GLOSSARY FOR PMP EXAM

A

AC (actual cost) The costs incurred to accomplish the work to date.

acquire project team The process of identifying the core competencies required for a project, identifying where they will come from, and computing the associated costs.

activities on the critical path See “critical activities.”

activity Any element of project work that requires action to produce a deliverable.

activity definition process The identification and documentation of the specific activities that must be performed to produce the project's deliverables.

activity dependency A logical relationship that exists between two project activities.

activity duration estimation The planning process of estimating the number of work units needed to complete individual project activities.

activity resource estimating Determining what resources will be used to fulfill project activities.

activity sequencing A planning method that involves identifying and documenting interactivity dependencies among project activities for the purpose of creating the project schedule.

actual cost (AC) The total amount of costs incurred while accomplishing work performed. It may be computed in terms of the total costs that were incurred during completion of a schedule activity or during the completion of a work breakdown structure component.

administrative closure The project management process of verifying and documenting project results to formalize phase or project completion.

aggregated cost A method of cost budgeting that requires the adding together of the estimated activity costs to establish an estimate for a work package, then for each work package, and on an iterative basis until there is a single estimated cost for the whole WBS. This also produces a baseline for measuring a project's cost performance.

agile project management

Taking an iterative approach to managing a project throughout its life cycle; it allows the project manager to continually re-evaluate progress, development, and priorities and make adjustments as needed.

alternatives identification The act of generating different plans for achieving project goals.

analogous estimating A top-down estimating technique using durations of previous similar activities to estimate future durations.

anticipatory breach An unavoidable indication that the other party will not be able to produce the performance necessary to fulfill an agreed-upon contract.

arrow diagramming method (ADM) A type of project schedule network diagram that uses arrows to represent activities and circles (or nodes) to represent project events and milestones.

assumptions The statements that must be taken to be true in order to begin project planning.

attribute sampling data Data that is counted, such as a number of product defects or customer complaints.

audit see “inspection.”

average The number that typifies the data in a set. It is calculated by adding the values of a group of numbers and dividing that total by the number of objects included.

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B

baseline An approved time phased plan for a project, work breakdown structure component, work package, or schedule activity, plus or minus approved scope, cost, schedule, and technical changes.

BCWP see “earned value.”

BCWS see “planned value.”

benchmarking A method of addressing the evaluation of a group’s business or project practices in comparison to those of other groups. It is used to identify best practices in order to meet or exceed them.

bottom-up estimating A method of estimating costs that involves estimating the cost for each work package in the WBS; the estimates are then rolled up (aggregated) for progressively higher levels within the WBS to compile the total project cost.

breach of contract Failure to meet some or all of the obligations of a contract. It may result in damages paid to the injured party, litigation, or other ramifications.

budget at completion (BAC) Total planned value at completion.

business requirements The pressing organizational needs that drive decision makers to sponsor projects and to prioritize competing projects.

business risk The inherent risk in any business endeavor which carries the potential for either profit or loss.

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C

capital budgeting A decision-making process used to evaluate fixed asset purchases.

causes of variance In a process or item, these are the sources or reasons for deviations from the expected standard.

change control board (CCB) An internal group responsible for working with the project manager to monitor, coordinate, and implement changes to all elements of project work.

change control process The formal method of governing and organizing the manner in which changes will be requested, approved or rejected, implemented, reviewed, controlled, and coordinated; its goal is to make sure that changes to the project's baselines are managed with the least amount of disruption to cost, time, and quality.

change control system A collection of formal, documented procedures for changing official project documents and how project deliverables will be controlled, changed, and approved.

checklist A job aid that prompts employees to perform activities according to a consistent quality standard.

close project process The process of closing out all activities and formally closing the project or, in the case of multi-phase projects, a specific project phase; it involves the administrative closure procedure and the contract closure procedure.

closeout meetings Sessions held at the end of a phase or project in which you discuss and document areas for improvement and capture lessons learned for use in future projects.

co-location The placing of most or all key team members in the same physical location to make communication easier and enhance team performance and team spirit.

communications management plan A document that describes the project team’s approach to communicating project information.

communications requirements The project stakeholders' documented communications needs.

