PMP Terms

Project Management Fundamental Terms
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The PMI publication that defines widely

A Guide to the Project Management accepted project management practices.
Body of Knowledge (PMBOK Guide) The CAPM and the PMP exam are based
on this book.
The areas of expertise, industry, or

function where a project is centered.
Application areas Examples of application areas include
architecture, IT, health care, and
manufacturing.
A quantifiable return on investment. The

return can be tangible, such as
equipment, money, or market share. The
Business value
return can also be intangible, such as
brand recognition, trademarks, and
reputation.
A person who has slightly less project

Certified Associate in Project management experience than a PMP, but
Management (CAPM) who has qualified for and then passed the
CAPM examination.
Defines how a project affects people and

how those people may affect the project.
Cultural and social environments include
Cultural and social environment the economic, educational, ethical,
religious, demographic, and ethnic
composition of the people affected by the
project.
A product, service, or result created by a

Deliverable project. Projects can have multiple
deliverables.
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These include the application of
accounting, procurement, sales and
marketing, contracting, manufacturing,
General management skills
logistics, strategic planning, human
resource management, standards and
regulations, and information technology.
The consideration of the local and

international laws, languages,
communication challenges, time zone
International and political environment
differences, and other non-collocated
issues that affect a project’s ability to
progress.
The ability to interact, lead, motivate, and

Interpersonal skills
manage people.
A triangle with the characteristics of time,

cost, and scope. Time, cost, and scope
each constitute one side of the triangle; if
any side of the Iron Triangle is not in
balance with the other sides, the project
Iron Triangle of Project Management
will suffer. The Iron Triangle of Project
Management is also known as the Triple
Constraints of Project Management, as all
projects are constrained by time, cost, and
scope.
The physical structure and surroundings

Physical environment
that affect a project’s work.
A collection of related processes in project

management. There are five process
groups and 49 project management
Process groups
processes. The five process groups are
Initiating, Planning, Executing, Monitoring
and Controlling, and Closing.
A collection of related projects working in

Program
unison toward a common deliverable.
The process of gathering project details.

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

A temporary endeavor to create a unique
Project product, service, or result. The end result
of a project is also called a deliverable.
A documented created and maintained by

the project sponsor and the project
manager. The project benefits
Project benefits management plan management plan defines what benefits
the project will create, when the benefits
will be realized, and how the benefits will
be measured.
Created and maintained by the project

sponsor and shows the financial validity of
why a project is chartered and launched
Project business case within the organization. Typically, the
project business case is created before
the launch of the project and may be used
as a go/no-go decision point.
The location and culture of the

environment where the project work will
reside. The project environment includes
Project environment
the social, economic, and environmental
variables the project must work with or
around.
An organization of project management

professionals from around the world,
Project Management Institute (PMI)
supporting and promoting the careers,
values, and concerns of project managers.
The phases that make up the project.

Project life cycles are unique to the type of
Project life cycle
work being performed and are not
universal to all projects.
A central office that oversees all projects

within an organization or within a
functional department. A PMO supports
Project management office (PMO) the project manager through software,
training, templates, policies,
communication, dispute resolution, and
other services.

A person who has proven project
management experience and has qualified
Project Management Professional (PMP)
for and then passed the PMP
examination.
The management and selection of

projects that support an organization’s
vision and mission. It is the balance of
Project portfolio management
project priority, risk, reward, and return on
investment. This is a senior management
process.
A smaller project managed within a larger,

parent project. Subprojects are often
Subprojects
contracted work whose deliverable allows
the larger project to progress.
Also known as the Iron Triangle. This

Triple Constraints of Project theory posits that time, cost, and scope
Management are three constraints that every project
has.
Raw data, observations, and

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

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

communication of work performance
information. Work performance reports
Work performance reports
communicate what’s happening in the
project through status reports, memos,
dashboards, or other modalities.

Project Management Environments
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An organization where organizational

resources are pooled into one project
Balanced matrix structure team, but the functional managers and
the project managers share the project
power.
Cultural norms describe the culture and

the styles of an organization. Cultural
Cultural norms norms, such as work ethics, hours, view
of authority, and shared values, can
affect how the project is managed.
Conditions that affect how the project

manager may manage the project.
Enterprise environmental factors come
Enterprise environmental factors
from within the project, such as policy, or
they be external to the organization, such
as law or regulation.
An organization that is divided into

functions, and each employee has one
clear functional manager. Each
Functional structure department acts independently of the
other departments. A project manager in
this structure has little to no power and
may be called a project coordinator.
Governance framework describes the

rules, policies, and procedures that
people within an organization abide by.
Governance framework addresses the
organization, but also address portfolios,
Governance framework programs, and projects. Regarding
portfolios, programs, and projects the
governance framework addresses
alignment with organizational vision, risk
management, performance factors, and
communication.

An organization that creates a blend of
Hybrid structure the functional, matrix, and project-
oriented structures.
Describe organizations that have

duplication of efforts within the
organization, but not within each
department or division of the
Multidivisional structure
organization. Project manager has little
authority in this structure and the
functional manager controls the project
budget.
Describes a loosely organized business

or organization. There likely aren’t big
formal departments and people work
Organic or simple alongside one another regardless of roles
and titles. The project manager likely has
little control over the project resources
and may not be called a project manager.
Organizational process assets include

organizational processes, policies,
procedures, and items from a corporate
knowledge base. Organizational process
Organizational process assets
assets are grouped into two categories to
consider: processes, policies and
procedures, and organizational
knowledge bases.
Organizational knowledge repositories

are the databases, files, and historical
information that you can use to help
better plan and manage your projects.
Organizational Knowledge Repositories
This is an organizational process asset
that is created internally to your
organization through the ongoing work of
operations and other projects.

A system can create things by working
with multiple components that the
individual components could not create if
they worked alone. The structure of the
organization and the governance
framework creates constraints that affect
Organizational System how the project manager makes
decisions within the project. The
organizational system directly affects how
the project manager utilizes their power,
influence, leadership, and even political
capital, to get things done in the
environment.
A business unit that centralizes the

operations and procedures of all projects
Project management office (PMO)
within the organization. The PMO can be
supportive, controlling, or directive.
An organization that assigns a project

team to one project for the duration of the
Project-oriented structure project life cycle. The project manager
has high-to-almost-complete project
power.

Strong matrix structure team, but the functional managers have
less project power than the project
manager.
Uses a network structure to communicate

and interact with other groups and
departments. A point of contact exists for
Virtual organization
each department and these department
point of contact receive and send all
messages for the department.

Weak matrix structure team, but the functional managers have
more project power than the project
manager.

Project Manager Role
your answer.
The message receiver restates what’s

been said to fully understand and confirm
active listening the message and it provides an
opportunity for the sender to clarify the
message if needed.
Active problem solving begins with

problem definition. Problem definition is
the ability to discern between the cause
and effect of the problem. Root-cause
active problem solving
analysis looks beyond the immediate
symptoms to the cause of the
symptoms—which then affords
opportunities for solutions.
The project manager refuses to act, get

avoiding power
involved, or make decisions.
The leader is motivating, has high-

energy, and inspires the team through
strong convictions about what’s possible
charismatic leadership
and what the team can achieve. Positive
thinking and a can-do mentality are
characteristics of a charismatic leader.
The project manager has deep skills and

experience in a discipline (for example,
expert power
years of working in IT helps an IT project
manager better manage IT projects).
The project manager aims to gain favor

ingratiating power with the project team and stakeholders
through flattery.
The individual has power and control of

informational power the data gathering and distribution of
information.

The leader is a hybrid of transactional,
transformational, and charismatic
leaders. The interactional leader wants
interactional leadership
the team to act, is excited and inspired
about the project work, yet still holds the
team accountable for their results.
The project manager can make the team

guilt-based power and stakeholders feel guilty to gain
compliance in the project.
Leadership is about aligning, motivating,

and inspiring the project team members
leadership to do the right thing, build trust, think
creatively, and to challenge the status
quo.
The leader takes a “hands-off” approach

to the project. This means the project
team makes decisions, takes initiative in
laissez-faire leadership the actions, and creates goals. While this
approach can provide autonomy, it can
make the leader appear absent when it
comes to project decisions.
Management utilizes positional power to

maintain, administrate, control, and focus
management on getting things done without
challenging the status quo of the project
and organization.
Based on the audience and the message

media selection being sent, the media should be in
alignment with the message.
Meetings are forms of communication.

