PMP Exam Important Terms

PMP EXAM PREPARATION

PMP (Project Management Professional) is an internationally recognized designation offered by PMI (Project Management Institute). PMP exam is based on PMI – PMBOK (Project Management Body of Knowledge) and other cross-cutting knowledge and skills listed in PMP examination content outline. To gain this cross-cutting knowledge and to understand the different knowledge areas, process groups and process the individual who wants to get certified needs to have various resources to pass the PMP Exam. Considering the PMP aspirants requirements here Microbiteworld has prepared a study notes, which may help in PMP Exam Preparation.

For detailed and best PMP Exam Preparation Materials / Resources please see our other post under “Project Management” category.

In PMP Exam Preparation Study Notes – 1 we have seen “Process Groups, Knowledge Areas and various Processes” that are part of PMBOK 6th Edition.

In PMP Exam Preparation Study Notes – 2 we have discussed about what is included in  “Project Management Plan” and “Project Documents”.

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Important Terms

Discrete Efforts:
Discrete Efforts is an Activity that can be planned and measure, and that yields a specific output. Discrete efforts are actions that directly result in product, service or result or components of a product, service or result. Example: Installation

Apportioned Efforts:
Apportioned Effort is an activity where an effort is allowed proportionately across certain discrete efforts and not divisible into discrete efforts. Apportioned Efforts hold direct supportive relationship to a discrete activity and can be measured in direct proportionate to a discrete effort. Example: Testing

Level of Efforts:
Level of Effort is an activity that does not produce absolute end products and is measured by the passage of time. Level of efforts includes project management activities which mainly involve those kinds of activities which are needed to support the discrete and associated apportioned activities. Example: Planning, Meetings.

Note: Three Earned Value Management (EVM) types of activities used to measure work performance are –

Discrete Efforts, Apportioned Efforts & Level of Efforts.

Paralingual:
Paralingual means pitch and tone of voice, which can help to convey a message.

Parkinson’s Law:
Parkinson’s Law states that work will expand to fulfill the time allotted to it. Law says that you will allow yourself much more time to complete a task than you actually need. Task may suffer from this.

Padding:
A pad is extra time or cost added to an estimate because the estimator does not have enough information. Project manager shall not allow padding on project.

Student Syndrome:
“Student Syndrome” is a term that pertains to the psychology of procrastinating, something students are particularly prone to do. Waiting until the last possible moment to start a task. When there is more time to complete a task than is truly necessary, it is typical that team members will wait until the last possible moment to begin.

Ethnocentrism:
Ethnocentrism is a typical belief that one’s culture is superior to the others (foreigner’s culture).

Culture Shock:
Culture Shock refers to the initial disorientation that a person first experiences when visiting a country other than his own.

Oligopoly:
Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. There are few sellers and action of one seller will have impact on other sellers prizes.

Note: Different types of market structure –
Perfect Competition, Monopolistic Competition, Oligopoly, Monopoly.

Sole Source:
Sole Source is a type of procurement in which there is only one seller/supplier that provides product/service. Generally these are unique products/services that you cannot find anywhere else. It might be a company that owns a patent.

Single Source:
Single Source is a type of procurement in which a particular supplier is purposefully chosen by the buying organisation, even when other suppliers are available. Means, an organization (buyer) do contract with preferred  seller without going through the full procurement process.

Force Majeure:
The force majeure clause in a contract excuses a party from not performing its contractual obligations due to unforeseen events beyond its control. These events include natural disasters such as floods, earthquakes and other “acts of God,” as well as uncontrollable events such as war or terrorist attack. Force majeure clauses are meant to excuse a party provided the failure to perform could not be avoided by the exercise of due diligence and care. However, it does not cover failures resulting from a party’s financial condition or negligence.

Liquidated Damages (LD):
Liquidated damages (also referred to as liquidated and ascertained damages) are an agreed upon sum of money that the buyer will be entitled to in the event that the contractor fails to meet certain contractual obligations. These are established at the time of signing the contract and are a part of the contract.

Scope Creep:
Scope creep is the uncontrolled expansion to product or project scope without adjustment to time, cost and resources.

Gold Plating:
Gold plating is adding extra features/functions to the product/project intentionally which were not part of defined and approved project/product scope.

War Room:
A war room is a set up so that, team member can be collocated in a single room. It can be a meeting room for the purpose of discussing project management. The war room provide a location for project managers and project teams to meet and carry out communication, problem-solving and status reporting meetings associated with a project. A war room can be a physical set-up of both real and Web-based war rooms.

Marginal Analysis:
Marginal analysis is a  type of analysis focused on finding the point (optimal quality) at which the benefits (revenue) to be received from improving the quality equals the incremental cost to achieve that quality.

Law of Diminishing Return (LODR):
Law of diminishing returns also called Diminishing returns or principle of diminishing marginal productivity, says that after a certain point, the increase in input of a process does not lead to a proportional increase in the output. In other words, increase in process productivity is not directly proportional to the increase of people in the team.