communications requirements analysis An investigation that leads to a clear articulation of the stakeholders' communications needs; it helps the project manager make effective choices regarding the technologies to be recommended in the communications management plan.

communications technology The technologies used for communications planning.

completion contract A type of contract that is completed when the seller delivers the product to the buyer and the buyer accepts the product.

conditional branch Activities that will be implemented only under specific conditions.

configuration management A controlling tool for applying technical and administrative direction and surveillance to manage changes that affect the function or characteristics of the product or service being produced.

conflict management The application of one or more strategies for dealing with disagreements, struggles, and compatibility issues that may be detrimental to team performance.

constraints The factors that limit the way that the project can be approached.

contingency allowances Additional funds that are sometimes built into cost estimates to allow for unanticipated events, or known unknowns.

contingency plans A risk-response strategy developed in advance; it is meant to be used in the event that identified risks become reality.

contingency reserve

A predetermined amount of additional time, money, or resources set aside in advance to be used to further the project's objectives in the event that unknown risks or accepted known risks become reality.

contract A mutually binding agreement that details the obligations of the buyer and seller.

contract change requests Any requested change to contract terms.

contract closure The project management process of ensuring that contractual obligations have been met on both sides and resolving any outstanding issues.

contract negotiation The process of bargaining to come to a mutual agreement regarding the terms and conditions of a contract.

control chart A graph used to analyze and communicate the variability of a process or project activity over time.

cost baseline A time-phased budget that will monitor and measure cost performance throughout the project life cycle.

cost budgeting The process of allocating the overall cost estimates to individual activities or work packages across the project life cycle.

cost control The project management process of monitoring cost performance and controlling changes to the cost baseline.

cost estimating The process of projecting the cost of resources that are necessary for the completion of your project.

cost of capital Average after-tax interest rate at which the project investment would be financed. Also called the hurdle rate.

cost of quality The total cost of efforts to achieve an acceptable level of quality in the project’s product or service.

cost-benefit analysis A comparison of the predicted costs versus the predicted benefits of a project.

cost-reimbursable contract This contract provides sellers a refund of the expenses incurred while providing a service, plus a fee representing seller profit.

CPI

(cost performance index) A measurement of cost performance used to determine whether the project is over or under budget. The formula for calculating CPI is CPI = EV/AC.

crash cost plotting methods Techniques for analyzing the crash costs through creating a graph or visual representation.

crashing A schedule compression method that analyzes cost and schedule trade-offs to determine how to obtain the greatest amount of schedule compression for the least incremental cost.

creep A change in scope that will adversely affect cost, time, or quality and that has not been processed appropriately through the scope change control process.

criteria profiling A decision model used to evaluate and score alternatives on each criterion.

critical activities The schedule activities that are on the critical path.

critical chain method An analysis method that allows you to consider resource limitations and adjust the schedule as appropriate to work within those limitations.

critical path The network path that has the longest total duration in an activity.

critical path method An analysis method that uses a sequential finish-to-start network logic and calculates one early and late start and finish date for each activity using a single duration estimate.

CV (cost variance) The difference between the earned value and the actual cost incurred to complete that work. The formula for calculating CV is CV = EV - AC.

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D

decision tree A type of screening system decision model that uses a branch diagram to choose among two different alternatives. Incorporates probabilities of occurrence and the costs or rewards of each decision.

decision tree analysis An assessment of the data obtained using the decision tree method to evaluate various possible outcomes.

deliverable

The end result of work; it can be a product, service, or outcome that responds to a business need or fits the sponsor's requirements.

Delphi technique A group technique that extracts and summarizes anonymous group input to choose among various alternatives. Often used to arrive at an estimate or forecast.

Design of Experiments (DOE) A technique to systematically identify varying levels of independent variables.

develop project management plan process A process in which subsidiary management plans are integrated into a singular plan.

direct and manage project execution process The primary process of carrying out the project plan to produce the product or provide the service of the project.

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E

EAC (estimate at completion) A forecast of what it will cost to complete all of the work required to produce the product or provide the service of a project.

earned value A composite measurement of both actual cost and time performance in relation to scheduled or planned cost and time performance; it was formerly called the budgeted cost of work performed (BCWP).

effect-based risk classification A way of analyzing the major risks that are inherent to a project that could have an impact on its success. These major risks include time, cost, quality, and scope.

effort The number of person-hours or person-days required for completion of an activity.

elapsed time The actual calendar time required from start to finish of an activity. May or may not be the same as duration.