How the meeting is led, managed, and
controlled all influence the message
meeting management
being delivered. Agendas, minutes, and
order are mandatory for effective
communications within a meeting.
The project manager has a warm

personal or charismatic power
personality that others like.

In formal presentations, the presenter’s
oral and body language, visual aids, and
presentation
handouts all influence the message being
delivered.
The project manager can restrict choices

pressure-based power to get the project team to perform and do
the project work.
Defines three areas of PDUs for PMI

certified professionals to maintain their
certification. The PMI Talent Triangle
PMI Talent Triangle
includes technical project management,
leadership, and strategic and business
management.
The project manager’s power is because

of the position she has as the project
positional power
manager. This is also known as formal,
authoritative, and legitimate power.
PDUs are earned after the PMP to

maintain the PMP certification. PMPs are
required to earn 60 PDUs per three-year
Professional Development Units (PDUs)
certification cycle. Of the 60 PDUs, a
minimum of 35 hours must come from
educational opportunities.
The role of leading the project team and

managing the project resources to
project manager
effectively achieve the objectives of the
project.
The project manager can punish the

punitive or coercive power
project team.
The project manager is respected or

admired because of the team’s past
referent power experiences with the project manager.
This is about the project manager’s
credibility in the organization.
The project manager can reward the

reward power
project team.

Communication requires a sender and a
receiver. Within this model may be
sender-receiver models multiple avenues to complete the flow of
communication, but barriers to effective
communication may be present as well.
The leader puts others first and focuses

on the needs of the people he serves.
Servant leaders provide opportunity for
servant leadership growth, education, autonomy within the
project, and the well-being of others. The
primary focus of servant leadership is
service to others.
The project manager has power because

situational power
of certain situations in the organization.
The tone, structure, and formality of the

message being sent should be in
style
alignment with the audience and the
content of the message.
The leader emphasizes the goals of the

project and rewards and disincentives for
transactional leadership the project team. This is sometimes
called management by exception as it’s
the exception that is reward or punished.
The leader inspires and motivates the

project team to achieve the project goals.
Transformational leaders aim to empower
transformational leadership
the project team to act, be innovative in
the project work, and accomplish through
ambition.

Project Integration Management Terms
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or fold page in half. Read the term, recite
the definition, and then look at this side of
the flashcards to check your answer.
An assumption is something that is

believed to be true or false, but it has not
yet been proven to be true or false.
Assumptions that prove wrong can
Assumption log
become risks for the project. All identified
project assumptions are recorded in the
assumption log for testing and analysis,
and the outcomes are recorded.
This is an example of a benefits
Benefit/cost ratio (BCR) models comparison model. It examines the
benefit-to-cost ratio.
A committee that evaluates the
worthiness of a proposed change and
Change control board (CCB)
either approves or rejects the proposed
change.
The change control system communicates
the process for controlling changes to the
project deliverables. This system works
Change control system (CCS) with the configuration management
system and seeks to control and
document proposals to change the
project’s product.
All changes that enter into a project are
recorded in the change log. The
Change log characteristics of the change, such as the
time, cost, risk, and scope details, are
also recorded.
This plan details the project procedures
for entertaining change requests: how
Change management plan
change requests are managed,
documented, approved, or declined.

This final process group of the project
management life cycle is responsible for
closing the project phase or project. This
Closure processes
is where project documentation is
archived and project contracts are also
closed.
This plan defines who will get what
information, how they will receive it, and
Communications management plan
in what modality the communication will
take place.
This includes the labeling of the
components, how changes are made to
Configuration identification
the product, and the accountability of the
changes.
This plan is an input to the control scope
process. It defines how changes to the
Configuration management plan features and functions of the project
deliverable, the product scope, may enter
the project.
This system defines how stakeholders are
allowed to submit change requests, the
conditions for approving a change
request, and how approved change
requests are validated in the project
Configuration management system
scope. Configuration management also
documents the characteristics and
functions of the project’s products and
any changes to a product’s
characteristics.
The organization of the product materials,
Configuration status accounting
details, and prior product documentation.
The scope verification and completeness

auditing of project or phase deliverables
Configuration verification and auditing
to ensure that they are in alignment with
the project plan.
The formal verification of the contract
Contract closure completeness by the vendor and the
performing organization.

This is the aggregated costs of all of the
Cost baseline work packages within the work
breakdown structure (WBS).
This plan details how the project costs

Cost management plan will be planned for, estimated, budgeted,
and then monitored and controlled.
Knowledge that can be quickly and easily
expressed through conversations,
Explicit knowledge
documentation, figures, or numbers, is
easily communicated.
A benefit comparison model to determine
a future value of money. The formula to
calculate future value is FV = PV(1 + I)n,
Future value
where PV is present value, I is the given
interest rate, and n is the number of
periods.
A process to consider and control the
Integrated change control impact of a proposed change on the
project’s knowledge areas.
Issues are points of contention where
some question of the project’s direction
needs to be resolved. All identified issues
Issue log are documented in the issue log, along
with an issue owner and a deadline to
resolve the issue. The outcome of the
issue is also recorded.
A project selection method to determine
the likelihood of success. These models
include linear programming, nonlinear
Mathematical model
programming, dynamic programming,
integer programming, and multiobjective
programming.
Milestones are significant points or
events in the project’s progress that
represent accomplishment in the project.
Milestone
Projects usually create milestones as the
result of completing phases within the
project.

This list details the project milestones and
their attributes. It is used for several
Milestone list areas of project planning, but also helps
determine how quickly the project may be
achieving its objectives.
These are committees that ask every
conceivable negative question about the
proposed project. Their goals are to
expose the project’s strengths and
Murder boards weaknesses, and to kill the project if it’s
deemed unworthy for the organization to
commit to. Also known as project steering
committees or project selection
committees.
Evaluates the monies returned on a
Net present value
project for each period the project lasts.
An estimate to predict how long it will

Payback period take a project to pay back an organization
for the project’s investment of capital.
A benefit comparison model to determine
the present value of a future amount of
money. The formula to calculate present
Present value
value is PV = FV ÷ (1 + i)n, where FV is
future value, I is the given interest rate,
and n is the number of periods.
The procurement management plan
Procurement management plan controls how the project will acquire
goods and services.
This document authorizes the project. It
defines the initial requirements of the
Project charter project stakeholders. The project charter
is endorsed by an entity outside of the
project boundaries.
The documented approach of how a
project will be planned, executed,
monitored and controlled, and then
Project management plan
closed. This document is a collection of
subsidiary management plans and related
documents.

Defines how the project scope will be
Project scope management plan
planned, managed, and controlled.
Documents the quality objectives for the

project, including the metrics for
Quality baseline
stakeholder acceptance of the project
deliverable.
This plan defines what quality means for
the project, how the project will achieve
Quality management plan quality, and how the project will map to
organizational procedures pertaining to
quality.
A mathematical model to examine the
relationship among project variables, like
Regression analysis
cost, time, labor, and other project
metrics.
Risk is an uncertain event or condition
that may affect the project outcome. The
Risk management plan
risk management plan defines how the
project will manage risk.
The risk register is a centralized database
consisting of the outcome of all the other
Risk register risk management processes, such as the
outcome of risk identification, qualitative
analysis, and quantitative analysis.
This subsidiary plan defines the risk
responses that are to be used in the
Risk response plan
project for both positive and negative
risks.
This is the planned start and finish of the
project. The comparison of what was
Schedule baseline
planned and what was experienced is the
schedule variance.
Defines how the project schedule will be

Schedule management plan
created and managed.

The scope baseline is a combination of
three project documents: the project
scope statement, the work breakdown
structure, and the WBS dictionary. The
Scope baseline creation of the project deliverable will be
measured against the scope baseline to
show any variances from what was
expected and what the project team has
created.
These models use a common set of
values for all of the projects up for
Scoring models selection. For example, values can be
profitability, complexity, customer
demand, and so on.
Knowledge that’s more difficult to express
because it’s personal beliefs, values,
tacit knowledge knowledge gain from experience, and
“know-how” when doing a task.

