PMP® Project Management Professional Study Guide, Fourth Edition

360-degree appraisal A performance review completed by a person’s peers, managers, and subordinates. It’s called a 360-degree appraisal because it’s a circle of reviews by people at different levels of an organization.

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

active listening Occurs when the receiver confirms the message is being received by feedback, questions, prompts for clarity, and other signs of having received the message.

activity attributes Activities that have special conditions, requirements, risks, and other conditions should be documented.

activity cost estimates The costs of resources, including materials, services, and, when warranted, labor, should be estimated.

activity list A shopping list of all the activities the project team must complete to satisfy the project. This list is an input to the project network diagram.

activity network diagrams Illustrate the flow of the project work, as does the critical path and the critical chain method. The most common activity network diagram is the activity-on-node, although the activity-on-arrow approach may still be utilized in some industries.

activity-on-node A network diagramming approach that places the activities on a node in the project network diagram.

activity sequencing The process of mapping the project activities in the order in which the work should be completed.

actual costs The amount of funds the project has spent to date. The difference between actual costs and the earned value will reveal the cost variance.

adaptive life cycles Anticipates frequent changes of the project scope, schedule, and costs. Stakeholder involvement is high because the project develops quickly, and future phases are based on defined requirements and the results of preceding phases.

adjourning The final stage of team development; once the project is done, either the team moves on to other assignments as a unit or the project team is disbanded and individual team members go on to other work.

affinity diagrams A diagram that groups similar ideas, deliverables, or concepts together. The work breakdown structure (WBS) could be considered an example of an affinity diagram. These charts cluster similar ideas together and allow for decomposition of ideas to compare and contrast project requirements.

analogous estimating 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 judgment.

application areas The areas of discipline that a project may center upon. Consider technology, law, sales, marketing, and construction, among many others.

assumption log A document that clearly identifies and tracks assumptions that are made in the project. All assumptions need to be tested for their validity, and the outcome of the test should be recorded.

autocratic The project manager makes all of the decisions.

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

benchmarking Process of using prior projects internal or external to the performing organization to compare and set quality standards for current processes and results.

benefit/cost analysis The process of determining the pros and cons of any project, process, product, or activity.

benefit/cost ratios Show the proportion of benefits to costs; for example, 4:1 would equate to four benefits and just one cost.

benefit measurement methods Project selection methods that compare the benefits of projects to determine in which project the organization should invest its funds.

bid A document submitted from the seller to the buyer that states an expected cost for completing a project. Used when price is the determining factor in the decision-making process.

bidder conference A meeting with prospective sellers to ensure that 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.

bottom-up estimating A technique by which an estimate for each component in the work breakdown structure (WBS) is developed and then totaled for an overall project budget. This is the longest process to complete, but it provides the most accurate estimate.

brainstorming 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 participate in brainstorming.

budget at completion The predicted budget for the project; what the project should cost when it is completed. Budget at completion represents 100 percent of the planned value for the project’s completion.

burndown chart A graph that tracks the project’s completeness in a downward curve against the project timeline.

burnup chart A graph that tracks the project’s completeness in an upward curve against the project timeline.

business requirements Why the project has been initiated and what the high-level expectations are for the project deliverables and performance.

business value The total value of the tangible and intangible elements of an organization. Consider liquid assets, real estate, equipment, reputation, brand recognition, and trademarks.

casual analysis The analysis of why a problem exists to understand why the problem is happening.

Causal analysis Causal analysis is the analysis of why a problem exists to understand why the problem is happening. Root-cause analysis defines the problem, or the effect you’re trying to resolve, and then identifies all of the causal factors that may be independently or collaboratively contributing to the defect.

cause-and-effect diagrams 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.

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

change control board A group of decision-makers who review proposed project changes.

change control system A predefined set of activities, forms, and procedures to entertain project change requests.

change log As changes to the project time, cost, or scope enter the project, they should be recorded in the change log for future reference.

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

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

closing The fifth of five project management process groups. It contains the processes responsible for closing a project, a project phase, or the procurement relationships.

coercive power The project manager uses fear and threats to manage the project team.

collective bargaining agreements Contractual agreements initiated by employee groups, unions, or other labor organizations; they may act as a constraint on the project.

communications formula The formula N (N − 1) / 2 shows the number of communication channels in a project. N represents the total number of stakeholders.

communications management plan 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 communication, information retrieval, and any other stakeholder requirements for communication. In addition, the communications management plan maps out the schedule of when the expected communication needs will be met.

composite structure An organizational structure that uses a blend of the functional, matrix, and projectized organizations to operate and manage projects.

compromising A conflict resolution approach that 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.

confidentiality A project manager should keep certain aspects of a project confidential; consider contract negotiations, human resource issues, and trade secrets of the organization.

configuration management The control and documentation of the project’s product features and functions.

conflict of interest A situation in which the project manager could influence a decision for personal gain.

constrained optimization methods Complex mathematical models used to determine the likelihood of a project’s success to determine whether the organization should invest funds in the project.

constraints Anything that limits the project manager’s options; for example, time, cost, and scope are always project constraints.

context diagram A diagram that illustrates all of the components, called actors, that interact with a project solution, such as systems, software, hardware, and people.