EMV analysis (expected monetary value analysis) A method of calculating the average outcome when the future is uncertain.

estimate to complete (ETC) A forecasting technique, based on a new estimate that is more accurate and comprehensive; it is independent and non-calculated for all outstanding work.

evaluation criteria

The standards used to rate or score proposals, quotes, or bids.

EVM (earned value management) A methodology that measures project progress by comparing actual schedule and cost performance against planned performance as laid out in the schedule and cost baselines.

expert judgement Knowledge provided based upon expertise in a knowledge area, an application area, or an industry.

express warranty A warranty in which the pre-determined standard for quality or performance is specified, either in a formal warranty or in the manufacturer's description of the product.

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F

fast tracking The process of compressing total project duration by performing some activities concurrently that were originally scheduled sequentially.

feasibility analysis An analysis that provides technical and operational data to management to help determine if a project will work for the organization or if an alternative should be pursued.

fixed price contract Also called a lump sum contract, it establishes a total price for a product or service. The seller agrees to perform the work at the negotiated contract value.

float The amount of time an activity can be delayed from its ES without delaying the project finish date; in some organizations, it is also known as “free float.” In arrow diagramming methods, float is known as “slack.”

flowchart A diagram that shows the relationships of various elements in a system or process.

formal acceptance of project work The process for securing approval for completing the remainder of the project work; it requires change requests to be documented and analyzed for their impact on other aspects of project work including time, cost, quality, and risk.

free float The amount of time an activity can be delayed without delaying the ES of any activity that immediately follows it.

fundamental breach A breach of contract so serious that it negates the very foundation of the contract.

funding limit reconciliation A method of adjusting spending, scheduling, and resource allocation in order to bring expenditures into alignment with budgetary constraints.

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G

graphical evaluation review technique (GERT) An analysis method that provides a graphical display of the conditional and probabilistic treatment of logical relationships; it illustrates that not all of the activities may ultimately be performed.

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H

hammock activity See “summary activity.”

hurdle rate Average after-tax interest rate at which the project investment would be financed. Also called cost of capital.

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I

immaterial breach A breach of contract in which there is no resulting damage to the injured party; since there are no damages, the injured party is not entitled to receive compensation.

impact scale The assignment of a value that reflects the magnitude of the impact of a risk event on project objectives.

implied warranty A warranty in which the pre-determined standard for quality or performance exists but is not specified; it takes effect if the buyer depends on the seller's expertise when making a purchasing decision.

information distribution The process of getting the right information to the right people at the right time.

information-gathering technique Any method or approach used to collect data that will assist the project team in identifying risks to the project.

inputs Information or data that project managers draw on, create, or gather during the course of the project; they guide and inform the work that will be done to achieve project goals.

inspection An official examination of work results to verify requirements are met; it involves measuring, examining, and verifying results to be sure work and deliverables meet requirements and acceptance criteria. It may also be referred to as “reviews,” “product reviews,” “audits,” or “walkthroughs.”

insurable risk A risk that has only the potential for loss and no potential for profit or gain. An insurable risk is one for which insurance may be purchased to reduce or offset the possible loss.

integrated change control The process of identifying, documenting, approving or rejecting, and controlling changes to the project baselines, which include the cost baselines and schedule baselines.

integrated change control A method for coordinating change across knowledge areas.

interdependent Projects that are inextricably linked because they rely on each other's success in order to meet a shared business or stakeholder need.

IRR (Internal Rate of Return) The discount rate that makes the NPV (net present value) of the future cash return equal to the initial capital investment.

ISO 9000 Series A quality system standard that is applicable to any product, service, or process in the world.

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J

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K

knowledge area An identified area of project management described in terms of its component processes and defined by its knowledge requirements.

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L

lease, rent, or buy decision A business analysis that determines the most cost-effective way to procure the necessary equipment for a project.

lessons learned Documented historical information and knowledge base about past projects.

lessons learned reports Formal documents that capture salient and helpful information about the work done in a project or a project phase; they include information about what worked well on the project and areas for improvement.

levels of uncertainty A way of analyzing the risks of a project based on how much is known about them.

loop Activity sequences that must be revisited or repeated.

