Complete List of Terms and Definitions for PMP 14
| Terms | Definitions |
|---|---|
| Plan Communications | Communications Management/Planning |
| Collect Requirement | Scope Management/Planning |
| Distribute Information | Communications Management/Executing |
| Conduct Procurements | Procurement Management/Executing |
| Identify Risks | Risk Management/Planning |
| Compromising | Alternative where everybody compromises a little. |
| Perquisites or Perks | special benefit |
| Float | Float = LS/ES = LF/EF |
| Activity Duration | Time in calendar units. |
| Activity Sequencing (Inputs) |
Activity list Activity Attributes Milestone List |
| Select Sellers (Inputs) |
Organizational Process Assets Procurement Management Plan Evaluation Criteria Procurement Document Package Proposals Qualified Sellers List Project Management Plan |
| Share | Positive Risks or Opportunities Sharing a positive risk involves allocating ownership to a third party who is best able to capture the opportunity for the benefit of the project. Examples of sharing actions include forming risk-sharing partnerships, teams, special-purpose companies, or joint ventures. |
| Working Capital | Current assets minus liabilities. |
| Information Distribution (Input) | Communications Management Plan |
| Procurements Management (Inputs) |
Enterprise Environmental Factors Organizational Process Assets Project Scope Statement Work Breakdown Structure WBS Dictionary Project Management Plan |
| Activity Attributes | information associated with an activity such as Predecessor, Successor, resources assigned etc. |
| Functional managers | Provides functional resources for functional expertise in the project. |
| Perform Quality Control | Quality Management/Monitoring & Controlling |
| Enterprise Environmental Factors | Enterprise Environmental Factors include the conditions of the marketplace and what products, services, and results are available in the marketplace, from whom and under what terms and conditions. |
| Create WBS (Outputs) |
Project Scope Statement (updates) Work Breakdown Structure (WBS) WBS Dictionary Scope Baseline Project Scope Management Plan (updates) Requested Changes |
| Exploit | Positive Risks or Opportunities This strategy may be selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized. This strategy seeks to eliminate the uncertainty associated with a particular upside risk by making the opportunity definitely happen. Directly exploiting responses include assigning more talented resources to the project to reduce the time to completion |
| Project Manager | The individual responsible for managing a project. |
| Scope Definition (Inputs) |
Organizational Process Assets Project Charter Preliminary Project Scope Statement Project Scope Management Plan Approved Change Requests |
| Procurement Management (Inputs) |
Procurement Management Plan Contract Statement of Work Make-or-Buy Decisions Requested Changes |
| Develop Project Team (Outputs) | Team Performance Assessment |
| Activity Resource Estimating (Inputs) |
Enterprise Environmental Factors Organizational Process Assets Activity List Activity Attributes Resource Availability Project Management Plan |
| Operation | Work that is ongoing and repetitive. |
| Scope Creep | Adding Scope without approval and without analyzing effect on constraints |
| Three Point Estimate | (Activity Duration Estimate) PERT (Program Evaluation and Review Technique)E = (O+4M+P)/6 |
| Withdrawing/Avoiding | Retracting from an actual or potential conflict situation. |
| Process Analysis | Quality Assurance tool for process improvement. Recurring Process is checked after certain time for improvements. |
| Herzberg’s Theory | Poor Hygiene factors may destroy motivation, but improving them will not improve motivation. Motivational factors are work related e.g. Responsibility, Self-actualization, professional growth, work recognition. |
| Risk Reassessment | Risk Monitoring and Control often requires identification of new risks and reassessment of risks, using the processes of this chapter as appropriate. |
| Quality Policy | The overall quality intentions and direction of an organization as regards quality, as formally expressed by top management. |
| Critical Activity | An activity on a critical path. |
| Baseline | The original plan plus or minus approved changes. |
| Close Project | The Close Project process involves performing the project closure portion of the project management plan. Two procedures are developed to establish the interactions necessary to perform the closure activities across the entire project or for a project phase |
| Configuration Management System | A formal configuration management system provides procedures for the status of the deliverables, and assures that requested changes to the project scope and product scope are thoroughly considered and documented before being processed through the Integrated Change Control process. |
| Cost Budgeting | Allocating the cost estimates to individual project components. |
| Value Analysis | A cost-reduction tool that involves careful analysis of a design or item to identify all the functions and the cost of each. It considers whether the function is necessary and whether it can be provided at a lower cost without degrading performance or quality. • BCWS: Baseline, Scheduled or Planned Costs • BCWP: Amount budgeted for the work performed • ACWP: Actual Cost of Work Performed • BAC: Total Budgeted Costs • EAC: Estimated at Completion • VAC: Variance at Completion. VAC = BAC – EAC • CPI = BCWP / ACWP (measures efficiency) |
| Conditional Diagramming Methods | Diagramming techniques such as Graphical Evaluation & Review Technique ( GERT) and System Dynamics models allow for non-sequential activities such as loops or conditional branches. Neither PDM nor ADM allows loops or conditional branches. |
| Channels of communication |
1.Upward communication (vertically or diagonally): For higher management 2.Downward communication (vertically or diagonally): For higher management 3.Lateral communication (horizontally): For peers |
| Human resource Management Processes |
Human Resource Planning Acquire Project Team Develop Project Team Manage Project Team |