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

continuous process improvement A goal of quality assurance to improve the project’s processes and deliverables; meshes with the project’s process improvement plan, which is created to improve the processes of the project.

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

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

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

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

contract file 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.

control charts 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, testing series, or help desk functions. Upper and lower control limits indicate whether values are in control or out of control.

control communications This project management process ensures that communication happens according to the project’s communication management plan.

controlling project management office (PMO) Defines project governance through project management frameworks, templates, forms, project management activities, and communications. The PMO control is considered moderate.

cost baseline 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.

cost budgeting 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.

cost change control Part of the integrated change control system and documents that contain the procedures to request, approve, and incorporate changes to project costs.

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

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

cost management plan Explains how variances to the costs of the project will be managed. The plan may be based on a range of acceptable variances and the expected response to variances over a given threshold.

cost of conformance 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. Also known as the cost of quality.

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

cost-plus award fee This contract requires the buyer to pay for all of the project costs and give the seller an award fee based on the project performance, meeting certain project criteria, or meeting other goals established by the buyer. The award fee can be tied to any factor the buyer determines, and the factor doesn’t have to be exact.

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

cost variance The difference between the earned value and the actual costs.

crashing A duration-compression technique that adds resources to the project in an effort to reduce the amount of time allotted for effort-driven activities.

critical chain method A network diagramming approach that considers the availability of project resources and the project’s promised end date to determine the critical path(s) in the project.

critical path method A network diagramming approach that identifies the project activities that cannot be delayed or the project completion date will be late.

culture shock The initial reaction a person experiences when in a foreign environment.

cultural norm The accepted practices, culture, ideas, vision, and nature of an organization.

decision tree analysis 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.

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

decomposition The breakdown of the project scope statement into the project’s work breakdown structure. The smallest item of the project’s decomposition into the WBS is called the work package.

dedicated project team The project team works full time on the project for the duration of the project.

deliverable A thing that a project creates; projects generally create many deliverables as part of the project work.

Delphi Technique A method to query experts anonymously on foreseeable risks within the project, phase, or component of the project. The results of the survey are analyzed and organized, and then circulated to the experts. There can be several rounds of anonymous discussions with the Delphi Technique. The goal is to gain consensus on project risks, and the anonymous nature of the process ensures that no one expert’s advice overtly influences the opinion of another participant.

democratic The project team is involved in the decision-making process.

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

dictatorship A group decision process whereby the person with the most power forces the decision, even though the rest of the group may oppose the decision.

direct costs Costs incurred by the project in order for it to exist. Examples include equipment needed to complete the project work, salaries of the project team, and other expenses tied directly to the project’s existence. These costs are attributed directly to the project and cannot be shared with operations or other projects.

directive project management office (PMO) Manages and controls all projects within the organization. The PMO control is considered high.

discretionary dependencies The project activities do not have to be completed in a particular order and can be completed at the project manager’s or project team’s discretion.

duration estimates The prediction of how long the project work will take to complete.

earned value The value of the work that has been completed and the budget for that work: EV = % Complete × BAC.

earned value management (EVM) Integrates scope, schedule, and cost to provide an objective, scalable, point-in-time assessment of the project. EVM calculates the performance of the project and compares current performance against plan. 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.

effective listening The receiver is involved in the listening experience by paying attention to visual clues by the speaker and to paralingual intentions and by asking relevant questions.

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

enhance To enhance a risk is to attempt to modify its probability and/or its impacts to realize the most gains from it.

enterprise environmental factors Elements that create the boundaries for the project manager. These may help or hinder the project manager’s ability to navigate within the project. Examples include rules, regulations, industry standards, and organizational procedures the project manager is obliged to follow.

estimate at completion (EAC) 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 variance between the cost estimate and the actual cost. The EAC is calculated to predict what the new estimate at completion will be.

estimate to complete (ETC) Represents how much more money is needed to complete the project work: ETC = EAC – AC.

estimating publications 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.

ethics Describes the personal, cultural, and organizational interpretation of right and wrong. Project managers are to operate ethically and fairly.

ethnocentrism Happens when an individual measures and compares a foreigner’s actions against his or her own local culture. Locals typically believe their own culture is superior to a foreigner’s culture.

evaluation criteria Used to rate and score proposals from sellers. In some instances, such as a bid or quote, the evaluation criterion focuses 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.

exceptional The project manager pays attention only to the top 10 percent and the bottom 10 percent of the project team performers.

executing The project management process group that carries out the project management plan to create the project deliverables.

