Project Manager Interview Questions and Guide to 100 Key Terms

Preparing for a Project Manager interview can feel overwhelming. Interviewers often test not only your experience but also your understanding of frameworks, leadership style, and problem-solving skills. Below are 10 of the most critical Project Manager interview questions along with quick tips on how to answer them effectively. After that, you’ll find a comprehensive refresher of 100 essential project management terms to strengthen your preparation.

Mastering 100 Key Terms

Interviewers often test not only how you answer questions but also your grasp of core project management language. Below is a structured guide of 100 critical terms from PMI, PRINCE2, Agile, Scrum, Lean, Six Sigma, and general governance — designed as a crash refresher before your interview.

Top 10 Project Manager Interview Questions and Guide to 100 Key Terms

PMI / PMP (20 Concepts Explained)

1. Project Charter
A Project Charter is the official document that authorizes a project and gives the project manager authority to use resources. It outlines objectives, scope, and stakeholders, ensuring alignment with business goals from the start. A strong charter serves as the reference point when disputes arise, keeping the project focused and preventing scope creep.

2. Project Life Cycle
The project life cycle describes the five stages a project goes through: initiating, planning, executing, monitoring/controlling, and closing. Following this cycle ensures structured progress and appropriate use of tools at each stage. For example, detailed scheduling belongs in planning, while monitoring KPIs is essential in execution.

3. Stakeholders
Stakeholders are individuals or groups who influence or are affected by the project, such as sponsors, customers, or end users. Identifying them early and engaging according to their power and interest is critical to success. For instance, executives may need weekly reports, while end users might require involvement during testing.

4. Triple Constraint (Scope, Time, Cost)
The triple constraint highlights the balance between scope, time, and cost. Any adjustment to one element impacts the other two, making it a vital tool in negotiations with sponsors. For example, if the client requests additional features, the project manager must renegotiate deadlines or budgets to maintain balance.

5. Work Breakdown Structure (WBS)
A Work Breakdown Structure (WBS) breaks down the overall scope into smaller, manageable work packages. It provides clarity, prevents missing deliverables, and aids in accurate resource allocation. For instance, a software WBS would not only include development but also documentation, testing, and user training to ensure completeness.

6. Critical Path Method (CPM)
The Critical Path Method is a scheduling technique that identifies the sequence of dependent tasks that determine the minimum time required to complete a project. By focusing on these tasks, project managers know exactly which activities must not slip without impacting delivery. In practice, CPM helps allocate resources to high-risk tasks and is often used in industries like construction or IT rollouts where one missed dependency can delay the entire handover. Monitoring the critical path regularly ensures you can spot delays early and adjust non-critical activities to recover time.

7. Earned Value Management (EVM)
Earned Value Management is an integrated performance measurement technique that combines scope, cost, and schedule to objectively track progress. Unlike simple budget tracking, EVM reveals both cost efficiency and schedule adherence through metrics like CPI and SPI. It’s particularly powerful in large or multi-phase projects, where visualizing performance trends helps managers anticipate risks before they escalate. Interviewers often look for EVM knowledge because it shows a candidate’s ability to monitor projects quantitatively rather than relying on subjective updates.

8. Planned Value (PV)
Planned Value represents the budgeted cost of work that should be completed by a specific date according to the project plan. It essentially sets the benchmark for measuring progress. If your PV is $200k by the third month, but your Earned Value is $150k, then the project is behind schedule. Understanding PV helps project managers explain variances clearly to executives and justify recovery strategies. It’s not just about the numbers — it’s about demonstrating control over expectations and managing sponsor confidence.

9. Earned Value (EV)
Earned Value measures the budgeted cost of the actual work performed up to a given point. It allows managers to assess progress in relation to what was planned and what has been spent. For example, if 50% of a $1M project is complete, then EV equals $500k regardless of the actual costs incurred. This metric is crucial because it shifts conversations away from “how much money is spent” toward “how much value is delivered.” Using EV effectively in interviews shows your ability to quantify accomplishments, not just activities.

10. Actual Cost (AC)
Actual Cost is the total expenditure incurred for work performed during a specific timeframe. On its own, it only shows how much has been spent, but when compared with EV and PV, it reveals cost performance and efficiency. For instance, if AC = $700k while EV = $500k, the project has overspent relative to its progress. Skilled managers use AC not only to track budget usage but also to forecast future costs and justify corrective actions. Being able to explain AC alongside EVM metrics reflects strong financial awareness — something interviewers value highly.

11. Cost Performance Index (CPI)
The Cost Performance Index is a ratio that measures cost efficiency, calculated as EV ÷ AC. A CPI of 1 means costs are exactly on target, less than 1 means overspending, and greater than 1 means efficiency. For example, if your EV is $400k and AC is $500k, CPI = 0.8, showing you are only getting $0.80 worth of value for every $1 spent. This metric is not just a number — it’s a signal for managers to investigate overspending, identify causes like resource inefficiency, and take corrective actions. Demonstrating CPI understanding in interviews highlights your ability to control project finances.

