PMP Dictionary

 

A

• Acceptance
  Criteria: Conditions that a project deliverable must meet to be
  accepted by stakeholders or the customer. These criteria are often defined
  in the project scope and quality management plans and serve as a basis for
  validating the project’s deliverables.
• Example:
  For a software development project, acceptance criteria might include
  functional features, compatibility, and performance standards that the
  software must meet before being handed over to the client.
• Activity:
  A specific task or group of tasks required to complete a project
  deliverable. Activities consume time and resources.
• Example:
  In a construction project, activities could include “installing
  electrical wiring” or “pouring the foundation.”
• Activity
  List: A comprehensive list of all activities required to complete the
  project. It’s used in project planning to ensure that nothing is missed.
• Example:
  In the project of building a website, activities would include
  “designing the homepage,” “coding the backend,” and
  “conducting usability testing.”
• Activity
  Duration: The total time required to complete a specific activity,
  usually measured in hours, days, or weeks.
• Example:
  The activity “writing code” might have a duration of 10 days.
• Agile:
  A methodology that emphasizes flexibility, collaboration, and iterative
  progress, especially in environments where project requirements evolve or
  are not fully known at the start.
• Example:
  Agile is often used in software development, where the product evolves
  through successive iterations (called sprints).
• Alternative
  Analysis: A decision-making technique used to evaluate various options
  for solving a project problem or challenge. It involves comparing the
  advantages and disadvantages of multiple alternatives.
• Example:
  Deciding whether to build a product in-house or outsource it to a vendor.
  The analysis considers cost, quality, and timeline.
• Assumption
  Log: A document that records assumptions made during project planning,
  including those about resources, risks, and external factors.
• Example:
  An assumption might be that a supplier will deliver materials on time or
  that project stakeholders will provide timely feedback.

B

• Baseline:
  A fixed reference point against which project performance is measured. It
  includes the scope baseline, schedule baseline, and cost baseline.
• Example:
  The schedule baseline includes the planned start and finish dates for all
  tasks, serving as a comparison point against the actual project
  performance.
• Benefits
  Management Plan: A plan outlining how the project will deliver value
  to stakeholders, measuring its success, and tracking benefits over time.
• Example:
  In a project aimed at increasing efficiency in manufacturing, the
  benefits management plan would track the reduction in production time or
  cost savings achieved after the project.
• Benchmarking:
  The process of comparing project performance or processes against the best
  practices or standards in the industry or within the organization.
• Example:
  A company may benchmark its project completion times against other
  companies in the same sector to identify areas for improvement.
• Brainstorming:
  A technique used in group settings to generate a variety of ideas,
  solutions, or approaches to a problem.
• Example:
  During risk identification, the team might brainstorm potential risks
  associated with a product launch, such as supply chain disruptions,
  regulatory issues, and market competition.

C

• Change
  Control: The process of managing and controlling changes to the
  project scope, schedule, and costs.
• Example:
  A client requests a change to the scope of a project by adding a new
  feature. Change control would ensure that the change is evaluated,
  documented, and its impact on time and cost is assessed before it is
  approved.
• Change
  Control Board (CCB): A group of stakeholders responsible for
  reviewing, evaluating, and approving or rejecting changes to the project’s
  baseline.
• Example:
  The CCB might consist of the project manager, senior managers, and key
  stakeholders who meet to evaluate any proposed changes.
• Change
  Request: A formal proposal to modify any aspect of the project,
  including scope, schedule, or resources.
• Example:
  If a client requests a scope change, they would submit a change request,
  which would be evaluated by the project manager and other relevant
  stakeholders.
• Communication
  Management Plan: A plan that outlines how project information will be
  communicated to stakeholders, ensuring timely, appropriate, and effective
  communication.
• Example:
  The plan might specify that weekly status reports will be sent to the
  project sponsor, and daily stand-up meetings will occur for the project
  team.
• Constrained
  Optimization Method: A mathematical method used to optimize project
  performance while meeting various constraints, such as time, resources, or
  budget.
• Example:
  It may be used in resource leveling to determine the best way to allocate
  resources across project tasks while minimizing the overall project
  duration.
• Contingency
  Plan: A predefined set of actions designed to address potential risks
  or unforeseen events that may impact the project.
• Example:
  In case of a supply chain disruption, a contingency plan might involve
  using an alternative supplier to avoid project delays.
• Cost
  Baseline: The approved version of the project budget, excluding
  management reserves. It serves as a benchmark for measuring project cost
  performance.
• Example:
  The project budget is $1 million, and the cost baseline would include
  detailed allocations for labor, materials, and equipment.
• Cost
  Management Plan: A plan that describes how costs will be managed,
  controlled, and tracked during the project.
• Example:
  It may outline how project expenses will be recorded, how cost variances
  will be handled, and what steps will be taken to keep the project within
  budget.

