Concept:
The number of permutations of \( n \) distinct objects taken all at a time is given by \( n! \) (n factorial). A "word" in this context refers to any arrangement of the given letters, whether it has a dictionary meaning or not.
Step 1: Count the number of distinct letters in the word.
The word provided is "PROBLEM".
The letters are: P, R, O, B, L, E, M.
There are a total of 7 distinct letters.
Step 2: Calculate the total number of arrangements.
Since all 7 letters are unique and we must use each letter exactly once, the total number of different words that can be formed is the number of permutations of 7 distinct items:
\[ \text{Total Words} = 7! \]
Calculation: \( 7! = 7 \times 6 \times 5 \times 4 \times 3 \times 2 \times 1 = 5040 \).