12. Schedule Performance Index (SPI)
The Schedule Performance Index is a ratio showing schedule efficiency, calculated as EV ÷ PV. It indicates whether the project is ahead of, on, or behind schedule. An SPI of 0.9 means only 90% of the planned work has been achieved, while an SPI of 1.1 means you are running faster than planned. For example, if EV = $300k and PV = $400k, the SPI is 0.75, which signals significant schedule slippage. A project manager who monitors SPI regularly can initiate corrective actions such as fast-tracking or crashing to recover time.

13. Risk Mitigation
Risk mitigation involves reducing either the probability or impact of identified risks through proactive measures. Instead of waiting for risks to occur, managers plan actions such as adding redundancy, conducting training, or introducing safety checks. For instance, in a software project, adding automated testing reduces the likelihood of undetected bugs causing delays. Risk mitigation is one of the most preferred strategies because it lowers uncertainty without eliminating the opportunity entirely. Demonstrating a mitigation mindset shows interviewers you favor prevention over reactive firefighting.

14. Risk Avoidance
Risk avoidance is a strategy where the risk is completely eliminated by changing the project plan, scope, or approach. This is often applied when the potential impact is too high to accept. For example, if a project includes developing an untested technology that may fail, the manager may decide to buy a proven off-the-shelf solution instead. While avoidance reduces innovation opportunities, it ensures project stability. In interviews, it’s useful to explain when you chose avoidance to protect timelines or budgets, showing judgment in prioritizing certainty over risk-taking. FREE Heat Map Tool For Risk Management – 6 Excellent Templates – Exceediance

15. Risk Transfer
Risk transfer shifts the responsibility of managing a risk to a third party, such as through insurance, warranties, or outsourcing. The risk doesn’t disappear, but its consequences are absorbed by someone else better equipped to handle it. For example, transferring risk to a contractor under a fixed-price contract means the contractor bears the cost of overruns. This strategy is particularly valuable when risks involve high financial consequences but are within another party’s expertise. Using transfer wisely demonstrates commercial awareness and an understanding of vendor management.

16. Risk Acceptance
Risk acceptance means acknowledging a risk and deciding not to take any proactive measures against it. It’s often chosen when the cost of mitigation exceeds the potential impact or when the risk is minor. For example, accepting the possibility of short system downtimes during maintenance instead of investing heavily in full redundancy. Acceptance requires conscious approval from stakeholders to avoid surprises later. Interviewers appreciate when candidates explain that acceptance is not negligence but a deliberate and documented decision.

17. Resource Leveling
Resource leveling is a technique to address overallocation by adjusting the schedule so resources are used more evenly. It often extends project timelines but prevents employee burnout or equipment overload. For instance, if one engineer is scheduled for 120% of their time, some tasks are delayed or reassigned to balance workload. While it may delay non-critical tasks, it preserves quality and avoids risks associated with overworked teams. This concept shows an interviewer that you value sustainable productivity and realistic scheduling.

18. Change Control Board (CCB)
A Change Control Board is a formal group that reviews and approves or rejects change requests in a project. It ensures changes are evaluated for impact on scope, schedule, cost, and risk before implementation. For example, a client request for a new reporting feature mid-project would be assessed by the CCB, which could approve it with extended deadlines or reject it to protect delivery. Effective use of a CCB demonstrates governance, accountability, and discipline in managing scope creep — a key skill for senior PM roles.

19. Lessons Learned
Lessons Learned are documented insights captured during or after a project, highlighting what worked well and what should be improved. They serve as a knowledge base for future projects, reducing repeated mistakes. For instance, if poor stakeholder communication caused delays, the lesson might be to introduce weekly status calls in future projects. Strong managers ensure lessons learned are not just documented but also shared across teams. In interviews, citing lessons learned shows maturity and a continuous improvement mindset.

20. Organizational Process Assets (OPA)
Organizational Process Assets are company-specific resources such as templates, procedures, past project records, and policies that guide project work. They provide a starting point and ensure consistency across projects. For example, instead of creating a risk register from scratch, a project manager can adapt a standard company template. Using OPAs saves time, promotes best practices, and ensures compliance with organizational standards. Interviewers value candidates who emphasize leveraging OPAs effectively rather than reinventing the wheel.

PRINCE2 (10 Concepts Explained)

21. Business Case
The Business Case is the cornerstone of PRINCE2, providing the justification for undertaking a project. It explains why the project is needed, outlines expected benefits, costs, and risks, and ensures alignment with business objectives. A well-written Business Case acts as a decision-making tool for executives, helping them weigh investment against returns. As a project manager, being able to defend and revisit the Business Case throughout the project demonstrates strategic thinking, not just task management.