Project Scope Management Terms
your answer.
A planning heuristic for creating the

WBS. This rule states that the work
8/80 Rule package in a WBS must take no more
than 80 hours of labor to create and no
fewer than 8 hours of labor to create.
The observer interacts with the worker to

ask questions and understand each step
Active observation of the work being completed. In some
instances, the observer could serve as an
assistant in doing the work.
When stakeholders create a large

number of ideas, you can use an affinity
Affinity diagrams
diagram to cluster similar ideas together
for further analysis.
A scope definition process of finding

alternative solutions for the project
customer while considering the
Alternatives generation
customer’s satisfaction, the cost of the
solution, and how the customer may use
the product in operations.
A decision method where only one

Autocratic individual makes the decision for the
group.
This approach encourages participants to

generate as many ideas as possible
Brainstorming about the project requirements. No idea
is judged or dismissed during the
brainstorming session.
Documented in the scope management

plan, this system defines how changes to
Change control system (CCS)
the project scope are managed and
controlled.

This subsidiary plan defines how
Change management plan changes will be allowed and managed
within the project.
A numbering system for each item in the

WBS. The PMBOK is a good example of
a code of accounts, as each chapter and
Code of accounts its subheadings follow a logical
numbering scheme. For example,
PMBOK 5.3.3.2 identifies an exact
paragraph in the PMBOK.

changes to the features and functions of
Configuration management plan
the project deliverables will be monitored
and controlled within the project.
These diagrams show the relationship

between elements of an environment. For
example, a context diagram would
Context diagram
illustrate the networks, servers,
workstations, and people that interact
with the elements of the environment.
A moderator-led requirements collection

Focus groups method to elicit requirements from
stakeholders.
This is the study of the functions within a

system, project, or, what’s more likely in
the project scope statement, the product
the project will be creating. Functional
analysis studies the goals of the product,
how the product will be used, and the
Functional analysis
expectations the customer has of the
product once it leaves the project and
moves into operations. Functional
analysis may also consider the cost of
the product in operations, which is known
as life-cycle costing.
Most projects have a determined budget

in relation to the project scope. There
Funding limit may be a qualifier on this budget, such as
plus or minus 10 percent based on the
type of cost estimate created.

A requirements collection method used to
Interviews elicit requirements from stakeholders in a
one-on-one conversation.
A group decision method where more

Majority than 50 percent of the group must be in
agreement.
This approach maps ideas to show the

relationship among requirements and the
differences between requirements. The
Mind mapping
map can be reviewed to identify new
solutions or to rank the identified
requirements.
As with brainstorming, participants are

encouraged to generate as many ideas
Nominal group technique
as possible, but the suggested ideas are
ranked by a voting process.
The observer records information about

the work being completed without
Passive observation
interrupting the process; sometimes
called the invisible observer.
A group-decision method where the

largest part of the group makes the
Plurality decision when it’s less than 50 percent of
the total. (Consider three or four factions
within the stakeholders.)
This project scope statement component

works with the project requirements, but
Product acceptance criteria focuses specifically on the product and
what the conditions and processes are
for formal acceptance of the product.
A scope definition technique that breaks

down a product into a hierarchical
Product breakdown
structure, much like a WBS breaks down
a project scope.
This is a narrative description of what the

Product scope description project is creating as a deliverable for the
project customer.

Defines the product or service that will
come about as a result of completing the
Product scope
project. It defines the features and
functions that characterize the product.
A project assumption is a factor in the

Project assumptions planning process that is held to be true
but not proven to be true.
A project boundary clearly states what is

included with the project and what’s
excluded from the project. This helps to
Project boundaries
eliminate assumptions between the
project management team and the
project customer.
A constraint is anything that limits the

project manager’s options. Consider a
predetermined budget, deadline,
Project constraints resources, or materials the project
manager must use within the project—
these are all examples of project
constraints.
These are the measurable goals that

determine a project’s acceptability to the
project customer and the overall success
Project objectives
of the project. Objectives often include
the cost, schedule, technical
requirements, and quality demands.
These are the demands set by the

customer, regulations, or the performing
organization that must exist for the
Project requirements project deliverables to be acceptable.
Requirements are often prioritized in a
number of ways, from “must have” to
“should have” to “would like to have.”
This defines all of the work, and only the

Project scope required work, to complete the project
objectives.

This project management subsidiary plan
controls how the scope will be defined,
how the project scope statement will be
Project scope management plan created, how the WBS will be created,
how scope validation will proceed, and
how the project scope will be controlled
throughout the project.
This documentation of what the

stakeholders expected in the project
Requirements documentation defines all of the requirements that must
be present for the work to be accepted by
the stakeholders.

changes to the project requirements will
Requirements management plan be permitted, how requirements will be
tracked, and how changes to the
requirements will be approved.
This is a table that maps the

Requirements traceability matrix (RTM) requirements throughout the project all
the way to their completion.
The project customer may have specific

dates when phases of the project should
Schedule milestones
be completed. These milestones are
often treated as project constraints.
Undocumented, unapproved changes to

Scope creep
the project scope.
The formal inspection of the project

Scope validation deliverables, which leads to project
acceptance.

A scope definition process where the
project management team interviews the
stakeholders and categorizes, prioritizes,
and documents what the project
customer wants and needs. The analysis
Stakeholder analysis is to determine, quantify, and prioritize
the interests of the stakeholders.
Stakeholder analysis demands
quantification of stakeholder objectives;
goals such as “good,” “satisfaction,” and
“speedy” aren’t quantifiable.
A scope definition approach that studies

and analyzes a system, its components,
Systems analysis
and the relationship of the components
within the system.
This project scope statement creation

process studies how a system should
work, designs and creates a system
model, and then enacts the working
Systems engineering system based on the project’s goals and
the customer’s expectations. Systems
engineering aims to balance the time and
cost of the project in relation to the scope
of the project.
A group decision method where everyone

Unanimity
must be in agreement.
As with value engineering, this approach

examines the functions of the project’s
product in relation to the cost of the
Value analysis
features and functions. This is where, to
some extent, the grade of the product is
in relationship to the cost of the product.
This approach to project scope statement

creation attempts to find the correct level
of quality in relation to a reasonable
Value engineering
budget for the project deliverable while
still achieving an acceptable level of
performance of the product.

A WBS companion document that
WBS dictionary defines all of the characteristics of each
element within the WBS.
A prepopulated WBS for repetitive

projects. Previous projects’ WBSs are
WBS template
often used as templates for current
similar projects.
A deliverables-oriented breakdown of the

Work breakdown structure (WBS)
project scope.
Work package The smallest item in the WBS.
Status of the deliverables: the work that’s

Work performance information been started, finished, or has yet to
begin.

Project Schedule Management Terms
your answer.
The primary output of breaking down the

Activity list
WBS work packages.
The identification of more than one

Alternative analysis solution. Consider roles, materials, tools,
and approaches to the project work.
A somewhat unreliable estimating

approach that relies on historical
information to predict what current activity
durations should be. Analogous
Analogous estimating estimating is more reliable, however, than
team member recollections. Analogous
estimating is also known as top-down
estimating and is a form of expert
judgment.
The most accurate time-and-cost

estimating approach a project manager
can use. This estimating approach starts
at “the bottom” of the project and
Bottom-up estimating
considers every activity, its predecessor
and successor activities, and the exact
amount of resources needed to complete
each activity.
A WBS entry that considers the time,

cost, and scope measurements for that
deliverable within the WBS. The
estimated performance is compared
Control account against the actual performance to
measure overall performance for the
deliverables within that control account.
The specifics of a control account are
documented in a control account plan.

A predetermined range of acceptable
variances, such as +/–10 percent off
schedule. Should the variance exceed
Control threshold
the threshold, then project control
processes and corrected actions will be
enacted.
A schedule compression approach that

adds more resources to activities on the
critical path to complete the project
Crashing earlier. When crashing a project, costs
are added because the associated labor
and sometimes resources (such as faster
equipment) cause costs to increase.
The path in the project network diagram

that cannot be delayed, otherwise the
Critical path project completion date will be late. There
can be more than one critical path.
Activities in the critical path have no float.
These dependencies are the preferred

order of activities. Project managers
should use these relationships at their
discretion and should document the logic
behind the decision. Discretionary
Discretionary dependencies
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
preferential or soft logic.
The earliest a project activity can finish.

