ARE 5.0: PjM flashcards
ARE 5.0: PjM · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Direct labor multiplier
- A factor applied to raw salary cost to cover overhead, fringe benefits, and profit. It converts direct labor cost into a billable rate for a project.
- Break-even multiplier
- The minimum billing multiplier at which a project neither gains nor loses. Computed as (1 + overhead rate) divided by (1 minus profit target).
- Utilization rate
- Billable hours divided by total paid hours for a staff member over a period. It measures how much of paid time is chargeable to projects.
- Resource leveling
- Adjusting activity start and finish dates to resolve resource over-allocation. It may extend the project duration because it can push activities past their float.
- Resource smoothing
- Leveling that stays within available float, so the critical path and project completion date do not change. Used when duration must be protected.
- Critical path
- The longest sequence of dependent activities through the schedule. It determines the shortest possible project duration and has zero total float.
- Total float
- The amount of time an activity can be delayed without delaying project completion. Calculated as late start minus early start.
- Staffing plan basis
- Labor hours per activity divided by productive hours per full-time equivalent determines the number of staff needed during each project phase.
- Work breakdown structure
- A deliverable-oriented hierarchy that decomposes total project scope into manageable work packages. It is the basis for estimating cost, duration, and responsibility.
- Work package
- The lowest level of the work breakdown structure at which cost and duration can be reliably estimated and assigned to a single responsible party.
- Cost performance index
- Earned value divided by actual cost. A value below 1.0 indicates the project is spending more than the work completed is worth.
- Schedule performance index
- Earned value divided by planned value. A value below 1.0 indicates the project is behind the schedule baseline.
- Estimate at completion
- The projected total cost of the project. When current cost performance continues, it equals budget at completion divided by the cost performance index.
- Cost variance
- Earned value minus actual cost. A negative result means the project has spent more than the value of work performed to date.
- Milestone
- A significant event or approval point on the schedule with zero duration. It consumes no resources and marks completion of a phase or deliverable.
- Fast-tracking
- Compressing the schedule by overlapping activities that were originally planned to run sequentially. It increases coordination risk but adds no direct cost.
- Crashing
- Compressing the schedule by adding resources or overtime to critical-path activities. It shortens duration but almost always increases project cost.
- Tuckman team stages
- The sequence forming, storming, norming, performing, and adjourning. Conflict during storming is a normal developmental phase, not necessarily a failure.
- RACI matrix
- A responsibility chart assigning Responsible, Accountable, Consulted, and Informed roles per task. Each task should have exactly one Accountable party.
- Span of control
- The number of direct reports a manager can effectively supervise. Commonly estimated at five to nine before delegation or sub-leadership becomes necessary.
- Expert authority
- Influence derived from specialized knowledge or skill rather than formal position. It persists even when the project manager holds no line authority.
- Referent authority
- Influence based on respect, trust, and personal relationships rather than title. It is earned through consistent and fair behavior with the team.
- Collaborating conflict mode
- A conflict approach that seeks a win-win outcome by addressing both parties' underlying interests. It is typically the most time-consuming mode.
- Herzberg two-factor theory
- Hygiene factors such as pay and working conditions prevent dissatisfaction, while motivators such as achievement and recognition produce genuine satisfaction and engagement.
- Project risk definition
- An uncertain event that, if it occurs, affects project objectives. Unlike an issue, a risk has not yet happened and has a probability and impact.
- Expected monetary value
- Probability multiplied by impact for a given risk. Summing EMVs across identified risks gives the basis for the contingency reserve.
- Risk register
- A log of identified risks recording cause, probability, impact, score, owner, planned response, and trigger. It is reviewed and updated throughout the project.
- Contingency reserve
- Funds set aside for identified risks that have been accepted. The project manager typically controls this reserve without sponsor approval.
- Management reserve
- Funds held for unknown-unknown risks not identified during planning. Drawing on it usually requires sponsor or organizational approval.
- Risk mitigation
- A response that reduces the probability or impact of a threat before it occurs. It differs from acceptance, which takes no proactive action.
- Risk transfer
- Shifting the financial consequence of a risk to another party through insurance, contracts, or hold-harmless clauses. Ownership of project outcomes remains with the firm.
- Risk score
- Probability multiplied by impact on a defined scale, commonly a 3x3 or 5x5 matrix. High scores require a documented response plan before execution.