Project Management Glossary – Course 3

Flashcards covering key vocabulary terms from the Project Management glossary (Course 3).

Backward pass

Starting with the final task or milestone and moving backwards through the schedule to find the shortest path

Baseline

The reference dollar amount used to gauge whether a project is on track and to measure its success

Baseline a budget

Creating a fixed spending reference point to measure and compare project progress

Bottom-up approach

Listing all project parts and their costs from start to finish and adding them together

Budget

The estimated monetary resources needed to meet a project’s goals and objectives

Budget pre-allocation

A situation in which a budget is set before the project begins

Budget risk

The possibility that project costs will rise because of poor planning or scope creep

Buffer

Extra time added to a task or project to absorb unexpected delays

Capacity

The amount of work people or resources can reasonably complete in a given period

Capacity planning

Allocating people and resources to tasks and confirming needed resources are in place

CAPEX (capital expenses)

Expenditures incurred to create future benefits

Cash flow

The inflow and outflow of cash on a project

Cause-and-effect diagram

Visual that shows possible causes of an event or risk; also called a fishbone diagram

Communication

The flow of information—what is shared, how, and with whom

Communication plan

Document that organizes the process, types, and expectations of project communications

Contingency budget

Money included to cover unforeseen events not in the cost estimate

Contingency reserves

Funds added to the estimated cost to manage identified risks

Cost of quality

Costs incurred to prevent problems with products, processes, or tasks

Cost performance index (CPI)

Ratio of percentage complete to actual costs

Cost variance (CV)

Difference between budgeted and actual costs for completed work at a point in time

Critical path

Sequence of milestones and mandatory tasks required to meet the project goal on schedule

Decision tree

Flowchart showing the wider impact of a decision across a project

Dependency

Relationship in which one task’s start or finish relies on another task

Dependency graph

Visual representation of task dependencies in workflow

Direct costs

Costs that occur directly within a project

Earliest start date

In CPM, the earliest a task or project can begin

Earned value management (EVM)

Technique for regularly comparing budget and schedule actuals to the plan

Effort estimation

Prediction of the amount and difficulty of active work needed for a task

Empathy

Ability to relate to others’ thoughts and feelings

Ethical trap

Situation that may lead someone to make unethical choices

Finish-to-finish (FF)

Dependency where Task 1 must finish before Task 2 can finish

Finish-to-start (FS)

Dependency where Task 1 must finish before Task 2 can start

Fishbone diagram

Another name for a cause-and-effect diagram

Fixed contract

Contract paid when specified milestones are achieved

Fixed costs

Costs that remain unchanged over the project duration

Fixed start date

Date on which a task must begin to achieve a goal

Float

Amount of time a task can be delayed before it affects the schedule

Forecast

Cost estimate or prediction over a period

Forward pass

Scheduling method that moves forward from the first task to the last

Gantt chart

Horizontal bar chart that visually maps project tasks, owners, and due dates

High-level risk

Serious risk that can affect overall project success and needs stakeholder discussion

Impact

Degree of damage a risk could cause (high, medium, low)

Indirect costs

Costs that can’t be linked directly to a specific project

Inherent risk

Risk measure calculated by its probability and impact

Issue

Known, real problem that can hinder task completion

Kanban board

Visual tool for managing tasks and workflows

Kickback

Corruption scheme where a percentage of a contract is paid to secure the bid

Knowledge management

Ensuring project data is accessible for future use

Latest start date

In CPM, the latest a task or project can begin

Leverage experts

Using expert insights to perform tasks more effectively

Low-level risk

Risk with low impact or probability; may not need stakeholder communication

Management reserves

Budget percentage set aside for unknown risks

Medium-level risk

Urgent risk likely to impact project; requires stakeholder communication

Milestone

Significant point that shows progress or phase completion in a schedule

Need-to-know basis

Providing only the necessary information at the required time

Network diagram

Visual that sequences project tasks by dependency order

Non-disclosure agreement (NDA)

Document maintaining confidentiality of information

Open-ended question

Question that cannot be answered with yes or no

OPEX (operating expenses)

Day-to-day expenses required to run a company

Optimism bias

Belief that negative events are unlikely to affect oneself

Parallel tasks

Tasks that can occur simultaneously

Personally identifiable information (PII)

Data that can directly identify or locate an individual

Planning fallacy

Tendency to underestimate time, costs, and risks of a task

Planning phase

Second phase of project life cycle involving schedule, budget, and risk plan

Probability and impact matrix

Tool for prioritizing project risks

Probability

Likelihood that a risk will occur

Procurement

Obtaining materials, services, and supplies for a project

Project budget

Estimated monetary resources to meet project goals

Project buffer

Extra time added to the end of a project

Project kick-off meeting

Initial meeting aligning team on vision, goals, scope, and roles

Project management baseline (PMB)

Fixed starting point covering scope, budget, and schedule

Project plan

Document recording scope, tasks, milestones, people, documentation, and time

Project task

Activity to be completed within a set period

Reforecast

Creation of a revised budget based on project tracking

Request for proposal (RFP)

Document outlining project details to solicit vendor bids

Reserve analysis

Method for checking remaining project resources

Resource cost rate

Cost of a given resource

Risk

Potential event that can impact a project

Risk appetite

Organization’s willingness to accept risk outcomes

Risk assessment

Estimating or measuring risk qualities

Risk management

Process of identifying and evaluating project risks and issues

Risk management plan

Living document listing risks, their probability/impact, and mitigation plans

Risk register

Table or chart containing a list of project risks

Root cause

Initial cause that introduces a risk or problem

Schedule

Project timeline including start, end, and interim dates

Schedule performance index (SPI)

Ratio of work complete to the planned budget for that work

Schedule variance (SV)

Difference between planned and actual work completed

Scope risk

Possibility that results won’t meet project goals

Sequential tasks

Tasks that must be completed in a set order

Single point of failure

Risk that can halt work across an entire project

Slack

Time a task can be delayed past its earliest start without delaying the project

Soft skills

Personal traits that help people work well with others

Sole-supplier sourcing

Restricting bidding to one supplier, eliminating competition

Start-to-finish (SF)

Dependency where Task 1 must start before Task 2 can finish

Start-to-start (SS)

Dependency where Task 2 can’t start until Task 1 starts

Statement of work (SoW)

Document specifying products and services a vendor will provide

Subtasks

Smaller tasks required to complete a larger task

Subject matter expert (SME)

Person with deep knowledge of a specific area

Summary task

Header describing a collection of subtasks in a project plan

Task buffer

Extra time added to a specific task