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M

make-or-buy analysis A technique used to determine whether it would be more cost-effective to produce a product or service in-house or to procure it from an outside vendor.

manage project team A process that monitors individual performance, gives feedback, solves issues, and organizes changes to improve project performance.

material breach A serious breach of contract that prevents the injured party from benefiting from the contract; the injured party can claim damages, but is no longer obligated to fulfill any contract commitments.

mean The sum of the events divided by the number of occurrences.

median The number that separates the higher half of a probability distribution from the lower half. It is not the same as the average, although the two terms are often confused.

monitor and control project work The process of initiating, planning, and executing the project; it also includes collecting, measuring, and distributing performance information, as well as reviewing trends to make process improvements.

Monte Carlo analysis A technique that uses the optimistic, most likely, and pessimistic estimates for variables in the model and simulates various outcomes of the project schedule to provide a statistical distribution of the calculated results.

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N

negative risk strategies Strategies for dealing with risk scenarios that have a possible negative impact on the project.

net present value The present value of an investment minus the initial investment.

normal distribution PDF A visual depiction of a probability density function in which the data is distributed symmetrically in the shape of a bell with a single peak. The peak represents the mean; the symmetry indicates there is an equal number of occurrences above and below the mean.

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O

ongoing risk assessment process An iterative process of identifying, analyzing, and documenting the risks facing your project; it is conducted throughout the project life cycle.

organization chart A visual representation of the project’s organizational structure.

organizational structure The compositional makeup of an organization that dictates how the various groups and individuals within the organization interrelate.

outputs The end results and deliverables achieved during project-management processes.

outsourcing Moving beyond the organization to secure services and expertise from an outside source on a contract or short-term basis.

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P

parametric estimating A method of activity duration estimating in which some durations can be estimated by multiplying a productivity rate by the quantities to be performed for a specific work category.

parametric estimating

A technique used to predict total project costs by using the project's characteristics and historical information in a mathematical model.

Pareto diagram A bar chart or histogram that illustrates the causes of problems and their relative severity. Used for prioritizing efforts to solve problems.

performance reporting The project management process of gathering and communicating information regarding the current status of a project as well as projections for progress over time.

plan contracting Process of defining and documenting the products, services, and results requirements while identifying potential procurement sources.

plan purchases and acquisitions A critical process that guides the acquisition of goods and services from outside the organization.

planned value (PV) The budgeted portion of the approved cost estimate to be spent during a particular time period to complete the scheduled project work; also known as the budgeted cost for work scheduled (BCWS).

PMIS (Project Management Information System) An automated or manual system used by a project team to gather, analyze, communicate, and store project information.

portfolio management The grouping and oversight of a collection of projects in alignment with the strategic goals of the organization.

positive risk strategies Strategies for dealing with risk scenarios that have a possible positive impact on the project.

precedence diagramming method (PDM) Produces a type of project schedule network diagram that uses rectangular or circular nodes to represent activities and arrows to represent precedence relationships between activities.

precedence relationship The logical relationship between two activities that describes the sequence in which the activities should be carried out.

predecessor activity In sequencing two activities, the activity that must take place prior to the other.

preliminary project scope statement process A process that allows project managers to document the project's parameters, objectives, requirements, and deliverables.

preliminary project scope statement The high-level definition of the project.

present value The result from discounting future earnings by deducting the cost of capital for an investment.

probability density function (PDF) A visual depiction of probability distribution in which the vertical axis refers to the probability of the risk event and the horizontal axis refers to the impact that the risk event will have on the project objects.

probability distribution The scattering of values assigned to likelihood in a sample population.

probability scale The assignment of value to the likelihood of a risk occurring.

probability/impact risk rating matrix The assignment of a risk rating to risks or conditions.

process A sequence of activities designed to bring about a specific result in response to a business need.

process control structure The formal organization of the modifications made to deliverables that are controlled by configuration management.

procurement audit A formal evaluation of both the supplier's performance of the contract, as well as the effectiveness of the procurement process itself.

procurement documents Documents submitted to prospective sellers or service providers to solicit their proposals for the work needed.

