PMP Framework — Complete

Study Guide
An original study companion covering the core "Framework" concepts
tested on the PMP exam (project definition, stakeholders, delivery
approaches, program/portfolio management, organizational structures,
project selection math, roles, and business environment). Built from
general PMP body-of-knowledge concepts, not copied from any single
textbook.

1. What Actually Makes Something a

"Project"?

A project has two non-negotiable traits:

1. Temporary — it has a start and an end. The deliverable can

outlive the project, but the effort doesn't go on forever.
2. Unique — it produces something that hasn't existed in quite that
form before (a product, service, or result).

Memory trick — "TUV": Temporary, Unique, delivers Value. If a

scenario describes ongoing, repeating work with no end date, it's
operations, not a project — no matter how complex it sounds.

Ἵ Construction example: Pouring a foundation for one specific

building = a project (unique building, defined end). The concrete plant's
daily batching operations that supply dozens of job sites = operations
(repeats indefinitely, not unique to one outcome).

A project typically ends when: objectives are met, objectives are proven
unreachable, resources dry up, the business need disappears, or it's
shut down for legal/compliance reasons.

2. Stakeholders

Definition: Anyone who can affect, or be affected by, the project or its
output — positively or negatively.

Common exam trap: people only think of the obvious ones (PM, team,
sponsor, customer). The exam will also test:

• Internal but "invisible" stakeholders: PMO, portfolio/program

managers, functional managers, legal, procurement, finance
• External stakeholders: regulators, sellers/vendors, end users,
taxpayers, competitors, communities

Memory trick: Ask "Who feels it if this project succeeds — or

fails?" If the honest answer is "yes, somehow," they're a stakeholder.

Ἵ Construction example: On a highway overpass project,

stakeholders include the DOT (sponsor), the contractor's crew (team),
nearby residents (impacted, not directly involved), the environmental
regulator (external), and the concrete supplier (seller/stakeholder).

3. Development Approaches: Predictive vs.

Agile vs. Hybrid

Approach When scope is Planning style Also called

known
Predictive Requirements Plan fully, then Waterfall,
defined in detail execute; changes are plan-driven,
up front controlled/resisted traditional
 Agile Scope is Plan and deliver in Change-
expected to small increments; driven,
emerge/change changes are adaptive
welcomed
Hybrid Some parts Mix — e.g., predictive Blended
known, some for regulated
emerging infrastructure, agile for
a new software
feature within it

Memory trick — "PAH": Predictive = Paved road (fixed route). Agile =

Adventure trail (route adjusts as you go). Hybrid = Half and half.

Ἵ Construction example: Building a bridge to code (fixed engineering

specs, permits, inspections) is almost always predictive — you can't
"iterate" on load-bearing calculations. But the visitor-center software and
interactive kiosk built alongside it might use agile, since the client keeps
changing what features they want. The overall program is hybrid.

Exam scenario: "A stadium renovation project has fixed structural

blueprints approved by the city, but the fan-experience mobile app team
is still discovering what fans want." → This is a hybrid project: structural
work is predictive, app work is agile.

4. Program Management vs. Portfolio

Management vs. OPM

ORGANIZATIONAL PROJECT MANAGEMENT (OPM)

"Are we doing the RIGHT work, in the RIGHT way,
to hit strategy?"
|
v
PORTFOLIO MANAGEMENT
Selects & prioritizes programs/projects
to maximize strategic value
 |
-------------------------------
| |
v v
PROGRAM MANAGEMENT STANDALONE PROJECT
Coordinates related (not part of a
projects for shared program)
benefit
|
---------------------
| | |
v v v
Project Project Project

• OPM: the top-level framework tying strategy to execution — the

"umbrella" that keeps portfolios, programs, and projects aligned
with organizational goals.
• Portfolio management: picks which programs/projects/operations
to fund, based on strategic fit, ROI, risk — not day-to-day
execution.
• Program management: coordinates related projects to get
benefits none of them could deliver alone. A program is not just
"a big project."

Memory trick: Portfolio = Priorities. Program = Partnership

(between related projects). Project = Product (one deliverable).

Ἵ Construction example: A national homebuilder's portfolio includes

housing developments, commercial builds, and renovation contracts
across regions. A program might be "Riverside Master-Planned
Community," coordinating the road project, the utility project, and 200
individual home-building projects because they share infrastructure,
timing, and budget dependencies. Each single house = a project.

