Project Management Key Terms Chapter 1

Front 1

A Guide to the Project Management Body of Knowledge (PMBOK Guide)

Back 1

The project management standard developed by the Project Management Institute

Front 2

Benefit Measurement Methods

Back 2

A type of decision model that compares the benefits obtained from a variety of new project requests by evaluating them using the same criteria and comparing the results.

Front 3

Decision Model

Back 3

A formal method of project selection that helps managers make the best use of limited budgets and human resources. Includes benefit measurement methods and constrained optimization models.

Front 4

Discounted Cash Flow (DCF)

Back 4

Compares the value of the future cash flows of the project to today's dollars.

Front 5

Economic Model

Back 5

A type of benefit measurement method. It is a series of financial calculations that provide data on the overall financials of the project and is generally used as a project selection technique

Front 6

Enterprise project

Back 6

A project that will be used by users throughout the enterprise

Front 7

Equipment

Back 7

(A) Resources such as servers, specialized test equipment, or additional PCs that are required for a project.

(B) One of the categories of project resources. It includes test tools, servers, PCs or other related items required to complete the project

Front 8

Expert Judgment

Back 8

A technique used in project selection, determining estimates, and determining other related project information that relies on the knowledge of those with expertise on the requested subject matter. Expert judgment can come from stakeholders, other departments, consultants, team members, vendors, or industry groups.

Front 9

External Dependency

Back 9

A type of dependency where a relationship between a project task and a factor outside the project, such as weather conditions drives the scheduling of that task.

Front 10

Internal Rate of Return (IRR)

Back 10

The discount rate when the present value of the cash inflows equals the original investment. Projects with higher IRR values are generally considered better than projects with lower IRR values. Assumes that cash inflows are reinvested at the IRR value.

Front 11

Lines of Communication

Back 11

A mathematical formula that determines the number of lines of communication between participants in a meeting. The formula is n(n-1)/2, where n represents the number of participants.

Front 12

Loaded Rate

Back 12

A rate used for cost estimating of human resources that includes a percentage of the salary to cover employee benefits, such as medical, disability, or pension plans.

Front 13

Net Present Value

Back 13

Evaluation of the cash inflows using the discounted cash flow technique, which is applied to each period the inflows are expected. The total present value of the cash flows is deducted from the initial investment; this assumes that cash inflows are reinvested at the cost of capital. It is similar to discounted cash flows.

Front 14

Payback Period

Back 14

The length of time it takes a company to recover the initial cost of producing the product or service of the project.

Front 15

Project

Back 15

Temporary in nature, with definite start and end dates; creates a unique product, service or result, It is completed when the goals of the project have been met and signed off on by the stakeholders.

Front 16

Project Management Institute

Back 16

The Worlds Leading Professional Project Management Association

Front 17

Project Management Knowledge Areas

Back 17

The nine project management groupings, or knowledge areas, that bring together common or related processes. They are Integration, Scope, Time, Cost, Quality, Human resource, Communications, Risk and Procurement.

Front 18

Project Management Office (PMO)

Back 18

Established by organizations to create and maintain procedures and standards for project management methodologies to be used throughout the organization

Front 19

Project Manager

Back 19

The person responsible for applying the skills, knowledge, and project management tools and techniques to the project activities to successfully complete the project objectives

Front 20

Project Performance Indicators

Back 20

Measures that the project manager uses to determine whether the project is on track, such as any deviation from the baseline schedule or the baseline budget

Front 21

Project Plan

Back 21

A document, or assortment of documents, that constitutes what the project is, what the project will deliver, and how all the processes will be managed. Used as the guideline throughout the project Executing and Controlling phases to track and measure project performance and to make future project decisions. Also used as a communication and information tool for stakeholders, team members, and Management.

Front 22

Project Review

Back 22

A formal presentation by the project manager or project team members to the sponsor, the client, and the other executive stakeholders.

Front 23

Project Schedule

Back 23

Determines the start and finish dates for project activities and assigns resources to the activities.

Front 24

Project Selection

Back 24

Used to determine which proposed projects are approved to move forward

Front 25

Project-based Organization

Back 25

An organizational structure focused on projects. Project managers generally have ultimate authority over the project, and sometimes supporting departments such as human resources and accounting might report to the project manager. Project managers are responsible for making project decisions and acquiring and assigning resources.