HKSM

A predefined boundary for a measurable project metric that, when met or exceeded, requires a defined action or escalation.

Key Points

• Applies to quantifiable variables such as cost variance, schedule variance, defect rate, or risk score.
• Can be an upper or lower limit and often includes the condition of equality (meeting the limit).
• Crossing the threshold triggers specific responses outlined in management plans (eg, escalate, investigate, or implement corrective action).
• Distinct from tolerance (acceptable range) and control limits (statistical bounds on control charts).

Example

The quality management plan sets a defect escape rate threshold of 5%. If monthly escapes reach 5% or higher, the QA lead initiates root cause analysis, implements containment actions, and escalates to the project manager per the escalation plan.

PMP Example Question

During monitoring and controlling, the team observes schedule variance has reached -10%, which triggers an escalation per the project management plan. What is the term for the -10% point that requires action?

1. Control limit
2. Threshold
3. Target
4. Baseline

Correct Answer: B — Threshold

Explanation: A threshold is the predefined limit that, when reached or exceeded, mandates a response. Control limits are statistical boundaries, a target is the desired value, and a baseline is the approved plan for comparison.