procurement management plan A document that outlines the specifications for procuring work from outside sources; it specifies the types of contracts that will be used, describes the process for obtaining and evaluating bids, mandates the standardized procurement documents that must be used, and describes how multiple providers will be managed.

product analysis An evaluation of the project's end product and what it will take to create this product.

product review see “inspection.”

program Ongoing work managed in a series of related projects that may or may not have a definite endpoint.

program management The centralized, coordinated process of managing all of an organization's projects in accordance with the business's strategic objectives.

progressive elaboration A process of development in which additional layers of detail are defined over the course of a project.

project A temporary endeavor with a clearly defined beginning and end, resulting in a unique product or service using progressive elaboration (developed in steps and continued in increments).

project charter A document that provides a clear, concise description of the business needs that the project is intended to address.

project charter development The project management process of authorizing the project or phase.

project deliverables Any tangible, measurable result or outcome required to complete a project or portion of a project.

Project management information system (PMIS) A combination of the automated and manual processes used to generate the preliminary project scope statement, facilitate feedback, and issue the approved document.

project life cycle The sequential phases of work done on a project, including all planning, work activities, and closure; it is marked by the beginning and the end of the project.

project life cycle descriptions A specific description of the technical work to be done in each phase of the project life cycle and the participants who will be involved in each phase; the descriptions may be very general or very detailed.

Project Management Office (PMO) A centralized, ongoing administrative unit or department that serves to improve project-management performance within an organization by providing oversight, support, tools, and helpful methodologies to project managers.

project management plan A plan that details how a project will be executed in achieving the specified objectives.

project objectives The measurable success criteria for the project.

project phase A group of related project activities that results in the completion of a major deliverable.

project resource Any useful material object or person necessary to complete project work.

project risk ranking The overall risk ranking for producing the final deliverable of the product or service of the project.

project risk response audit The process of examining the effectiveness of risk response plans and of the performance of the risk owner.

project schedule The project team's plan for starting and finishing activities on specific dates and in a certain sequence. The schedule also specifies planned dates for meeting project milestones.

project schedule network diagram A graphical representation of the sequence of project activities and the dependencies among them.

project selection The act of choosing a project from among competing proposals.

project selection criteria The standards and measurements that the organization uses to select and prioritize projects.

project selection decision model A framework for comparing competing project proposals by helping decision makers compare the benefits of one project alternative with another.

project selection method Any systematic approach used to analyze the value of a proposed project in order to choose among competing proposals.

project stakeholder A person who has a business interest in the outcome of a project or who is actively involved in its work.

PV see “planned value.”

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Q

Q-sorting A decision model using groups of people to rate the relative priority of a number of alternatives.

qualitative risk analysis A method of assessing, ranking, and prioritizing risks for subsequent analysis.

quality The totality of features and characteristics of a product or services that bear on its ability to satisfy stated or implied needs.

quality assurance A method of evaluating overall project performance through planned, systematic activities; it creates confidence that the project will employ the appropriate processes and satisfy standards for quality.

quality assurance plan A document that specifies a project's standards for quality and describes how, when, in what manner, and to what degree the project will be reviewed and evaluated against those criteria.

quality audit An independent evaluation, inspection, or review of a project's quality assurance system.

quality control The project management process of monitoring project work results to determine if they comply with relevant quality standards, and identifying ways to eliminate causes of unacceptable performance.

quality management plan A document that describes for project stakeholders your team’s approach to implementing the quality policy; it outlines how quality control and quality assurance will be performed.

quality planning The process of putting plans into place to ensure that a project will satisfy its stated objectives or business needs.

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R

RAM see “Responsibility Assignment Matrix.”

random causes of variance Those everyday occurrences that are always present in project work; as such, they may be unavoidable. They may be either insignificant and have little impact on the overall quality performance or they may have a dramatic effect on quality.

regulations Compliance-mandatory characteristics for specific products, services, or processes.

relative authority The project manager’s authority relative to the functional manager’s authority over the project and the project team.

request seller responses process A process in which the project manager obtains quotations, bids, proposals, or estimates from potential suppliers of goods or services being procured.

reserve analysis A method of activity duration estimating in which extra time is added to duration estimates that can serve as a buffer as recognition of scheduled risk (contingency reserves).

resource cost rates The per unit cost of each resource.

resource leveling method One of four common methods for achieving schedule network analysis; a technique used to analyze the schedule model. Resource leveling allows you to readjust the work as appropriate.