Used in the forward pass procedure to
Early finish
discover the critical path and the project
float.
The earliest a project activity can begin.

Used in the forward pass procedure to
Early start
float.

As the name implies, these are
dependencies outside of the project’s
control. Examples include the delivery of
External dependencies
equipment from a vendor, the deliverable
of another project, or the decision of a
committee, lawsuit, or expected new law.
A schedule compression method that

changes the relationship of activities.
With fast tracking, activities that would
normally be done in sequence are
allowed to be done in parallel or with
Fast tracking some overlap. Fast tracking can be
accomplished by changing the relation of
activities from FS to SS or even FF or by
adding lead time to downstream
activities. However, fast tracking does
add risk to the project.
An activity relationship type that requires

Finish-to-finish the current activity to be finished before
its successor can finish.

Finish-to-start the current activity to be finished before
its successor can start.
A representation of a project network

diagram that is often used for outsourced
Fragnet portions of a project, repetitive work
within a project, or a subproject. Also
called a subnet.
This is the total time a single activity can

be delayed without affecting the early
Free float
start of its immediately following
successor activities.
Logic that describes activities that must

happen in a particular order. For
example, the dirt must be excavated
Hard logic before the foundation can be built. The
foundation must be in place before the
framing can begin. Also known as a
mandatory dependency.

Internal relationships to the project or the
organization. For example, the project
Internal dependencies team must create the software as part of
the project’s deliverable before the
software can be tested for quality control.
Positive time that moves two or more

Lag time
activities further apart.
The latest a project activity can finish.

Used in the backward pass procedure to
Late finish
float.
The latest a project activity can begin.

Used in the backward pass procedure to
Late start
float.
Negative time that allows two or more

Lead time activities to overlap where ordinarily
these activities would be sequential.
A percentage of the project duration to

combat Parkinson’s Law. When project
Management reserve activities become late, their lateness is
subtracted from the management
reserve.
These dependencies are the natural

order of activities. For example, you can’t
Mandatory dependencies begin building your house until your
foundation is in place. These
relationships are called hard logic.

A project simulation approach named
after the world-famous gambling district in
Monaco. This predicts how scenarios
may work out, given any number of
variables. The process doesn’t actually
churn out a specific answer, but a range
of possible answers. When Monte Carlo
Monte Carlo analysis
analysis is applied to a schedule, it can
examine, for example, the optimistic
completion date, the pessimistic
completion date, and the most likely
completion date for each activity in the
project and then predict a mean for the
project schedule.
A quantitatively based duration estimate

that uses mathematical formulas to
Parametric estimate predict how long an activity will take
based on the quantities of work to be
completed.
A theory that states: “Work expands so

as to fill the time available for its
completion.” It is considered with time
Parkinson’s Law
estimating, because bloated or padded
activity estimates will fill the amount of
time allotted to the activity.
A WBS entry located below a control

account and above the work packages. A
Planning package planning package signifies that there is
more planning that needs to be
completed for this specific deliverable.
A network diagram that shows activities

in nodes and the relationship between
Precedence diagramming method each activity. Predecessors come before
the current activity, and successors come
after the current activity.
Calendars that identify when the project

Project calendars
work will occur.
This is the total time the project can be

Project float delayed without passing the customer-
expected completion date.

A diagram that visualizes the flow of the
Project network diagram project activities and their relationships to
other project activities.
An update to the work breakdown

Refinement
structure.
This is a hierarchical breakdown of the

project resources by category and
resource type. For example, you could
have a category of equipment, a category
Resource breakdown structure (RBS) of human resources, and a category of
materials. Within each category, you
could identify the types of equipment your
project will use, the types of human
resources, and the types of materials.
Calendars that identify when project

Resource calendars resources are available for the project
work.
A method to flatten the schedule when

resources are overallocated. Resource
leveling can be applied using different
Resource-leveling heuristic methods to accomplish different goals.
One of the most common methods is to
ensure that workers are not
overextended on activities.
The imminent work is planned in detail,

while the work in the future is planned at
Rolling wave planning
a high level. This is a form of progressive
elaboration.
A subsidiary plan in the project

management plan. It defines how the
Schedule management plan
project schedule will be created,
estimated, controlled, and managed.
The activities don’t necessarily have to

happen in a specific order. For example,
you could install the light fixtures first,
Soft logic then the carpet, and then paint the room.
The project manager could use soft logic
to change the order of the activities if so
desired.

An activity relationship that requires an
activity to start so that its successor can
Start-to-finish
finish. This is the most unusual of all the
activity relationship types.

Start-to-start the current activity to start before its
successor can start.
A representation of a project network

diagram that is often used for outsourced
Subnet portions of projects, repetitive work within
a project, or a subproject. Also called a
fragnet.
A previous project that can be adapted

for the current project and forms that are
Template
pre-populated with organizational-specific
information.
An estimating technique for each activity

that requires optimistic, most likely, and
pessimistic estimates to be created.
Three-point estimate
Based on these three estimates, an
average can be created to predict how
long the activity should take.
This is the total time an activity can be

Total float delayed without delaying project
completion.
The smallest item in the work breakdown

Work package
structure.

Project Cost Management Terms
your answer.
The actual amount of monies the project

Actual cost (AC)
has spent to date.
An approach that relies on historical

information to predict the cost of the
Analogous estimating current project. It is also known as top-
down estimating and is the least reliable
of all the cost-estimating approaches.
An estimating approach that starts from

zero, accounts for each component of the
WBS, and arrives at a sum for the
Bottom-up estimating project. It is completed with the project
team and can be one of the most time-
consuming and most reliable methods to
predict project costs.
This estimate is also somewhat broad

and is used early in the planning
processes and also in top-down
Budget estimate
estimates. The range of variance for the
estimate can be from –10 percent to +25
percent.
A cost-estimating approach that uses a

Commercial database database, typically software-driven, to
create the cost estimate for a project.
A contingency allowance to account for

overruns in costs. Contingency
allowances are used at the project
Contingency reserve manager’s discretion and with
management’s approval to counteract
cost overruns for scheduled activities and
risk events.

Costs are parallel to each WBS work
package. The costs of each work
package are aggregated to their
Cost aggregation
corresponding control accounts. Each
control account then is aggregated to the
sum of the project costs.
A time-lapse exposure of when the

project monies are to be spent in relation
Cost baseline
to cumulative values of the work
completed in the project.
The cost aggregation achieved by

assigning specific dollar amounts for
each of the scheduled activities or, more
Cost budgeting
likely, for each of the work packages in
the WBS. Cost budgeting applies the cost
estimates over time.
A system that examines any changes

associated with scope changes, the cost
Cost change control system of materials, and the cost of any other
resources, and the associated impact on
the overall project cost.
The cost management plan dictates how

Cost management plan
cost variances will be managed.
The monies spent to recover from not

adhering to the expected level of quality.
Examples may include rework, defect
Cost of poor quality repair, loss of life or limb because safety
precautions were not taken, loss of sales,
and loss of customers. This is also known
as the cost of nonconformance to quality.
The monies spent to attain the expected

level of quality within a project. Examples
Cost of quality
include training, testing, and safety
precautions.
Measures the project based on its

Cost performance index (CPI) financial performance. The formula is CPI
= EV/AC.

The difference of the earned value
amount and the cumulative actual costs
Cost variance (CV)
of the project. The formula is CV = EV –
AC.
This estimate type is one of the most

accurate. It’s used late in the planning
processes and is associated with bottom-
Definitive estimate up estimating. You need the WBS in
order to create the definitive estimate.
The range of variance for the estimate
can be from –5 percent to +10 percent.
Costs are attributed directly to the project

work and cannot be shared among
Direct costs
projects (for example, airfare, hotels,
long-distance phone charges, and so on).
Earned value is the physical work

completed to date and the authorized
Earned value (EV) budget for that work. It is the percentage
of the BAC that represents the actual
work completed in the project.
These forecasting formulas predict the

likely completed costs of the project
Estimate at completion (EAC)
based on current scenarios within the
project.
An earned value management formula

that predicts how much funding the
project will require to be completed.
Estimate to complete (ETC)
Three variations of this formula are based
on conditions the project may be
experiencing.
Costs that remain constant throughout

the life of the project (the cost of a piece
Fixed costs of rented equipment for the project, the
cost of a consultant brought on to the
project, and so on).
An organization’s approach to managing

cash flow against the project deliverables
Funding limit reconciliation
based on a schedule, milestone
accomplishment, or data constraints.

