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Prince2-Practitioner Sample Questions Answers

Questions 4

Project Scenario

Calendar Project (Note: The companies and people within the scenario are fictional.)

There has been a reduction in fie number of orders at the MNO Manufacturing Company due in part to the increased marketing activities of its competitors. To help counter this, the company has decided to create a promotional calendar for next year for all its current and prospective customers. The end product of this project will be a prepared calendar pack, ready for printing. The design of the calendar will be similar to one sent out previously, and must reflect the company image as described in the existing corporate branding standards. Another project is currently producing a new company logo when is to be printed on each page of the promotional calendar. The prepared calendar pack will consist of:

    Design for each month - correctly showing at public holidays and new company logo

    Selected photographs- 12 professionally-produced photographs, showing different members of staff

    Selected paper and selected envelope - for printing and mailing the calendar

    Chosen label design - a competition to design a label will be held as part of this project

    List of customers - names and addresses of customers to whom the calendar will be sent.

The project is currently in initiation and will have two further stages:

Stage 2 will include tie activities to:

    Create the customer fast using information from the Accounts and Marketing departments

    Confirm compliance with the Data Protection Legislation

    Create a design for each month - this will be done by the internal creative team

    Select and appoint a professional photographer

    Gather photograph design ideas from previous project and agree photographic session schedule

    Prepare a production cost forecast

    Select paper and envelope.

Stage 3 will include the activities to:

    Produce and select tie professionally-taken photographs

    Hold the label design competition and choose the label design

    Assemble the prepared calendar pack.

A production cost forecast, based on the options and costs for the paper, envelope, printing and marketing of the calendar is to be produced in stage 2. However, the actual production and distribution of the calendars is not within the scope of the project. The product cost forecast will be reviewed by the Project Board to determine whether tie project should continue.

It is now 05 October and the prepared calendar pack must be delivered to the print company by 30 November, to enable printing and distribution of the calendar in time for Christmas. The cost of the activities to develop the specialist products and the cost of the project management activities are estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost tolerance of +£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk budget.

As the project approaches the end of stage 2, the Project Manager has requested a Product Status Account to ensure that all products are at their expected point of development. Although the list of customers has been quality reviewed, it has not been baselined because the Marketing department have not provided all of the prospective customers' details. What initial action should the Project Manager take?

Options:

A.

Delay producing the End Stage Report until the list of customers has been baselined.

B.

Raise an Exception Report to the Project Board to highlight the issue.

C.

Check the target sign-off date for the list of customers.

D.

Update the product status to baselined and obtain a commitment from the Marketing department to finish this work within the next few days.

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Questions 5

Scenario

Additional Information

Further information on some resources who could be involved in the project:

Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.

Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.

Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.

Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.

Which 2 alternative actions apply to the proposed Executive for this project?

Options:

A.

Retain because he accepts that outsourcing is the best solution.

B.

Replace with 'Director of Finance Division' because she can ensure a cost-conscious approach to the project that gives value for money.

C.

Retain because he has the right level of authority to be able to control the strategic nature of the Outsourcing project.

D.

Add 'Director of Finance' because she understands the operation of the Information Technology Division and the Facilities Division.

E.

Replace with 'Payroll Manager' because he is a very experienced and efficient qualified accountant.

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Questions 6

Scenario

Additional Information

Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.

Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.

Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.

Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.

Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.

Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar. It has yet be decided which of the photographers to use.

Which 2 statements explain why the Marketing Director should be appointed as the Executive for this project?

Options:

A.

She has been with the company for three years.

B.

She previously had a successful career in publicity.

C.

She is able to represent the business needs of MNO Manufacturing.

D.

She has authority to commit the marketing budget, from which the project will be funded.

E.

She requires more experience working with the engineering industry.

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Questions 7

Which of the following represents the four key characteristics a good Project board should display?

Options:

A.

Authority, Credibility, Commitment, Availability

B.

Authority, Credibility, Delegation, Availability

C.

Authority, Availability, Connections, Delegation

D.

