This system should be integrated with the project's overall integrated change-control system.

contract closeout: Completion and settlement of the contract. This process involves product verification and administrative closeout steps. Contract closeout precedes project administrative closure.

contract negotiation: The discussions and meetings intended to set the framework for contract development. These discussions can lead to compromises and likely lead to a signed agreement.

control charts: Graphic displays of process results over time and against specified control limits. Used in quality control to determine whether a process is "in control" or needs adjustments.

control system: The system used to compare actual performance with planned performance, to analyze variances, to evaluate alternatives, and to take corrective actions.

controlling processes: The processes used to monitor and measure project performance to identify variances that may impact the accomplishment of project objectives.

core processes: Project management processes that must be performed in approximately the same order on all projects.

corrective action: Steps taken to bring future project performance in line with planned project performance.

cost baseline: The agreed-upon costs associated with the project. The cost baseline sets the guidelines for expenses and is the expected total cost for the project.

cost budgeting: Allocating the overall cost estimates to individual work activities. The result is a cost baseline.

cost control: Controlling changes to the project budget (cost baseline).

cost estimating: Developing a cost approximation of the resources needed to complete the project activities.

cost management plan: Describes how cost variances will be managed.

cost of quality: The costs incurred to ensure quality.

Cost Performance Index (CPI)

An Earned Value Management ratio used to measure the efficiency of earned value (EV) to actual costs (AC).

CPI = EV / AC

CPI is often used to predict the total project costs at completion (EAC) using the formula EAC = BAC / CPI.

cost variance (CV)

Any difference between budgeted cost and actual cost.

CV = EV AC

cost-reimbursable contracts: This contract type involves payments to the seller for its actual costs. These contracts can also incorporate incentives for meeting or exceeding certain project objectives.

crashing: A schedule compression technique that relies on adding resources to critical path activities to reduce project duration.

critical path: The series of activities that determine the duration of a project. The critical path is the longest path in a project and is usually defined as those activities with zero float.

Critical Path Method (CPM): A network analysis technique used to predict project duration by determining the critical path(s) of the project. This technique calculates four dates for each activity (early start, late start, early finish, and late finish).

decision tree: A diagram that describes a decision under consideration and the implications of selecting each alternative. The diagram will also show the probability (risk) and the cost (reward) of each option.

decomposition: The process of breaking down a work packet into smaller tasks. This process can be used when developing the Work Breakdown Structure (WBS).

deliverable: Any measurable, tangible, verifiable item produced to complete a project work package.

dummy activity: An activity of zero duration used to show a logical relationship (dependency) in the Arrow Diagramming Method. (Depicted as dashed arrow lines.)

duration compression: Shortening the project schedule without reducing the project scope.

earned value (EV): The sum of the cost estimates for project activities completed during a given time period.

Earned Value Management (EVM): A project controlling technique that integrates scope, schedule, and resources for measuring project performance. EVM compares the planned amount of work (and cost) with the actual work earned and actual costs incurred.

effort: The number of labor units required to complete an activity. (Not the same as duration.)

estimate at completion (EAC)

The predicted total costs at completion for one or more project activities.

EAC = budgeted at completion (BAC) / Cost Performance Index (CPI)

estimate to complete (ETC): The expected additional cost needed to complete one or more project activities.

ethical standards: Professional standards and morals that are tied with integrity, honesty, and respect.

executing processes: The project management activities that coordinate the resources and people to implement the project plan.

external feedback: Receiving or requesting feedback from individuals who are outside of the project. This allows for objective opinions.

facilitating processes: Project management processes that vary depending on the nature of the project. Facilitating processes are performed intermittently throughout the project and are not optional.

fallback plan: A backup plan option.

fast tracking: A schedule compression technique that overlaps critical path activities that would normally be done in sequence.

feedback loop: The channels of communication developed to allow opinions to be distributed among the team members and stakeholders.

fixed-price contracts: Also known as lump-sum contracts. This contract type involves a fixed total price for a well-defined product. These contracts can also incorporate incentives for meeting or exceeding certain project objectives.

float: The time that an activity can be delayed from its early start date without impacting the project's finish date. Also called slack and total float.

free float: The time that an activity can be delayed without impacting the early start date of any immediate successor activities.

functional organization: An organizational structure that groups staff hierarchically by area of specialty.