Costs that are representative of more
than one project (for example, utilities for
Indirect costs the performing organization, access to a
training room, project management
software license, and so on).
An event that will likely happen within the

project, but when it will happen and to
Known unknown
what degree is unknown. These events,
such as delays, are usually risk-related.
An approach that assumes the cost per

unit decreases the more units workers
Learning curve
complete, because workers learn as they
complete the required work.
A market condition where the market is

Oligopoly so tight that the actions of one vendor
affect the actions of all the others.
The total cost of the opportunity that is

Opportunity cost refused to realize an opposing
opportunity.
An approach using a parametric model to

extrapolate what costs will be needed for
Parametric estimating a project (for example, cost per hour and
cost per unit). It can include variables and
points based on conditions.
Planned value is the work scheduled and

the budget authorized to accomplish that
Planned value (PV) work. It is the percentage of the BAC that
reflects where the project should be at
this point in time.
The final variance, which is discovered

Project variance only at the project’s completion. The
formula is VAR = BAC – AC.

This is a statistical approach to predicting
what future values may be, based on
historical values. Regression analysis
creates quantitative predictions based on
Regression analysis variables within one value to predict
variables in another. This form of
estimating relies solely on pure statistical
math to reveal relationships between
variables and to predict future values.
Cost reserves are for unknown unknowns

within a project. The management
Reserve analysis reserve is not part of the project cost
baseline, but is included as part of the
project budget.
This rough estimate is used during the

initiating processes and in top-down
Rough order of magnitude estimates. The range of variance for the
estimate can be from –25 percent to +75
percent.
Measures the project based on its

Schedule performance index (SPI) schedule performance. The formula is
SPI = EV/PV.
The difference between the earned value

Schedule variance (SV) and the planned value. The formulas is
SV = EV – PV.
Many vendors can provide what your

Single source project needs to purchase, but you prefer
to work with a specific vendor.
Only one vendor can provide what your

project needs to purchase. Examples
Sole source
include a specific consultant, specialized
service, or unique type of material.
Monies that have already been invested

Sunk costs
in a project.

A formula to forecast the likelihood of a
project to achieve its goals based on
what’s happening in the project right now.
There are two different flavors for the
TCPI, depending on what you want to
accomplish. If you want to see if your
To-Complete Performance Index project can meet the budget at
completion, you’ll use this formula: TCPI
= (BAC – EV)/(BAC – AC). If you want to
see if your project can meet the newly
created estimate at completion, you’ll use
this version of the formula: TCPI = (BAC
– EV)/(EAC – AC).
Costs that change based on the

conditions applied in the project (the
Variable costs number of meeting participants, the
supply of and demand for materials, and
so on).
The difference between what was

Variance
expected and what was experienced.
A forecasting formula that predicts how

much of a variance the project will likely
Variance at completion (VAC) have based on current conditions within
the project. The formula is VAC = BAC –
EAC.

Project Quality Management Terms
your answer.
These diagrams, such as the project network

Activity network diagram
diagram, show the flow of the project work.
This diagram breaks down ideas, solutions,

causes, and project components and groups
Affinity diagram
them together with other similar ideas and
components.
Comparing any two similar entities to measure

Benchmarking
their performance.
Diagrams that show the relationship between

variables within a process and how those
relationships may contribute to inadequate
Cause-and-effect diagrams
quality. The diagrams can help organize both the
process and team opinions, as well as generate
discussion on finding a solution to ensure quality.
A simple approach to ensure that work is

Checklist
completed according to the quality policy.
A quality control chart that maps the

Control chart
performance of project work over time.
An inspection-driven process that measures work

Control quality results to confirm that the project is meeting the
relevant quality standards.
This is the cost associated with the monies spent

Cost of conformance to attain the expected level of quality. It is also
known as the cost of quality.
The cost associated with not satisfying quality

Cost of nonconformance to quality expectations. This is also known as the cost of
poor quality.
A process to study the trade-offs between costs

Cost-benefit analysis
and the benefits realized from those costs.

An approach that relies on statistical scenarios to
Design of experiments determine what variables within a project will
result in the best outcome.
Assurance provided to the external customers of

External QA
the project.
A diagram illustrating how components within a

system are related. Flowcharts show the relation
Flowchart between components, as well as help the project
team determine where quality issues may be
present and, once done, plan accordingly.
Assurance provided to management and the

Internal QA
project team.
The abbreviation for the International

Organization for Standardization. ISO is Greek for
“equal,” while “International Organization for
ISO
Standardization” in a different language would
be abbreviated differently. The organization
elected to use “ISO” for all languages.
A data analysis table that shows the strength

Matrix diagram between variables and relationships in the
matrix.
A histogram that illustrates and ranks categories

Pareto diagram
of failure within a project.
According to ASQ, the degree to which a set of

Quality
inherent characteristics fulfills requirements.
A management process that defines the quality

system or quality policy that a project must
Quality assurance adhere to. QA aims to plan quality into the
project rather than to inspect quality into a
deliverable.
This plan defines how the project team will

Quality management plan implement and fulfill the quality policy of the
The operational definitions that specify the

Quality metrics measurements within a project and the expected
targets for quality and performance.

The process of first determining which quality
standards are relevant to your project and then
Quality planning
finding out the best methods of adhering to
those quality standards.
A component of a control chart that illustrates

the results of seven measurements on one side
Rule of Seven
of the mean, which is considered “out of control”
in the project.
A quality control tool that shows the results of

inspection in the order in which they’ve
occurred. The goal of a run chart is first to
Run chart
demonstrate the results of a process over time
and then to use trend analysis to predict when
certain trends may reemerge.
A quality control tool that tracks the relationship

between two variables over time. The two
Scatter diagram
variables are considered related the closer they
track against a diagonal line.
These seven tools are used in quality planning

and in quality control: cause-and-effect diagrams,
Seven basic quality tools
flowcharts, check sheets, Pareto diagrams,
histograms, control charts, and scatter diagrams.
A process of choosing a percentage of results at

random. For example, a project creating a
Statistical sampling
medical device may have 20 percent of all units
randomly selected to check for quality.
Flowcharts that illustrate the flow of a process

through a system, such as a project change
System or process flowcharts request through the change control system, or
work authorization through a quality control
process.
Tree diagrams show the hierarchies and

decomposition of a solution, an organization, or a
Tree diagram
project team. The WBS and an org chart are
examples of tree diagrams.
The science of using past results to predict future

Trend analysis
performance.

The results of the project work as needed. This
includes technical performance measures,
Work performance information project status, information on what the project
has created to date, corrective actions, and
performance reports.

Project Resources Management Terms
your answer.
Once the project is done, either the team moves

onto other assignments as a unit, or the project
Adjourning
team is disbanded and individual team members
go on to other work.
Project management team members may have

authority over other project team members, may
Authority power have the ability to make decisions, and perhaps
even sign approvals for project work and
purchases.
The project manager has the authority to

Coercive power discipline the project team members. This is also
known as penalty power.
This approach confronts the problem head-on

and is the preferred method of conflict
Collaborate/Problem solving
resolution. Multiple viewpoints and perspectives
contribute to the solution.
Contracts and agreements with unions or other

Collective bargaining agreement constraints employee groups may serve as constraints on the
project.
This attribute defines what talents, skills, and

Competency capabilities are needed to complete the project
work.
This approach requires that both parties give up

Compromising
something.
This theory states that people will behave based

on what they expect as a result of their behavior.
Vroom’s Expectancy Theory
In other words, people will work in relation to
the expected reward.
The project manager’s authority comes both

Expert power
from experience with the technology the project

focuses on and from expertise in managing
projects.
Forcing power The person with the power makes the decision.
The project manager has been assigned the role

Formal power of project manager by senior management and is
in charge of the project.
The project team meets and learns about their

roles and responsibilities on the project. Little
Forming interaction among the project team happens in
this stage as the team is learning about the
project and project manager.
Frederick Herzberg’s theory of the motivating

Herzberg’s Theory of Motivation agents and hygiene agents that affect a person’s
willingness to excel in his career.
A chart showing the relationship between

Hierarchical organizational chart superior and subordinate employees, groups,
disciplines, and even departments.
A logbook of the issues the project team has

identified and dates as to when the issues must
be resolved by. The issue log may also include
Issue log
team members or stakeholders who are
responsible for finding a solution to the identified
issues.
Abraham Maslow’s theory of the five needs all

Maslow’s Hierarchy of Needs
humans have and work toward.
David McClelland developed this theory, which

states our needs are acquired and developed by
McClelland’s Theory of Needs our experiences over time. All people are,
according to this theory, driven by one of three
needs: achievement, affiliation, or power.
Douglas McGregor’s theory that states

management views workers in the Y category as
McGregor’s Theory of X and Y competent and self-led and workers in the X
category as incompetent and needing to be
micromanaged.
A method to rate potential project team

Multicriteria Decision Analysis members based on criteria such as education,
experience, skills, knowledge, and more.

