pmp_glossary

Question 1

Acceptance

Answer 1

This is a response to a risk event, generally made when the probability of the event and/or its impact are small. It is used when mitigation, transference, or avoidance are not selected.

Question 2

Active listening

Answer 2

This occurs when the receiver confirms the message is being received. It can be done by way of feedback, questions, prompts for clarity, and other signs of having received the message.

Question 3

Activity list

Answer 3

An output of the activity definition process that includes all of the activities to be performed within the project.

Question 4

Activity on arrow

Answer 4

A network diagramming method where the arrows in the arrow diagramming method network diagram represent the activities within the project.

Question 5

Activity on node

Answer 5

A network diagramming method where the nodes in a project network diagram represent the activities.

Question 6

Activity sequencing

Answer 6

A process for setting the order of activities within the project schedule.

Question 7

Actual cost (AC)

Answer 7

Used in earned value measurements; the actual cost of the work performed.

Question 8

Administrative closure

Answer 8

The documenting of the project results and the acceptance of the product by the customer or the project sponsor. Administrative closure is also needed if a project is terminated.

Question 9

Analogous estimating

Answer 9

This relies on historical information to predict estimates for current projects. Analogous estimating is also known as top-down estimating and is a form of expert judgement.

Question 10

Application areas

Answer 10

These are the areas of business, industry, and trade about which the project manager may need special knowledge. Common application areas include legal issues, technical issues, engineering information, and manufacturing information

Question 11

Assumptions

Answer 11

Beliefs considered to be true, real, or certain for the sake of planning.

Question 12

Avoidance

Answer 12

This is one response to a risk event. The risk is avoided by planning a different technique to remove the risk from the project.

Question 13

Benchmarking

Answer 13

A process of using prior projects within, or external to, the performing organization to compare and set quality standards for processes and results.

Question 14

Benefit measurement methods

Answer 14

Used in comparing the value of one project against the value, or benefits, of another; often used in project selection models.

Question 15

Benefit/cost analysis

Answer 15

The process of determining the pros and cons of any project, process, product, or activity.

Question 16

Benefit/cost ratios

Answer 16

These models examine the cost-to-benefit ratio.

Question 17

Bid

Answer 17

A document from the seller to the buyer. Used when price is the determining factor in the decision-making process.

Question 18

Bidder conference (also called contractor or vendor conference)

Answer 18

A meeting with prospective sellers to ensure all sellers have a clear understanding of the product or service to be procured. Bidder conferences allow sellers to query the buyer on the details of the product to help ensure that the proposal the seller creates is adequate and appropriate for the proposed agreement.

Question 19

Bill of materials (BOM)

Answer 19

A hierarchy of the materials needed to complete the project.

Question 20

Bottom-up estimating

Answer 20

A technique where an estimate for each component in the WBS is developed and then totalled for an overall project budget. This is the longest method to complete, but it provides the most accurate estimate.

Question 21

Brainstorming

Answer 21

The most common approach to risk identification; it is performed by a project team to identify the risks within the project. A multidisciplinary team, hosted by a project facilitator, can also perform brainstorming.

Question 22

Budget at completion (BAC)

Answer 22

The predicted budget for the project; what the project should cost when it is completed.

Question 23

Cause-and-effect diagrams (also called Ishikawa diagrams and fish-bone diagrams)

Answer 23

Used for root cause analysis of what factors are creating the risks within the project. The goal is to identify and treat the root of the problem, not the symptom.

Question 24

Centralized contracting

Answer 24

All contracts for all projects need to be approved through a central contracting unit within the performing organization.

Question 25

Change Control Board

Answer 25

A board that determines the validity and need of (thus approving or denying) project change requests.

Question 26

Change Control System

Answer 26

A system to formally accept, review, and act upon project change requests.

Question 27

Chart of accounts

Answer 27

A coding system used by the performing organization’s accounting system to account for the project work.

Question 28

Checklists

Answer 28

A listing of activities that employees check to ensure the work has been completed consistently; used in quality control.

Question 29

Claim

Answer 29

Generally unpleasant. It describes a disagreement between the buyer and the seller-or vice versa-regarding a change to the project work. Generally, the disagreement centers on the change, why it happens, and which party is responsible for the financial ramifications of the change.

Question 30

Closing

Answer 30

The period when a project or phase moves through formal acceptance to bring the project or phase to an orderly conclusion.

Question 31

Code of accounts

Answer 31

The numbering systems used within the WBS and the WBS dictionary to identify the components within the project.

Question 32

Coercive power

Answer 32

The type of power that comes with the authority to discipline the project team members. This is also known as “penalty power.” Generally used to describe the power structure when the team is afraid of the project manager.

Question 33

Collective bargaining agreements

Answer 33

These are contractual agreements initiated by employee groups, unions, or other labor organizations; they may act as a constraint on the project.

Question 34

Communication channel formula

Answer 34

A formula to predict the number of communication channels within a project; the formula is N(N - 1)/2, where N represents the number of stakeholders.

Question 35

Communications management plan

Answer 35

A plan that documents and organizes the stakeholder needs for communication. This plan covers the communications system, its documentation, the flow of communication, modalities of communication, schedules for communications, information retrieval, and any other stakeholder requirements for communications.