Gantt chart: See [bar chart]

gold plating: Performing extra work outside the approved project scope. Gold plating is not an approved practice of PMI.

Graphical Evaluation and Review Technique (GERT): A network analysis technique that allows for conditional and probabilistic logical relationships (such as branching, repeat loops, and optional activities).

information distribution: Making needed information available to project stakeholders in a timely manner.

initiating processes: Project management processes that authorize a project or phase.

initiation: Formally authorizing a new project or an existing project to continue into the next phase.

integrated change control: Coordinating changes across the entire project.

integrity: Adherence to a code of values or morals.

intellectual property: The nontangible things developed by a company or organization that have commercial value.

lag: A mandatory delay in the logical relationship between two tasks. For example, in a finish-to-start dependency with a five-day lag, the successor activity cannot start until five days after the predecessor has finished.

lessons learned: The learning gained from the process of performing the project. These lessons can be identified and captured at any point in the project.

lifecycle costing: The costing method that accounts for the entire life of the product, including acquisition, development, operating, and disposal costs.

Management by Objectives (MBO): A management technique that focuses on setting goals, checking progress on those goals, and taking necessary corrective actions.

matrix organization: An organizational structure that cuts across functional departmental boundaries. Project managers drive projects and share responsibility with functional managers for determining work priorities and work direction of project staff.

milestone: A significant event in the project. Usually the completion of a key project deliverable or phase.

Monte Carlo simulation: The technique used to estimate the likely range of outcomes by simulating the process a large number of times, thereby identifying key risks.

operational definitions: A quality management term for "metrics." Describes a quality standard in very specific terms and describes how it is to be measured by the quality control process.

organizational planning: The process of identifying, documenting, and assigning project roles, responsibilities, and reporting relationships.

organizational policies: Standards and rules of an organization that set guidelines for professionalism within the organization.

parametric estimating: An estimating technique that uses a statistical relationship between historical data and other variables to calculate an estimate.

performance measurement baseline: An approved plan against which deviations are compared for management control.

performance reporting: The process of collecting and disseminating project performance information. This includes status reporting, progress measurement, and forecasting.

personal gain: Receiving monetary gain or benefits through business dealings, arrangements, or negotiations.

planned value (PV): The budgeted cost of the planned (scheduled) work for a given time period.

planning processes: Project management activities that clarify the project objectives and determine the best course of action to take to accomplish those objectives. These activities are ongoing throughout the project.

PMI Code of Professional Conduct: Ethical standards for project management professionals concerning business practices and interactions.

Precedence Diagramming Method (PDM): A network diagramming technique in which activities are represented by boxes (or nodes). Arrow lines are used to show the sequence and relationship between the activities.

preventive action: The proactive steps taken to keep an event or activity from occurring or existing.

process: Gradual changes that lead toward a particular result. Includes results that are brought about by a series of actions.

procurement management plan: The document that describes how the processes from solicitation planning through contract closeout will be managed. This is the key output of procurement planning.

procurement planning: The process of determining what to procure and when.

product documentation: The set of reviewable project documents that describes the final product of the project.

product lifecycle: The timeline associated with the entire lifespan of a product, from inception to disposal.

product verification: The process of ensuring the key deliverables of the project are complete, accurate, and satisfactory to the project stakeholders.

program: A group of related projects managed in a coordinated way.

Program Evaluation and Review Technique (PERT)

A network analysis technique used to estimate project duration when there is uncertainty in activity duration estimates. Activity duration estimates are computed by a weighted average of optimistic, pessimistic, and most likely duration estimates.

Estimated duration = (O + 4ML + P) / 6

progressive elaboration: The evolutionary steps associated with the development and refinement of a product.

project: A temporary endeavor undertaken to create a unique product, service, or result.

project charter: The document issued by senior management that formally authorizes a project and gives the project manager authority to use organizational resources to complete project activities.