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

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

exploit The organization wants to ensure that the identified risk does occur to realize the positive impact associated with the risk event.

facilitated workshop A collection of stakeholders from the organization who come together to analyze, discuss, and determine the project requirements.

failure mode and effect analysis (FMEA) An analytical technique that is used to identify the severity of something that has failed within the project and the likelihood that the failure will occur again.

fast tracking A schedule-compression technique that allows phases to overlap in order to compress the schedule and finish the job faster. Fast tracking does increase project risk.

fault tree analysis Deductive reasoning that starts very broadly with the identified fault and then narrows the likely causes into most likely causes.

feedback Sender confirmation of the message by asking questions, requesting a response, or sending other confirmation signals.

Finish No Earlier Than (FNET) A project constraint that requires an activity to finish no earlier than a specific date.

finish-to-start A relationship between project activities whereby the predecessor activities must finish before the successor activities may start; this is the most common network diagramming relationship type.

fixed costs Costs that remain the same throughout the project.

fixed-price contracts Contracts with a preset price for which the vendor is obligated to perform the work or to provide materials for the agreed-upon price. Fixed-price contracts are also known as firm-fixed-price and lump-sum contracts.

fixed price with economic price adjustment contract A contract for long-term projects that may span years to complete the project work. The contract does define a fixed price, with caveats for special categories of price fluctuation.

float A generic term used to describe the amount of time an activity may be delayed without delaying any successor activities’ start dates.

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

focus group A conversation of stakeholders led by a moderator to elicit project requirements.

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

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

forecasting An educated estimate of how long the project will take to complete. Can also refer to how much the project may cost to complete. Throughout the project, the project manager will create forecasts about the expected project completion date and projected project costs.

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

forming The initial stage of team development; the project team meets and learns about their roles and responsibilities on the project.

fragnet A portion of the project that is usually contracted to a vendor to complete, yet the project work is still represented in the project network diagram.

function analysis Related to value engineering, this allows team input to the problem, institutes a search for a logical solution, and tests the functions of the product so the results can be graphed.

functional managers The managers of the permanent staff in each organizational department, line of business, or function such as sales, finance, and technology. Project managers and functional managers interact on project decisions that affect functions, projects, and operations.

functional organizations Entities that have a clear division regarding business units and their associated responsibilities. Project managers in functional organizations have little power and report to the functional managers. This is an organization that groups staff according to their expertise—for example, sales, marketing, finance, and information technology. Project managers in functional structures report to functional managers, and the project team exists within one department.

future value A formula to predict the current amount of funds into a future amount of funds. The formula is Future Value = Present Value(1+i)ⁿ, where i is the value of return and n is the number of time periods.

grouping methods Classify observations into groups by analysis, characteristics, experienced outcomes, or other trends. Three common grouping methods include cluster analysis, discriminant analysis, and exploratory study. Note that the PMBOK Guide mentions only exploratory study.

halo effect When one attribute of a person influences a decision.

hard logic The project activities must be completed in a particular order; this is also known as mandatory dependencies.

Herzberg’s Theory of Motivation Posits that there are two catalysts for workers: hygiene agents and motivating agents. Hygiene agents do nothing to motivate, but their absence demotivates workers. Hygiene agents are the expectations all workers have: job security, paychecks, 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.

histogram A bar chart; a Pareto diagram is an example of a histogram.

historical information Any information created in the past that can be used to help the current project succeed.

human resource plan Defines the management of the project human resources, timing of use, and enterprise environmental factors the project manager must adhere to in the organization. Details how the project team members will be brought onto and released from the project.

inappropriate compensation The project manager is to avoid inappropriate compensation, such as bribes. The project manager is to act in the best interest of the project and the organization.

indirect costs These costs can be shared across multiple projects that use the same resources—such as for a training room or piece of equipment.

influence diagram 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.

initiating The start and authorization of the project; the project manager is identified, the project is authorized through the charter, and the stakeholders are identified.

inputs A component of a project management process that will assist the project manager in starting a process.

integrated change control The analysis of a change’s effect on all components of the project. It examines the proposed change and how it may impact scope, schedule, costs, quality, human resources, communications, risk, procurement, and stakeholder management.

interactive communications Information is flowing among stakeholders in a forum. Meetings, videoconferences, phone conferences, and even ad hoc conversations are all examples of interactive communications; the participants are actively communicating with one another to ensure that all participants receive the correct message and conclusions.

internal dependencies Dependencies internal to the project that are often related to the nature of the work being completed.

internal rate of return A benefit measurement formula to calculate when the present value of the cash inflow equals the project’s original investment.

interrelationship diagram A diagram that helps connect the logical relationships of a project or system. It illustrates the relationships of up to 50 elements to assist in problem solving and quality improvement.

interviews An elicitation process to collect requirements from the project stakeholders.

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

Iron Triangle A term used to describe the three constraints of every project: time, cost, and scope. The sides of the Iron Triangle must be kept in balance or the quality of the project will suffer.