Authority, Credibility, Connections, Delegation

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Questions 8

Who is responsible for ensuring that Communication Management Strategy is appropriate and that planned communication activities actually take place?

Options:

A.

Project Assurance

B.

Project Manager

C.

Corporate or Programme Management

D.

Project Support

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Questions 9

Scenario

Additional Information

Further information on some resources who could be involved in the project:

Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.

Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.

Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.

Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.

Which 2 alternative actions apply to the proposed Senior User for this project?

Options:

A.

Retain because he provides the outsourcing resources required to support the project.

B.

Replace with 'Director of Research and Development' because she deals with both the Information Technology and the Facilities Divisions and can make sure her division's needs are specified.

C.

Remove because he has no authority to commit user resources.

D.

Add 'Hardware Manager' because he provides computer hardware to all business functions and will be impacted by the outcome.

E.

Retain because he will be providing support to the Information Technology and Facilities teams during the project.

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Questions 10

Scenario

Additional Information

Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.

Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.

Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.

Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.

Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.

Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar. It has yet to be decided which of the photographers to use.

Which 2 statements explain why the Purchasing Manager should be appointed as a Senior Supplier for this project?

Options:

A.

He is responsible for the organization's procurement activates.

B.

He is responsible for the performance of supplier contracts.

C.

He was an engineer and worked in that area before taking up his current position.

D.

He can influence the external supplier's Business Case.

E.

He is not appropriate for the role of Executive or Senior User.

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Questions 11

Additional Information

Further information on some resources who could be involved in the project:

Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.

Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.

Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.

Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.

Using the Project Scenario and the additional information provided for this question in the Scenario Booklet, answer the following question about roles on the Outsourcing project.

Options:

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Questions 12

Which statement is TRUE with regard to technical stages?

Options:

A.

Technical stages can only occur sequential

B.

Technical stages define where management decisions are appropriate

C.

Technical stages often overlap

D.

Technical stages define the commitment of resources and authority to spend

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Questions 13

Scenario

Additional Information

Further information on some resources who could be involved in the project:

Outcome Account Manager: He represents Outcome which is a recruitment agency that provides specialist outsourcing resources. Outcome provided the consultants who carried out the feasibility study and the same consultants will be providing support and guidance to the Information Technology and Facilities teams during the project.

Director of Finance Division: She was transferred from the Information Technology Division 12 months ago. She is responsible for ensuring a cost-conscious approach is adopted in all operational and project activities across the Ministry of Food Hygiene.

Hardware Manager: Reports to the Director of Information Technology. He provides computer hardware to all business functions but has little awareness of the needs of his colleagues working in software.

Payroll Manager: Reports to the Director of Finance. He is a very experienced and efficient qualified accountant who has much of the responsibility of running the Finance Division on behalf of the Director of Finance. He has been involved in drafting the Ministry's business strategy and assisting in a full business risk assessment. He also drafted the corporate Business Case standards.

Which 2 alternative actions apply to the proposed Senior Supplier for this project?

Options:

A.

Retain because she is responsible for the design of the future Information Technology organization and working practices.

B.

Add 'Director of Facilities' because he is responsible for the design of the future organization, processes, systems and operation models for Facilities.

C.

Add 'Hardware Manager' because he provides computer hardware to all business functions and will be impacted by the outcome.

D.

Remove because she only represents the Information Technology Division.

E.

Replace with 'Director of Facilities' because he supports the initiative and has many ideas about how to improve the service.

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Questions 14

Scenario:

Techniques, processes and procedures

1. Any threat that may result in a loss of MFH data must be escalated immediately.

Joint agreements

2. Work is to start at the beginning of week 2 (Stage 4).

3. The project will take two years to complete, at an estimated cost of £2.5m.

Tolerances

4. None.

Constraints

5. MFH staff must not be involved in any heavy lifting during the removal of existing IT equipment.

6. Installation work must take place during MFH normal working hours.

7. +£10,000 / -£25,000.

