Project Management Key Terms
Master these terms for the PjM division. Terms are grouped by topic area.
Scheduling
Critical Path Method (CPM)
A scheduling technique that identifies the longest sequence of dependent activities, determining the minimum project duration. Activities on the critical path have zero total float.
Total Float
The amount of time an activity can be delayed without delaying the project completion date. Calculated as Late Start minus Early Start (or Late Finish minus Early Finish).
Free Float
The amount of time an activity can be delayed without delaying the early start of any successor activity.
Fast-Tracking
A schedule compression technique that overlaps activities that would normally be sequential. Increases risk but reduces overall project duration. Example: starting construction documents before design development is complete.
Crashing
A schedule compression technique that adds resources (labor, equipment, overtime) to critical path activities to shorten their duration. Increases cost but reduces schedule.
Gantt Chart
A bar chart showing project activities plotted against time. Shows duration and timing but does not show dependencies between activities (unlike a CPM network diagram).
Milestone
A significant point or event in the project schedule with zero duration. Used to mark the completion of major phases or deliverables.
Budgeting and Cost
Earned Value (EV)
The budgeted cost of the work actually performed. Also called Budgeted Cost of Work Performed (BCWP). See our guide on cost estimation methods.
Planned Value (PV)
The budgeted cost of the work scheduled to be performed. Also called Budgeted Cost of Work Scheduled (BCWS).
Actual Cost (AC)
The actual cost incurred for work performed. Also called Actual Cost of Work Performed (ACWP).
Cost Performance Index (CPI)
CPI = EV / AC. A value greater than 1.0 indicates the project is under budget. Less than 1.0 indicates over budget.
Schedule Performance Index (SPI)
SPI = EV / PV. A value greater than 1.0 indicates the project is ahead of schedule. Less than 1.0 indicates behind schedule.
Estimate at Completion (EAC)
The projected total cost of the project. EAC = BAC / CPI (assuming current cost performance continues).
Contingency
A budgeted amount set aside to cover unforeseen costs. Design contingency decreases as the design becomes more detailed. Construction contingency covers unknowns during construction.
Value Engineering
A systematic method to improve the value of a project by examining functions and reducing costs without sacrificing quality or performance. Focus on function, not just cost reduction. Learn more about cost estimation and value analysis.
Quality Management
Quality Assurance (QA)
Proactive, process-oriented activities that establish and maintain standards to prevent defects. QA focuses on the process - getting it right the first time.
Quality Control (QC)
Reactive, product-oriented activities that check work products for defects after they are produced. QC focuses on the product - finding and fixing errors.
Dispute Resolution
Mediation
A non-binding dispute resolution method where a neutral third party facilitates negotiation between the disputing parties. The mediator does not impose a decision.
Arbitration
A binding dispute resolution method where a neutral arbitrator hears evidence and renders a decision. Faster and less formal than litigation.
Litigation
Dispute resolution through the court system. The most formal, expensive, and time-consuming method.
Practice these terms with PjM flashcards and test your knowledge with PjM mini exams.
Related Resources
- PjM Study Guide - comprehensive overview of Project Management
- Cost Estimation Deep Dive
- Scheduling Techniques Deep Dive
- Scheduling Cheat Sheet
- PjM Exam Tips
- Sign up free to access flashcards and practice exams.