Project team members go about getting the
Norming project work, begin to rely on one another, and
generally complete their project assignments.
Traditional chart that depicts how the

organization is broken down by department and
Organization chart disciplines. This chart is sometimes called the
organizational breakdown structure (OBS) and is
arranged by departments, units, or teams.
William Ouchi’s theory is based on the

participative management style of the Japanese.
Ouchi’s Theory Z This theory states that workers are motivated by
a sense of commitment, opportunity, and
advancement.
If a project team can reach the performing stage

of team development, they trust one another,
Performing
work well together, and issues and problems get
resolved quickly and effectively.
The hidden goals, personal agendas, and

Political interfaces alliances among the project team members and
the stakeholders.
A RACI chart is a matrix chart that only uses the

RACI chart activities of responsible, accountable, consult,
and inform.
The project team personally knows the project

manager. Referent can also mean that the
Referent power
project manager refers to the person who
assigned him the position.
This hierarchical chart can decompose the

Resource breakdown structure (RBS) project by the type of resources used throughout
it.
A RAM chart shows the correlation between

Responsibility assignment matrix (RAM) project team members and the work they’ve
been assigned to complete.
Responsibility A responsibility is the work that a role performs.
This plan defines staff acquisition, the timetable

for staff acquisition, the staff release plan,
Resource management plan
training needs for the project team, any
organizational compliance issues, rewards and

recognitions, and safety concerns for the project
team doing the project work.
The project manager has the authority to reward

Reward
the project team.
This denotes what a person is specifically

responsible for in a project. Roles are usually tied
Role
to job titles, such as network engineer,
mechanical engineer, and electrician.
This approach smooths out the conflict by

minimizing the perceived size of the problem. It
Smoothing
is a temporary solution, but can calm team
relations and boisterous discussions.
The project team struggles for project positions,

leadership, and project direction. The project
team can become hostile toward the project
leader, challenge ideas, and try to establish and
Storming claim positions about the project work. The
amount of debate and fury can vary depending
on if the project team is willing to work together,
the nature of the project, and the control of the
project manager.
The project team identifies the disciplines and

specialties that the project will require to
Technical interfaces complete the project scope statement. The
technical interfaces are the resources that will be
doing the project work.
This conflict resolution method sees one side of

Withdrawal the argument walking away from the problem,
usually in disgust.

Project Communications Management Terms
your answer.
The receiver signals that the message has been

received. An acknowledgment shows receipt of
Acknowledgment
the message, but not necessarily agreement with
the message.
The receiver confirms that the message is being

Active listening received through feedback, questions, prompts
for clarity, and other signs of confirmation.
The best modality to use when communicating

Choice of media that is relevant to the information being
communicated.
Anything that the project management team

believes to be true but hasn’t proven to be true.
For example, the project management team may
Communication assumptions
assume that all of the project team can be
reached via cell phone, but parts of the world, as
of this writing, don’t have a cell signal.
Anything that prohibits communication from

Communication barrier
occurring.
N(N – 1)/2, where N represents the number of

identified stakeholders. This formula reveals the
Communication channels formula
total number of communication channels within
a project.
Anything that limits the project management

team’s options. When it comes to
communication constraints, geographical locales,
Communication constraints
incompatible communications software, and
even limited communications technology can
constrain the project team.

A project management subsidiary plan that
defines the stakeholders who need specific
information, the person who will supply the
Communications management plan
information, the schedule for the information to
be supplied, and the approved modality to
provide the information.
The device that decodes a message as it is being

Decoder
received.
The receiver is involved in the listening

experience by paying attention to visual cues
Effective listening
from the speaker and paralingual characteristics,
and by asking relevant questions.
Encoder The device that encodes the message being sent.
The sender confirms that the receiver

understands the message by directly asking for a
Feedback
response, questions for clarification, or other
confirmation.
Stakeholders are mapped on a grid based on

Influence/impact grid their influence over the project in relation to
their influence over the project execution.
A software package that allows the project

management team to present the project’s
Information presentation tools
health through graphics, spreadsheets, and text.
(Think of Microsoft Project.)
A system to quickly and effectively store, archive,

Information retrieval system
and access project information.
This is the most common and most effective

approach to communication. It’s where two or
Interactive communication more people exchange information. Consider
status meetings, ad-hoc meetings, phone calls,
and videoconferences.
This is documentation of what did and did not

work in the project implementation. Lessons
learned documentation is created throughout
the project by the entire project team. When
Lessons learned
lessons learned sessions are completed, they’re
available to be used and applied by the entire
organization. They are now part of the
organizational process assets.

The device or technology that transports a
Medium
message.
Anything that interferes with or disrupts a

Noise
message.
Facial expressions, hand gestures, and body

language are nonverbal cues that contribute to a
Nonverbal
message. Approximately 55 percent of
communication is nonverbal.
The pitch, tone, and inflections in the sender’s

Paralingual
voice affecting the message being sent.
A report that depicts how well a project is

performing. Often, the performance report is
Performance report
based on earned value management and may
include cost or schedule variance reports.
Presentations are useful in providing information

Project presentations to customers, management, the project team,
and other stakeholders.
All the business of the project communications is

Project records also part of the organizational process assets.
This includes e-mails, memos, letters, and faxes.
Reports are formal communications on project

Project reports
activities, their status, and conditions.
This approach pulls the information from a

central repository, like a database of information.
Pull communications are good for large groups of
Pull communication stakeholders who want to access project
information at their discretion. Consider a project
web site where stakeholders can periodically
drop by for a quick update on the project status.
This approach pushes the information from the

sender to the receiver without any real
acknowledgment that the information was really
received or understood. Consider letters, faxes,
Push communication
voicemail messages, e-mails, and other
communications modalities that the sender
packages and sends to receivers through some
intermediary network.
Receiver The person who receives the message.

Sender The person who is sending the message.
Sender–receiver models Feedback loops and barriers to communications.
Notices to the stakeholders about resolved

Stakeholder notifications issues, approved changes, and the overall health
of the project.
A regularly scheduled meeting to discuss the

Status review meeting status of the project and its progress toward
completing the project scope statement.
A system to record the actual time to complete

Time reporting system
project activities.

Project Risk Management Terms
your answer.
A risk response appropriate for both positive and
Acceptance negative risks, but often used for smaller risks
within a project.
Risks that have an uncertain, unclear nature, such
as new laws or regulations, the marketplace
Ambiguity risks
conditions, and other risks that are nearly
impossible to predict.
Avoidance A risk response to avoid the risk.
The most common approach to risk
identification; usually completed by a project
Brainstorming
team with subject matter experts to identify the
risks within the project.
These risks may have negative or positive
outcomes. Examples include using a less
experienced worker to complete a task, allowing
Business risks
phases or activities to overlap, or forgoing the
expense of formal training for on-the-job
education.
A ranking approach to identify the probability
Cardinal scales and impact by using a numerical value, from .01
(very low) to 1.0 (certain).
A quick and cost-effective risk identification
Checklists
approach.
The consideration of the risk ranking scores that
takes into account any bias, the accuracy of the
Data precision
data submitted, and the reliability of the nature
of the data submitted.
A method to determine which of two or more
decisions is the best one. The model examines
Decision tree the costs and benefits of each decision’s outcome
and weighs the probability of success for each of
the decisions.