| Performance Reporting (Tools & Techniques) |
Information Presentation Tools Performance Information Gathering & Compilation Status Review Meetings Cost Reporting Systems |
| Communications Channels | The total number of communication channels is n(n-1)/2, where n = number of stakeholders. Thus, a project with 10 stakeholders has 45 potential communication channels. |
| Procurement Management Plan | The procurement management plan describes how the procurement processes will be managed from developing procurement documentation through contract closure. |
| Select Sellers (Tools & Techniques) |
Weighting System Independent Estimates Screening System Contract Negotiation Seller Rating Systems Expert Judgement Proposal Evaluation Techniques |
| Report Performance (Knowledge Area/Process Group) | Project Communications Mgmt –Monitoring & Controlling |
| Conduct Procurements (Knowledge Area/Process Group) | Project Procurement Mgmt –Execution |
| Buyer | The acquirer of products, services, or results for an organization. |
| Lessons Learned | Lessons learned are communicated to provide project team members and key stakeholders with relevant information for the duration of the project, as well as similar future projects. The lessons learned can reduce risks by enlightening the tam members of possible pitfalls. It can also provide information on the project’s successes, which may be adapted for similar upcoming projects. |
| Administer Procurements | This process occurs during the monitoring and controlling process group. The purpose of the Administer procurements process is to ensure that both buyer and seller meet their contractual obligations. This entails reviewing and documenting a seller’s performance to establish required corrective actions, and provides a basic for future relationships with the seller. |
| Force majeure | a powerful and unexpected event, such as a hurricane or other disaster |
| Project Plan Development Includes |
The project management processes selected by the project management team The level of implementation of each selected process The descriptions of the tools and techniques to be used for accomplishing those processes How the selected processes will be used to manage the specific project. How work will be executed to accomplish the project obj. How changes will be monitored and controlled How configuration management will be performed The need and techniques for communication among stakeholders |
| Network Templates | Standardized networks can be used to expedite the preparation of Project Network Diagram. This can include an entire project or only a portion of it. Portion or a network are often refrred to as subnet or fragments. |
| Reserve Analysis (Contingency) | Project teams may choose to incorporate an additional time frame, called time reserve, contingency or buffer, that can be added to the activity duration or elsewhere in the schedule as recognition of schedule risk. |
| Administer Procurements (Knowledge Area/Process Group) | Project Procurement Mgmt –Monitoring & Controlling |
| Schedule Variance (SV) | Any difference between the scheduled completion of an activity and the actual completion of that activity. In earned value, BCWP - BCWS. |
| Program | A group of related projects managed in a coordinated way. Programs usually include an element of ongoing activity. |
| Project Risk Management | The systematic process of identifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events to project objectives. |
| Management Reserve | A separately planned quantity used to allow for future situations which are impossible to predict. ("unknown unknowns") Management reserves are intended to reduce the risk of missing cost or schedule objectives. Use of management reserves requires a change to the project's cost baseline. |
| Integrated Change Control – (Outputs) |
Approved Change Requests Rejected change Requests Project Management Plan (updates) Project Scope Statement (updates) Approved Corrective Actions Approved Preventive Actions Approved Defect Repair Validated Defect Repair Deliverables |
| Contingency Planning | The development of a management plan that identifies alternative strategies to be used to ensure project success if specified risk events occur. |
| Contract Administration | The process of managing the contract and the relationship between the buyer and seller, reviewing and documenting how a seller is performing or has performed to establish required corrective actions and provide a basis for future relationships with the seller, managing contract related changes and, when appropriate, managing the contractual relationship with the outside buyer of the project. |
| Coercive power | Coercive power is based on fear. Behavior is influenced by the use of threats and punishment. |
| EV | EV – Earned Value refers to the value of completed work based on the approved budget assigned to that work for a sched. Activity or work breakdown structure system. |
| Parametric estimating | Is a technique that uses statistical relationship that exists between historical data and variables to estimate the costs by using a mathematical model. |
| Staff Acquisition Methods | The methods of staff acquisition include negotiation, pre-assignment, and procurement. |
| Organizational Structure/Projectized | In this case, everybody is assigned to a project. After completion of project, resources will be assigned to another project. |
| detailed project scope statement includes | Project Objectives Product scope description Project requirements Project Boundaries Project Deliverables Product Acceptance Criteria Project constraints & assump. Initial project organization Initial defined risks Schedule milestones Fund limitation & cost est. Project config. Mgmt. req. Project specifications Approval requirements |
| Direct & Manage Project Execution (Inputs) |
Project Plan Approved Corrective Actions Approved Preventive Actions Approved Change Requests Approved Defect Repair Validated Defect Repair Administrative Closure Procedure |