Reporting arrangements

8. Highlight Report every Monday by 10.00 am.

9. The report must contain a summary of all products worked on during the previous week.

10. Project Manager must be notified of any issues immediately by telephone.

Problem handling and escalation

11. Impact analysis of all issues must be completed within 24 hours.

Extracts or references

12. The Stage Plan for stage 4 is available from Project Support.

Approval method

13. Project Assurance will review the completed Work Package and confirm completion

Which 2 statements apply to either the Extracts or references or Approval method sections?

Options:

A.

Delete entry 12 because this should be the Team Plan not the Stage Plan.

B.

A suitable entry for Extracts or references would be 'Product Descriptions are available from Project Support'.

C.

Move entry 13 to Reporting arrangements because this describes how completion will be advised to the

D.

Project Manager.

E.

Delete entry 13 because this is NOT a Project Assurance responsibility.

F.

Add 'The Project Manager is to be advised of completion of the Work Package by email'.

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Questions 15

If Project tolerances were threatened, who needs to be notified?

Options:

A.

Project Board

B.

Project Manager

C.

Corporate or Programme Management

D.

Executive

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Questions 16

Scenario:

Techniques, processes and procedures

1. Any threat that may result in a loss of MFH data must be escalated immediately.

Joint agreements

2. Work is to start at the beginning of week 2 (Stage 4).

3. The project will take two years to complete, at an estimated cost of £2.5m.

Tolerances

4. None.

Constraints

5. MFH staff must not be involved in any heavy lifting during the removal of existing IT equipment.

6. Installation work must take place during MFH normal working hours.

7. +£10,000 / -£25,000.

Reporting arrangements

8. Highlight Report every Monday by 10.00 am.

9. The report must contain a summary of all products worked on during the previous week.

10. Project Manager must be notified of any issues immediately by telephone.

Problem handling and escalation

11. Impact analysis of all issues must be completed within 24 hours.

Extracts or references

12. The Stage Plan for stage 4 is available from Project Support.

Approval method

13. Project Assurance will review the completed Work Package and confirm completion.

Which 2 statements apply to either the Development Interfaces or Operations and maintenance interfaces sections?

Options:

A.

Delete entry 2 because this interface will be contained in the Communication Management Strategy.

B.

Delete entry 3 because this interface will be contained in the project control section of the Project Initiation Documentation.

C.

Amend entry 4 to 'The transferred products relating to the services provided by the Facilities Division'.

D.

Add 'Project Board, with responsibility for communicating progress to corporate management' to

E.

Operations and maintenance Interfaces.

F.

Add 'Facilities Team Manager, with responsibility for the transfer of services provided by the Facilities Division' to Development Interfaces.

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Questions 17

Scenario:

Techniques, processes and procedures

1. Any threat that may result in a loss of MFH data must be escalated immediately.

Joint agreements

2. Work is to start at the beginning of week 2 (Stage 4).

3. The project will take two years to complete, at an estimated cost of £2.5m.

Tolerances

4. None.

Constraints

5. MFH staff must not be involved in any heavy lifting during the removal of existing IT equipment.

6. Installation work must take place during MFH normal working hours.

7. +£10,000 / -£25,000.

Reporting arrangements

8. Highlight Report every Monday by 10.00 am.

9. The report must contain a summary of all products worked on during the previous week.

10. Project Manager must be notified of any issues immediately by telephone.

Problem handling and escalation

11. Impact analysis of all issues must be completed within 24 hours.

Extracts or references

12. The Stage Plan for stage 4 is available from Project Support.

Approval method

13. Project Assurance will review the completed Work Package and confirm completion

At the end of stage 3, the service provider will be selected and the contract awarded. During stage 4, the Account Manager for the selected service provider will work with the Project Manager to complete the transition of the services to the selected service provider.

Options:

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Questions 18

During a work package the Team manager needs to keep the project manager informed, which management product is used for this?

Options:

A.

Highlight report

B.

Checkpoint Report

C.

Issue Report

D.

