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PMP
PMP Definitions
54
Other
Not Applicable
06/07/2005

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Term
Effective Listening
Definition
Is the ability to recognize the importance of verbal and nonverbal listening behaviors including body language. It’s also the ability to utilize gestures and body language consciously (with consideration for cultural differences) to put people at ease and enhance communication
Term
Configuration Management
Definition
Defines and controls changes to project deliverables. Any documented procedure used to apply technical and administrative direction and surveillance to: define and document characteristics of a system; control changes; record and report changes; ensure conformance to requirements
Term
Earned Value Management
Definition
A method for integrating scope, schedule, and resources, and for measuring project performance. It compares the amount of work that was planned, versus actually earned, versus actually spent, to determine if cost and schedule performance are as planned
Term
Probability and Impact Matrix
Definition
A common way to determine whether a risk is considered low, moderate, or high by combining the two dimensions of a risk: its probability of occurrence and its impact on objectives if it occurs
Term
Statement of Work (SOW)
Definition
Describes the portion of the product to be contracted. In general, this is different from the product description (which tends to be more broader). Under the circumstance where the seller is producing the entire product, the distinction between SOW and the product description becomes moot
Term
Brainstorming
Definition
A general creativity technique that can be used to identify risks using a group of team members or subject-matter experts. Typically, a brainstorming session is structured so that each participant’s ideas are recorded for later analysis
Term
Privity of Contract
Definition
The legal relationship that exist between the parties to a contract that allows either party to enforce contractual rights against the other party and seek remedy directly from the other party
Term
Schedule Performance Index (SPI)
Definition
The schedule efficiency ratio of earned value accomplished against the planned value. The SPI describes what portion of the planned schedule was actually accomplished. The SPI = EV divided by PV
Term
Schedule Variance (SV)
Definition
1) Any difference between the scheduled completion of an activity and the actual completion of that activity. 2) In earned value, EV less BCWS = SV
Term
Planned Value (PV)
Definition
The physical work scheduled, plus the authorized budget to accomplish the scheduled work. Previously, this was called the budgeted costs for work scheduled (BCWS)
Term
Pareto’s Law
Definition
A supposition that states that a relatively small number of causes will typically produce a large majority of the problems or defects. Commonly referred to as the 80/20 principle in which 80% of the problems can be attributed to 20% of the causes
Term
Quality Assurance (QA)
Definition
1) The process of evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. 2) The organizational unit that is assigned responsibility for quality assurance
Term
Program Evaluation and Review Technique (PERT)
Definition
An event-oriented network analysis technique used to estimate program duration when there is uncertainty in the individual activity duration estimates. PERT applies the critical path method using durations that are computed by a weighted average of optimistic, pessimistic, and most likely duration estimates
Term
Earned Value Management
Definition
A method for integrating scope, schedule, and resources, and for measuring project performance. It compares the amount of work that was planned, versus actually earned, versus actually spent, to determine if cost and schedule performance are as planned
Term
Crashing
Definition
Is a technique in which cost and schedule tradeoffs are analyzed to determine how, if at all, to obtain the greatest amount of compression for the least incremental cost. Does not always produce a viable alternative and often results in increased cost
Term
Cost Estimate
Definition
Quantitative assessments of the likely costs of the resources required to complete project activities. (may be presented in summary or detail) Must be estimated for all resources that will be charged to the project. This includes, but is not limited to: labor, materials, supplies, and special categories such as inflation allowance or cost reserve
Term
Decision Tree Analysis
Definition
A diagram that describes a decision under consideration and the implications of choosing one or another of the available alternatives. It incorporates probabilities or risks and the costs or rewards of each logical path of events and future decisions
Term
Communication Barriers
Definition
Obstacles that impede communications. For example: limited communication channels, distance, noise, cultural differences, organizational climate, perceptions, limited information, withholding of information, terminology, number of communication links, manipulation (hidden agenda), etc
Term
Impact Analysis
Definition
The mathematical examination of the nature of individual risks on the project, as well as potential arrangements of interdependent risks. It includes the quantification of their respective impact severity, probability, and sensitivity to changes in related project variables, including the project life cycle
Term
Precedence Diagram Method (PDM)
Definition
A network diagramming technique in which activities are represented by nodes. Activities are linked by precedence relationships to show the sequence in which the activities are to be performed. Also called Activity-On-Node (AON).