D

• Data
  Analysis: The process of evaluating project data to identify trends,
  patterns, and insights that inform decision-making.
• Example:
  Using data analysis to track progress and determine if a project is on
  schedule or if delays are occurring.
• Decision
  Tree Analysis: A graphical decision-making tool used to evaluate
  potential outcomes of different actions based on their likelihood and
  impact.
• Example:
  A decision tree may be used to decide whether to proceed with an
  expensive risk mitigation strategy or accept a certain risk.
• Deliverable:
  A specific, measurable output of the project, which can be a product,
  service, or result.
• Example:
  A deliverable could be a finished building, a completed software module,
  or a final report.
• Dependency:
  The relationship between project activities that determines the order in
  which they must be performed. Dependencies are usually categorized as
  finish-to-start, start-to-start, finish-to-finish, or start-to-finish.
• Example:
  A finish-to-start dependency exists when Task B cannot begin until Task A
  is completed.
• Develop
  Project Charter: The process of creating a formal document that
  authorizes the project, defines the project objectives, and assigns
  responsibility.
• Example:
  The project charter would include the project’s purpose, goals,
  high-level scope, and the project manager’s authority.
• Develop
  Project Management Plan: The process of developing a comprehensive
  plan to guide the execution, monitoring, and control of the project.
• Example:
  This includes integrating plans for scope, schedule, cost, quality, human
  resources, communications, and risk into a unified document.

E

• Earned
  Value Management (EVM): A technique for measuring project performance
  by comparing the planned progress (PV), actual progress (EV), and the cost
  incurred (AC). EVM helps assess cost and schedule performance.
• Example:
  If the project is 60% complete and has spent 50% of the budget, the
  project is on budget but might be behind schedule.
• Effort:
  The amount of labor required to complete a specific task, usually measured
  in person-hours or person-days.
• Example:
  Writing code for a software application might require 200 person-hours of
  effort.
• Estimate
  Activity Durations: The process of approximating the time required to
  complete each project activity.
• Example:
  Estimating the time required to complete a task like “testing the
  software” could result in an estimate of 5 days.
• Estimate
  Costs: The process of approximating the financial resources required
  to complete project activities.
• Example:
  Estimating the cost of materials, labor, and equipment needed to finish a
  construction project.

F

• Fast
  Tracking: A technique used to shorten the project schedule by
  performing tasks in parallel that would normally be done sequentially.
• Example:
  If a project has tasks that can be overlapped (such as starting
  construction before the design phase is entirely complete), fast tracking
  can reduce project duration.
• Forecasting:
  The process of predicting future project performance based on current
  progress and trends.
• Example:
  A project manager might forecast that the project will be delayed based
  on current progress and historical performance data.

G

• Governance:
  The systems, processes, and policies that guide the decision-making
  process within an organization or project.
• Example:
  An organization might have governance standards for project approval,
  reporting, and change management.

 

H

• Human
  Resource Management Plan: A document that outlines how human resources
  will be managed throughout the project. It includes team roles,
  responsibilities, and how the project team will be developed and
  evaluated.
• Example:
  The plan might specify how new team members will be onboarded, how
  performance will be assessed, and what skills development opportunities
  will be available.
• Human
  Resource Planning: The process of identifying and documenting project
  roles, responsibilities, and required skills to ensure that the necessary
  human resources are available for the project.
• Example:
  Determining the need for a project manager, designers, and developers for
  a software project and defining their respective roles.