Project Communications Management: A subset of project management processes that ensures timely and appropriate generation, collection, dissemination, storage, and disposition of project information.

Project Cost Management: A subset of project management processes that ensures the project is completed with the approved budget.

Project Human Resources Management: A subset of project management processes that makes the most effective use of the people involved with the project.

Project Integration Management: A subset of project management processes that ensures that the various elements of the project are properly coordinated.

project lifecycle: The collection of sequential project phases.

Project Management Information System (PMIS): The techniques and tools used to gather, integrate, and distribute the outputs of project management processes. It includes both manual and automated processes.

project management office (PMO): Groups developed by organizations to maintain standards, processes, and procedures associated with project management in their organizations.

project management software: A type of software application designed to assist the planning and controlling of project costs and schedules.

project network diagram: Any schematic display of the logical relationships of project activities.

project plan: A formal, approved document used to guide both project execution and project control.

project plan development: The process of integrating and coordinating all project plans to create a single consistent, coherent document.

project plan execution: The process of performing the activities included in the project plan.

Project Portfolio Management: The choosing and support of program or project investments based on an organization's strategic plan and resources.

Project Procurement Management: A subset of project management processes that acquires goods and services from outside the performing organization to achieve the project objectives.

Project Quality Management: A subset of project management processes that ensures the project will satisfy the needs for which it was undertaken.

Project Risk Management: A subset of project management processes that identifies, analyzes, and responds to project risk.

project schedule: The planned dates for performing activities and the planned dates for meeting milestones.

Project Scope Management: A subset of project management processes that ensures the project includes all the work required, and only the work required, to complete the project successfully.

project sponsor: The person who provides the financial resources to the project.

Project Time Management: The subset of project management processes that ensures timely completion of the project.

projectized organization: An organizational structure in which the project manager has complete and total authority over the resources assigned to the project.

proposals: Written documents prepared by vendors that make an offer for consideration by the customer.

qualified seller lists: Listings of preferred vendors that have developed a reputation for being honest and fair. This list is used as a resource for organizations so they can choose reliable vendors.

qualitative risk analysis: The process of performing a qualitative analysis of risks and conditions for the purpose of prioritizing their effects on project objectives.

quality assurance: The process of evaluating overall project performance on a regular basis to ensure the project will satisfy the targeted quality standards.

quality audit: The process of reviewing and evaluating the performance of a project to determine whether it is fulfilling quality standards.

quality control: The process of monitoring specific project results to determine whether they comply with targeted quality standards and of identifying corrective actions for any unsatisfactory performance.

quality improvement: A positive increase in quality standards and the fulfillment of project requirements.

quality management plan: The monitoring and control of quality standards to maintain or increase quality performance.

quality planning: The process of identifying which quality standards are relevant to the project and determining how to satisfy them.

quantitative risk analysis: The process of measuring the probability and consequences of project risks.

reserve: A provision in the project plan to mitigate cost and/or schedule risk. Also known as management reserve or contingency reserve.

residual risk: A risk that remains after risk responses have been implemented.

resource leveling: Any form of network analysis in which scheduling decisions are driven by resource management concerns.

resource planning: The process of determining what people, equipment, and materials are needed in what quantities to perform project activities.

resource pool: Available employees, stakeholders, and people associated with the project that can be utilized in a project.

resource requirements: The list of the type and quantity of each person, role, skill, material, and equipment needed to complete the project.

responsibility matrix: Also known as responsibility assignment matrix (RAM), this is a document that relates the project organization to the Work Breakdown Structure. This matrix ensures that each element of the WBS is assigned to a responsible individual and that each project team member understands his or her project responsibilities.

rewards and recognition systems: A plan developed to reward and provide positive reinforcement to team members for their participation on a project through monetary or nonmonetary means.

risk: An uncertain event or condition that can have a positive or negative effect on the project objectives if it occurs.

risk avoidance: A risk response strategy that changes the project plan to eliminate the risk or to protect the project from its impact.

risk event: A discrete occurrence of a project risk.