Responsibility Assignment Matrix A chart that links key project stakeholders to specific project deliverables or activities by assigning responsibility to an individual stakeholder for each element of work. Also known as “RAM.”

review see “inspection.”

reward and recognition system A formal system used to reinforce behaviors or performance. The purpose is to motivate the team to perform well and to achieve and maintain the desired level of individual and team morale.

rewarding individual performance Giving pay increases or promotions to individuals based on merit.

risk An uncertain event that has either a positive or negative effect on the project. Its primary components are a measure of probability that a risk will occur and the impact of the risk on a project.

risk acceptance Any decision not to change the project plan to deal with a risk.

risk analysis The evaluation of the probability and impact of the occurrence of a risk.

risk breakdown structure A component of risk management that allows project managers to organize potential sources of risk to the project. Also known as “RBS.”

risk data quality assessment The evaluation of the usefulness of the available data concerning the risk.

risk identification process An iterative process of identifying the risks and triggers facing a project.

risk management plan A document that describes the team's approach to identifying risks.

risk management plan A document that describes the project team's approach to identifying, analyzing, responding to, monitoring, and controlling project risk.

risk management planning The process of deciding how to approach and plan the risk management activities for a project.

risk monitoring and control

The project management process of responding to identified and unforeseen risks.

risk register A document that identifies risks, potential risk responses, and their triggers, or warning signs.

risk response planning The process of examining each risk and corresponding response alternatives, determining which response will improve the likelihood of a positive outcome.

risk tolerance The level of risk a project manager or key stakeholder is willing to take when the investment is compared to the potential payoff.

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S

schedule activity A discrete scheduled component of work performed during the course of a project; it has an estimated duration, cost, and resource requirements.

schedule baselines The management-approved version of the project schedule; it is drawn from the schedule network analysis and includes baseline start and finish dates.

schedule compression The act of shortening the project schedule without affecting the project scope.

schedule control The project management process of monitoring schedule performance and controlling changes to the schedule baseline.

schedule management plan An approach to developing, maintaining, and managing the project schedule.

schedule network analysis Any technique used to calculate the theoretical early and late start and finish dates for all project activities.

schedule performance measurement Any technique used to determine how the project is performing in terms of time as compared to its planned performance.

scope control The project management process of determining whether changes to project scope are needed and monitoring and managing the changes when they occur.

scope creep

Allowing the scope to expand inappropriately (without securing customer approval or without addressing the effect that such expansion will have on the project's cost, time, and resources). (See also “creep.”)

scope definition phase A phase in which the project manager defines the scope of the project and creates a project scope statement.

scope management plan A planning tool that describes how the team will define, verify, manage, and control the project scope.

scope planning The formulation of the project scope management plan.

scope statement Defines the project and what it does and does not need to accomplish.

scope verification The project management process of obtaining formal acceptance of the project scope by the stakeholders (sponsor, client, customer, and so on).

select sellers process The process of collecting and evaluating all of the proposals from potential sellers so that you can choose among them.

sensitivity analysis A method of assessing the relative impact of changing a variable in the project to gain insight into possible outcomes of one or more potential courses of action.

simulation A technique that uses computer models and estimates of risk to translate uncertainties at a detailed level into their potential impact on project objectives at the total project level.

slack See “float.”

source-based risk classification A method of analyzing risk in terms of its origins.

special causes of variance Unusual, sporadic occurrences; they are the result of some unexpected circumstance and are typically not caused by a flaw in the overall production process.

specifications Descriptions of the work to be done or the service or product to be provided; they define the requirements that must be met in exacting detail.