Question 36

Compromising

Answer 36

A conflict resolution method; this approach requires both parties to give up something. The decision ultimately made is a blend of both sides of the argument. Because neither party completely wins, it is considered a lose-lose solution.

Question 37

Configuration management

Answer 37

Activities focusing on controlling the characteristics of a product or service. A documented process of controlling the features, attributes, and technical configuration of any product or service. Sometimes considered a rigorous Change Control System.

Question 38

Constrained optimization methods

Answer 38

These are complex mathematical formulas and algorithms that are used to predict the success of projects, the variables within projects, and the tendencies to move forward with selected project investments. Examples include linear programming, integer algorithms, and multi-objective programming.

Question 39

Constraints

Answer 39

Any influence on the project that may limit the options of the project team in performing the project work.

Question 40

Contingency reserve

Answer 40

A time or dollar amount allotted as a response to risk events that may occur within a project.

Question 41

Contract

Answer 41

A legal, binding agreement, preferably written, between a buyer and seller detailing the requirements and obligations of both parties. Must include an offer, an acceptance, and a consideration.

Question 42

Contract administration

Answer 42

The process of ensuring that the buyer and seller both perform to the specifications within the contract.

Question 43

Contract Change Control System

Answer 43

Defines the procedures for how contracts may be changed. Includes the paperwork, tracking, conditions, dispute resolution procedures, and the procedures for getting the changes approved within the performing organization.

Question 44

Contract closeout

Answer 44

A process for confirming that the obligations of the contract were met as expected. The project manager, the customer, key stakeholder, and, in some instances, the seller complete the product verification together to confirm the contract has been completed.

Question 45

Contract file

Answer 45

A complete indexed set of records of the procurement process incorporated into the administrative closure process. These records include financial information as well as information on the performance and acceptance of the procured work.

Question 46

Control account plans

Answer 46

A control tool within the project that represents the integration of the project scope, the project schedule, and the budget. It allows management to measure the progress of a project.

Question 47

Control charts

Answer 47

These illustrate the performance of a project over time. They map the results of inspections against a chart. Control charts are typically used in projects or operations that have repetitive activities such as manufacturing, test series, or help desk functions. Upper and lower control limits indicate whether values are in control or out of control.

Question 48

Controlling

Answer 48

Process in which the project is controlled and managed; the project manager controls the project scope and changes and monitors changes to the project budget, schedule, and scope by comparing plans to actual results and taking corrective action as necessary.

Question 49

Core processes

Answer 49

These processes are common to all projects. The core processes are scope planning, scope definition, activity definition, resource planning, activity sequencing, activity duration estimation, cost estimating, risk management planning, schedule development, cost budgeting, and project plan development.

Question 50

Cost baseline

Answer 50

This shows what the project is expected to spend. It’s usually shown in an S-curve and allows the project manager and management to predict when the project will be spending monies and over what duration. The purpose of the cost baseline is to measure and predict project performance.

Question 51

Cost budgeting

Answer 51

A process of assigning a cost to an individual work package. This process shows costs over time. The cost budget results in an S-curve that becomes the cost baseline for the project.

Question 52

Cost change control

Answer 52

This is part of the integrated change control system and documents the procedures to request, approve, and incorporate changes to project costs.

Question 53

Cost control

Answer 53

An active process to control the causes of cost changes, to document cost changes, and to monitor cost fluctuations within the project. When changes occur, the cost baseline must be updated.

Question 54

Cost estimating

Answer 54

The process of calculating the costs, by category, of the identified resources to complete the project work.

Question 55

Cost of conformance

Answer 55

The cost of completing the project work to satisfy the project scope and the expected level of quality. Examples include training, safety measures, and quality management activities.

Question 56

Cost of poor quality

Answer 56

The cost of completing the project work without meeting the quality standards. The biggest issue here is the money lost by having to redo the project work; it’s always more cost-effective to do the work right the first time. Other non-conformance costs are loss of sales, loss of customers, downtime, and corrective actions to fix problems caused by the incorrect work.

Question 57

Cost of quality

Answer 57

The cost of quality is the expense of all the activities within a project to meet quality objectives.

Question 58

Cost performance index (CPI)

Answer 58

An index that measures how well the project is performing on cost: CPI = EV/AC.

Question 59

Cost variance

Answer 59

The cost variance (CV) is the difference between the earned value (EV) and the actual cost (AC).

Question 60

Cost-reimbursable contracts

Answer 60

A contract that pays the seller for the product. In the payment to the seller, there is a profit margin that’s the difference between the actual costs of the product and the sales amount.

Question 61

Crashing

Answer 61

This is the addition of more resources to activities on the critical path in order to complete the project earlier. Crashing results in higher project costs.

Question 62

Critical chain method

Answer 62

A scheduling approach that considers the availability of the resources needed to complete the project work. Unavailable resources may cause the network diagram to be reconfigured or the project duration to take longer than originally planned.

Question 63

Critical path method (CPM)

Answer 63

The CPM is the most common approach to calculating when a project may finish. It uses a “forward” and “backward” path to reveal which activities are considered critical, and which contain float. If activities on the critical path are delayed, the project end date will be delayed.