I

• Integrated
  Change Control: A process used to evaluate and manage changes across
  the entire project to ensure that any change to the scope, schedule, or
  costs is reviewed, approved, and documented.
• Example:
  If a client requests a change in the project’s requirements, the change
  would be evaluated through integrated change control to assess its impact
  on the project’s scope, cost, and schedule.
• Issue
  Log: A document used to record and track issues that arise during the
  project. It helps the project team manage and resolve issues in a timely
  manner.
• Example:
  An issue log might include a delayed delivery from a supplier, which is
  being tracked to ensure resolution.
• Iterative
  Process: A process that repeats phases or activities until a desired
  outcome is achieved. This is common in Agile methodologies where work is
  done in sprints or iterations.
• Example:
  In software development, iterative processes involve developing the
  software in small chunks, with each iteration resulting in a potentially
  shippable product.
• Lessons
  Learned: Knowledge gained from the performance of a project that can
  be used to improve future project planning and execution.
• Example:
  If a project experienced frequent scope changes, lessons learned might
  include a recommendation to implement a more robust scope change control
  process in the next project.
• Management
  Reserve: A portion of the project budget or time that is set aside for
  unforeseen changes or risks that may arise during the project.
• Example:
  A project might set aside 10% of the total budget as a management reserve
  to deal with unplanned costs or scope changes.

J

• Just-in-Time
  (JIT): A production strategy that aims to reduce waste by receiving
  goods only when they are needed in the production process, thereby
  reducing inventory costs.
• Example:
  A construction company may use JIT principles to ensure that materials
  are delivered just before they are needed on-site, reducing storage
  costs.

K

• Kick-off
  Meeting: A meeting held at the beginning of the project to align
  stakeholders, the project team, and any other relevant parties on the
  project’s objectives, roles, and plans.
• Example:
  During the kick-off meeting, the project manager presents the scope,
  schedule, and key deliverables of the project to ensure everyone
  understands the project’s goals and objectives.

L

• Lag:
  A delay between two project activities, typically applied to schedule
  dependencies. For example, there might be a lag time between the
  completion of a design and the start of construction to allow time for
  review.
• Example:
  A finish-to-start relationship might include a 2-day lag before the next
  task can start.
• Lead:
  The amount of time that a dependent task can overlap with the preceding
  task. It allows for tasks to be performed simultaneously.
• Example:
  In a construction project, the preparation of the foundation could
  overlap with the delivery of materials for the next phase, provided the
  materials are ready ahead of time.
• Lessons
  Learned Register: A tool used to document and share knowledge acquired
  during the project. It is updated regularly to capture insights and can be
  referenced for future projects.
• Example:
  After a project concludes, the lessons learned register might include the
  importance of having clear requirements from the start to avoid scope
  creep.

M

• Matrix
  Structure: An organizational structure that blends functional and
  projectized structures. Project team members report to both a functional
  manager and a project manager.
• Example:
  In a matrix structure, a software developer might report both to the IT
  department manager and the project manager responsible for a specific
  software development project.
• Monte
  Carlo Simulation: A quantitative risk analysis technique used to model
  the probability of different outcomes in a project by running simulations
  of possible scenarios.
• Example:
  In a construction project, Monte Carlo simulation might be used to
  predict the likelihood of completing the project on time, considering
  potential delays and cost overruns.
• Monitoring
  and Controlling Process Group: A process group that involves tracking,
  reviewing, and regulating the progress and performance of the project,
  identifying any areas where changes are needed, and ensuring that project
  objectives are being met.
• Example:
  During the project execution phase, monitoring and controlling processes
  ensure that the project is on track and that any issues are addressed
  promptly.

N

• Net
  Present Value (NPV): A financial metric used to evaluate the
  profitability of a project by calculating the difference between the
  present value of cash inflows and the present value of cash outflows over
  a project’s lifetime.
• Example:
  A project that is expected to generate $500,000 annually for 5 years
  might be evaluated using NPV to determine whether its expected return
  justifies the initial investment.
• Non-Disclosure
  Agreement (NDA): A legal contract that protects confidential
  information shared between parties during the project. It ensures that
  sensitive information is not disclosed to unauthorized individuals.
• Example:
  A software company might require an NDA before sharing proprietary code
  or design details with a third-party developer.