22. Project Board
The Project Board is the governing body in PRINCE2, typically including the Executive, Senior User, and Senior Supplier. They provide overall direction and accountability, approve major decisions, and ensure the project remains viable. This structure keeps authority at the right level and allows the project manager to focus on delivery. In interviews, showing how you escalated issues to a Project Board instead of carrying them alone highlights your understanding of governance and decision escalation.

23. Project Brief
A Project Brief is a concise document created early in the project that captures the project’s purpose, scope, deliverables, and stakeholders. It provides enough information for the Project Board to decide whether to proceed. Unlike the detailed PID, the Brief is more of a “starter kit.” It’s particularly useful for clarifying initial expectations and avoiding misalignment between sponsors and delivery teams. Managers who emphasize clarity at this stage demonstrate their ability to prevent rework later.

24. Project Initiation Documentation (PID)
The PID is the PRINCE2 equivalent of a comprehensive project plan, detailing scope, schedule, budget, risks, quality standards, and governance. It serves as the baseline against which progress and changes are measured. A well-crafted PID prevents ambiguity and ensures all parties have the same understanding of project objectives. In practice, you can reference the PID when stakeholders request changes, ensuring decisions are made against the agreed baseline. This shows discipline in managing scope and expectations.

25. Themes
Themes are core aspects that PRINCE2 projects must continually address: Business Case, Organization, Quality, Plans, Risk, Change, and Progress. They act as lenses through which the project is viewed and controlled. For example, the Risk theme ensures proactive risk management, while the Change theme governs how modifications are assessed. Demonstrating familiarity with the seven themes in interviews signals that you understand the holistic view PRINCE2 requires, not just isolated tasks.

26. Principles
PRINCE2 principles are seven mandatory guidelines, such as “continued business justification” and “learn from experience,” that underpin the methodology. If a project doesn’t apply all principles, it’s not considered PRINCE2. These principles keep projects aligned with strategy, learning-oriented, and controlled. For instance, the “manage by stages” principle encourages structured reviews at each stage boundary. Interviewers often expect you to not just name principles but also give practical examples of applying them.

27. Tailoring PRINCE2
Tailoring refers to adapting PRINCE2 practices to fit the size, complexity, or industry of a project. A small IT upgrade, for example, may not require the same level of documentation as a multimillion-dollar infrastructure build. Tailoring ensures the method is practical, not bureaucratic. Skilled managers know how to apply the right amount of governance without burdening the team. Discussing tailoring in interviews shows you understand methodology is a tool, not a rigid rulebook.

28. Product Breakdown Structure (PBS)
The PBS is a hierarchical diagram showing the project’s products (deliverables) and their components. Unlike a WBS, which focuses on activities, a PBS emphasizes the “what” rather than the “how.” This approach is particularly useful in PRINCE2, which is product-driven. For example, breaking down a new mobile app into modules like UI, backend, and reporting features. Using PBS ensures nothing is missed and stakeholders clearly see what will be delivered.

29. Work Package
A Work Package is a defined chunk of work assigned to a team, supplier, or individual, including instructions, constraints, and expected outputs. It provides clarity and accountability at the execution level while keeping alignment with project objectives. For example, assigning a vendor the responsibility to deliver a prototype with specific quality standards. Properly defined Work Packages reduce ambiguity and minimize back-and-forth, which is highly valued in controlled environments like PRINCE2.

30. Stage Boundary
Stage Boundaries are control points between project stages where performance is reviewed, the Business Case is reassessed, and detailed plans for the next stage are approved. This allows organizations to stop or redirect projects if benefits are no longer valid. For instance, if a project’s costs are ballooning at a boundary review, the Project Board may choose to adjust or terminate it. Mentioning stage boundaries in an interview demonstrates your understanding of structured control and risk-based decision making.

Agile - Top 10 Project Manager Interview Questions and Guide to 100 Key Terms

Agile (15 Concepts Explained)

31. Agile Manifesto
The Agile Manifesto is a set of four values and twelve principles that emphasize individuals, working solutions, customer collaboration, and responsiveness to change. It shifts focus from rigid documentation to delivering value early and often. In practice, this means prioritizing customer satisfaction over bureaucracy. Citing Agile Manifesto principles in interviews shows that you understand the cultural and behavioral foundation of Agile, not just the mechanics.

32. User Story
A User Story is a short, simple description of a feature from an end-user perspective, typically written as “As a [user], I want [goal], so that [benefit].” It helps teams focus on delivering customer value instead of technical tasks. For example, “As a shopper, I want to save items to a wishlist so that I can purchase them later.” User Stories make requirements more relatable and easier to prioritize, which interviewers like to see in Agile-savvy candidates.

33. Story Points
Story Points are a relative measure of effort or complexity assigned to User Stories. Instead of estimating hours, teams compare tasks against each other. For example, if login functionality is a 2-point story and payment integration is 5 points, the latter is clearly more complex. Story Points help teams plan sprints realistically without falling into the trap of inaccurate time estimates. Demonstrating your ability to facilitate point estimation shows leadership in Agile planning.