End Stage Report

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Questions 19

Which statement best explains the purpose of Tailor to suit the project environment?

Options:

A.

Ensure project controls are based on project's scale, complexity, importance, capability and risk

B.

To use a set of pre-defined templates for the size of project

C.

To tailor the use of the principles to suit the project

D.

To pick which PRINCE2 processes to apply and which to leave out

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Questions 20

It is now late October and the project is in stage 3. The label design competition has been held and the photos of the staff have been taken. The CEO and Marketing Director still need to choose the winning label design and the 12 photos for the calendar. However, the Executive has learned that two competitors are issuing calendars to MNO's customers by the middle of November. After analyzing the impact of this Issue, one of the options the Project Manager has presented to the Project Board is to close the project prematurely.

There are a number of key facts relating to this project that would need to be recorded if the project Y-e to be closed now.

Which product should show that if anybody has any remaining resource costs to be charged to the project, they should ensure this is done by 10 November?

Options:

A.

Benefits Review Plan

B.

End Project Report

C.

Follow-on action recommendations

D.

Project closure notification

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Questions 21

It is now late October and the project is in stage 3. The label design competition has been held and the photos of the staff have been taken. The CEO and Marketing Director still need to choose the winning label design and the 12 photos for the calendar. However, the Executive has learned that two competitors are issuing calendars to MNO's customers by the middle of November. After analyzing the impact of this Issue, one of the options the Project Manager has presented to the Project Board is to close the project prematurely.

There are a number of key facts relating to this project that would need to be recorded if the project Y-e to be closed now.

Which product should register that the risk of a competitor producing a calendar at the same time was identified at the beginning of the project but the assessment of this risk appears to have been poor?

Options:

A.

Issue Register

B.

Follow-on action recommendations

C.

Lessons Report

D.

Risk Register

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Questions 22

Which of the following statements is NOT correct?

The Learn from Experience principle suggests that lessons should be actively sought...

Options:

A.

When Starting a Project

B.

When Initiating a Project

C.

As the project progresses

D.

As the project closes

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Questions 23

Which activity is responsible for updating the stage plan with actual during Controlling a Stage?

Options:

A.

Review the stage status

B.

Review work package status

C.

Report Highlights

D.

Take corrective action

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Questions 24

Project Scenario

Project Scenario

Calendar Project (Note: The companies and people within the scenario are fictional.)

There has been a reduction in fie number of orders at the MNO Manufacturing Company due in part to the increased marketing activities of its competitors. To help counter this, the company has decided to create a promotional calendar for next year for all its current and prospective customers. The end product of this project will be a prepared calendar pack, ready for printing. The design of the calendar will be similar to one sent out previously, and must reflect the company image as described in the existing corporate branding standards. Another project is currently producing a new company logo when is to be printed on each page of the promotional calendar. The prepared calendar pack will consist of:

    Design for each month - correctly showing at public holidays and new company logo

    Selected photographs- 12 professionally-produced photographs, showing different members of staff

    Selected paper and selected envelope - for printing and mailing the calendar

    Chosen label design - a competition to design a label will be held as part of this project

    List of customers - names and addresses of customers to whom the calendar will be sent.

The project is currently in initiation and will have two further stages:

Stage 2 will include tie activities to:

    Create the customer fast using information from the Accounts and Marketing departments

    Confirm compliance with the Data Protection Legislation

    Create a design for each month - this will be done by the internal creative team

    Select and appoint a professional photographer

    Gather photograph design ideas from previous project and agree photographic session schedule

    Prepare a production cost forecast

    Select paper and envelope.

Stage 3 will include the activities to:

    Produce and select tie professionally-taken photographs

    Hold the label design competition and choose the label design

    Assemble the prepared calendar pack.

A production cost forecast, based on the options and costs for the paper, envelope, printing and marketing of the calendar is to be produced in stage 2. However, the actual production and distribution of the calendars is not within the scope of the project. The product cost forecast will be reviewed by the Project Board to determine whether tie project should continue.