ISO 9000 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.

issue Any point of contention, debate, or decision that has not yet been made in the project that may affect the project’s success.

issue log Issues, usually disagreements among two or more parties, are recorded in the issue log, along with an issue owner designation, an issue date for resolution, and the eventual outcome of the issue.

iterative and incremental life cycles The project scope is defined early in the project, but the costs and schedule are iteratively developed. The project moves through iterations of processes better to define the project’s product, time, and costs.

iterative relationships of project phases The next phase of the project is not planned until the current phase of the project is underway. The direction of the project can change based on the current work in the project, market conditions, or as more information is discovered. Ideal for research projects.

kill point An opportunity to halt the project based on project performance in the previous phase. Kill points typically come at the end of a project phase and are also known as phase gates.

knowledge areas There are ten knowledge areas within project management; each knowledge area is a specific portion of the project, and all ten project management knowledge areas are interrelated.

lag Time added to a project activity to delay its start time; lag time is considered positive time, and it is sometimes called waiting time.

laissez faire The project manager has a hands-off policy, and the team is entirely self-led regarding the decision-making process.

lead time Time added to an activity to allow its start time to begin earlier than scheduled; lead time is negative time, because it moves the activities closer to the project’s start date.

leading stakeholder The stakeholder is aware of your project, wants the project to succeed, and is leading the charge to make certain the project outcome is positive.

lessons learned Ongoing collection of documentation about what has and has not worked in the project; the project manager and the project team participate in lessons-learned creation.

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

majority A group decision process by which a vote is offered and the majority wins.

make-or-buy analysis Used in determining what part of the project scope to make and what part to purchase.

management by projects An organization that uses projects to move the company forward is using the management by projects approach. These project-centric entities could manage any level of their work as a project.

mandatory dependencies Project activities must happen in a particular order due to the nature of the work; also known as hard logic.

Maslow’s Hierarchy of Needs A theory that states that there are five layers of needs for all humans: physiological, safety, social, esteem, and the crowning jewel, self-actualization.

matrix structure An organization that groups staff by function but openly shares resources on project teams throughout the organization. Project managers in a matrix structure share the power with functional management. Three types of matrix structures describe the project manager’s authority: weak, balanced, and strong.

McClelland’s Theory of Needs People have three needs: achievement, affiliation, and power. One of the needs drives the person’s actions.

McGregor’s Theory of X and Y This theory states that “X” people are lazy, don’t want to work, and need to be micromanaged. “Y” people are self-led, motivated, and strive to accomplish.

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

mind mapping A visual representation of like and opposing ideas, thoughts, and project requirements.

mitigation Reducing the probability or impact of a risk.

monitoring and controlling The project management process group responsible for ensuring that the project execution is completed according to the project management plan and expectations.

Monte Carlo analysis A what-if scenario tool to determine how scenarios may work out, given any number of variables. The process doesn’t actually create 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.

multicriteria decision analysis An approach that relies on a systematic method of determining, ranking, and eliminating project criteria such as performance metrics, risks, requirements, and other project elements.

murder board A group of decision-makers who may determine to “kill” a proposed project before it is officially launched based on the board’s findings on the likelihood of the project’s success.

negative float There’s not enough time to finish activities on the critical path to meet the defined late finish date for the project. When a project is running late on its implementation or if a predefined deadline for the project exists, you may experience negative float.

negative stakeholders Stakeholders who are opposed to the project’s existence. These stakeholders do not want the project to succeed because they do not see or agree with the project’s benefits to the organization.

net present value A benefit measurement formula that provides a precise measurement of the present value of each year the project generates a return on investment.

network template A network diagram based on previous similar projects that is adapted for the current project work.

neutral stakeholders Stakeholders who are not affected by the project’s success or failure. Examples may include inspectors, procurement officers, and some end users.

nominal group technique A group creativity technique that follows the brainstorming model but ranks each brainstorm idea.

nonverbal communication Facial expressions, hand gestures, and body language contribute to a message. Approximately 55 percent of oral communication is nonverbal.

norming Project team members go about getting the project work, begin to rely on one another, and generally complete their project assignments.

observation A requirements elicitation process whereby the observer shadows a person to understand how she completes a process. An observer may be a participant observer or an invisible observer.

oligopoly A market condition in which the actions of one competitor affect the actions of all the other competitors.

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

operations The ongoing work of the business; a generic way to describe the activities that support the core functions of a business entity.

operations management Operations managers deal directly with the income-generating products or services the company provides. Projects often affect the core business, so these managers are stakeholders in the project.

organizational breakdown structure Although these charts are similar to the work breakdown structure (WBS), the breakdown in this case is by department, unit, or team.

organizational charts A graphical depiction that shows how an organization, such as a company or large project team, is ordered, its reporting structures, and the flow of information.

organizational process assets Resources that have been created to assist the project manager in better managing the project. Examples include historical information, forms, project approaches, defined procedures, and templates.

Organizational Project Management (OPM) An organizational approach to coordinate, manage, and control projects, programs, and portfolio management in a uniform, consistent effort.