5. Project Management Office (PMO) —

Three Flavors
 PMO Type Control What it does
Level
Supportive Low Offers templates, best practices, lessons
learned — advisory only
Controlling Moderate Requires compliance with specific tools/
methodologies; provides training and
oversight
Directive High Directly manages the projects — supplies
and controls the project managers
themselves

Memory trick — "SCD" ladder: Supportive (suggests) → Controlling

(checks) → Directive (drives). Control increases alphabetically... almost
— just remember low-to-high = Support, Control, Direct.

Exam tip: Unless a question says otherwise, assume a PMO exists. If

the type isn't specified, don't assume — read the scenario for clues (e.g.,
"must use the standard templates" = controlling; "the PMO assigned me
to this project and owns the outcome" = directive).

6. Organizational Structures

Structure Team reports PM's power Team's

to "home" after
project ends
Functional Functional/ Very low (little Yes — they
department to none) never left the
manager department
Project- Project Very high No — team is
Oriented manager reassigned or
(Projectized) let go
 Weak Matrix Mostly Low (PM acts Yes
functional like a
manager coordinator/
expediter)
Balanced Shared Medium Yes
Matrix between PM &
functional
manager
Strong Matrix Mostly project High Yes
manager

Memory trick:

• Functional = "Silo." Everyone stays in their department lane.

• Project-oriented = "No home." When the project ends, so does
the team's assignment.
• Matrix = "Two bosses." Team reports to both a functional
manager and a PM — power just shifts along a spectrum.

Coordinator vs. Expediter (used to describe weak-matrix PM

authority):

• Expediter = communicator only, cannot make decisions

• Coordinator = has some decision authority, reports to a higher-
level manager

Ἵ Construction example: A general contracting firm organized by

trade departments (electrical, plumbing, framing) is functional — a
project borrows people from each department as needed, and each
department head decides priorities. A firm that exists purely to deliver
one mega-project (like a Olympic stadium build) with its own dedicated
staff is project-oriented. A firm juggling multiple concurrent builds
where engineers split time across projects and still report to their
discipline lead is a matrix.

Advantages/disadvantages (quick reference):

Structure Advantage Disadvantage

 Functional Clear specialization, PM has little authority;
career paths project work competes
with departmental
priorities
Project- Fast decisions, team No "home" when project
oriented loyalty to project ends; duplicated
resources across projects
Matrix Efficient use of scarce Two bosses = potential
resources, strong conflict; more
horizontal/vertical administrative overhead
communication

7. Inputs, Outputs, and Organizational

Knowledge

• Input = "What do I need before I can start this?"

• Output = "What do I have once I'm done?"

Organizational Process Assets (OPAs)

Internal to the org, generally within the project team's control to follow
(not to invent from scratch):

• Processes, procedures, and policies (owned by PMO/governance)

• Organizational knowledge repositories: historical WBSs,
estimates, lessons learned, risk registers, financial/cost records,
issue logs — anything that helps future projects avoid repeating
mistakes

Enterprise Environmental Factors (EEFs)

Generally outside the project team's control:

 • External: laws, regulations, market conditions, industry standards
• Internal: organizational culture, structure, geographic spread,
available technology/resource systems (PMIS, procurement
system, quality system)

Memory trick: OPA = "Our Playbook & Archives" (internal, ours to

use). EEF = "External Environment, Forces we don't control."

8. Assumption Log & Constraints

Assumption log: a running record of assumptions (things believed true

but not verified) and constraints (hard limits), started at project charter
creation and updated throughout. Wrong assumptions = hidden risk.

Project constraints — the competing factors a PM must balance:

SCHEDULE
|
RESOURCES -- PROJECT -- COST
|
RISK ------------------- SCOPE
|
QUALITY / CUSTOMER
SATISFACTION

Memory trick — "SCRRQC": Scope, Cost, Risk, Resources, Quality,

Customer satisfaction (plus Schedule). Changing one constraint almost
always ripples into another — tightening schedule usually raises cost or
risk.