Question 64

Decision tree analysis

Answer 64

A type of analysis that determines which of two decisions is the best. The decision tree assists in calculating the value of the decision and determining which decision costs the least.

Question 65

Decoder

Answer 65

This is a part of the communications model; it is the inverse of the encoder. If a message is encoded, a decoder translates it back to a usable format.

Question 66

Defect repair

Answer 66

An identified defect in a project component that needs to be repaired or replaced.

Question 67

Deliverable

Answer 67

The outcome of a project or project phase; a deliverable of a project can be a product or service.

Question 68

Delphi Technique

Answer 68

A method to query experts anonymously on foreseeable risks within the project, a phase of the project, or one of its components. The results of the survey are analyzed and organized and then circulated to the experts. Several rounds of anonymous discussions can be held using the Delphi Technique. The goal is to gain a consensus on project risks, and the anonymous nature of the process ensures that no one expert’s advice overtly influences the opinion of any other participant.

Question 69

Design of experiments

Answer 69

This relies on statistical “what-if” scenarios to determine which variables within a project will result in the best outcome; it can also be employed to eliminate a defect. The design of experiments approach is most often used on the product of the project, rather than the project itself.

Question 70

Direct costs

Answer 70

Costs incurred by the project in order for it to exist. Examples include the equipment needed to complete the project work, the salaries of the project team, and other expenses tied directly to the project’s existence.

Question 71

Discretionary dependencies

Answer 71

The preferred order of activities. Project managers should adhere to the order at their “discretion” and should document the logic behind the ordering. Discretionary dependencies have activities happen in a preferred order because of best practices, conditions unique to the project work, or external events. This is also known as soft logic.

Question 72

Dummy activity

Answer 72

An activity with no duration used in the arrow diagramming method to represent logical relationships between project activities.

Question 73

Earned value (EV)

Answer 73

The value of the work that has been completed and the budget for that work, the equation for which is EV = %complete x BAC.

Question 74

Earned value management

Answer 74

Earned value management integrates scope, schedule, and cost to give an objective, scalable point-in-time assessment of the project. EVM calculates the performance of the project and compares current performance against planned. EVM can also be a harbinger of things to come. Results early in the project can predict the likelihood of the project’s success or failure.

Question 75

Effective listening

Answer 75

The receiver is involved in the listening experience by paying attention to visual cues given by the speaker, as well as paralingual intentions, and by asking relevant questions.

Question 76

Encoder

Answer 76

Part of the communications model; the device or technology that packages the message to travel over the medium.

Question 77

Enhance

Answer 77

To enhance a risk is to attempt to modify its probability and/or its impact in order to realize the most gains from the identified risk.

Question 78

Enterprise environmental factors

Answer 78

All of the environmental factors that influence the project’s success. This includes the culture, organizational structure, project resources, commercial databases, market conditions, and any project manager software used within the project. It’s essentially the environment and conditions within which the project must operate.

Question 79

Estimate at completion (EAC)

Answer 79

A hypothesis of what the total cost of the project will be. Before the project begins, the project manager completes an estimate for the project deliverables based on the WBS. As the project progresses, there will likely be some variances between what the cost estimate was and what the actual cost is. The EAC is calculated to predict what the new estimate at completion will be.

Question 80

Estimate to complete (ETC)

Answer 80

Represents how much more money is needed to complete the project work. Its formula is ETC = EAC ? AC.

Question 81

Estimating publications

Answer 81

Typically, a commercial reference to help the project estimator confirm and predict the accuracy of estimates. If a project manager elects to use one of these commercial databases, the estimate should include a pointer to this document for future reference and verification.

Question 82

Evaluation criteria

Answer 82

Used to rate and score proposals from sellers. In some instances, such as a bid or quote, the evaluation criterion is focused just on the price the seller offers. In other instances, such as a proposal, the evaluation criteria can be multiple values: experience, references, certifications, and more.

Question 83

Executing

Answer 83

Action in which the project plans are carried out or executed. The project manager coordinates people and other resources to complete the plan.

Question 84

Expectancy Theory

Answer 84

People will behave on the basis of what they expect as a result of their behaviour. In other words, people will work in relation to the expected reward of their work.

Question 85

Expert power

Answer 85

A type of power where the authority of the project manager comes from experience with the area that the project focuses on.

Question 86

Exploit

Answer 86

Action where the organization wants to ensure that the identified risk does happen to realize the positive impact associated with the risk event.

Question 87

Facilitating processes

Answer 87

These processes support the project management core processes. They are done as needed throughout the project. The facilitating processes are quality planning, communications planning, organizational planning, staff acquisition, risk identification, qualitative risk analysis, quantitative risk analysis, risk response planning, procurement planning, and solicitation planning.

Question 88

Fast tracking

Answer 88

Doing activities in parallel that are normally done sequentially.

Question 89

Feedback

Answer 89

A response, question for clarification, or other confirmation once a sent message is received.

Question 90

Finish No Earlier Than (FNET)

Answer 90

This somewhat unusual constraint requires the activity to be in motion up until the predetermined date.

Question 91

Finish No Later Than (FNLT)

Answer 91

This constraint requires the project or activity to finish by a predetermined date.

Question 92

Finish-to-Finish

Answer 92

This relationship means Task A must complete before Task B can complete. Ideally, two tasks must finish at exactly the same time, but this is not always the case.