Ouchi’s Theory Z A theory that posits that workers are motivated by a sense of commitment, opportunity, and advancement. Workers will work if they are challenged and motivated.

outputs The results of a project management process; the output of a process may serve as an input to another project management process.

overlapping relationship of phases Allows project phases to overlap to compress the project duration. Also known as fast tracking.

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

parametric estimating Ideal for projects with repetitive work in which a parameter, such as five hours per unit, is used to estimate the project duration.

parametric modeling 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.

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

Parkinson’s Law States that work expands to fill the amount of time allotted to it.

partnership project team Through teaming agreements or alliances, the project team may be formed from many different organizations for the duration of the project.

part-time project team The project team works on the project for a percentage of their scheduled work time. The project team may work on core operations and other projects in addition to the current project.

payback period The duration of time it takes a project to earn back the original investment.

performance reports Formal reports that define how the project is performing on time, cost, scope, quality, and any other relevant information.

performing stage If a project team can reach the performing stage of team development, they trust one another, they work well together, and issues and problems are resolved quickly and effectively.

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

planning The iterative process group in which the intention of the project is determined and documented in the project management plan.

plurality A group decision process approach that allows the largest section of a group to win the decision even if a majority doesn’t exist.

PMBOK Guide The abbreviated definition for PMI’s A Guide to the Project Management Body of Knowledge.

PMI Code of Ethics and Professional Conduct A PMI document that defines the expectations of its members to act responsibly, respectfully, fairly, and honestly in their leadership of projects and programs.

PMIS (project management information system) Typically a software system, such as Microsoft Project, that assists the project manager in managing the project.

PMP (Project Management Professional) Your goal: to be certified by the Project Management Institute as a Project Management Professional.

portfolio A collection of projects and programs that have been selected by the organization based on factors such as risk, profitability, business value, business need, market demand, and other components.

portfolio management review board A collection of organizational decision-makers, usually executives, who will review proposed projects and programs for their value and return on investment for the organization.

positive stakeholders Stakeholders who want the project to succeed. These are often the people who have the most to gain from the project’s success and/or the most to lose if the project fails.

precedence diagramming method 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, which represent the relationship and the dependencies of the work packages.

predictive life cycles The project scope, budget, and schedule are defined early in the project. The predefined phases of the project focus on specific project work so the project team members’ participation may fluctuate from phase to phase. Also known as a waterfall methodology or a plan-drive project.

present value A benefit measurement formula used to determine what a future amount of funds is worth today. The formula is Present Value = Future Value/(1+i)ⁿ, where i is the value of the return and n is the number of time periods.

prioritization matrices A system that evaluates and prioritizes the elements of the issue. Each element is prioritized, weighed, and then plotted in the matrix to achieve a score that will determine the activities the project manager and project team should take.

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

process adjustments 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 funneled through the change control system as part of integration management.

process decision program charts A chart that helps the project team identify all of the steps that are required to achieve the project goal.

process improvement plan Identifies methods to track and eliminate waste and non-value-added activities.

procurement The process of a seller soliciting, selecting, and paying for products or services from a buyer.

procurement audits 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.

procurement documents All of the documents for purchasing, such as request for quotes, invitation to bid, request for proposal, and the responses, are stored as part of the project documentation.

procurement management plan Describes the procurement process, from solicitation to source selection. The plan may also include the requirements for selection as set by the organization.

product life cycle The unique life, duration, and support of the thing a project creates. A product life cycle is separate from the project life cycle.

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

product-oriented processes Processes that are unique to the application area and the deliverable on which the project focuses.

profile analysis meeting Examines each of the roles (who does what in the project) and documents that party’s interests, concerns, influence, knowledge about the project, and likely attitude toward the project.

program manager Coordinates the efforts of multiple projects working together in the program. Programs are groups of projects; the program manager is a stakeholder in each of the projects within the program.

programs A collection of projects working in unison to realize benefits that could not be achieved by managing each project independently.

progress reports Provide current information on the project work completed to date.

progressive elaboration The process of starting with a large idea and, through incremental analysis, actions, and planning, making the idea more and more specific. Progressive elaboration is the generally accepted planning process for project management, wherein the project management team starts with a broad scope and works toward a specific detailed plan.

project An undertaking outside of normal operations to create a unique product, service, condition, or result. Projects are temporary, while operations are ongoing.

project baselines Three baselines in a project are used to measure project performance: cost, schedule, and scope.

project calendar 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 the project will cover.

project charter A document that authorizes the project, defines the high-level requirements, identifies the project manager and the project sponsor, and provides initial information about the project.

project communications management A project management knowledge area that carries out the directions of the project’s communications management plan.

project cost management A project management knowledge area that defines cost estimating, cost budgeting, and cost control.

project customer/end user The person or group that will use the project deliverable. Projects can have one or many different customers.

project funding requirements This document defines the amount of funds a project needs and when the project funds are needed in order to reach its objectives. In larger projects, this document identifies the timeline of when capital is required for the project to move forward.