34. Velocity
Velocity is the average number of Story Points a team completes per sprint. It becomes a critical forecasting tool, enabling teams to predict how much work they can deliver in future iterations. For example, if a team’s average velocity is 30 points, planning a sprint with 50 points is unrealistic. Managers use velocity trends to coach teams toward consistency rather than pushing them beyond sustainable limits. Interviewers appreciate when you emphasize velocity as a tool for predictability, not as a performance target.

35. Iteration / Sprint
An Iteration or Sprint is a fixed timebox, usually 1–4 weeks, during which a cross-functional team delivers a potentially shippable product increment. The timebox creates urgency and discipline, forcing teams to prioritize and focus. For instance, committing to deliver “search functionality” in a 2-week sprint sets a clear boundary for effort and scope. Candidates who can articulate the discipline of timeboxing show they understand how Agile reduces risk and delivers value incrementally.

36. Product Backlog
The Product Backlog is a prioritized, evolving list of features, bug fixes, and improvements that represent the product’s future work. It is owned by the Product Owner and is constantly refined based on feedback. For example, after a user demo, new feature requests may move up in priority. A healthy backlog reflects responsiveness to customer needs and market changes. In interviews, talking about backlog grooming shows your awareness of Agile’s adaptive planning.

37. Sprint Backlog
The Sprint Backlog is a subset of items from the Product Backlog that the team commits to delivering in a single sprint. It includes detailed tasks that support completion of User Stories. This backlog is managed by the team, not imposed externally, which reinforces accountability. For instance, a Sprint Backlog might include coding, design, and testing tasks for implementing a checkout feature. Candidates who mention team ownership of the Sprint Backlog demonstrate true Agile leadership.

38. Increment
An Increment is the sum of all completed work that meets the Definition of Done, delivered at the end of a sprint. Each Increment should be usable, even if it’s not feature-complete. For example, after the first sprint, a working login page may be delivered — it may not represent the full product, but it’s still functional. Interviewers often check if candidates can distinguish between “work done” and “work delivered,” making Increment a key concept.

39. Definition of Done (DoD)
The Definition of Done is a shared agreement on what it means for work to be complete. It could include criteria like code reviewed, tested, and deployed in staging. A clear DoD prevents misunderstandings and ensures consistent quality. For instance, a team may decide a feature isn’t “done” until user documentation is updated. Demonstrating familiarity with DoD in interviews shows you know how to manage expectations and enforce quality standards.

40. Burndown Chart
A Burndown Chart visually represents the remaining work against time in a sprint or project. It helps teams quickly see if they are on track to finish all planned work. A steep downward slope indicates rapid progress, while a flat line shows stagnation. For example, if midway through a sprint the chart barely drops, it signals overcommitment or blockers. Being able to interpret and act on burndown charts demonstrates data-driven decision making.

41. Burnup Chart
A Burnup Chart shows how much work has been completed over time versus the total scope. Unlike Burndown, it can also reveal scope changes, such as new features added mid-project. For example, if total scope increases, the top line shifts upward, showing why progress may appear slower. Burnup Charts give stakeholders clarity on both progress and scope evolution. Mentioning them in an interview signals that you understand transparency tools beyond the basics.

42. Epic
An Epic is a large, high-level User Story that spans multiple sprints and can be broken down into smaller stories. For instance, “Build an e-commerce checkout system” might be an Epic divided into payment, shipping, and tax modules. Epics provide strategic context, ensuring the backlog isn’t just a list of small tasks but reflects larger business goals. Understanding Epics shows that you can think both tactically and strategically.

43. Minimum Viable Product (MVP)
The MVP is the simplest version of a product that delivers value and can be released to gather feedback. Instead of building every feature upfront, teams launch with core functionality and iterate. For example, launching a ride-sharing app with just booking and payment before adding ratings or promotions. Using MVPs reduces wasted investment and accelerates learning. Interviewers like to hear that you value early feedback over “big bang” delivery.

44. Continuous Integration (CI)
Continuous Integration is the practice of frequently merging code changes into a shared repository, followed by automated builds and tests. It reduces integration issues and provides early detection of defects. For example, if developers commit code multiple times a day, broken builds are caught quickly rather than weeks later. CI shows your commitment to quality and speed, and mentioning it in an interview highlights your awareness of modern Agile engineering practices.

45. Continuous Delivery (CD)
Continuous Delivery extends CI by ensuring software is always in a deployable state, even if not released to customers. This enables rapid, low-risk deployments at any time. For instance, a company may push code to staging environments daily and release weekly based on business needs. CD emphasizes that delivering value is a choice, not a bottleneck. Candidates who talk about CI/CD pipelines demonstrate that they understand Agile isn’t just a process, but also a technical culture.