It is now 05 October and the prepared calendar pack must be delivered to the print company by 30 November, to enable printing and distribution of the calendar in time for Christmas. The cost of the activities to develop the specialist products and the cost of the project management activities are estimated to be £20,000. There is a project time tolerance of +1 week /-2 weeks and a project cost tolerance of +£6,000 / -£6,000. A change budget of £500 has been allocated but there is no risk budget.

Lines 1 to 6 in the table below consist of an assertion statement and a reason statement For each line identify the appropriate option, from options 1 to 6, that applies. Each option can be used once, more than once or not at all.

Options:

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Questions 25

Which of the following statements best describes what a risk owner is?

Options:

A.

Best placed to keep an eye on the risk

B.

Carry out the response actions to a risk

C.

Responsible for management, monitoring and control of all aspects of a risk

D.

Reports to the project manager regularly on the status of a risk

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Questions 26

When does Directing a Project begin?

Options:

A.

From the beginning of Starting up a Project

B.

From the beginning of Initiating a Project

C.

From the completion of Starting up a Project

D.

From the completion of Initiating a Project

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Questions 27

Column 1 is a list of entries from the Daily Log that occurred during stage 4 in the Controlling a Stage process. For each entry in Column 1, select the first management product from Column 2 that should have been updated, or created, as a result of the entry. Each selection from Column 2 can be used once, more than once or not at all.

Drop down the right answer from column 1 to column 2.

Options:

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Questions 28

Which of the following risk responses can be used for either an opportunity or a threat?

Options:

A.

Reduce

B.

Share

C.

Reject

D.

Enhance

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Questions 29

Scenario

A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.

The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.

The contract is to be reviewed and Portraits Ltd reminded of their agreement.

The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.

Which 2 statements should be recorded under the Risk tolerance heading?

Options:

A.

Corporate management's threshold level of risk exposure is any combination of high and very high impact and probability.

B.

The Project Board's threshold level of risk exposure is any combination of medium, high and very high impact, with high and very high probability.

C.

The Project Manager's threshold level of risk exposure is low impact and probability.

D.

The cost of all fallback plans must be contained within the project's tolerance.

E.

The risk budget will have a tolerance of +/~ 10%.

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Questions 30

Which of the following statements is False regarding the Risk Management Strategy?

Options:

A.

It captures and maintains all relevant information on identified threats and opportunities

B.

It documents the risk tolerances

C.

It documents the approach to risk

D.

It identifies responsibilities towards risk for the project

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Questions 31

Scenario

A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.

The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.

The contract is to be reviewed and Portraits Ltd reminded of their agreement.

The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.

Which 2 statements should be recorded under the Proximity heading?

Options:

A.

Proximity categories for this project are: Imminent; Within the stage; Within the project; Beyond the project.

B.

The risk of MFH having no outsourcing experience will be categorized as Stage 4 proximity.

C.

Imminent risks are those which may occur within two weeks.

D.

Any risk with a proximity category of imminent will be estimated as having a very high impact.

E.

The risk of staff leaving the organization will be categorized as beyond the project proximity.

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Questions 32

Scenario

A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.

The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.

The contract is to be reviewed and Portraits Ltd reminded of their agreement.

The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.

There is a major concern over an apparent lack of control of project documentation.

For each concern listed in Column 1, select from Column 2 the configuration management task that could help address the problem. Each selection from Column 2 can be used once, more than once or not at all.

Options:

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Questions 33

Additional Information

A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.

The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.

The contract is to be reviewed and Portraits Ltd reminded of their agreement.

Options:

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Questions 34

Which of the following is not part of the composition of a Plan?

Options:

A.

Pre-requites

B.

Assumptions

C.

Quality responsibilities

D.

Product descriptions

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Questions 35

Scenario

A photographer from Portraits Ltd, a professional photographic company, has taken on the role of Team Manager after taking some time to understand the requirements of the project. A contract for their services has been set up and is being monitored by the Purchasing Manager and a Work Package has been agreed. This contract specifies that the photographer must arrange a meeting with the Engineering Manager to establish a schedule for the photo sessions to minimize the impact on the Engineering staff. This meeting should have occurred by now.