Question 93

Finish-to-Start

Answer 93

This relationship means Task A must complete before Task B can begin. This is the most common relationship.

Question 94

Fixed-price contracts

Answer 94

Fixed-price contracts are also known as firm-fixed-price and lump-sum contracts. These contracts have a pre-set price that the vendor must adhere to in both performing the work and providing materials.

Question 95

Float

Answer 95

The amount of time a task can be delayed without delaying the project’s completion. Technically, there are three different types of float: Free float is the total time a single activity can be delayed without delaying the early start of any successor activities. Total float is the total time an activity can be delayed without delaying project completion. Project float is the total time the project can be delayed without passing the customer’s expected completion date.

Question 96

Flowchart

Answer 96

A chart that illustrates how the parts of a system occur in sequence.

Question 97

Force majeure

Answer 97

A powerful and unexpected event, such as a hurricane or other disaster.

Question 98

Forcing

Answer 98

A conflict resolution method where one person dominates or forces their point of view or solution to a conflict.

Question 99

Forecasting

Answer 99

An educated estimate of how long the project will take to complete. Can also refer to how much the project may cost to complete.

Question 100

Formal power

Answer 100

The type of power where the project manager has been assigned by senior management to be in charge of the project.

Question 101

Fragnets (also called subnets)

Answer 101

Portions of a network diagram that branch off the project and are not on the critical path.

Question 102

Free float

Answer 102

The total time a single activity can be delayed without delaying the early start of any successor activities.

Question 103

Functional structure

Answer 103

An organizational structure that groups staff members according to their area of expertise (sales, marketing, construction, and so on). Functional structures require the project team members to report directly to the functional manager. In this type of structure, the project manager’s authority and decision-making ability is less than the functional manager’s.

Question 104

Future value

Answer 104

A formula to calculate the future value of present money.

Question 105

Hard logic

Answer 105

The logical relationship between activities based on the type of work. For example, the foundation of a house must be created before the frame of the house can be built. This is also known as mandatory dependency.

Question 106

Herzberg’s Theory of Motivation

Answer 106

This posits that there are two catalysts for workers: hygiene agents and motivating agents. Hygiene agents do nothing to motivate employees, but their absence can demotivate workers. Hygiene agents are the expectations all workers have, such as job security, pay-checks, clean and safe working conditions, a sense of belonging, civil working relationships, and other basic attributes associated with employment. Motivating agents are components such as reward, recognition, promotion, and other values that encourage individuals to succeed.

Question 107

Historical information

Answer 107

Information the project may use from previous projects.

Question 108

Indirect costs

Answer 108

Costs attributed to the cost of doing business. Examples include utilities, office space, and other overhead costs.

Question 109

Influence diagram

Answer 109

An influence diagram charts out a decision problem. It identifies all of the elements, variables, decisions, and objectives and how each factor may influence another.

Question 110

Initiating

Answer 110

This process group begins the project. The business needs are identified, and a product description is created. The project charter is written, and the project manager is selected.

Question 111

Internal rate of return (IRR)

Answer 111

The IRR is a complex formula to calculate when the present value of the cash inflow equals the original investment.

Question 112

Interviewing

Answer 112

Interviewing subject-matter experts and project stakeholders is an approach to identify risks on the current project based on the interviewees’ experience.

Question 113

Invitation for bid

Answer 113

A document from the buyer to the seller. Requests that the seller provide a price for the procured product or service.

Question 114

ISO 9000

Answer 114

An international standard that helps organizations follow their own quality procedures. ISO 9000 is not a quality system, but a method of following procedures created by an organization.

Question 115

Kill point

Answer 115

The end of the project phase where the project can be terminated on the basis of the experiences of the previous phase or the outcome of the project phase.

Question 116

Lag

Answer 116

Positive time added to a task to move it away from the project start date; lag is adding time between activities.

Question 117

Lead

Answer 117

Negative time added to a task to bring it closer to the project start date; lead is subtracting time between activities.

Question 118

Lessons learned

Answer 118

An ongoing documentation of things the project manager and project team have learned throughout the project. Lessons learned are supplied to other project teams and project managers to apply to their ongoing projects. They are documented throughout the project, not just at the end of the project.

Question 119

Letter of intent

Answer 119

Expresses the intent of the buyer to procure products or services from the seller. Not the equivalent to a contract.

Question 120

Make-or-buy analysis

Answer 120

Used in determining what part of the project scope to make and what part to purchase.

Question 121

Management by

Answer 121

Projects This approach characterizes organizations that manage their operations as projects. These project-centric entities could manage any level of their work as a project. Such organizations apply general business skills to each project to determine their value, efficiency, and, ultimately, their return on investment.

Question 122

Mandatory dependencies

Answer 122

This refers to the logical relationship between activities based on the type of work. For example, the foundation of a house must be created before the frame of the house can be built. This is also known as hard logic.

Question 123

Maslow’s Hierarchy of Needs

Answer 123

A theory stating there are five layers of needs for all humans: physiological, safety, social, esteem, and the crowning jewel, self-actualization.

Question 124

Matrix structures

Answer 124

An organizational structure. There are three matrix structures: weak, balanced, and strong. The different structures are reflective of the project manager’s authority in relation to the functional manager’s authority.