Term
Concurrent Engineering
Definition
An approach to project staffing that, in its most general form, calls for implementers to be involved in the design phase. (Sometimes confused with fast tracking)
Term
Critical Path
Definition
A sequence of activities which determines the earliest possible completion (duration) of the project. The critical path is usually defined as those activities with float less than or equal to a specified value (usually zero). It is the longest path through the project. A project may have multiple critical paths
Term
Project Scope
Definition
A concise and accurate description of the end products or deliverables to be expected from the project and that meet specified requirements as agreed between the Project's Stakeholders
Term
Backward Pass
Definition
The calculation of late finish and start dates for the uncompleted portions of all network activities. Determined by working backwards through the network logic from the project’s end date. The end date may be calculated by a forward pass or set by the customer or sponsor
Term
Filtering
Definition
Occurs when a large portion of the message is lost from the sender to the receiver. Generally caused by problems of language, culture, semantics, knowledge base, etc. Filtering can be deliberate and positive as in the case of upward communications where the subordinate “filters” information that the superior does not need or want to know
Term
Project Management Team
Definition
The members of the project team who are directly involved in project management activities. On some smaller projects, the project management team may include virtually all of the project team members
Term
Feasibility Study
Definition
Analysis to determine if a course of action is possible within the terms of reference of the project
Term
Conception Phase
Definition
The phase that triggers and captures new ideas or opportunities and identifies potential candidates for further development in the feasibility phase
Term
Project Closeout
Definition
The full completion of a project signed off by all responsible parties and the finalization of all paperwork. Contractually concluded by a consultant's total performance Certificate
Term
Authoritarian
Definition
A form of Leadership in which the Leader, directs activities from a position of power and without consideration of the views of those being lead
Term
Quality Assurance
Definition
Is all the planned and systematic activities implemented within the quality system to provide confidence that the project will satisfy the relevant quality standards
Term
Operational Definition
Definition
Describes in very specific terms, what something is and how it is measured by the quality control process
Term
Risk Management Plan
Definition
A subsidiary element of the overall project plan which documents the procedures that will be used to manage risk throughout the project
Term
Matrix Organization
Definition
Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of individuals assigned to the project
Term
Coercive
Definition
Type of power that refers to negative consequences that a person can inflict on others. (firing, docking, reprimand, etc.)
Term
Coercive
Definition
Type of power that refers to negative consequences that a person can inflict on others. (firing, docking, reprimand, etc.)
Term
Network
Definition
The logical order of tasks that defines the sequence of work in a project. Networks are usually drawn from left to right, with lines drawn between to indicate the precedence between tasks. Arrow heads are often placed on the lines to indicate the direction of the flow through time
Term
Make-or-Buy Decision
Definition
A determination based on relative overall costs for an assumed quantity of production, to produce the product in-house or to purchase from outside sources
Term
Expectancy Theory
Definition
The view that our effort will be greatest when we expect that we can perform the task at hand and that we expect to obtain rewards for our performance
Term
Reserve
Definition
A provision in the project plan to mitigate cost and/or schedule risk. Often used with a modifier (e.g., management reserve, contingency reserve) to provide further detail on what types of risk are meant to be mitigated
Term
Payback Period
Definition
The number of time periods up to the point at which cumulative revenues exceed cumulative costs and, therefore, the project has turned a profit
Term
Active Listening
Definition
Is engaged listening. It requires patience, self-control, empathy, and a willingness to understand the other person’s perspective. Helps facilitate the development of mutual trust, respect, and good working relationships thus improving the overall performance of the team
Term
Functional Organization
Definition
An organizational structure in which staff are grouped hierarchically by specialty (e.g., production, marketing, engineering, accounting) at the top level and then further divided within specialty
Term
Control Charts
Definition
A graphic display of the results, over time and against established control limits, of a process. The charts are used to determine if the process is in control or in need of adjustment
Term
Chart of Accounts
Definition
Any numbering system used to monitor project costs by category (e.g., labor, supplies, materials). The project chart of accounts is usually based upon the corporate chart of accounts of the primary performing organization
Term
Backward Pass
Definition
The calculation of late finish and start dates for the uncompleted portions of all network activities. Determined by working backwards through the network logic from the project’s end date. The end date may be calculated by a forward pass or set by the customer or sponsor
Term
Project Charter
Definition
A formal document issued by senior management which explains the purpose of the project including the business need the project addresses and the resulting product. It provides the project manager with the authority to apply organizational resources to project activities
Term
Benchmarking
Definition
Is the process where an organization will compare its processes, products, performance against other organizations. These other organizations can be in the same or other industries
Term
Probability
Definition
The likelihood of occurrence. The ratio of the number of chances by which an event may happen (or not happen) to the sum of the chances of both happening and not happening
Term
Project Risk Management
Definition
Includes the processes concerned with identifying, analyzing, and responding to project risk
Term
Probability and Impact Matrix
Definition
A common way to determine whether a risk is considered low, moderate, or high by combining the two dimensions of a risk: its probability of occurrence and its impact on objectives if it occurs
Term
Responsibility Assignment Matrix (RAM)
Definition
A structure that relates the project organization structure to the WBS to help ensure that each element of the project's scope of work is assigned to a responsible individual
Term
Assumptions
Definition
Factors that for planning purposes are considered to be true, real, or certain. Assumptions affect all aspects of project planning and are part of the progressive elaboration of the project. Project teams frequently identify, document, and validate assumptions as part of their planning process. Assumptions generally involve a degree of risk
Term
Contract
Definition
A legal document of purchase or sale which is binding on both parties. When entering into a contract, the people involved must have legal capacity to do so. (the definition of legal capacity varies from state to state). Consideration must be provided to both parties (in other words, there must be sufficient cause to contract). There must be mutual assent
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