Learning Curve:
A learning curve is a graphical representation of repetitive tasks that, when done on a continuous basis, lead to a reduction in activity duration, resources and costs. Learning curve theory says that if a task is performed over and over than less time will be required at each iteration. In project management, this theory is used for schedule and cost estimation. Learning curves are also known as experience curve, cost curves, efficiency curves and productivity curves. These curves help demonstrate the cost per unit of output decreases over time with the increase in experience of the workforce.

Halo Effect:
The Halo Effect (also known as the ”Peter principle”) is a management theory that says a candidate’s successful performance in their current position is not a true indicator of how they will perform in a new role. That is, the skill set required for the intended role needs to be considered because being a strong performer in one role, does not necessarily transfer to being a strong performer in another role.In project management, the wrong perception to rate a team member high or low in all the knowledge areas, based in a brilliant performance in some specific area is called the “halo effect”. For example “If you have a good performance in the technical areas you should be good in management tasks”.

Mutually Exclusive Event:
Two events are said to be mutually exclusive if they can’t both happen at the same time. Example: The rolling of a dice must result in a number that is either odd or even; it can’t be both. Another example is, you cannot roll both a five and a three simultaneously on a single dice.

Heuristics:
A heuristics means a “generally accepted rule or best practice”. Heuristic is an experience-based technique, it is used when exhaustive estimation based on detailed mathematical formulas is impractical.  Its similar to expert judgement, meaning if the person has done the similar project in past, then based on heuristics he can give an estimate along with explanations. Heuristic estimation technique uses ‘Rule of Thumb’ or certain generally acceptable rules for estimation. No need of any formula or anything, but accepted because of their accuracy in past projects. Heuristic rules are derived by experience. For Example: 80/20 rule. Another example is: Design work is equal to 15% of total estimate (as per Rita).

Job Shadowing (Work Shadowing):
“Observation” is one of the interpersonal and team skills that provides a direct way of viewing individuals in their environment and the way they perform their jobs or tasks and carry out processes. It is particularly helpful in complex /detailed processes where the end users who use the product have difficulty, or, are reluctant to articulate their experience / requirements. Observation is also known as “job shadowing.” It is usually done externally by an observer who views a business expert performing a job. It can also be done by a “participant observer” who performs a process or procedure to experience how it is done to understand/uncover hidden requirements.

Reverse Shadowing:
Reverse shadowing is where a more junior member of staff, who is recognized as one of the organization’s lynch pins, shares some of their hard-earned experience with a colleague from the managerial/leadership cadre, on how to circumnavigate barriers in order deliver a key piece of work effectively and efficiently. In this scenario, it is the junior member of staff who wields the influence, possibly through contacts, experience or personality. The reverse shadowing offer would be an initial 30 minute conversation, to be repeated depending on the parties involved.

Management by Objectives (MBO):
Management by Objectives (MBO) can be described as a method of allowing management and employees to concentrate on obtainable objectives, with the purpose of maximizing resources to yield the highest possible results. Management by Objectives (MBO) is a “strategic management model” that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization.

Management by exception (MBE):
Management by exception is a style of business management that focuses on identifying and handling cases that deviate from the norm, recommended as best practice by the project management method. Managing by Exception can be broadly summed up as creating the right conditions in the first place then only intervening when things aren’t going according to plan.

Kaizen:
Kaizen is a philosophy and practice that sees improvement in productivity as a gradual and methodical process and focuses on continual improvement throughout all aspects of life. Kaizen is a Japanese term meaning “change for the better.” One of the most notable features of kaizen is that big results come from many small changes accumulated over time.

Total Quality Management (TQM):
A total quality management (TQM) can be described as a management approach to long-term success through customer satisfaction. In a TQM effort, all members of an organization participate in improving processes, products, services, and the culture in which they work. TQM is seen as a set of “organization-wide” structured processes chartered to achieving quality goals to meet the organization’s requirements. TQM includes continuous process improvement within it.

Note: Quality improvement initiatives such as PDCA (Plan-Do-Check-Act) Cycle, Total Quality Management (TQM), Six Sigma (6σ) and Lean Six Sigma may improve both the quality of project management, as well as the quality of the end product, service, or result. (Reference: PMBOK 6th Edition)

Just in Time (JIT):
Just-in-Time is concept originated and developed in Japan, particularly at Toyota. Toyota used this methodology in manufacturing and it came to be known as Just-in-time (JIT) manufacturing or Just-in-time production or the Toyota Production System (TPS). Just-in-Time basically means maintaining only the inventory that you need. So instead of maintaining a large inventory of parts to be used in manufacturing, you only keep the number of parts that you would need in a day. This can help you reduce cost. It can go even further to help get rid of warehouses altogether! Some companies have perfected the art of Just-in-Time manufacturing to the point that they take in parts into the production line right off the trucks!