Question 125

McGregor’s Theory of X and Y

Answer 125

This theory states that “X” people are lazy, don’t want to work, and need to be micromanaged.”Y” people, on the other hand, are self-led, motivated, and strive for accomplishments.

Question 126

Medium

Answer 126

Part of the communications model-the path the message takes from the sender to the receiver. This is the modality in which the communication travels, and typically refers to an electronic model, such as e-mail or the telephone.

Question 127

Mitigation

Answer 127

Reducing the probability or impact of a risk.

Question 128

Monte Carlo analysis

Answer 128

Predicts how scenarios may work out given any number of variables. The process doesn’t actually generate a specific answer, but a range of possible answers. When Monte Carlo is applied to a schedule, it can present, for example, the optimistic completion date, the pessimistic completion date, and the most likely completion date for each activity in the project.

Question 129

Net present value

Answer 129

NPV calculates the present value of monies returned on a project for each time period the project lasts.

Question 130

Non-verbal communication

Answer 130

Approximately 55 percent of oral communication is non-verbal. Facial expressions, hand gestures, and body language contribute to the message.

Question 131

Operational definitions

Answer 131

The quantifiable terms and values used to measure a process, activity, or work result. Operational definitions are also known as metrics.

Question 132

Organizational process assets

Answer 132

Describes the organization’s assets that may influence how the project is managed. This includes existing project plan templates, policies, procedures, and guidelines. The most evident organizational process asset is the lessons learned documentation and historical information from previous projects.

Question 133

Ouchi’s Theory Z

Answer 133

This theory posits that workers are motivated by a sense of commitment, opportunity, and advancement. Thus, employees will work if they are challenged and motivated.

Question 134

Paralingual

Answer 134

The pitch, tone, and inflections in the sender’s voice that affect the message being sent.

Question 135

Parametric modelling

Answer 135

A mathematical model based on known parameters to predict the cost of a project. The parameters in the model can vary based on the type of work being done. A parameter can be cost per cubic yard, cost per unit, and so on.

Question 136

Pareto diagrams

Answer 136

A Pareto diagram is related to Pareto’s Law: 80 percent of the problems come from 20 percent of the issues (this is also known as the “80/20 rule”). A Pareto diagram illustrates problems by assigned cause, from smallest to largest.

Question 137

Planned value (PV)

Answer 137

The worth of the work that should be completed by a specific time in the project schedule.

Question 138

Planning

Answer 138

This process group is iterative. All planning throughout the project is handled within the planning process group.

Question 139

Planning package

Answer 139

A WBS package that represents planning for this section of the WBS. It is located under the control account within a WBS.

Question 140

PMBOK Guide Project Management Body of Knowledge (PMBOK)

Answer 140

which includes all knowledge and practices within the endeavour of project management.

Question 141

PMIS

Answer 141

Project management information system (PMIS) is typically a computer-program to assist in project management activities, record-keeping, and forecasting.

Question 142

Precedence diagramming method

Answer 142

The most common method of arranging the project work visually. The PDM puts the activities in boxes, called nodes, and connects the boxes with arrows. The arrows represent the relationship and the dependencies of the work packages.

Question 143

Present value

Answer 143

A formula to calculate the present value of future money.

Question 144

Problem solving

Answer 144

The ability to determine the best solution for a problem in a quick and efficient manner.

Question 145

Process adjustments

Answer 145

When quality is lacking, process adjustments are needed for immediate corrective actions or for future preventive actions to ensure that quality improves. Process adjustments may qualify for a change request and be funnelled through the Change Control System as part of integration management.

Question 146

Process groups

Answer 146

The five process groups-initiation, planning, executing, controlling, and closing-comprise projects and project phases. These five process groups have sets of actions that move the project forward towards completion.

Question 147

Procurement

Answer 147

Procurement is the process of a seller soliciting, selecting, and paying for products or services from a buyer.

Question 148

Procurement audits

Answer 148

The successes and failures within the procurement process are reviewed from procurement planning through contract administration. The intent of the audit is to learn from what worked and what did not work during the procurement processes.

Question 149

Procurement management plan

Answer 149

This subsidiary project plan documents the decisions made in the procurement planning processes. It specifies how the remaining procurement activities will be managed.

Question 150

Product scope

Answer 150

The attributes and characteristics of the deliverables the project is creating.

Question 151

Program Evaluation and Review Technique (PERT)

Answer 151

A scheduling tool that uses a weighted average formula to predict the length of activities and the project. Specifically, the PERT formula is (O + 4ML + P)/6.

Question 152

Programs

Answer 152

A collection of related projects working in alignment towards a common cause.

Question 153

Progress reports

Answer 153

These provide current information on the project work completed to date.

Question 154

Progressive elaboration

Answer 154

The process of providing or discovering greater levels of detail as the project moves toward completion.

Question 155

Project

Answer 155

A temporary endeavour undertaken to create a unique product or service.

Question 156

Project baselines

Answer 156

The accepted plans against which actual results are compared to identify variances.

Question 157

Project calendar

Answer 157

A calendar that defines the working times for the project. For example, a project may require the project team to work nights and weekends so as not to disturb the ongoing operations of the organization during working hours. In addition, the project calendar accounts for holidays, working hours, and work shifts that the project will cover.