project governance Defines the rules for a project; it’s up to the project manager to enforce the project governance to ensure the project’s ability to reach its objectives. The project management plan defines the project governance and how the project manager, the project team, and the organization will follow the rules and policies within the project.

project human resource management A project management knowledge area that creates the human resource plan, acquires the project team, develops the project team, and manages the project team.

project integration management A project management knowledge area that coordinates all of the effort of the project’s initiation, planning, executing, monitoring and controlling, and closing.

project life cycle Each project’s unique life cycle comprises phases of work. Project life cycles typically create a milestone and allow subsequent phases to begin.

project management The management of the projects within an organization. The initiation, planning, executing, monitoring and controlling, and closing of the temporary endeavor of the project.

project management office (PMO) Organizes and manages control over all projects within an organization. Coordinates all aspects, methodology, and nomenclature for project processes, templates, software, and resource assignment. Also known as a program management office, project office, or simply the program office.

project management team People on the project team who are involved with managing the project.

project manager The person accountable for managing the project and guiding the team through the project phases to completion.

project plan A comprehensive document comprising several subsidiary plans that communicate the intent and direction of the project.

project portfolio management 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.

project procurement management A project management knowledge area that plans what needs to be procured, procures the project needs, administers the procurement process, and closes procurement according to the project terms and the procurement management plan.

project quality management One of the ten project management knowledge areas; defines quality assurance, quality control, and the quality policy for the project.

project risk management A project management knowledge area that creates the risk management plan, performs qualitative and quantitative risk analysis, plans risk responses, and monitors and controls the project risks.

project scope management A project management knowledge area responsible for collecting project requirements, defining the project scope, creating the WBS, performing scope verification, and controlling the project scope.

project scope statement The definition of what the project will create for the project stakeholders. Includes the product scope description, product acceptance criteria, project deliverables, project exclusions, project assumptions, and project constraints.

project sponsor Authorizes the project. This person or group within the performing organization ensures that the project manager has the necessary resources, including monies, to get the work done. The project sponsor has the power to authorize and sanction the project work and is ultimately accountable for the project’s success.

project stakeholder management A project management knowledge area responsible for identifying, managing, and controlling the relationship between the project stakeholders, the project manager, and the project team.

project stakeholders Individuals and groups who may influence the project and/or may be influenced by the project. Examples include the project manager, project sponsor, project team, customers, users, vendors, and the community within which the project operates.

project team The collection of individuals who will work together to ensure the success of the project. The project manager works with the project team to guide, schedule, and oversee the project work. The project team completes the project work.

project time management A project management knowledge area that defines the project activities, sequences project work, estimates resources and activity durations, and develops and controls the project schedule.

projectized structure Grouping employees, collocated or not, by activities on a particular project. The project manager in a projectized structure may have complete, or very close to complete, power over the project team.

proposal An exposé on ideas, suggestions, recommendations, and solutions to an opportunity provided by a vendor for a seller. Proposals include a price for the work and document how the vendor would provide the service to the buyer.

prototype A mockup of the project deliverable to confirm, adapt, or develop the project requirements.

pull communications The audience retrieves the information as they desire rather than the information being sent, or pushed, to them. For example, a central repository of information allows stakeholders to pull the information from the central source when they want.

push communications The sender pushes the same message to multiple people—think of memos, faxes, press releases, and broadcast e-mails: these are all pushed from one source to multiple recipients. For example, you create a report about your project and send it to five specific stakeholders.

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

qualitative risk analysis 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.

quality assurance (QA) An executing process to ensure that the project is adhering to the quality expectations of the project customer and organization. QA is a prevention-driven process to perform the project work with quality to avoid errors, waste, and delays.

quality audits 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 and other projects within the organization, and it measures the project’s ability to maintain the expected level of quality.

quality control A process in which the work results are monitored to determine whether they meet relevant quality standards.

quality function A philosophy and a practice to understand customer needs fully—both spoken and implied—without “gold-plating” the project deliverables.

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

quality policy The formal policy an organization follows to achieve a preset standard of quality. 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.

quality requirements Any condition, metric, performance objective, or condition the project must meet in order to be considered of quality.

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

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

RACI chart A chart that designates each team member against each project activity as Responsible, Accountable, Consulted, or Informed (RACI). A RACI chart is technically a type of responsibility assignment matrix chart.

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

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

regression analysis A forecasting tool used to measure and predict the link between two variables within a project.

reporting system Usually a software program that can capture, store, and provide data analysis on the project. A good reporting tool allows the project manager to take project information, such as percentage of work complete, run the data through some earned value analysis, and then create reports to share with the stakeholders.

request for proposal 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.