Total Productive Maintenance (TPM):
Total Productive Maintenance (TPM) is a system of maintaining and improving the integrity of production, safety and quality systems through the machines, equipment, processes, and employees that add business value to an organization and add real value to your customer. In other words TPM is the process of integrating equipment maintenance into the manufacturing process, in order to stabilize equipment, thereby increasing availability, performance and quality of the equipment. TPM focuses on keeping all equipment in top working condition to avoid breakdowns and delays in manufacturing processes.

Note: Resource management methods such as Lean Management, just-in-time (JIT) manufacturing, Kaizen, Total Productive Maintenance (TPM), Theory of Constraints (TOC), and other methods have become popular in the past several years Due to the scarce nature of critical resources. (Reference: PMBOK 6th Edition)

Theory of Constraints (TOC):
The Theory of Constraints is a methodology for identifying the most important limiting factor (i.e. constraint) that stands in the way of achieving a goal and then systematically improving that constraint until it is no longer the limiting factor. In manufacturing, the constraint is often referred to as a bottleneck.
The theory of constraints (TOC) is a management paradigm that views any manageable system as being limited in achieving more of its goals by a very small number of constraints. There is always at least one constraint, and TOC uses a focusing process to identify the constraint and restructure the rest of the organization around it. TOC adopts the common idiom “a chain is no stronger than its weakest link”. This means that processes, organizations, etc., are vulnerable because the weakest person or part can always damage or break them or at least adversely affect the outcome.

Lean Project Management:
Lean project management is the application of lean manufacturing principles to the practice of project management. The goal of lean project management is to maximize value while minimizing waste. Lean manufacturing principles were developed by Toyota in the 1950s.

Six Sigma (6σ):
Six Sigma is a quality management methodology which helps you to reduce defects and maintain consistent quality in products. The Six Sigma method focuses on understanding customers’ requirements better and eliminating defects and waste. These objectives are achieved through profound knowledge of statistics, engineering and project management, as well as the underlying processes and systems. Objective of Six Sigma projects are to improve the organization’s products, services and processes across various disciplines, including production, marketing, finance, and administration.

Constructive Changes:
Constructive changes are those requested changes where the buyer and seller cannot reach an agreement on compensation for the change, or cannot agree that a change has occurred. Requested but unresolved changes can include direction provided by the buyer or actions taken by the seller, which the other party considers a constructive change to the contract. A constructive change is an informal change, i.e. is has been performed, but has not gone through the Integrated change control system. Since any of these constructive changes may be disputed by one party and can lead to a claim against the other party, such changes are uniquely identified and documented by project correspondence. Constructive changes may lead to disputes or claims, which will require negotiation, mediation, or arbitration in order to bring the dispute or claim to a satisfactory resolution. It occurs when a contractor performs work beyond the contract requirements, without a formal order under the changes clause, either due to an informal order from, or through the fault of, the buyer.

Zero Sum Reward System:
A Zero Sum reward system is a win-lose recognition program. Examples of win-lose (zero sum) rewards include team member of the month—only certain members can earn it. Using normal distribution when rating the performance of team members means that some members will be rated as “low” and some as “high,” with the rest left in the middle (average). Such reward systems can foster unhealthy competition among team members. The PMBOK^® Guide encourages rewarding win-win situations instead—that is, giving all team members the same opportunity to earn the rewards. For example, rewards could be given for submitting progress reports on time, putting in extra hours to meet a deadline, and achieving other performance goals.

Murder Board:
In this method of project selection, you create a murder board. A murder board is also known as a scrub-down. You constitute a murder board, which is a committee that comprises of senior managers and subject matter experts from different areas. The murder board scrutinizes the project to find reasons why the project should not be selected. You must defend the project and counter all the queries of the board members. The main responsibility of the murder board is to critically review the proposed project. As the name suggests, the members of the board are supposed to review the project aggressively. During this review, there is no scope of pleasantries and is done without any constraints.

Kanban:
Kanban is a visual system for managing work as it moves through a process. Kanban visualizes both the process (the workflow) and the actual work passing through that process. The goal of Kanban is to identify potential bottlenecks in your process and fix them so work can flow through it cost-effectively at an optimal speed or throughput. Kanban (signboard or billboard in Japanese and Chinese) is a scheduling system for lean manufacturing and just-in-time manufacturing (JIT).

Kanban Board:
A Kanban board is one of the tools that can be used to implement Kanban to manage work at a personal or organizational level. A Kanban board is an agile project management tool designed to help visualize work, limit work-in-progress, and maximize efficiency (or flow). Elements of a Kanban board are Visual Cards (stickers), Columns, Work In Progress (WIP) Limits, Commitment Points, Delivery Points. Kanban boards use these elements to help technology and service teams commit to the right amount of work, and get it done.

By: Microbiteworld.Com

 

 

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Reference:
https://en.wikipedia.org/wiki/Main_Page
PMBOK 6th Edition:
To Get more information, please download PMBOK from PMI website.

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