| Risk Data Quality Assessment | A qualitative risk analysis requires accurate and unbiased data if it is to be credible. Analysis of the quality of risk data is a technique to evaluate the degree to which the data about risks is useful for risk management. It involves examining the degree to which the risk is understood and the accuracy, quality, reliability, and integrity of the data about the risk. |
| Risk Management Planning (Tools & Techniques) | Planning Meetings and Analysis |
| Procurements Management (Tools & Techniques) |
Make or Buy Analysis Expert Judgement Contract Types |
| Organizational Process Assets (for procurement management) | Organizational Process Assets provide the existing formal and informal procurement-related policies, procedures, guidelines, and management systems that are considered in developing the procurement management plan and selecting the contract types to be used. |
| Risk Monitoring & Controlling (Tools & Techniques) |
Risk Reassessment Risk Audits Variance & Trend Analysis Technical Performance Measurement Reserve Analysis Status Meetings |
| Deflection | The act of transferring all or part of a risk to another party, usually by some form of contract. |
| Cost baseline | Time phased budget that will be used to measure and monitor the cost performance of the project. |
| War room | is a technique for team building. As part of this the project team meets in one room. It helps to create a project identity. |
| Run Chart | A run chart shows the history and pattern of variation. A run chart is a line graph that shows data points plotted in the order in which they occur. Run charts show trends in a process over time, variation over time, or declines or improvements in a process over time. |
| Resource Leveling | Any form of network analysis in which start and finish dates are driven by resource management concerns.Resource leveling refers to keeping the resources same across the duration of the project. |
| Indirect costs | costs attributed to the cost of doing business. Examples include utilities, office space, and other overhead costs. |
| Project Management Plan | This plan establishes how the project work will be executed, monitored and controlled, and closed. Includes a collection of other project plans. Scope Mgmt Plan Process improvement plan Requirements mgmt plan Human resource plan Schedule mgmt plan Communications mgmt plan Cost mgmt plan Risk mgmt plan Quality mgmt plan Procurement mgmt plan |
| Expert power | Expert power is based on a person’s technical knowledge, skill, and credibility. |
| Project Management Information System | Any software tools used in project management process. |
| Insurable Risk | A particular type of risk which can be covered by an insurance policy. Also referred to as a pure risk. |
| Project Manager's Power | Referent - project team knows the PM Formal Power - Power due to Project Managers position Technical Power - Project Manager has strong technical skills in the projects domain. Coercive Power - The project team is afraid of the power the Project Manager holds. |
| Risk Register - includes |
Relative rating or priority list of project risks A list of risks requiring response in the near term A list of risks for additional analysis and response Trends in qualitative risk analysis results Root causes of risks Risks grouped by categories |
| Perform Quality Control (Knowledge Area/Process Group) | Project Quality Mgmt –Monitoring & Controlling |
| Project Scope Management Plan (Updates) | If approved change requests result from the Create WBS process, then the project scope management plan may need to be updated to include approved changes. |
| Verify Scope (Knowledge Area/Process Group) | Project Scope Mgmt –Monitoring & Controlling |
| Project Scope Management - Processes | Scope Planning Scope Definition Create WBS Scope Verification Scope Control |
| Racism | A term that refers to the idea that a particular race is superior to other races. |
| Team Building - Storming | The team starts to work on individual tasks. The team is not collaborative yet. |
| Standard Contract and Special Provisions/Conditions | Standard Contract are created to be used with standard recurring type of procurement by organization. These can be used without separate legal approval. Special Provisions can be added based on Project requirement and needs legal approval before use. |
| Free Float (FF) | The amount of time an activity can be delayed without delaying the early start of any immediately succeeding activities. |
| Cost of Quality | Cost of quality can also be used to prepare the schedule activity cost estimate. |
| The project management plan can have one or more following components |
Milestone list Resource calendar Schedule baseline Cost baseline Quality baseline Risk register |
| Rough order of magnitude estimate | A rough order of magnitude (ROM) estimate has an accuracy range of between +/- 50% in the early stages of the project and +/- 10% when more information is known. Near the beginning of the project, the range (around 50%) narrows (10%) as more information becomes available. This is not the most accurate estimation techniques. |
| Enhance - Risk Strategy Positive Risks or Threats | Increase probability or impact of risk |
| Time and material contract | In this type of contract, the buyer is charged for the seller’s time plus the cost of the materials that were required to complete the task. As such, the buyer takes on the most risk of cost overruns. |
| Budgeted Cost of Work Scheduled (BCWS) | The sum of the approved cost estimates for activities scheduled to be performed during a given period. |
| TCPI based on EAC |
TCPI based on EAC = (BAC – EV) / (EAC – AC) BAC = 96,000 EV = 45,000 EAC = 125,000 AC = 54,000 = (96,000 – 45,000) / (125,000 – 54,000) = 51,000 / 71,000 = .72 |
| Responsibility to the Customers & Public 5 basic Responsibilities |
1.Be truthful at all times and in all situations 2.Maintain professional integrity (satisfy the scope of your professional services) 3.Respect the confidentiality of sensitive information 4.Refrain from gift or compensation giving/receiving where inappropriate 5.Ensure conflicts of interest do not interfere with client’s interest or interfere with professional judgement |