Question 158

Project calendar

Answer 158

The calendar in which project work may take place; generally defines the working hours, days of the week, and any holidays.

Question 159

Project charter

Answer 159

The charter authorizes the project, the project manager, and the required resources to complete the project work.

Question 160

Project framework

Answer 160

The structure and fundamentals of project management. The project framework is composed of nine knowledge areas: project integration management, project scope management, project time management, project cost management, project quality management, project human resources management, project communications management, project risk management, project procurement management, and five processes: initiation, planning, executing, controlling, and closing.

Question 161

Project integration management

Answer 161

The day-to-day actions of the project manager to ensure that all parts of the project work together. Composed of project plan development, project plan execution, and integrated change control.

Question 162

Project life cycle

Answer 162

The duration of the project, composed of all the individual project phases within the project.

Question 163

Project manager

Answer 163

The individual accountable for all aspects of a project.

Question 164

Project phases

Answer 164

Projects are broken down into manageable sections. A project phase is the logical segmentation of the work to an identifiable point within the project. Phases can be viewed as completion of work to a specified date, the actual completion of work, or other milestone.

Question 165

Project plan

Answer 165

The project plan is a collection of documents that is developed with the project team, stakeholders, and management. It is the guide to how the project should flow and how the project will be managed. It also reflects the values and priorities of, and the conditions influencing, the project.

Question 166

Project portfolio management

Answer 166

A management process to select the projects that should be invested in. Specifically, it is the selection process based on the need, profitability, and affordability of the proposed projects.

Question 167

Project scope

Answer 167

The work that has to be done in order to create the product. The project scope is concerned with the work-and only the required work-to complete the project.

Question 168

Project scope management

Answer 168

Project scope management, according to the PMBOK, is “the processes to ensure that the project includes all of the work required, and only the work required, to complete the project successfully.”

Question 169

Project slack

Answer 169

The total time the project can be delayed without passing the customer’s expected completion date.

Question 170

Projectized structure

Answer 170

An organizational structure where the project manager has the greatest amount of authority. The project team is assigned to the project on a full-time basis. When the project is complete, the project team members move on to other assignments within the organization.

Question 171

Proposal

Answer 171

A document from the seller to the buyer, responding to a request for proposal or other procurement documents.

Question 172

Qualified seller list

Answer 172

The performing organization may have lists of qualified sellers, preferred sellers, or approved sellers. The qualified sellers list generally contains contact information, a history of past experience with the seller, and other pertinent information.

Question 173

Qualitative risk analysis

Answer 173

An examination and prioritization of the risks based on their probability of occurring and the impact on the project if they do occur. Qualitative risk analysis guides the risk reaction process.

Question 174

Quality assurance

Answer 174

A process in which overall performance is evaluated to ensure the project meets the relevant quality standards.

Question 175

Quality audits

Answer 175

A quality audit is a process to confirm that the quality processes are performing correctly on the current project. The quality audit determines how to make things better for the project, as well as other projects within the organization. Quality audits measure the project’s ability to maintain the expected level of quality.

Question 176

Quality control

Answer 176

A process in which the work results are monitored to see if they meet relevant quality standards.

Question 177

Quality management plan

Answer 177

This document describes how the project manager and the project team will fulfil the quality policy. In an ISO 9000 environment, the quality management plan is referred to as the “project quality system.”

Question 178

Quality policy

Answer 178

The formal policy an organization follows to achieve a pre-set standard of quality. The quality policy of the organization may follow a formal approach, such as ISO 9000, Six Sigma, or total quality management (TQM), or it may have its own direction and approach. The project team should either adapt the quality policy of the organization to guide the project implementation or create its own policy if one does not exist within the performing organization.

Question 179

Quantitative estimating

Answer 179

Estimating on the basis of mathematical formulas to predict how long an activity will take or how much it will cost, using the quantities, units, or other metric of work to be completed.

Question 180

Quantitative risk analysis

Answer 180

A numerical assessment of the probability and impact of the identified risks. Quantitative risk analysis also creates an overall risk score for the project.

Question 181

Quote (or quotation)

Answer 181

A document from the seller to the buyer; used when price is the determining factor in the decision-making process.

Question 182

Receiver

Answer 182

Part of the communications model: the recipient of the message.

Question 183

Referent power

Answer 183

Power that is present when the project team is attracted to, or wants to work on the project with, the project manager. Referent power also exists when the project manager references another more powerful person, such as the CEO.

Question 184

Request for proposal

Answer 184

A document from the buyer to the seller that asks the seller to provide a proposal for completing the procured work or for providing the procured product.

Question 185

Request for quote

Answer 185

A document from the buyer to the seller asking the seller to provide a price for the procured product or service.

Question 186

Residual risks

Answer 186

Risks that are left over after mitigation, transference, and avoidance. These are generally accepted risks. Management may elect to add contingency costs and time to account for the residual risks within the project.

Question 187

Resource calendar

Answer 187

The resource calendar shows when resources, such as project team members, consultants, and SMEs, are available to work on the project. It takes into account vacations, other commitments within the organization, restrictions on contracted work, overtime issues, and so on.

