NCMA CPCM Vocabulary - Contract Management Body of Knowledge (CMBOK) Exam 2024

NCMA CPCM Vocabulary - Contract Management Body of Knowledge (CMBOK) Exam 2024 Acceptance criteria -Answer-Those criteria, usually stated in a contract and/or SOW that includes deliverables, performance requirements and essential conditions, which must be met to complete project deliverables and be accepted Agile -Answer-A project management methodology utilizing short-term sprints to react to changing scope requirements Baseline -Answer-The original plan (for a project, a work package, or an activity) plus or minus approved changes; usually used with a modifier (e.g., cost baseline, schedule baseline performance measurement baseline) Budget -Answer-When unqualified, refers to an estimate of funds planned to cover a project or specified period of future time; when approved, the estimate for the project or any work breakdown component or any scheduled activity Detailed contract analysis -Answer-A document listing the contractual obligations and requirements for the seller as well as for the buyer; the list contains the information extracted and provided in the form of a contract calendar which listed as every "seller will or shall" and its due date (if known) down to the task level Change control -Answer-The process of controlling, documenting, and storing the changes to control items; includes proposing the change, evaluating, approving or rejecting, scheduling and tracking Change Control Board (CCB) -Answer-A formally constituted group of stakeholders responsible for approving or rejecting changes to the project baselines Charter -Answer-A document issued by the initiator of the project, usually the project sponsor that formally authorizes the existence of the project, and provides the project manager with the authority to apply organizational resources to project activities Condition -Answer-In terms and conditions, a phrase that either activates (condition precedent) or suspends (condition subsequent) a term Constraint -Answer-The state, quality, or sense of being restricted to a given course of action or interaction; an applicable restriction or limitation, either internal or external, to the project that will affect the performance of the project or a process Contingency -Answer-Something that may happen: an event that might occur in the future, especially a problem, emergency, or expense that might arise unexpectedly and therefore must be prepared for. Provision made against future unforeseen events Deliverable -Answer-Any measurable, tangible, verifiable outcome, result, or item that must be produced to complete a project or part of a project Disposition -Answer-The act of moving goods out of one's internal organization to another organization due to loss of value, obsolescence, excess inventory or product change Earned value -Answer-A method for measuring project performance that compares the amount of work that was planned with what was actually accomplished to determine if cost and schedule performance went as planned Inventory control -Answer-The management of inventories, including: decisions about which items to stock at each location; how much stock to keep on hand at various levels of operation; when to buy; how much to buy; controlling pilferage and damage; and managing shortages and back orders. Kraljic Matrix -Answer-A tool for portfolio analysis: a four-box matrix that reflects the segmentation of spend based on an assessment of the value of the spend relative to the market risk to acquire Logistics -Answer-The process of planning, implementing and controlling the efficient, cost- effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements Manufacturing -Answer-Planning, managing and performing the processing of materials into intermediate or final products, usually in large quantities Materials management -Answer-Involves the planning, acquisition, flow and distribution of production materials from the raw state to the finished product state Opportunity -Answer-The measure of the probability of a positive desired change occurring and the desired impact of that event Opportunity and risk management (ORM) -Answer-An iterative approach to managing opportunities and risks that may occur during the course of business that could affect the success or failure of the project, in which the probability of each event's occurrence and its potential effect on the project are analyzed and prioritized or ranked f