SCRUM - Top 10 Project Manager Interview Questions and Guide to 100 Key Terms

Scrum (10 Concepts Explained)

46. Scrum Master
The Scrum Master is a servant leader who ensures the Scrum framework is properly applied. Their role is not to manage tasks but to facilitate communication, remove impediments, and coach the team toward self-organization. For example, if a developer is blocked by an external dependency, the Scrum Master steps in to resolve it. Highlighting this role in interviews shows you understand leadership in Agile is about enabling success, not micromanaging.

47. Product Owner
The Product Owner represents the customer and is responsible for defining and prioritizing the Product Backlog. They balance business needs, customer feedback, and team capacity to maximize value. For example, if stakeholders request conflicting features, the Product Owner decides which delivers the highest return on investment. In interviews, mentioning how you’ve supported or collaborated with Product Owners demonstrates your understanding of business alignment in Scrum.

48. Development Team
The Development Team is a self-organizing, cross-functional group that delivers potentially shippable increments at the end of each sprint. Unlike traditional teams, they own the “how” of the work and are collectively accountable. For example, a team may include developers, testers, and designers working together without silos. Interviewers look for candidates who respect team autonomy and avoid interfering with task-level decisions.

49. Sprint Planning
Sprint Planning is a collaborative session at the start of each sprint where the team decides what work can be completed and how it will be delivered. The Product Owner brings priorities, while the team estimates and commits. A strong Sprint Planning session sets realistic goals and avoids overcommitment. For example, agreeing to deliver only the login and profile features rather than an entire user module ensures predictability. Showing familiarity with Sprint Planning highlights your skills in balancing ambition with capacity.

50. Daily Scrum (Stand-up)
The Daily Scrum is a 15-minute timeboxed meeting where the team synchronizes, shares progress, and identifies blockers. It fosters transparency and quick decision-making. Instead of status reporting to a manager, the team speaks to each other. For example, a developer might say, “I finished the payment screen, today I’ll test it, but I’m blocked by missing API keys.” Demonstrating knowledge of Daily Scrums in interviews shows your appreciation of Agile’s rhythm and discipline.

51. Sprint Review
The Sprint Review is a meeting at the end of each sprint where the team demonstrates completed work to stakeholders and gathers feedback. It’s not just a demo — it’s a chance to inspect progress and adapt the Product Backlog. For example, after showing a new dashboard, stakeholders might suggest additional filters, which are then added to the backlog. Managers who embrace Sprint Reviews highlight their focus on transparency and continuous stakeholder engagement.

52. Sprint Retrospective
The Sprint Retrospective is held after the Sprint Review and focuses on improving the team’s process. The team reflects on what went well, what didn’t, and what can be improved. For example, a team might decide to improve code review practices to reduce bugs. Retrospectives create a safe space for honest feedback and incremental improvement. Interviewers value candidates who demonstrate experience in leading or contributing to effective retrospectives.

53. Scrum Artifacts
Scrum artifacts include the Product Backlog, Sprint Backlog, and Increment. These provide transparency into what’s planned, what’s being worked on, and what has been delivered. For example, stakeholders can look at the Product Backlog to understand priorities or view the Increment to see actual progress. Recognizing the importance of artifacts demonstrates your ability to maintain clarity and accountability in Agile environments.

54. Timeboxing
Timeboxing is a core Scrum principle where events are given strict maximum durations. For example, Daily Scrums are capped at 15 minutes, regardless of team size. This discipline prevents endless discussions and keeps focus on outcomes. By applying timeboxing, teams stay productive and avoid wasting time on low-value debates. In interviews, discussing how you enforce timeboxes shows your skill in maintaining momentum and respecting team capacity.

55. Servant Leadership
Servant leadership is a philosophy where the leader’s role is to serve the team by removing obstacles, fostering collaboration, and empowering individuals. In Scrum, this is embodied by the Scrum Master but also applies to managers in Agile organizations. For example, instead of dictating solutions, a servant leader asks, “What do you need from me to succeed?” Highlighting this concept in interviews shows you understand modern leadership trends that value empowerment over control. Who’s the Boss? 10 Leadership Styles That Will Make You Laugh (or Cry!)” – Exceediance

Lean Project Management (10 Concepts Explained)

56. Value Stream Mapping
Value Stream Mapping is a visual tool used to analyze the flow of materials and information required to deliver a product or service. It highlights bottlenecks, redundancies, and waste in a process, allowing managers to design a leaner flow. For example, in software delivery, a value stream map may reveal delays between coding and testing handoffs. Using this tool shows stakeholders that you’re focused on efficiency and continuous improvement, not just task completion.

57. Kaizen
Kaizen, a Japanese term for “continuous improvement,” emphasizes making small, incremental changes that lead to significant long-term gains. It is applied at all levels of the organization, from executives to frontline staff. For instance, a development team might improve efficiency by automating repetitive testing tasks. Project managers who embrace Kaizen demonstrate a culture of adaptability and learning, which is especially valued in industries facing constant change.