Question 188

Resource histogram

Answer 188

A bar chart reflecting when individual employees, groups, or communities are involved in a project. Often used by management to see when employees are most or least active in a project.

Question 189

Resource levelling heuristics

Answer 189

A method to flatten the schedule when resources are over-allocated or allocated unevenly. Resource levelling can be applied in different methods to accomplish different goals. One of the most common methods is to ensure that workers are not overextended on activities.

Question 190

Responsibility

Answer 190

Who decides what in a project.

Question 191

Return on investment (ROI)

Answer 191

The project’s financial return in proportion to the amount of monies invested in the project.

Question 192

Reward power

Answer 192

The project manager’s authority to reward the project team.

Question 193

Risk

Answer 193

An unplanned event that can have a positive or negative influence on the project success.

Question 194

Risk categories

Answer 194

These help organize, rank, and isolate risks within the project.

Question 195

Risk database

Answer 195

A database of recognized risks; the planned response and the outcome of the risk should be documented and recorded in an organization-wide risk database. The risk database can serve other project managers as historical information. Over time, the risk database can become a Risk Lessons Learned program.

Question 196

Risk management plan

Answer 196

A subsidiary project plan for determining how risks will be identified, how quantitative and qualitative analysis will be completed, how risk response planning will happen, how risks will be monitored, and how ongoing risk management activities will occur throughout the project life cycle.

Question 197

Risk owners

Answer 197

The individuals or groups responsible for a risk response.

Question 198

Role

Answer 198

Who does what in a project.

Question 199

Scales of probability and impact

Answer 199

Each risk is assessed according to its likelihood and its impact. There are two approaches to ranking risks: Cardinal scales identify the probability and impact by a numerical value, ranging from .01 as very low to 1.0 as certain. Ordinal scales, on the other hand, identify and rank the risks descriptively from “very high” to “very unlikely.”

Question 200

Schedule control

Answer 200

Part of integrated change management, schedule control is concerned with three processes: the project manager confirms that any schedule changes are agreed upon; the project manager examines the work results and conditions to know if the schedule has changed; and the project manager manages the actual change in the schedule.

Question 201

Schedule management plan

Answer 201

A subsidiary plan of the overall project plan. It is used to control changes to the schedule. A formal schedule management plan has procedures that control how changes to the project plan can be proposed, accounted for, and then implemented.

Question 202

Schedule performance index (SPI)

Answer 202

The SPI reveals the efficiency of work. The closer the quotient is to 1, the better. Its equation is SPI = EV/PV.

Question 203

Schedule variance

Answer 203

The difference between the planned work and the earned work.

Question 204

Scope statement

Answer 204

A document that describes the work, and only the required work, to meet the project objectives. The scope statement establishes a common vision among the project stakeholders to establish the point and purpose of the project work. It is used as a baseline against which all future project decisions are made to determine if proposed changes or work-results are aligned with expectations.

Question 205

Scope verification

Answer 205

The process of the project customer accepting the project deliverables. Scope verification happens at the end of each project phase and at the end of the project. Scope verification is the process of ensuring the deliverables the project creates are in alignment with the project scope.

Question 206

Scoring models (also called weighted scoring models)

Answer 206

These models use a common set of values for all of the projects up for selection. Each value has a weight: assigned values of high importance have a high weight, while values of lesser importance have a lesser weight. The projects are measured against these values and assigned scores according to how well they match the predefined values. The projects with high scores take priority over projects will lesser scores.

Question 207

Secondary risks

Answer 207

Risks that stem from risk responses. For example, the response of transference may call for hiring a third party to manage an identified risk. A secondary risk caused by the solution is the failure of the third party to complete its assignment as scheduled. Secondary risks must be identified, analyzed, and planned for just as any identified risk.

Question 208

Sender

Answer 208

Part of the communications model: the person or group delivering the message to the receiver.

Question 209

Sensitivity analysis

Answer 209

This examines each project risk on its own merit to assess the impact on the project. All other risks in the project are set at a baseline value.

Question 210

Share

Answer 210

Sharing is nice. When sharing the risk, ownership is transferred to the organization that can most capitalize on the risk opportunity.

Question 211

Should cost estimates (also known as independent estimates)

Answer 211

These estimates are created by the performing organization to predict what the cost of the procured product should be. If there is a significant difference between what the organization has predicted and what the sellers have proposed, either the statement of work was inadequate or the sellers have misunderstood the requirements.

Question 212

Simulation

Answer 212

These allow the project team to play “what-if” games without affecting any areas of production.

Question 213

Single source

Answer 213

A specific seller that the performing organization prefers to contract with.

Question 214

Smoothing

Answer 214

A conflict resolution method that “smooths” out the conflict by minimizing its size. It is a temporary solution, but it can calm team relations and reduce the boisterousness of discussions. Smoothing may be acceptable when time is of the essence or any of the proposed solutions will work.

Question 215

Soft logic (also known as discretionary dependency)

Answer 215

The preferred order of activities. Project managers should use these relationships at their “discretion” and document the logic behind making soft logic decisions. Discretionary dependencies allow activities to happen in a preferred order because of best practices, conditions unique to the project work, or external events.

Question 216

Sole source

Answer 216

The only qualified seller that exists in the marketplace.