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

requirements documentation A clearly defined explanation of the project requirements. The requirements must be measurable, complete, accurate, and signed off by the project stakeholders.

requirements management plan Defines how requirements will be managed throughout the phases of the project. This plan also defines how any changes to the requirements will be allowed, documented, and tracked through project execution.

requirements traceability matrix A table that identifies all of the project requirements, when the requirements are due, when the requirements are created, and any other pertinent information about the requirements.

reserve analysis A contingency reserve for risk events should be periodically reviewed to ensure that the amount of funds remaining in the contingency reserve are adequate for the remaining risks and their probabilities in the project.

residual risks Risks that remain 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.

resistant stakeholder The stakeholder is aware of your project but doesn’t like the changes your project will create.

resource breakdown structure A chart that identifies the resources utilized in the project in each section of the work breakdown structure (WBS). It breaks down the project by types of resources utilized on the project no matter where the resources are being utilized in the project.

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.

resource histogram 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.

resource-leveling heuristics A method to flatten the schedule when resources are overallocated or allocated unevenly. Resource leveling 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.

resource requirements A supporting document for planning that identifies what resources are needed to complete the project work, including people, materials, equipment, facilities, and services.

resource smoothing A technique that allows you to do resource leveling, but only on noncritical path activities. This approaches levels resource utilization by taking advantage of activities that have available float. For those activities with no float, the resource utilization will not be edited.

responsibility The designated duty of a person who decides what will happen in a project regarding a particular area.

responsibility assignment matrix chart A chart type designating the roles and responsibilities of the project team.

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

risk An uncertain event that can have a positive or negative influence on the project’s success. It can affect the project costs, project schedule, and often both. All risks and their status should be recorded in the risk register.

risk categories Help organize, rank, and isolate risks within the project.

risk management plan A subsidiary project plan for determining how risks will be identified, how quantitative and qualitative analyses 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.

risk owners The individuals or groups responsible for a risk response.

risk register All risks, regardless of their probability or impact, are recorded in the risk register or issue log, and their status is kept current.

role Who does what types of activities in a project; a position on the project team.

roles and responsibilities Maps project roles to responsibilities within the project; roles are positions on the project team, and responsibilities are project activities.

root-cause analysis Root-cause analysis defines the problem, or the effect you’re trying to resolve, and then identifies all of the causal factors that may be independently or collaboratively contributing to the defect.

run chart Similar to a control chart, a run chart tracks trends over time and displays those trends in a graph with the plotted data mapped to a specific date.

Sapir-Whorf hypothesis A theory that suggest a link exists between the language a person or culture speaks and how that person or culture behaves in the world.

scales of probability and impact Used in a risk matrix in both qualitative and quantitative risk analyses to score each risk’s probability and impact.

scatter diagram Tracks the relationship between two or more variables to determine whether one variable affects another. It allows the project team, quality control team, or project manager to make adjustments to improve the overall results of the project.

schedule control Part of integrated change management. It 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.

schedule management plan 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.

schedule performance index Reveals the efficiency of work. The closer the quotient is to 1, the better. The formula is SPI = EV / PV.

schedule variance The difference between the planned work and the completed work.

scope Scope, in project management, defines the contents of the project deliverables. It is the general term to describe what the project will create as part of its endeavor. Scope usually refers to the generally accepted agreement of what the customers will receive as a result of the project.

scope baseline Comprises the project scope statement, the work breakdown structure, and the WBS dictionary.

scope management plan Explains how the project scope will be managed and how scope changes will be factored into the project plan. Based on the conditions of the project, the project work, and the confidence of the project scope, the scope management plan should also define the likelihood of changes to the scope, how often the scope may change, and how much the scope can change.

scope validation An inspection-driven process led by the project customer to determine the exactness of the project deliverables. Scope validation leads to customer acceptance of the project deliverables.

scoring models A project selection method that assigns categories and corresponding values to measure a project’s worthiness of investment.

secondary risks 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 like any other identified risk.

sellers and business partners Vendors, contractors, and business partners who help projects achieve their objectives. These business partners can affect the project’s success and are considered stakeholders in the project.

sellers list A listing of the vendors with which an organization does business. You might know this document as a preferred vendors list in your company.

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

sensitivity analysis Examines each project’s risk on its own merit to assess the impact on the project. All other risks in the project are set at a baseline value.

sequential relationship of phases Each phase of a project relies on the completion of the previous phase before it can begin.

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

should-cost estimates 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, the statement of work was inadequate, the sellers have misunderstood the requirements, or the price is too high.

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

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

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

soft logic 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; also known as discretionary dependencies.

sole source The only qualified seller that exists in the marketplace.

source selection criteria A predefined listing of the criteria to determine how a vendor will be selected—for example, cost, experience, certifications, and the like.

staffing management plan A subsidiary plan that documents how project team members will be brought on to the project and excused from the project. This plan is contained in the human resources plan.

stakeholder analysis A process that considers and ranks project stakeholders based on their influence, interests, and expectations of the project. This process uses a systematic approach to identify all of the project stakeholders, ranking the stakeholders by varying factors, and then addressing stakeholders’ needs, requirements, and expectations.

stakeholder classification models Grids that rank stakeholders’ influence in relation to their interest in the project. Several types of these models are used as part of stakeholder analysis. The most common models are the power/interest grid, the power/influence grid, the influence/impact grid, and the salience model.

