Project - ANSWER-Temporary in nature, with a definite start and end date; creates a unique
product, service, or result. It is completed when the goals and objectives of the project have
been met and signed off on by the stakeholders.
Project management - ANSWER-Applying skills, knowledge, and project management tools and
techniques to fulfill the project requirements.
Project Management Institute (PMI) - ANSWER-The world's leading professional project
management association.
Project management knowledge areas - ANSWER-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 & Procurement.
Project management office (PMO) - ANSWER-Established by organizations to create and
maintain procedures and standards for project management methodologies to be used
throughout the organization.
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Project manager - ANSWER-The person responsible for applying the skills, knowledge, and
project management tools and techniques to the project activities to successfully complete the
project objectives.
Project performance indicators - ANSWER-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.
Project plan - ANSWER-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.
Project selection - ANSWER-Used to determine which proposed projects are approved to move
forward
Project-based organization - ANSWER-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.
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A Guide to Project Management Body of Knowledge (PMBOK Guide) - ANSWER-The project
management standard developed by the Project Management Institute.
Benefit measurement methods - ANSWER-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.
Co-located - ANSWER-When team members work together at the same physical location
Constrained optimization models - ANSWER-Decision models that use complex principles of
statistics and other mathematical concepts to assess a proposed project.
Cost-benefit analysis - ANSWER-A commonly used benefit measurement method that calculates
the cost of producing the product, service, or result of the project and compares this to the
financial gain the project is expected to generate.
Decision model - ANSWER-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.
Discounted cash flow (DCF) - ANSWER-Compares the value of the future cash flows of the
project to today's dollars.
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Economic model - ANSWER-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.
Expert judgment - ANSWER-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.
Feasibility study - ANSWER-Undertaken to determine whether the project is a viable project,
the probability of project success, and the viability of the product of the project
Functional organization - ANSWER-A form of organizational structure. Functional organizations
are traditional organizations with hierarchical reporting structures.
Internal rate of return (IRR) - ANSWER-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.
Matrix organization - ANSWER-An organizational structure where employees report to one
functional manager and at least on project manager. Functional managers assign employees to
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