O

• Objectives:
  The specific, measurable outcomes or goals that a project aims to achieve.
  Objectives are typically aligned with stakeholder expectations and
  business goals.
• Example:
  The objective of a website development project might be to create a fully
  functional e-commerce platform with an integrated payment gateway within
  6 months.
• Opportunity:
  A positive risk or situation that, if leveraged, can benefit the project.
  Opportunities are typically part of the risk management process.
• Example:
  A new technology might provide an opportunity to speed up the project or
  reduce costs, which is identified and explored as part of the project’s
  risk response planning.
• Organizational
  Process Assets (OPA): The company’s policies, procedures, templates,
  historical information, and knowledge bases that are used to manage the
  project.
• Example:
  An organization may have an OPA that includes risk management templates
  and a lessons learned database that can help streamline project
  execution.

P

• Payback
  Period: The amount of time required for the investment in a project to
  repay its original cost from the project’s cash inflows.
• Example:
  If a project costs $200,000 and is expected to generate $50,000 in
  revenue per year, the payback period would be 4 years.
• Perform
  Integrated Change Control: A process of reviewing and managing changes
  across the project, ensuring they are aligned with the project’s goals and
  objectives.
• Example:
  If a project manager proposes a scope change, it will go through
  integrated change control, where the impact on the budget, schedule, and
  resources will be analyzed.
• Procurement
  Management Plan: A plan that outlines how procurement processes will
  be handled, including vendor selection, contracts, and performance
  monitoring.
• Example:
  In a construction project, the procurement management plan might include
  the strategy for acquiring building materials and subcontractors for
  various tasks.
• Project
  Charter: A formal document that officially authorizes the project,
  outlines its objectives, and gives the project manager the authority to
  allocate resources and start work.
• Example:
  A project charter for a website development project would define the
  scope, budget, and schedule, and authorize the project team to begin
  development.

Q

• Quality
  Assurance (QA): A proactive process of auditing and reviewing the
  project processes to ensure quality standards are being met and that the
  project is on track to deliver the desired outcomes.
• Example:
  A quality assurance team might conduct regular audits on the
  manufacturing process to ensure that products meet the required quality
  standards.
• Quality
  Control (QC): The process of monitoring and measuring project results
  to ensure that the project deliverables meet quality standards and
  requirements.
• Example:
  In a construction project, quality control would involve inspecting
  completed work to ensure it meets the specified design and regulatory
  standards.

R

• Risk:
  An uncertain event or condition that, if it occurs, has an effect on at
  least one project objective (such as scope, schedule, cost, or quality).
• Example:
  A supplier failure could be a risk that may impact the project schedule.
• Risk
  Management Plan: A document that defines how risk management
  activities will be structured and performed throughout the project,
  including risk identification, assessment, and mitigation strategies.
• Example:
  The risk management plan might include a list of risks with their
  likelihood and impact, as well as detailed strategies for mitigating
  them.
• Risk
  Register: A tool used to document identified risks, their causes,
  impacts, and the responses planned to manage them.
• Example:
  A risk register for a software development project might list risks such
  as technology changes, lack of skilled resources, and customer changes to
  requirements.

S

• Schedule
  Management Plan: A document that defines how the project schedule will
  be managed, including the scheduling methodology, tools, and techniques to
  be used. It also includes the criteria for schedule performance
  evaluation.
• Example:
  The schedule management plan might specify that project progress will be
  tracked using Gantt charts and that any schedule changes must be approved
  by the project sponsor.
• Scope
  Creep: The uncontrolled expansion of project scope without adjustments
  to time, cost, and resources. It typically occurs when new features or
  requirements are added to the project after it has started without proper
  evaluation.
• Example:
  If the client requests additional features for a software application
  after the project scope has been defined, without considering the impact
  on the timeline or budget, this can lead to scope creep.
• Scope
  Management Plan: A document that defines how the scope will be
  defined, validated, and controlled throughout the project. It helps
  prevent scope creep and ensures that all project work is included.
• Example:
  The scope management plan might outline the process for approving scope
  changes and setting up formal procedures to manage scope boundaries.
• SMART
  Criteria: A method used to set project objectives that are Specific,
  Measurable, Achievable, Relevant, and Time-bound.
• Example:
  A SMART goal for a project might be, “Complete user training by the
  end of Q3 with at least 90% of the users passing a post-training
  exam.”
• Stakeholder
  Register: A document that lists all stakeholders involved in the
  project, including their interests, expectations, and influence on the
  project. It helps ensure that stakeholders are properly identified and
  managed.
• Example:
  A stakeholder register for a construction project might include
  contractors, architects, local government agencies, and the community.
• Schedule
  Baseline: A version of the project schedule that is approved and used
  to measure and monitor project performance. It includes the planned start
  and finish dates for project activities and milestones.
• Example:
  The schedule baseline might indicate that the software development
  project will be completed by the end of the year with defined milestones
  for key deliverables.