SPI (schedule performance index) The ratio of work performed to work scheduled. The formula for SPI is SPI = EV/PV.

staffing management plan A plan that forecasts what types of staff will work on the project, when they will be needed, how they will be recruited onto the project, and when they will be released from the project.

stakeholder analysis The formal process of identifying all of the stakeholders and building coalitions at the onset of a project by identifying their needs, objectives, goals, and issues.

stakeholder management The process of controlling communications to adjust to the needs of the stakeholders.

standard deviation This is the measure of the spread of the data, or the statistical dispersion of the values in your data set.

standards Non-mandatory guidelines or characteristics that have been approved by a recognized body of experts such as the International Organization for Standards (ISO).

statement of work (SOW) A narrative description of the resources, goods, or services that are being sought from external sources to fulfill a project's requirements; it is distributed to potential sellers, who will use it to evaluate their capability to perform this work or provide the services.

statistical sampling A technique used to determine characteristics of an entire population based on actual measurement of a representative sample of that population.

subprojects The smaller, more manageable components of projects.

successor activity In sequencing two activities, the activity that must take place after the other.

summary activity A group of related activities that are reported as an aggregate activity.

SV (schedule variance) The measured difference between the planned or scheduled completion of an activity and the actual completion of that activity. The formula for calculating SV is EV – PV = SV.

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T

tailoring The act of determining which processes are appropriate for any given project.

team development

The on-going effort to develop a cohesive team with good communication in order to enhance their collective performance so that you increase the likelihood of meeting project objectives.

team-building activities Specific functions or actions taken to help the team to develop into a mature, productive team.

term contract A type of contract that engages the seller to deliver a set amount of service—measured in staff-hours or a similar unit—over a set period of time.

The 8/80 rule A general guideline regarding activities: they require more than eight and fewer than 80 hours of effort to complete.

three-point estimates A method of activity duration estimating in which three types of estimates are incorporated into a singular duration estimate scenario: most likely, optimistic, and pessimistic.

time and material contract (T&M) This type of contract includes aspects of both fixed-price and cost-reimbursable contracts. The buyer pays the seller a negotiated hourly rate and full reimbursement for materials used to complete the project.

time value of money Taking into account the cost of using capital over a period of time.

tolerances The measurement values that determine if a product or service is acceptable or unacceptable.

tools and techniques Methods, templates, or approaches that project managers employ.

top-down estimating see “analogous estimating.”

total float The total amount of time that an activity can be delayed without delaying the project finish date when subtracting an activity's EF from its LF or its ES from its LS.

Total Quality Management (TQM) An approach to improving business results through an emphasis on customer satisfaction, employee development, and processes rather than functions.

training An activity in which team members acquire new or enhanced skills, knowledge, or attitudes.

triangular distribution PDF A visual depiction of a probability density function in which the data is skewed to one side, indicating an activity or element presents relatively little risk to project objectives.

triggers

Warning signs or indications that a risk is about to occur.

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U

uniform distribution PDF A visual depiction of a probability density function in which all outcomes are equally likely to occur, so the data is shown in a straight line.

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V

variable sampling data Data that is measured on a continuous scale, such as time, temperature, or weight.

variance The sources or reasons for differences in a process or item.

virtual team A team that is distributed across multiple locations. Some virtual teams have occasional physical meetings, while others may never meet face-to-face.

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W

waiver The giving up of a contract right, even inadvertently.

walkthrough see “inspection.”

warranty A promise, explicit or implied, that goods or services will meet a pre-determined standard. The standard may cover reliability, fitness for use, safety, and so on.

warranty of fitness for purpose Implied warranties that require goods to be fit for the usage that was intended by the buyer.

warranty of merchantability Implied warranties that require goods to be fit for ordinary usage.

WBS dictionary An auxiliary document containing details about each element in the WBS; may contain information such as code of accounts identification, milestones, contract information, cost, quality requirements, time estimates, or resource information for measuring performance and completeness.

weighted factor A decision model that applies a multiplier based on importance to each criterion, which is factored into the scoring.

weighting system A method for quantifying qualitative data to minimize the influence of personal bias on source selection.

what-if scenario An analysis method that allows you to plan for unexpected issues or problems that will interfere with the schedule.

work authorization system A plan or procedure for communicating official permission to begin working on an activity or work package.

work breakdown structure (WBS) A logical grouping of project deliverables arranged in a hierarchical structure that defines the total scope of work required to complete the project.

work package The smallest, most granular deliverable that cannot be further subdivided.

work package The planned work contained in the lowest-level component of the work breakdown structure.

work performance information Periodically collected information about project activities being performed to accomplish the project work.

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X

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Y

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Z

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MISC

360-degree feedback The collection of performance data from several key sources, including peers, managers, and subordinates.