risk identification: The process of determining which risks might affect the project and documenting their characteristics.

risk management plan: This plan documents how the risk management processes will be executed during the project. This is the output of risk management planning.

risk management planning: The process of deciding how the risk management processes will be executed during the project.

risk mitigation: A risk response strategy that seeks to reduce the probability and/or impact of a risk to an acceptable threshold.

risk monitoring and control: The process of monitoring residual risks, identifying new risks, executing risk response plans, and evaluating their effectiveness throughout the project lifecycle.

risk rating matrix: A table that's developed to list the risks associated with a project and to determine a quantitative rating system for providing rankings based on several criteria.

risk response: The steps, procedures, or techniques to implement if the risk occurs. The four risk response strategies are avoidance, mitigation, transference, and acceptance.

risk response plan: A document detailing all identified risks, their probability of occurrence, possible impacts on objectives, and the proposed response to each risk.

risk transference: A risk response strategy that seeks to shift the impact of a risk and ownership of the response to a third party.

risk trigger: An indicator that a risk has occurred or is about to occur.

rolling wave planning: Progressive detailing of the project plan. At the end of each project phase, the next phase is planned in detail and reestimated.

schedule control: Controlling changes to the project schedule.

schedule development: The process of analyzing activity sequences, activity durations, and resource requirements to create the project schedule.

Schedule Performance Index (SPI)

An earned value management ratio used to measure the efficiency of earned value (EV) against planned value (PV). SPI describes what portion of the planned schedule has actually been accomplished.

SPI = EV / PV

schedule variance (SV)

Any difference between scheduled activity completion and actual activity completion.

SV = EV PV

scope change control: Controlling changes to project scope.

scope definition: The process of subdividing the major deliverables into smaller, more manageable components to provide better control.

scope management plan: This plan provides an analysis of the stability and reliability of the scope for the project.

scope planning: The process of progressively elaborating the work of the project and developing the scope statement.

scope statement

A document used to develop and confirm a common understanding of project scope among the stakeholders. The scope statement is used as a basis for making future project decisions.

Key elements include project justification, major deliverables, and project objectives.

scope verification: The process of formalizing acceptance of the project scope.

screening system: The process of interviewing vendors to determine whether they fulfill the needs of the project.

secondary risk: A risk that arises as a direct result of implementing a risk response.

solicitation: The process of obtaining seller responses.

solicitation planning: The process of documenting product requirements and identifying potential sources.

source selection: The process of choosing a seller from the potential group of sellers.

staff acquisition: The process of getting needed human resources assigned to and working on the project.

staffing management plan: A plan used to determine staff levels and scheduling.

stakeholders: Any organization or person who has a vested interest in the outcome of the project.

status report: A summary report that is provided by the project team for the stakeholders to keep them informed about project-related issues, deliverables, and timelines.

status review meeting: Regularly scheduled meetings of project stakeholders to exchange information about the project.

team development: The process of developing individual and group competencies to enhance project performance.

time and material contracts: A vendor calculation that incorporates the costs of materials and labor into a proposal or customer billing.

truthful reporting: The ethical requirement that ensures project management professionals will provide honesty in composing reports, providing analysis, and communicating status on projects.

vendor gifts: Compensation or benefits that are provided by vendors to customers. These can be seen as potential conflicts of interest based on some company's standards.

war room: The physical location where team members are co-located with other resources to focus exclusively on a project.

WBS Dictionary: The collection of work package descriptions.

weighting system: The quantification analysis used to judge vendors for selection.

work authorization system: A formal procedure to ensure project work is sanctioned, done at the right time and in the right sequence.

Work Breakdown Structure (WBS): A deliverables-oriented grouping of project elements that organizes and defines the total scope of the project.

work package: A deliverable that is at the lowest level of the Work Breakdown Structure (WBS). A work package includes the bundling of several activities that will be decomposed into tasks to populate the WBS.

work results: The outcome of an activity associated with a project.

workaround: The development of alternatives in response to a problem. This process allows you to get beyond the issue by utilizing creative problem solving.