stakeholder engagement The process of keeping stakeholders interested, involved, and supportive of the project. The project manager and project team need to maintain the energy of the stakeholders and keep them contributing to the project and excited about what the project is creating.

stakeholder identification The process of ensuring that all of the stakeholders have been identified as early as possible in the project. All of the stakeholders should be identified and represented, and their needs, expectations, and concerns should be addressed.

stakeholder management plan Helps the project manager and the project team define strategy for managing the project stakeholders and establish stakeholder engagement at the launch of the project and over the project life cycle.

stakeholder management planning The process of creating a strategy to manage the stakeholders in the project. It’s a prioritization of the stakeholders and an analysis of what the stakeholders want the project to do and how the stakeholders want to align with other stakeholders.

stakeholder register Documents all of the stakeholders’ information, positions, concerns, interests, and attitudes toward the project. The stakeholder register should be updated as new stakeholders are identified or as stakeholders leave the project.

stakeholder requirements The individual stakeholder and stakeholder group requirements for the project.

start no earlier than (SNET) A project constraint that demands that a project activity start no earlier than a specific date.

statement of work A document that defines the project work that is to be completed internally or by a vendor.

systems engineering Focuses on satisfying the customers’ needs, cost requirements, and quality demands through the design and creation of the product. An entire science is devoted to systems engineering in various industries.

start-to-finish A relationship structure that requires an activity to start so that a successor activity may finish; it is unusual and is rarely used.

start-to-start A relationship structure that requires a task to start before a successor task activity may start. This relationship allows both activities to happen in tandem.

statement of work (SOW) 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. It 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.

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

status reports Provide current information on the project cost, budget, scope, and other relevant information.

storming The second stage of team development; the project team struggles for project positions, leadership, and project direction.

subprojects Exists under a parent project but follows its own schedule to completion. Subprojects may be outsourced, assigned to other project managers, or managed by the parent project manager but with a different project team.

supporting detail for estimates The project manager should document how time and cost estimates were created.

supportive project management office (PMO) Serves a consultative role by offering advice, best practices, lessons learned, forms and software, and project information from similar projects. The PMO control is low.

supportive stakeholder The stakeholder is aware of your project, is happy about the project, and hopes your project is successful

system or process flowcharts Show the relationship between components and how the overall process works; useful for identifying risks between system components.

teaming agreement A contractual agreement that defines the roles, responsibilities, considerations, and partnerships of two or more organizations that work together in a project. It’s not unlike a partnership or subcontractor relationship.

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

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

to-complete performance index An earned value management formula that can forecast the likelihood of a project to achieve its goals based on what’s currently happening in the project.

tools and techniques The activities the project manager and the project team complete in order to complete a process.

top-down estimating 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.

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

transition requirements Describe the needed elements to move from the current state to the desired future state.

tree diagram Any diagram that represents a tree in a parent-child relationship. The work breakdown structure (WBS) is an example of a tree diagram, along with a risk breakdown structure and an organizational chart.

trend analysis Examines recurring problems, threats, and even opportunities so you can react to the situation based on the trends you’ve identified.

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

Triple Constraints of Project Management Describes the required balance of time, cost, and scope for a project. The Triple Constraints of Project Management is also defined by the Iron Triangle of Project Management.

unanimity A group decision process in which all participants are in agreement.

unaware stakeholder The stakeholder doesn’t know about the project and the effect the project may have on the stakeholder.

utility function A person’s willingness to accept risk.

value analysis Similar to value engineering, this focuses on the cost/quality ratio of the product. Value analysis focuses on the expected quality against the acceptable cost.

value engineering Deals with reducing costs and increasing profits, all while improving quality. Its focus is on solving problems, realizing opportunities, and maintaining quality improvement.

variable costs Costs that vary, depending on the conditions within the project.

variance The time or cost difference between what was planned and what was actually experienced.

virtual teams Project teams are not collocated and team members may rarely, if ever, meet face-to-face with other team members. The virtual team relies on e-mail, video, and telephone conferences to communicate regarding the project.

voice of the customer The initial collection of customer requirements that serves as part of quality function deployment in a facilitated workshop.

war room 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.

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

work breakdown structure (WBS) A decomposition of the project scope statement into work packages. The WBS is an input to seven project management processes: developing the project management plan, defining the project activities, estimating the project costs, determining the project budget, planning the project quality, identifying the project risks, and planning the project procurement needs.

work breakdown structure (WBS) dictionary A companion to the WBS, this document defines all of the characteristics of each element of the WBS.

work breakdown structure (WBS) templates Based on historical information, this is a WBS from a past project that has been adapted to the current project.

work performance information The current status of the project work; includes the results of activities, corrective and preventive action status, forecasts for activity completion, and other relevant information.

work performance measurements Predefined metrics for measuring project performance, such as cost variances, schedule variances, and estimate to complete.