58. Just-In-Time (JIT)
Just-In-Time is a lean principle where materials, resources, or work are delivered only when needed, reducing inventory and waste. Originally applied in manufacturing, it also applies to projects — such as developing documentation only when the product is stable, not months in advance. JIT lowers costs but requires careful coordination. In interviews, showing you understand JIT demonstrates that you can balance efficiency with risk management.

59. 5S Methodology
The 5S methodology stands for Sort, Set in order, Shine, Standardize, and Sustain. It is a workplace organization system designed to improve efficiency, safety, and productivity. For example, a team may apply 5S by keeping digital files organized, naming conventions standardized, and repositories cleaned. Using 5S ensures teams spend less time searching for tools or documents and more time delivering value. Mentioning it highlights your ability to create structured, high-performance environments.

60. Pull System
A Pull System ensures that work is started only when there is actual demand, rather than pushing tasks into the system without capacity. Kanban boards are a common example of pull systems in project management. For instance, developers only pick up new tasks when they have completed their current work. This approach minimizes multitasking and overcommitment, ensuring consistent throughput. Emphasizing pull systems in interviews demonstrates that you understand sustainable workflows.

61. Waste Elimination (Muda)
In Lean thinking, Muda refers to the elimination of waste — activities that consume resources but add no value. Common types include waiting, overproduction, defects, and unnecessary movement. For example, generating lengthy reports that no stakeholder reads is wasteful. By identifying and removing such inefficiencies, project managers free resources for value-adding work. Employers value candidates who can identify waste in both processes and team habits.

62. Kanban
Kanban is a visual workflow management system that uses boards and cards to track work in progress. It makes bottlenecks visible and encourages teams to limit the number of tasks being handled at once. For instance, a “To Do – In Progress – Done” board can quickly show where work is piling up. Kanban is simple but powerful, and mentioning its use in projects shows that you can implement lightweight, transparent control systems.

63. Lead Time
Lead Time is the total time taken from when a task is requested to when it is delivered. It measures the customer’s wait time and provides insight into responsiveness. For example, if a bug fix request takes 10 days to be deployed, that’s the lead time. Tracking and reducing lead time shows your ability to deliver faster and improve customer satisfaction, which is highly attractive in fast-paced industries.

64. Cycle Time
Cycle Time measures the duration it takes to complete a task once work has started. Unlike lead time, it excludes waiting before work begins. For example, if a developer takes 3 days to code and test a feature after picking it up, that’s the cycle time. Reducing cycle time helps teams improve efficiency without necessarily changing overall workload. Project managers who track cycle time prove their focus on throughput and predictability.

65. Throughput
Throughput refers to the number of tasks or work items completed within a specific time period. It provides a clear measure of team productivity and supports better capacity planning. For instance, if a team consistently delivers 20 user stories per month, that is its throughput. By analyzing throughput trends, managers can forecast delivery timelines more accurately. Bringing up throughput in interviews signals your understanding of measurable team performance.

Six Sigma & Quality (10 Concepts Explained)

66. DMAIC
DMAIC (Define, Measure, Analyze, Improve, Control) is a structured Six Sigma framework used for process improvement. It starts with clearly defining the problem, measuring current performance, analyzing data for root causes, implementing improvements, and finally controlling to sustain gains. For example, in a call center project, DMAIC may help reduce average handling time by analyzing bottlenecks in customer query resolution. Showing familiarity with DMAIC demonstrates that you can drive structured, data-backed improvements rather than relying on intuition alone.

67. DMADV
DMADV (Define, Measure, Analyze, Design, Verify) is a Six Sigma approach used when creating new processes or products. Unlike DMAIC, which improves existing workflows, DMADV ensures new designs meet customer needs from the start. For example, when designing a new mobile app, DMADV helps teams define requirements, design features, and verify usability before launch. Referencing DMADV in an interview shows your understanding of preventive quality measures and customer-centric design.

68. SIPOC
SIPOC stands for Suppliers, Inputs, Process, Outputs, and Customers. It is a high-level diagram that helps visualize the boundaries of a process. For example, in procurement, suppliers provide purchase requests (inputs), which go through the approval workflow (process) to generate contracts (outputs) for business units (customers). SIPOC is especially useful for onboarding stakeholders quickly and ensuring everyone understands the process scope. Managers who use SIPOC show they value clarity and structured thinking.

69. Control Chart
A Control Chart is a statistical tool used to monitor process stability over time. It displays process data points, averages, and control limits, making it easier to detect variations. For instance, in a manufacturing line, a control chart can highlight when defect rates spike beyond acceptable limits. Using control charts in projects shows you can distinguish between normal fluctuations and genuine issues that require intervention.

70. Cause and Effect Diagram
Also called a Fishbone or Ishikawa diagram, this tool identifies potential root causes of a problem by categorizing them into areas such as people, methods, machines, or materials. For example, when investigating software outages, causes could be grouped under infrastructure, code, or user errors. Applying this technique demonstrates your ability to drive structured problem-solving sessions rather than relying on guesswork.