An anonymous method of querying experts about
foreseeable risks within a project, phase, or
component of a project. The results of the survey
are analyzed by a third party, organized, and then
circulated to the experts. There can be several
Delphi Technique
rounds of anonymous discussion with the Delphi
Technique, without fear of backlash or offending
other participants in the process. The goal is to
gain consensus on project risks within the
project.
A risk response that attempts to enhance the
Enhancing conditions to ensure that a positive risk event will
likely happen.
A risk response that is appropriate for both
positive and negative risk events that may
Escalating
outside of the project manager’s authority to act
upon.
The monetary value of a risk exposure based on
the risk’s probability and impact in the risk
Expected monetary value (EMV) matrix. This approach is typically used in
quantitative risk analysis because it quantifies the
risk exposure.
A risk response that takes advantage of the
Exploit
positive risks within a project.
These risks are outside of the project, but directly
affect it—for example, legal issues, labor issues, a
shift in project priorities, or weather. “Force
External risks majeure” risks call for disaster recovery rather
than project management. These are risks caused
by earthquakes, tornadoes, floods, civil unrest,
and other disasters.
System or process flowcharts show the
relationship between components and how the
Flowcharts
overall process works. These are useful for
identifying risks between system components.
An influence diagram charts out a decision
problem. It identifies all of the elements,
Influence diagrams
variables, decisions, and objectives and also how
each factor may influence another.
These cause-and-effect diagrams are also called
fishbone diagrams and are used to find the root
Ishikawa diagrams
cause of factors that are causing risks within the
project.
Low-priority risks are identified and assigned to a
Low-priority risk watch list
watch list for periodic monitoring.
A risk response effort to reduce the probability
Mitigation
and/or impact of an identified risk in the project.

A simulation technique that got its name from
the casinos of Monte Carlo, Monaco. The
simulation is completed using a computer
Monte Carlo technique
software program that can simulate a project,
using values for all possible variables, to predict
the most likely model.
A ranking approach that identifies and ranks the
Ordinal scales risks from very high to very unlikely or to some
other value.
The performing organization can contribute to
the project’s risks through unreasonable cost,
time, and scope expectations; poor project
Organizational risks
prioritization; inadequate funding or the
disruption of funding; and competition with other
projects for internal resources.
A prompt list used for risk identification. PESTLE
examines risks in the Political, Economic, Social,
PESTLE
Technological, Legal, and Environmental
domains.
A matrix that ranks the probability of a risk event
occurring and its impact on the project if the
Probability and impact matrix
event does happen; used in qualitative and
quantitative risk analyses.
These risks deal with faults in the management of
the project: the unsuccessful allocation of time,
Project management risks
resources, and scheduling; unacceptable work
results; and poor project management.
These risks have only a negative outcome.
Pure risks Examples include loss of life or limb, fire, theft,
natural disasters, and the like.
This approach “qualifies” the risks that have been
identified in the project. Specifically, qualitative
Qualitative risk analysis risk analysis examines and prioritizes risks based
on their probability of occurring and their impact
on the project should they occur.
This approach attempts to numerically assess the
probability and impact of the identified risks. It
also creates an overall risk score for the project.
Quantitative risk analysis
This method is more in-depth than qualitative
risk analysis and relies on several different tools
to accomplish its goal.
An ordinal scale that uses red, amber, and green
RAG rating (RAG) to capture the probability, impact, and risk
score.
Risks that are expected to remain after a risk
Residual risks
response.

A project risk is an uncertain event or condition
Risk that can have a positive or negative impact on
the project.
The systematic process of combing through the
project, the project plan, the work breakdown
Risk identification structure, and all supporting documentation to
identify as many risks that may affect the project
as possible.
A project management subsidiary plan that
defines how risks will be identified, analyzed,
responded to, and monitored within the project.
Risk management plan
The plan also defines the iterative risk
management process that the project is expected
to adhere to.
The agreed-upon approach to the management
Risk management planning
of the project risk processes.
The individuals or entities that are responsible for
Risk owners monitoring and responding to an identified risk
within the project.
The risk register is a project plan component that
contains all of the information related to the risk
management activities. It’s updated as risk
Risk register
management activities are conducted to reflect
the status, progress, and nature of the project
risks.
The risk report explains the overall project risks
Risk report and provides summaries about the individual
project risks.
An audit to test the validity of the established risk
Risk response audit
responses.
The level of ownership an individual or entity has
Risk responsibilities
over a project risk.
The calculated score based on each risk’s
probability and impact. The approach can be
Risk score
used in both qualitative and quantitative risk
analysis.
Root cause identification aims to find out why a
risk event may be occurring, the causal factors for
Root cause identification
the risk events, and then, eventually, how the
events can be mitigated or eliminated.
New risks that are created as a result of a risk
Secondary risks
response.
A quantitative risk analysis tool that examines
Sensitivity analysis each risk to determine which one has the largest
impact on the project’s success.
A risk response that shares the advantages of a
Sharing
positive risk within a project.

SWOT analysis is the process of examining the
project from the perspective of each
SWOT analysis
characteristic: strengths, weaknesses,
opportunities, and threats.
A prompt list used in risk identification to
examine the Technical, Environmental,
TECOP
Commercial, Operational, and Political factors of
the project.
Technical risks are associated with new,
unproven, or complex technologies being used on
the project. Changes to the technology during the
Technical, quality, or performance risks
project implementation can also be a risk. Quality
risks are the levels set for expectations of
impractical quality and performance.
A risk response that transfers the ownership of
the risk to another party. Insurance, licensed
contractors, or other project teams are good
Transference
examples of transference. A fee and contractual
relationships are typically involved with the
transference of a risk.
A type of risk based on the variations that may
Variability risks occur in the project, such as production, number
of quality errors, or even the weather.
A prompt list used in risk identification that
VUCA examines the Volatility, Uncertainty, Complexity,
and Ambiguity of risk factors within the project.

Project Procurement Management Terms
your answer.
When there is an issue or claim that must

be settled before the contract can be
Alternative dispute resolution closed, the parties involved in the issue
or claim will try to reach a settlement
through mediation or arbitration.
From seller to buyer. Price is the

Bid determining factor in the decision-making
process.
A meeting of all the project’s potential

vendors to clarify the contract statement
Bidder conference
of work and the details of the contracted
work.
These are disagreements between the

buyer and the seller, usually centering on
a change, who did the change, and even
whether a change has occurred. Claims
Claims
are also called disputes and appeals, and
are monitored and controlled through the
project in accordance with the contract
terms.
A contract is a formal agreement

between the buyer and the seller.
Contract
Contracts can be oral or written—though
written is preferred.

This defines the procedures for how the
contract may be changed. The process
for changing the contract includes the
forms; documented communications;
tracking; conditions within the project,
Contract change control system
business, or marketplace that justify the
needed change; dispute resolution
procedures; and the procedures for
getting the changes approved within the
This document requires that the seller

fully describe the work to be completed
Contract statement of work (SOW also
and/or the product to be supplied. The
CSOW)
SOW becomes part of the contract
between the buyer and the seller.
A contract that pays the vendor all costs

for the project, but also includes a buyer-
Cost plus award fee contract
determined award fee for the project
work.
A contract that requires the buyer to pay

for the cost of the goods and services
Cost plus fixed fee contract procured plus a fixed fee for the
contracted work. The buyer assumes the
risk of a cost overrun.
A contract type that requires the buyer to

pay a cost for the procured work, plus an
Cost plus incentive fee
incentive fee, or a bonus, for the work if
terms and conditions are met.
A contract that requires the buyer to pay

for the costs of the goods and services
Cost plus percentage of costs procured plus a percentage of the costs.
The buyer assumes all of the risks for
cost overruns.
These are costs incurred by the project in

order for the project to exist. Examples
include the equipment needed to
Direct costs
complete the project work, salaries of the
project team, and other expenses tied
directly to the project’s existence.