Ἵ Construction example: Compressing a building's schedule by two

months (to meet a tenant move-in date) usually means adding overtime
crews (cost ↑) or accepting less design review time (risk ↑, quality risk ↑).
9. Commonly Used Tools & Techniques
(Categories)

Rather than memorizing 100+ individual tools, know the categories they
fall into — the exam tests whether you recognize which type of tool fits a
situation:

Category Purpose Examples

Data Gathering Collect raw input Brainstorming, interviews,
from stakeholders surveys, benchmarking
Data Analysis Make sense of Root cause analysis,
data SWOT, trend analysis,
variance analysis
Data Communicate Flowcharts, control charts,
Representation data visually mind maps, probability/
impact matrices
Decision-Making Choose among Voting, multicriteria
options analysis, fist-of-five
Communication Share information Active listening, feedback,
meeting management
Interpersonal & The "art" of PM Conflict management,
Team Skills negotiation, emotional
intelligence, facilitation
Estimating Predict cost/ Analogous, parametric,
duration bottom-up

Memory trick: Data flows like a funnel — Gather → Analyze →

Represent → Decide. Communication and interpersonal skills run
alongside the whole funnel, not as one single step.

Work Performance Data → Information → Reports (a one-way

pipeline):

• Data = raw, unprocessed facts ("task took 10 hours")

• Information = data analyzed against the plan ("10 hours vs.
 planned 12 — ahead of schedule")
• Reports = information packaged and distributed to stakeholders

10. Project Selection Math

You don't need to be an accountant — you need to recognize which

number wins.

Metric What it means Rule of thumb

ROI (Return on Profitability relative to Higher is better
Investment) cost
PV (Present What future money is Formula: PV = FV /
Value) worth today (1+r)ⁿ
NPV (Net Present value of Positive = good
Present Value) benefits minus costs investment; higher NPV
wins (duration doesn't
matter)
IRR (Internal The "interest rate" the Higher IRR wins
Rate of Return) project effectively
earns
Payback Period Time to recover the Shorter is better
investment
Cost-Benefit Benefits ÷ Costs >1 = benefits exceed
Ratio (BCR) costs; higher is better
Economic Does the project return Different concept from
Value Added more value than it Earned Value (same
(EVA) costs? acronym, don't confuse)
Opportunity Value of the option you Equals the NPV/value of
Cost didn't choose the rejected project
Sunk Cost Money already spent Never a factor in future
go/no-go decisions
 Law of Adding more resources Explains why "just add
Diminishing eventually yields more people" doesn't
Returns smaller productivity scale forever
gains

Ἵ Construction example — NPV:

A developer is choosing between two housing projects. Project A: 3-

year build, NPV $1.2M. Project B: 5-year build, NPV $1.6M. Project B
wins — the extra two years are already baked into the NPV
calculation, so duration alone shouldn't sway the decision.

Ἵ Construction example — Sunk cost:

A contractor has spent $4M of a $3M-budgeted retail renovation and

is 60% complete. The $4M already spent should not factor into
whether to continue — the decision should be based on the value of
finishing vs. the cost of finishing from here forward.

Practice calculation:

Q: What does a benefit-cost ratio of 2.4 mean? A: The benefits

(revenue) are 2.4 times the cost of the project — a favorable ratio.

Depreciation (two types, concept only — no calculation needed for

most exam questions):

• Straight-line: same depreciation amount every year

• Accelerated (double-declining balance, sum-of-years digits):
larger depreciation earlier, smaller later

11. Project Roles — Who Does What

Role Core Responsibility

 Project Manager Plans, leads, and controls the project to deliver
value within constraints; balances leadership
(people, empowerment) with management
(tasks, control)
Sponsor/Initiator Funds and champions the project; protects it
from unnecessary change; approves the
charter and major changes
Product Manager Owns product value across its lifecycle —
(common in agile) spans multiple projects
Project Team Executes the work; helps build the WBS/
backlog, estimates, and flags deviations
Functional/ Owns people and physical resources in their
Resource department; negotiates resource availability
Manager with the PM
Program Manager Coordinates multiple related projects for
combined benefit
Portfolio Manager Governs at the executive level which programs/
projects get funded, based on strategic fit
Stakeholders Anyone impacted; help define requirements,
manage risk, and approve changes

Memory trick — Leadership vs. Management focus:

Management Leadership
Tasks People
Control Empowerment
Doing things right Doing the right
things
Command Communication

You need both — management alone gets the mechanics done;

leadership alone has no structure to execute within.
12. Business Environment (Managing
Change)

Three useful lenses for change on a project:

1. Project Change — changes within the project (scope creep, re-

estimates, phase-gate decisions). Managed through integrated
change control.
2. Transitional Change — the change the project's deliverable
brings to the organization once it's live (training, process
adjustments, adoption).
3. Environmental Change — outside forces (competitor action,
mergers, new regulation, natural disasters) that ripple back into
project or organizational decisions.