Question 217

Staffing management plan

Answer 217

This subsidiary plan documents how project team members will be brought onto the project and excused from it.

Question 218

Stakeholders

Answer 218

The individuals, groups, and communities that have a vested interest in the outcome of a project. Examples include the project manager, the project team, the project sponsor, customers, clients, vendors, and communities.

Question 219

Start No Earlier Than (SNET)

Answer 219

This constraint requires that the project or activity not start earlier than the predetermined date.

Question 220

Start No Later Than (SNLT)

Answer 220

This constraint requires that the activity begin by a predetermined date.

Question 221

Start-to-Finish

Answer 221

This relationship requires that Task A start so that Task B may finish; it is unusual and is rarely used.

Question 222

Start-to-Start

Answer 222

This relationship means Task A must start before Task B can start. This relationship allows both activities to happen in tandem.

Question 223

Statement of work (SOW)

Answer 223

This fully describes the work to be completed, the product to be supplied, or both. The SOW becomes part of the contract between the buyer and the seller. The SOW is typically created as part of the procurement planning process and is used by the seller to determine whether it can meet the project’s requirements.

Question 224

Statistical sampling

Answer 224

A process of choosing a percentage of results at random for inspection. Statistical sampling can reduce the costs of quality control.

Question 225

Status reports

Answer 225

These provide current information on the project cost, budget, scope, and other relevant information.

Question 226

Status review meetings

Answer 226

Regularly scheduled meetings to record the status of the project work. These commonly employed meetings provide a formal avenue for the project manager to query the team on the status of its work, record delays and slippage, and to forecast what work is about to begin.

Question 227

Subnets (also called fragnets)

Answer 227

Portions of a network diagram that branch off the project and are not on the critical path.

Question 228

Sub-project

Answer 228

A sub-project exists under a parent project but follows its own schedule to completion. Sub-projects may be outsourced, assigned to other project managers, or managed by the parent project manager but with a different project team.

Question 229

Supporting detail

Answer 229

Any information that supports decisions-including the logic employed and rationales-and the project plan as a whole. Supporting detail can include books, articles, web sites, vendor information, test results, historical information, and many other information sources.

Question 230

System or process flowcharts

Answer 230

These show the relation between components and how the overall process works. They are useful for identifying risks between system components.

Question 231

Three point estimate

Answer 231

An estimate that uses optimistic, most likely, and pessimistic values to determine the cost or duration of a project component.

Question 232

Time value of money

Answer 232

An economic model to predict what the future fiscal value may be, given the current fiscal value. The time value of money can also reverse-engineer what predicted monies are worth in today’s value.

Question 233

Time-and-materials (T&M) contract

Answer 233

A contract type where the seller charges the buyer for both the time and the materials for the work completed. T&M contracts should have a not-to-exceed clause (NTE) in order to contain costs.

Question 234

Top-down estimating

Answer 234

A technique that bases the current project’s estimate on the total of a similar project. A percentage of the similar project’s total cost may be added to-or subtracted from-the total, depending on the size of the current project.

Question 235

Total slack

Answer 235

The total time an activity can be delayed without delaying the project’s completion.

Question 236

Transference

Answer 236

A response to risks in which the responsibility and ownership of the risk is transferred to another party (for example, through insurance).

Question 237

Trend analysis

Answer 237

Trend analysis is taking past results to predict future performance.

Question 238

Triggers

Answer 238

Warning signs or symptoms that a risk has occurred or is about to occur (for example, a vendor failed to complete its portion of the project as scheduled).

Question 239

Utility Function

Answer 239

A person’s willingness to accept risk.

Question 240

Value added change

Answer 240

A change that positively impacts either the scope, schedule, or cost of a project without adversely impacting the other two aspects.

Question 241

Variance

Answer 241

The difference between what was planned and what was experienced; typically, used for costs and schedules.

Question 242

Variance at completion

Answer 242

The difference between the BAC and the EAC. Its formula is VAC = BAC ? EAC.

Question 243

War room

Answer 243

A centralized office or locale for the project manager and the project team to work on the project. It can house information on the project, including documentation and support materials. It allows the project team to work in close proximity.

Question 244

Withdrawal

Answer 244

A conflict resolution method that is used when the issue is not important or the project manager is out-ranked. The project manager pushes the issue aside for later resolution. It can also be used as a method for cooling down. The conflict is not resolved, and it is considered a yield-lose solution.

Question 245

Work authorization system

Answer 245

A tool that can oversee the organization, sequence, and official authorization needed to begin a piece of the project work.

Question 246

Work breakdown structure (WBS)

Answer 246

The WBS is a deliverable-orientated collection of project components. Work that isn’t in the WBS isn’t in the project. The point of the WBS is to organize and define the project scope.

Question 247

Work breakdown structure dictionary

Answer 247

A reference tool to explain the WBS components, the nature of the work package, the assigned resources, and the time and billing estimates for each element.

Question 248

Work breakdown structure template

Answer 248

A master WBS that is used in organizations as a starting point in defining the work for a particular project. This approach is recommended, as most projects in an organization are similar in their project life cycles, and the approach can be adapted to fit a given project.

Question 249

Workarounds

Answer 249

Workarounds are unplanned responses to risks that were not identified or accepted.