PMP® glossary

The realized cost incurred for the work actually performed on an activity.

The ongoing activity of reviewing and detailing backlog items so they're ready to be pulled into upcoming work.

The total planned budget for all authorized work on the project.

A formally chartered group responsible for reviewing, approving, or rejecting changes to the project baseline.

Budget or time set aside for identified risks that are accepted, sized to the project's risk exposure. Part of the cost baseline.

Cost efficiency of budgeted resources. CPI > 1 means under budget; CPI < 1 means over budget; CPI = 1 means on budget.

CPI = EV / AC

How far actual spend is from the value of work completed. Negative means over budget.

CV = EV − AC

A contract type where the buyer reimburses the seller's actual costs plus a fee, placing more cost risk on the buyer.

A schedule compression technique that adds resources to shorten activity duration, usually increasing cost.

The longest sequence of dependent activities that determines the shortest possible project duration. Delaying any activity on it delays the project.

The shared, agreed checklist of criteria a work item must meet to be considered complete and releasable.

The value of the work actually completed, expressed in terms of the approved budget.

The forecasted total cost of the project given current performance. Several formulas exist depending on the assumption; the most common assumes current cost performance continues.

EAC = BAC / CPI

The expected cost needed to finish all remaining project work.

ETC = EAC − AC

A schedule compression technique that performs activities in parallel that were originally planned in sequence. Increases risk but doesn't add cost.

A contract type where the total price is set in advance, placing cost-overrun risk primarily on the seller.

The amount of time an activity can be delayed without affecting the project finish date (total float) or the next activity's start (free float). Critical path activities typically have zero float.

A visual, flow-based method that limits work in progress and pulls work through stages as capacity allows, rather than working in fixed-length iterations.

Budget or time held back for unforeseen (unidentified) work, controlled by management and outside the performance measurement baseline.

The authorized budget assigned to scheduled work as of a given point in time.

A responsibility assignment chart mapping who is Responsible, Accountable, Consulted, and Informed for each task or deliverable.

The general level of risk exposure an organization or stakeholder is willing to accept.

A document listing identified risks, their analysis (probability, impact), owners, and planned responses.

Progressive elaboration where near-term work is planned in detail while future work is kept at a higher level until more information is available.

Schedule efficiency of work completed. SPI > 1 means ahead of schedule; SPI < 1 means behind schedule; SPI = 1 means on schedule.

SPI = EV / PV

How far ahead or behind schedule the project is, in value terms. Negative means behind schedule.

SV = EV − PV

Uncontrolled expansion of project scope without corresponding adjustments to time, cost, or resources — usually a sign of weak change control.

A leadership style focused on removing obstacles for the team and enabling their performance, common in agile environments.

A fixed, short time-box (commonly 1–4 weeks) in Scrum during which a usable increment is created.

A document identifying project stakeholders along with their interests, influence, and engagement level.

A hybrid contract type that pays for labor at a set rate plus materials, often used when scope isn't fully defined up front.

The cost efficiency required on remaining work to hit the budget (or a revised EAC). Above 1 means the remaining work must be done more efficiently than planned.

TCPI = (BAC − EV) / (BAC − AC)

The projected budget surplus or deficit at project completion.

VAC = BAC − EAC

The amount of work (often in story points) a team completes per sprint, used to forecast future capacity.

A hierarchical decomposition of the total scope of work into smaller, manageable components, down to work packages.