PMI Authorized PMP Exam Prep Glossary

A collection of vocabulary flashcards derived from the PMI Authorized PMP Exam Prep Glossary (Updated July 2023), covering key project management terms, formulas, and methodologies.

5 Whys Method

A tool for root cause analysis developed by Sakichi Toyoda where the question “Why?” is asked in succession until the root cause is found; it is an integral part of Lean philosophy.

80/20 Rule

A guideline for controlling processes contending that a relatively large number of problems (typically $80\%$) are due to a relatively small number of causes (typically $20\%$).

A/B Testing

A marketing approach used to determine user preferences by showing different sets of users similar services—an ‘Alpha’ and a ‘Beta’ version—with one independent variable.

Actual Cost (AC)

The realized cost incurred for the work performed on an activity during a specific time in Earned Value Management.

Agile Manifesto

Created in $2001$ by $17$ software developers in Snowbird, Utah, it defines four core values: individuals and interactions over processes and tools; working software over comprehensive documentation; customer collaboration over contract negotiation; and responding to change over following a plan.

Agile Principles

A set of $12$ guidelines supporting the Agile Manifesto, including satisfying customers through early delivery, welcoming changing requirements, and building projects around motivated individuals.

Analogous Estimating

A technique for estimating duration or cost using historical data from a similar activity or project, also known as “Top-Down Estimating”.

Backward Pass

A Critical Path Method technique used to calculate the late start and late finish dates of schedule activities.

Benefit Cost Ratio (BCR)

The ratio of the expected benefits to the anticipated costs of a project or action.

Burn Chart

A tool used to track progress by plotting the number of days of a sprint against the number of hours of work remaining.

Change Control Board (CCB)

A formally chartered group responsible for reviewing, evaluating, and approving or rejecting changes to the project.

Communication Channels

The number of possible paths for communication on a project, calculated by the formula $\frac{n(n-1)}{2}$ where $n$ is the number of people.

Contingency Theory

A theory by Fred. E. Fielder stating that the skills and attributes that helped a project manager in one environment might work against them in another.

Cost Performance Index (CPI)

A measure of cost efficiency expressed as the ratio of earned value to actual cost.

Crashing

A schedule compression technique that involves applying additional resources to tasks to complete work more quickly, which usually increases costs.

Critical Path

The sequence of activities representing the longest path through a project, which determines the shortest possible duration.

Daily Standup

A short, $15$-minute meeting where the team provides quick status updates while standing in a circle; also called a daily scrum.

Definition of Done (DoD)

A team’s checklist of criteria that must be met for a deliverable to be considered ready for customer use.

Earned Value (EV)

A measure of work performed expressed in terms of the budget authorized for that work.

Enterprise Environmental Factors (EEF)

Internal or external factors such as culture, weather, or government regulations that can influence a project's success.

Fast Tracking

A schedule compression technique where activities or phases normally done in sequence are performed in parallel, which increases risk.

Fibonacci Sequence

A mathematical sequence ($0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144...$) used in agile estimating where each number is the sum of the two preceding numbers.

Herzberg’s Motivation-Hygiene Theory

A theory proposing that environmental factors (hygiene) and independent drives (motivation) affect worker performance; also known as Two Factor Theory.

Kaizen

A Japanese management concept meaning “change for the better” that refers to activities that continuously improve all project processes.

Kanban

A Japanese philosophy meaning “signal” that focuses on promoting visibility and limiting work in progress (WIP).

Lean Six Sigma

A collaborative method introduced by Bill Smith at Motorola in $1986$ to target customer needs and measure performance.

Management Reserve

An amount of the project budget (usually $5$ to $10\%$) held for unforeseen work within the scope, kept outside the performance measurement baseline.

Maslow’s Hierarchy of Needs

A psychological theory explaining human motivation through five levels of needs, ending with self-actualization.

Minimum Viable Product (MVP)

The smallest collection of features included in a product for customers to consider it functional.

Monte Carlo Analysis

A simulation technique that computes total project cost and schedule using various scenarios based on probability distributions.

Net Promoter Score (NPS)

A metric measuring a customer’s willingness to recommend a provider on a scale of $-100$ to $100$.

Pareto Chart

A histogram used to rank causes of problems in a hierarchical format, often associated with the $80/20$ Rule.

RACI Chart

A responsibility assignment matrix (RAM) that defines stakeholder involvement as Responsible, Accountable, Consulted, or Informed.

Schedule Performance Index (SPI)

A measure of schedule efficiency expressed as the ratio of earned value to planned value.

Servant Leadership

The practice of leading a team by focusing on understanding and addressing the needs and development of team members.

Theory X

A management theory by Douglas McGregor assuming workers are unmotivated and dislike work, leading to micromanagement.

Theory Y

A management theory by Douglas McGregor assuming employees are optimistic and positive, leading to trust-based collaborative relationships.

Triple Constraint

Factors of time, cost, and scope that can be adjusted when managing projects; also called the project management triangle.

Variance at Completion (VAC)

A formula measuring the difference between the budget at completion and the estimate at completion: $VAC = BAC - EAC$.

Work Breakdown Structure (WBS)

A hierarchical decomposition of the total scope of work to be carried out by the project team.