Also known as firm fixed-price and lump-
sum contracts, these are agreements that
Fixed-price contracts
define a total price for the product the
seller is to provide.
A fixed-price contract with opportunities

for bonuses for meeting goals on costs,
Fixed-price incentive fee schedule, and other objectives. These
contracts usually have a price ceiling for
costs and associated bonuses.
A fixed-price contract with a special

Fixed-price with economic price allowance for price increases based on
adjustments economic reasons such as inflation or the
cost of raw materials.
An “act of God” that may have a negative

impact on the project. Examples include
Force majeure
fire, hurricanes, tornadoes, and
earthquakes.
These estimates are often referred to as

“should cost” estimates. They are created
Independent estimates by the performing organization or outside
experts to predict what the cost of the
procured product should be.
These are costs attributed to the cost of

doing business. Examples include
Indirect costs
utilities, office space, and other overhead
costs.
From buyer to seller. Requests the seller

Invitation for Bid (IFB) to provide a price for the procured
product or service.
A letter contract allows the vendor to

Letter contract begin working on the project immediately.
It is often used as a stopgap solution.
A letter of intent is not a contract, but a

letter stating that the buyer is intending to
Letter of intent
create a contractual relationship with the
seller.

A process in which the project
management team determines the cost-
Make-or-buy decision effectiveness, benefits, and feasibility of
making a product or buying it from a
vendor.
The contractual relationship between the

Privity buyer and the seller is often considered
confidential and secret.
A project management subsidiary plan

Procurement management plan that documents the decisions made in the
procurement planning processes.
A process to identify which parts of the

Procurement planning project warrant procurement from a
vendor by the buyer.
A document the seller provides to the

buyer. The proposal includes more than
just a fee for the proposed work. It also
Proposal includes information on the vendor’s
skills, the vendor’s reputation, and ideas
on how the vendor can complete the
contracted work for the buyer.
A purchase order is a form of unilateral

contract that the buyer provides to the
Purchase order (PO) vendor showing that the purchase has
been approved by the buyer’s
organization.
From seller to buyer. Price is the

Quotation determining factor in the decision-making
process.

to provide a proposal to complete the
Request for Proposal (RFP)
procured work or to provide the procured
product.

Request for Quote (RFQ) to provide a price for the procured
product or service.

When the project management team
decides to use transference to respond to
Risk-related contractual agreements a risk, a risk-related contractual
agreement is created between the buyer
and the seller.
A tool that filters or screens out vendors

Screening system
that don’t qualify for the contract.
These are used by organizations to rate

prior experience with each vendor that
they have worked with in the past. The
Seller rating systems
seller rating system can track
performance, quality ratings, delivery,
and even contract compliance.
Defines the obligations for the seller,

what the seller will provide, and all of the
Terms of Reference particulars of the contracted work. Terms
of reference is similar to the statement of
work.
A contract type in which the buyer pays

for the time and materials for the
procured work. This is a simple contract,
Time and materials contract usually for smaller procurement
conditions. These contract types require
a not-to-exceed clause, or the buyer
assumes the risk for cost overruns.
This takes out the personal preferences

of the decision maker in the organization
to ensure that the best seller is awarded
Weighting system
the contract. Weights are assigned to the
values of the proposals, and each
proposal is scored.

Project Stakeholder Management Terms
your answer.
This type of communication means that

information is happening among stakeholders,
like in a forum. Examples of interactive
communications are meetings, videoconferences,
Interactive communications
phone calls, and ad-hoc conversations.
Interactive communications means that the
participants are actively communicating with one
another.
A data gathering technique that’s similar to

brainstorming, but provides brainstorming
Brain writing meeting participants with the questions and
topics for brainstorming before the stakeholder
identification meeting.
Stakeholders—such as management, the project

manager, program manager, or customers—that
Key stakeholder
have the authority to make decisions in the
project.
Part of stakeholder analysis classification. A

leading stakeholder is aware of your project, they
Leading stakeholder status want your project to be successful, and the
stakeholder is working to make certain the
project is a success.
A stakeholder who does not want the project to

Negative stakeholder
exist and is opposed to the project.
A stakeholder who has neither a positive nor

Neutral stakeholder
negative attitude about the project’s existence.

Neutral stakeholder status neutral stakeholder is aware of your project and
is not concerned if the project succeeds or fails.
A stakeholder who sees the benefits of the

Positive stakeholder project and is in favor of the change the project is
to bring about.

This is an analysis meeting to examine and
document the roles in the project. The role’s
Profile analysis meeting
interests, concerns, influence, project
knowledge, and attitude are documented.
This type of communication pulls information

from a central repository. Pull communications
Pull communications
allow stakeholders to retrieve information from a
central source as needed.
This type of communication happens when the

sender pushes the same message to multiple
Push communications people. Good examples of push communications
are broadcast text messages, faxes, press
releases, and group e-mails.
A reporting system is a software program to

store and analyze project data for reporting. A
common reporting system will take project data,
Reporting system allow the project manager to pass the data
through earned value management, for example,
and then create forecasting reports about the
project costs and schedule.

resistant stakeholder is aware of your project,
Resistant stakeholder status
but they do not support the changes your project
will create.
Anyone who is affected by the existence of the

project or who can affect the project’s existence.
Stakeholder
Stakeholders can enter and exit the project as
conditions change within the project.
An activity that ranks stakeholders based on their

influence, interests, and expectations of the
Stakeholder analysis project. Stakeholders are identified and ranked,
and then their needs and expectations are
documented and addressed.
These are charts and diagrams that help the

project manager determine the influence of
stakeholders in relation to their interest in the
Stakeholder classification models project. Common classification models include
the power/interest grid, the power/influence
grid, the influence/impact grid, and the salience
model.

The project manager works to keep the project
stakeholders interested, involved, and supportive
of the project. Through communication,
Stakeholder engagement management skills, and interpersonal skills, the
project manager can work to keep the project
stakeholders engaged and interested in the
project.
A project initiation activity to identify, document,

Stakeholder identification and classify the project stakeholders as early as
possible in the project.
The project management knowledge area that

focuses on the management and engagement of
the project stakeholders. There are four
Stakeholder management processes in this knowledge area: identify
stakeholders, plan stakeholder management,
manage stakeholder engagement, and Monitor
Stakeholder Engagement.
The stakeholder engagement plan documents a

strategy for managing the engagement of project
stakeholders. The stakeholder engagement plan
Stakeholder engagement plan
establishes stakeholder engagement and defines
how the project manager can increase and
improve stakeholder engagement.
The project manager works with the project

Stakeholder engagement planning team and subject matter experts to create a
strategy to manage the project stakeholders.
A documentation of each stakeholder’s contact

information, position, concerns, interests, and
attitude toward the project. The project manager
Stakeholder register
updates the register as new stakeholders are
identified and when stakeholders leave the
project.
This is part of stakeholder analysis classification.

A supportive stakeholder is aware of your project
Supportive stakeholder status
and is supportive and hopeful that the project
will be successful.
Part of stakeholder analysis classification. An

unaware status means the stakeholder doesn’t
Unaware stakeholder status
know about the project and the effect the project
may create on the stakeholder.

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Project Management Fundamental Terms

Directions: Hide this side of the flashcards

The PMI publication that defines widely

The areas of expertise, industry, or

A quantifiable return on investment. The

A person who has slightly less project

Defines how a project affects people and

A product, service, or result created by a

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The consideration of the local and

The ability to interact, lead, motivate, and

A triangle with the characteristics of time,

The physical structure and surroundings

A collection of related processes in project

A collection of related projects working in

The process of gathering project details.

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A documented created and maintained by

Created and maintained by the project

The location and culture of the

An organization of project management

The phases that make up the project.

A central office that oversees all projects

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The management and selection of

A smaller project managed within a larger,

Also known as the Iron Triangle. This

Raw data, observations, and

Work performance information is the

Work performance reports is the formatted

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An organization where organizational

Cultural norms describe the culture and

Conditions that affect how the project

An organization that is divided into

Governance framework describes the

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Describe organizations that have

Describes a loosely organized business

Organizational process assets include

Organizational knowledge repositories

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A business unit that centralizes the

An organization that assigns a project

An organization where organizational

Uses a network structure to communicate

An organization where organizational

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The message receiver restates what’s

Active problem solving begins with

The project manager refuses to act, get

The leader is motivating, has high-

The project manager has deep skills and

The project manager aims to gain favor

The individual has power and control of

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The project manager can make the team

Leadership is about aligning, motivating,

The leader takes a “hands-off” approach

Management utilizes positional power to