71. Failure Mode and Effect Analysis (FMEA)
FMEA is a proactive technique used to identify potential points of failure, assess their impact, and prioritize actions to mitigate them. For example, before launching a new product, teams may use FMEA to identify and address high-risk design flaws. Using FMEA shows that you can anticipate risks early, minimize costly failures, and protect customer satisfaction.

72. Process Capability (Cp, Cpk)
Process capability indices measure how well a process produces outputs within specification limits. Cp indicates potential capability, while Cpk shows how centered the process is. For example, if a process consistently delivers outputs within limits, Cpk will be high, indicating reliability. Understanding capability metrics proves your ability to evaluate process efficiency with data instead of assumptions.

73. Defects Per Million Opportunities (DPMO)
DPMO is a Six Sigma metric that quantifies the number of defects in a process relative to opportunities for error, scaled to one million. For example, if a process has 5 defects out of 10,000 opportunities, the DPMO is 500. It provides a clear, standardized measure of quality. Managers who use DPMO highlight their focus on precision and benchmarking against world-class standards.

74. Voice of Customer (VOC)
VOC is the practice of capturing and analyzing customer needs, expectations, and feedback to guide product or process improvements. For instance, customer surveys may reveal a demand for faster delivery times, influencing process redesign. VOC is crucial in aligning outputs with customer value, which is the ultimate goal of both Agile and Six Sigma. In interviews, citing VOC shows your ability to link project outcomes directly to customer satisfaction.

75. Black Belt / Green Belt
Six Sigma defines roles such as Green Belts (part-time project improvement leaders) and Black Belts (full-time experts). Black Belts typically lead complex improvement projects, while Green Belts handle smaller initiatives under guidance. Mentioning these roles demonstrates awareness of structured responsibilities within quality management. Even if you’re not certified, showing familiarity proves you understand how organizations drive structured process excellence.

Project Management - Top 10 Project Manager Interview Questions and Guide to 100 Key Terms

General Project Management & Governance (25 Concepts Explained)

76. Program Management
Program Management is the coordinated management of multiple related projects aimed at achieving broader strategic objectives. Unlike project management, it focuses on long-term benefits rather than immediate deliverables. For example, rolling out multiple IT systems under a digital transformation program. Demonstrating program management knowledge shows you can align tactical delivery with strategic value.

77. Portfolio Management
Portfolio Management oversees a collection of projects and programs, ensuring alignment with business strategy and optimal resource use. It prioritizes investments based on expected returns and risks. For instance, a bank may prioritize digital banking projects over branch upgrades. Referencing portfolio management shows you understand the “big picture” beyond individual projects.

78. PMO (Project Management Office)
A PMO is a centralized function that standardizes project governance, provides templates, and ensures compliance with organizational practices. Some PMOs are supportive, while others are directive or controlling. For example, a PMO may require all projects to use a standard risk register template. Demonstrating PMO knowledge shows you understand governance and institutional learning.

79. Governance Framework
A governance framework defines roles, responsibilities, and decision-making structures within a project or program. It ensures accountability and provides escalation paths. For instance, governance might require that all major scope changes be approved by a steering committee. Mentioning governance frameworks in interviews shows you understand how to balance autonomy with control.

80. Key Performance Indicators (KPIs)
KPIs are quantifiable measures used to evaluate success against objectives. Examples include on-time delivery, budget variance, and customer satisfaction. In projects, KPIs provide early warnings of performance issues. Being able to discuss KPI selection in interviews highlights your analytical approach to performance management. 50 Most Important KPIs for your Business – Exceediance

81. Balanced Scorecard
The Balanced Scorecard is a performance management tool that measures success across four perspectives: financial, customer, internal processes, and learning/growth. For projects, it ensures value is tracked holistically, not just financially. For example, customer adoption rates may matter as much as budget adherence. Using a balanced scorecard demonstrates your ability to evaluate success beyond the obvious.

82. Cost Baseline
The Cost Baseline is the approved budget used to measure financial performance. It serves as a reference point for comparing actual costs. For instance, if the baseline is $500k and you’ve already spent $300k halfway through, you can assess whether you’re tracking correctly. Being able to explain cost baselines shows your awareness of financial discipline in projects.

83. Scope Creep
Scope Creep refers to uncontrolled changes or additions to a project’s scope without proper approval. It often leads to missed deadlines and overspending. For example, adding “just one more feature” during development. Discussing scope creep in interviews and how you managed it demonstrates your ability to enforce discipline and protect project outcomes.

84. Gold Plating
Gold Plating occurs when extra features are added to a project deliverable beyond what was required. Although well-intentioned, it introduces unnecessary cost and risk. For example, developers adding advanced features not requested by stakeholders. Avoiding gold plating shows that you prioritize business value and requirement discipline over personal preferences.