Ἵ Construction example:

• Project change: the client adds a rooftop garden mid-construction

(scope change request).
• Transitional change: building maintenance staff need training on
the new HVAC system before occupancy.
• Environmental change: a new seismic code takes effect mid-
project, forcing a redesign of structural elements.

Response pattern (any type of change): Stay aware → evaluate

impact → plan a response → lead the team through it.

13. Chapter Summary — The Big Ideas

1. A project is temporary and unique; if it's not, it's operations.

2. Stakeholders extend far beyond the obvious — think broadly.
3. Development approach exists on a spectrum: predictive ↔ hybrid
↔ agile, chosen based on how well-defined scope is.
4. Portfolios pick strategic priorities, programs coordinate related
projects for shared benefit, and projects deliver a single unique
result — all tied together under OPM.
 5. PMOs range from advisory (supportive) to fully in-charge
(directive).
6. Organizational structure determines how much authority a PM
actually has — functional (low) → matrix (medium) → project-
oriented (high).
7. OPAs are internal assets you draw on; EEFs are external/internal
conditions you must work within but can't control.
8. Constraints (scope, schedule, cost, quality, resources, risk,
customer satisfaction) all interact — changing one affects the
others.
9. Project selection math exists to compare options objectively —
know which number "wins" for each metric, and remember sunk
costs never count.
10. Change comes in three flavors — inside the project, from the
deliverable outward, and from the outside world inward.

14. Quick-Fire Mnemonic Recap

• TUV → Temporary, Unique, Value (definition of a project)

• PAH → Predictive/Agile/Hybrid = paved road / adventure trail /
half-and-half
• SCD → Supportive → Controlling → Directive (PMO control
ladder)
• Silo / No home / Two bosses → Functional / Project-oriented /
Matrix
• OPA = Our Playbook & Archives; EEF = External/
Environmental Forces
• SCRRQC → Scope, Cost, Risk, Resources, Quality, Customer
satisfaction (+ Schedule)
• Gather → Analyze → Represent → Decide → tool & technique
funnel
• Sunk cost → always irrelevant to future decisions
• Higher NPV/IRR/BCR wins; shorter payback wins; duration alone
doesn't decide
15. Practice Questions (25) — Original, With
Answers & Explanations

1. A team is renovating a single retail store to reopen under a new

brand. Which best describes this work? A) Operations B) A project C) A
program D) A portfolio Answer: B. It has a defined start/end and a
unique outcome (this specific store's renovation).

2. A project manager has almost no authority to assign resources, and

team members report primarily to department heads. What structure is
this? A) Strong matrix B) Project-oriented C) Functional D) Balanced
matrix Answer: C. "Reports primarily to department heads" + low PM
authority = functional (silo) structure.

3. Which of the following is an example of a stakeholder that's easy to

overlook? A) The project sponsor B) The customer C) A local
government regulator D) The project team Answer: C. Sponsor,
customer, and team are the "obvious" stakeholders; regulators are the
type the exam wants you to remember are still stakeholders.

4. A construction firm is building a custom home where the client keeps

changing finish selections and layout preferences as the build
progresses, with work planned in short cycles. What development
approach fits best? A) Predictive B) Agile C) Waterfall D) Directive
Answer: B. Emerging, changing requirements delivered incrementally =
agile characteristics.

5. True or False: A program is simply a very large project. Answer:

False. A program is a group of related projects managed together for
benefits unavailable if managed individually — size alone doesn't make
something a program.

6. An organization's PMO requires every project to use a specific

scheduling tool and provides training on it, but does not directly manage
the projects. What type of PMO is this? A) Supportive B) Controlling C)
Directive D) Functional Answer: B. Requiring specific tools + providing
training/oversight (moderate control) = controlling PMO.

7. In a weak matrix, the project manager has some decision-making

authority but reports to a higher-level manager. What is this role called?
A) Expediter B) Coordinator C) Sponsor D) Product owner Answer: B. A
coordinator has some authority; an expediter has none and is purely a
communication link.

8. A company has $500,000 already spent on a project that is now being

reconsidered for cancellation. How should that $500,000 factor into the
continue/cancel decision? A) It should be added to the remaining budget
B) It should not factor in at all C) It should be subtracted from projected
benefits D) It should double the risk score Answer: B. Sunk costs are
irrelevant to future decisions.

