Test 1 - PMGT 3640 - Procurement Cost & Procurement Management

Vocabulary-style flashcards covering project management fundamentals, organizational structures, selection criteria, and PMI standards from Module 1.

Project

A temporary endeavour undertaken to create a unique product, service, or result.

Program

Related projects, subsidiary programs, and program activities that are managed in a coordinated manner to obtain benefits not available from managing them individually.

Portfolio

Projects, programs, subsidiary portfolios, and operations managed as a group to achieve strategic objectives.

Project Management

The application of knowledge, skills, tools, and techniques to project activities to meet project requirements.

Tailoring

The deliberate adaptation of approach, governance, and processes to make them more suitable for the given environment and the work at hand.

Value

Something of worth, importance or usefulness.

Digitization

The process of converting information from analog to digital computer files.

Digitalization

The use of digital data to simplify the way work is done; it is about the way business operations employ transformative digital technologies and information.

Digital Transformation

Changing the way business gets done and, in some cases, creating entirely new classes of businesses by revisiting internal systems and customer interactions.

PMI Talent Triangle

A triad of essential skills for project leaders consisting of technical project management, strategic and business management, and leadership.

Psychological Safety

A shared belief held by members of a team that the team is safe for interpersonal risk taking.

Servant Leadership

A leadership style that focuses on understanding and addressing the needs and development of project team members to enable the highest possible project team performance.

Project Performance Domain

A group of related activities that are critical for the effective delivery of project outcomes.

Payback Period

The time necessary to recover the cost invested in the project, calculated as: $\text{Payback Period} = \frac{\text{Cost of the Project}}{\text{Average Annual Cash Inflows}}$

Net Present Value (NPV)

The difference between the project’s current value of cash inflow and the current value of cash outflow, calculated as: $\text{NPV} = \text{Present Value (PV)} - \text{Initial Investment}$

Internal Rate of Return (IRR)

The interest rate at which the Net Present Value is zero; used to select projects with the best profitability.

Opportunity Cost

The cost that is given up when selecting another project during the selection process.

Multi-Weight Scoring Models

An objective technique where a committee lists relevant criteria, weighs them according to importance, and adds the weighted values to choose a project.

Functional Organization

The classic structure used to establish managerial hierarchy with the organization divided into traditional departments like accounting, engineering, and HR.

Projectized Organization

A business structure where staff members are grouped into workforces tasked with unique project objectives and project managers have a high level of authority.

Matrix Organization

A blend of functional and projectized structures where functional managers and project managers share authority over resources.

Project Charter

A document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with authority to apply organizational resources.

Project Management Plan

A global document that explains how project processes (scope, schedule, cost, risk, etc.) are defined, implemented, monitored, and controlled.

Product Scope

All required specifications defining a deliverable, usually derived from customer specifications, industry standards, or regulatory requirements.

Project Scope

All processes required to define, implement, monitor, control, and close project activities.

Work Breakdown Structure (WBS)

A hierarchical decomposition of project activities into smaller components to understand actual work at the work package level.

Work Package

The smallest component or lowest-level activity in a branch of the Work Breakdown Structure.

Scope Creep

Uncontrolled change where unapproved alterations are made to the project deliverable, often resulting in increased cost and schedule delays.

Salience Model

A stakeholder identification model based on three variables: Power to influence, Legitimacy of relationship, and Urgency of claim.

Predictive Life Cycle

A plan-driven development approach where requirements are analyzed at the beginning and the project is planned as much as possible before performing activities.

Adaptive Life Cycle

A development approach used when uncertainty exists, characterized by frequent requirement changes and iterative or incremental delivery.

Cadence

The timing and frequency of project deliveries, representing the rhythm of value creation.