1 - 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 the 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 include architecture, 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

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, economic, educational, ethical, religious, demographic and ethnic composition of the people affected by the project.

Question 6

Deliverable

Answer 6

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

Question 7

General mgmt skills

Answer 7

These include the application of accounting, procurement, sales & 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 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 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 5 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 project working in unison toward a common deliverable.

Question 14

Progressive elaboration

Answer 14

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 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 document 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. 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 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: social, economical 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 is happening in the project through status reports, memos, dashboards, or other modalities.