9. Project A has an NPV of $220,000 over 4 years. Project B has an

NPV of $180,000 over 2 years. Which is the better investment based on
NPV alone? A) Project A B) Project B C) They're equal D) Cannot be
determined Answer: A. Higher NPV wins regardless of duration — time
value is already factored into the NPV calculation.

10. What is the primary difference between an Enterprise Environmental

Factor (EEF) and an Organizational Process Asset (OPA)? A) EEFs are
internal-only; OPAs are external-only B) EEFs are generally outside the
project team's control; OPAs are internal knowledge/assets the team
draws on C) They are the same thing D) OPAs only apply to agile
projects Answer: B.

11. A project sponsor's role includes which of the following? A)

Performing the technical work B) Assigning daily tasks to the team C)
Providing funding and protecting the project from unnecessary change
D) Approving the WBS as a formality only Answer: C.

12. A road-widening project must comply with a new environmental

regulation issued mid-project. This is an example of: A) Project change
B) Transitional change C) Environmental change D) Scope creep
Answer: C. An external force imposing change on the project =
environmental change.

13. Which of these is NOT one of the standard "competing constraints" a

PM balances? A) Scope B) Marketing budget C) Schedule D) Risk
Answer: B. Marketing budget isn't one of the core project constraints
(scope, schedule, cost, quality, resources, risk, customer satisfaction).
14. A benefit-cost ratio of 0.8 means: A) Benefits exceed costs by 80%
B) Costs exceed benefits C) Benefits and costs are equal D) The project
should automatically be selected Answer: B. A ratio under 1 means
costs are greater than benefits — an unfavorable investment.

15. In a project-oriented (projectized) organization, what happens to

team members when the project ends? A) They return to their home
department B) They have no "home" and must be reassigned or
released C) They become the new sponsor D) They automatically join
the PMO Answer: B.

16. A project manager is documenting things believed to be true but not

yet verified, along with hard limits on the project. Where does this
information go? A) The risk register only B) The assumption log C) The
stakeholder register D) The lessons learned repository Answer: B. The
assumption log captures both assumptions and constraints.

17. Which project selection metric should NEVER be recalculated based

on money already spent? A) NPV B) IRR C) Sunk cost analysis — sunk
costs are excluded from all forward-looking metrics D) Payback period
Answer: C.

18. A portfolio manager's primary responsibility is: A) Managing the daily

work of one project's team B) Selecting and prioritizing programs/
projects to align with strategic goals C) Writing the project charter D)
Performing quality inspections Answer: B.

19. Project A: IRR 9%. Project B: IRR 14%. Project C: IRR 11%.
Assuming all else is equal, which is the best financial choice? A) Project
A B) Project B C) Project C D) They're all equal Answer: B. Higher IRR
is better.

20. Which best describes "transitional change" in the context of a

completed project? A) Changes made to the project schedule mid-
execution B) The positive change the project's deliverable is meant to
bring to the organization once implemented C) A change caused by a
new law D) A change requested by the sponsor before initiation
Answer: B.

21. A functional manager and a project manager share authority over

the same team members, with roughly equal power. This describes: A)
Weak matrix B) Balanced matrix C) Strong matrix D) Project-oriented
Answer: B.

22. Which of the following would generally be classified as an

Organizational Process Asset rather than an Enterprise Environmental
Factor? A) Government regulations B) Market conditions C) A repository
of lessons learned from past projects D) Currency exchange rates
Answer: C. OPAs are internal knowledge/assets; the others are external
conditions (EEFs).

23. A project manager notices that adding a fourth electrician to a wiring

crew increased output, but by a smaller amount than adding the third
electrician did. This illustrates: A) Economic value added B) The law of
diminishing returns C) Opportunity cost D) Straight-line depreciation
Answer: B.

24. What is the key distinction between "work performance data" and
"work performance information"? A) There is no difference B) Data is
raw and unanalyzed; information is data that has been analyzed against
the plan C) Information always comes before data D) Data is only used
in agile projects Answer: B.

25. A stadium construction project is nearing completion, two months

behind schedule due to unprecedented technical challenges. Leadership
still sees long-term value in the outcome and wants the team's insights
preserved for future similar projects. Who should be primarily
responsible for documenting lessons learned? A) Only the sponsor B)
Only the PMO C) The project team, as an ongoing responsibility
throughout the project D) Only external auditors Answer: C. Lessons
learned are best captured by the people doing the work, throughout the
project — not as an afterthought by a single outside party.

Good luck with your studying! If you'd like, I can build a similar guide for
the next chapter, or turn the mnemonics above into a printable flash-
card set.