T

• Team
  Charter: A document that outlines the expectations, roles, and
  responsibilities of the project team. It also defines how the team will
  work together, resolve conflicts, and ensure effective communication.
• Example:
  The team charter for a project might specify that all team members will
  meet twice a week to discuss project progress and set expectations for
  how issues will be handled.
• Tangible
  Assets: Physical resources and assets that contribute to the success
  of a project, such as materials, equipment, or facilities.
• Example:
  A construction project might have tangible assets like bricks, cement,
  and tools that are essential for completing the work.
• Total
  Float: The amount of time that a task can be delayed without affecting
  the project’s completion date or the start of any dependent tasks. It is
  an important concept in project scheduling.
• Example:
  If a task has a total float of 3 days, it can be delayed by 3 days
  without impacting the project’s final delivery date.
• Triple
  Constraint: A concept in project management that highlights the
  relationship between three main project constraints: scope, time, and
  cost. These constraints are often referred to as the “iron triangle.”
• Example:
  If the project scope is expanded, it may require more time or additional
  costs to meet the new scope. Any changes in one constraint typically
  affect the others.

U

• Ultimate
  Goal: The overall aim or the main objective a project is striving to
  achieve. It typically aligns with the broader business goals and the
  project’s purpose.
• Example:
  In a software development project, the ultimate goal might be to release
  a product that improves the client’s business operations and generates a
  certain return on investment.
• Urgency:
  Refers to the need to act quickly to address specific project issues or
  objectives. It can apply to project timelines, the resolution of issues,
  or the fulfillment of stakeholder needs.
• Example:
  If a critical bug is discovered in a software project that could delay
  the project, there may be a sense of urgency to resolve the issue
  quickly.

V

• Value
  Stream Mapping: A lean management technique that analyzes the flow of
  materials and information through the project lifecycle to identify areas
  of waste and inefficiency.
• Example:
  In a manufacturing project, value stream mapping might be used to
  identify bottlenecks in the production process where resources are
  underutilized or steps could be eliminated to improve overall efficiency.
• Variance
  Analysis: A technique used to analyze the differences between the
  planned performance and the actual performance of a project. It helps in
  identifying the cause of any deviations.
• Example:
  If a project is running over budget, variance analysis might show that
  resource costs exceeded expectations or that additional tasks were added
  to the scope without proper approval.

W

• Work
  Breakdown Structure (WBS): A hierarchical decomposition of the total
  project scope into smaller, more manageable components called work
  packages. It helps in defining and organizing project work.
• Example:
  For a construction project, the WBS might break down tasks into
  categories like foundation, framing, roofing, electrical work, and
  finishing.
• Work
  Performance Data: The raw data collected during project execution,
  including information about the progress of tasks, resource utilization,
  and quality control results. It is used as input for performance analysis.
• Example:
  Data such as the percentage of tasks completed, hours worked by each team
  member, and the number of defects identified in the product are
  considered work performance data.
• Work
  Performance Information: The analysis of work performance data that
  provides insights into how the project is progressing. It includes the
  status of project deliverables and any variances from the project plan.
• Example:
  A report generated for stakeholders that shows the completion status of
  tasks, budget usage, and progress compared to the baseline schedule.

X

• X-Y-Z
  Chart: A tool used in project management to analyze and display
  relationships between project variables and their impact on the project’s
  overall success. It can help identify cause-and-effect relationships.
• Example:
  A project team might use an X-Y-Z chart to analyze how increasing the
  number of resources impacts project completion time.

Y

• Yield
  Management: A pricing strategy often used in project management for
  managing variable pricing or resources to maximize project profitability.
• Example:
  In a project where resource costs fluctuate, yield management could
  involve adjusting resource allocation or pricing strategies to optimize
  project profitability.

Z

• Zero
  Defects: A quality management concept that aims to achieve the perfect
  delivery of project outcomes without any defects or errors.

Example: A
construction project might have a zero-defects policy, which ensures that all work
is completed to the highest standards and that any minor issues are immediately
addressed.