85. Kick-off Meeting
A Kick-off Meeting is the formal start of a project where objectives, roles, and expectations are aligned. It sets the tone for collaboration and stakeholder engagement. For example, a project manager might use the session to explain the scope and introduce the team. Interviewers often expect candidates to highlight how they’ve led effective kick-offs to build trust and commitment.

86. Project Sponsor
The Project Sponsor is the senior individual who provides funding, resources, and organizational support. They champion the project at executive levels. For example, in a system upgrade, the CIO may act as sponsor to ensure IT alignment. Strong sponsor engagement is often the difference between project success and failure. Emphasizing this shows you understand the importance of executive backing.

87. Procurement Management
Procurement Management involves acquiring goods or services from external suppliers. It includes contract planning, vendor selection, and managing supplier relationships. For example, outsourcing hardware installation to a third-party vendor. Demonstrating procurement awareness shows you can manage external dependencies alongside internal ones. Create An Awesome Procurement Analytics Dashboard Using ChatGPT in 10 Minutes – Exceediance

88. Contract Types
Contracts can be Fixed Price, Time and Materials (T&M), or Cost-Plus, each with trade-offs in risk allocation. For instance, fixed-price contracts shift risk to the supplier, while T&M provides flexibility but increases buyer risk. Project managers who understand contract types can make informed sourcing decisions and negotiate effectively.

89. RACI Matrix
The RACI matrix clarifies roles by defining who is Responsible, Accountable, Consulted, and Informed for each task. For example, the PM may be accountable, developers responsible, business analysts consulted, and sponsors informed. Using RACI prevents confusion, duplication of effort, and missed accountability. This tool is often a favorite in interviews as it demonstrates structured delegation.

90. RAID Log
A RAID log tracks Risks, Assumptions, Issues, and Dependencies. It consolidates project uncertainties into one place, making monitoring easier. For example, noting that delivery depends on external vendor availability. Referring to RAID logs in interviews signals that you use structured tools for risk and issue management.

91. Baseline
A baseline is the approved reference point for scope, schedule, or cost against which performance is measured. For example, if a schedule baseline shows a task due in April but it slips to May, variance can be calculated. Using baselines ensures objective tracking instead of subjective progress claims.

92. Resource Histogram
A Resource Histogram is a bar chart showing how resources are allocated over time. It helps identify periods of under- or overutilization. For instance, it may reveal that a testing team is overloaded in one phase while idle in another. Interviewers value candidates who optimize resource usage with data visualization.

93. Gantt Chart
A Gantt Chart is a visual schedule showing tasks, durations, and dependencies over time. It is one of the most common project tools for tracking progress. For example, project managers can see which tasks overlap and where milestones fall. Using Gantt charts effectively demonstrates planning discipline. Build a FREE Online Gantt Chart in Minutes – No Excel, No Sign Up Needed – Exceediance

94. PERT
PERT (Program Evaluation and Review Technique) uses optimistic, pessimistic, and most likely estimates to calculate expected durations. It helps manage uncertainty in scheduling. For example, if a task could take 2, 5, or 10 days, PERT provides a weighted average. Mentioning PERT highlights your ability to plan realistically under uncertainty.

95. Monte Carlo Simulation
Monte Carlo Simulation uses probability distributions to forecast possible project outcomes. It’s often used in risk analysis to predict schedule or cost ranges. For instance, simulating 1,000 scenarios can show a 70% chance of finishing within budget. This technique shows advanced risk management knowledge, which impresses interviewers.

96. Project Closure Report
A Project Closure Report summarizes final outcomes, performance against objectives, and lessons learned. It formally closes the project and provides input for future initiatives. For example, it documents why certain KPIs were missed and what corrective measures were taken. Strong closure practices demonstrate accountability and maturity.

97. PM Competency Framework
A PM Competency Framework defines the skills, knowledge, and behaviors required of project managers. Organizations use it to evaluate capability and guide career development. For example, leadership, risk management, and communication may all be competencies. Being aware of this shows you value professional growth and structured capability building.

98. Change Management
Change Management is the structured approach to transitioning individuals, teams, or organizations from the current state to a desired future state. In projects, it ensures adoption of new systems or processes. For example, training staff before rolling out a new ERP system. Linking project delivery with adoption shows you understand real success goes beyond technical delivery.

99. Stakeholder Engagement
Stakeholder Engagement is the process of building and maintaining positive relationships with stakeholders to ensure support and minimize resistance. It includes identifying needs, communicating effectively, and addressing concerns. For example, engaging finance teams early in a budgeting system rollout avoids surprises later. Interviewers expect you to show mastery of engagement strategies.

100. Communication Plan
A Communication Plan outlines how information will be shared with stakeholders, including frequency, channels, and content. For example, executives may receive monthly dashboards while teams get weekly updates. A solid plan ensures the right people receive the right information at the right time. Demonstrating communication planning skills proves your ability to prevent misunderstandings and foster transparency.

Top 10 Project Manager Interview Questions and Guide to 100 Key Terms

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