The Engineering Manager was made aware of this requirement but when asked he reported that he has received no communication from the photographer. The Project Manager has tried to call the photographer and has had no response. The Project Manager believes there is a risk that Portraits Ltd are overbooking work and prioritizing other clients' work. If Portraits ltd do not deliver on schedule the project will be delayed and the expected benefits will be reduced.

The contract is to be reviewed and Portraits Ltd reminded of their agreement.

The project is now in stage 2. The Project Manager has heard about the possibility of a competitor also producing a calendar to be delivered earlier than the target date for this project. There is a threat that the early release of a competitor's calendar may weaken the impact of the MNO Manufacturing Company calendar, thereby reducing the anticipated benefits of the Calendar project.

Which 2 statements should be recorded under the Timing of risk management activities heading?

Options:

A.

During stage 4, the selected service provider will manage any risks to their Business Case and report these to the Project Manager on a weekly basis.

B.

The Project Board should hold monthly meetings to review project progress.

C.

When closing a project, the follow-on action recommendations should be updated with any risks relating to the realization of benefits after the outsourced services go live.

D.

Any new risks identified during product development should be reported to the Project Manager by the Team Manager when delivering the completed Work Package.

E.

When authorizing a stage, the Project Board will check that the exposure to risk is still acceptable.

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Questions 36

Having completed designing the plan, in which order should the next steps take place to produce a plan?

1. Prepare Estimates

2. Define and analyze Products

3. Prepare the schedule

4. Identify activities and dependencies

Options:

A.

2, 4, 3, 1

B.

4, 2, 1, 3

C.

4, 3, 2, 1

D.

2, 4, 1, 3

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Questions 37

Product Summary

A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.

Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.

The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.

Product Breakdown Structure (contains errors)

Extract from Stage Plan for stage 3.

(All entries are true statements but may not be shown under the correct heading or in the correct document).

Using the Product Summary and Product Breakdown Structure provided as additional Information for this question In the Scenario Booklet, answer the following question.

Column 1 is a list of some of the entries in the product breakdown structure. Determine whether each entry in Column 1 has been correctly shown in the product breakdown structure. Select from Column 2 the appropriate statement that correctly describes that entry. Each selection from Column 2 can be used once, more than once or not at all.

Options:

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Questions 38

Scenario

Product Summary

A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.

Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.

The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.

Product Breakdown Structure (contains errors)

Extract from Stage Plan for stage 3.

(All entries are true statements but may not be shown under the correct heading or in the correct document).

Using the Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.

The Stage Plan for stage 3 has been produced.

The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.

None of the £500 change budget has been used to date and this is available for the stage.

Which 2 statements apply to the Planning assumptions section?

Options:

A.

No change to entry 8 because this cannot be confirmed until all of the label designs entries have been received and an assessment made.

B.

Move entry 8 to External dependencies because the label designs are created outside of the scope of the project.

C.

Delete entry 9 because the photo session schedule should have been approved as part of stage 2.

D.

Move entry 9 to External dependencies because the photo session schedule is created by the professional photographer.

E.

Delete entry 10 because the inclusion of different members from the Engineering team in each photo should be shown in the Product Description for the photos.

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Questions 39

Scenario

Product Summary

A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.

Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.

The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.

Product Breakdown Structure (contains errors)

Extract from Stage Plan for stage 3.

(All entries are true statements but may not be shown under the correct heading or in the correct document).

Using the Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.

The Stage Plan for stage 3 has been produced.

The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.

None of the £500 change budget has been used to date and this is available for the stage.

Which 2 statements apply to the External dependencies section?

Options:

A.

Delete entry 5 because the new company logo is being delivered by a separate project and will be detailed in the plans for that project.

B.

Move entry 5 to Plan prerequisites because the new company logo will influence the label designs.

C.

Move entry 5 to Plan description because the new company logo will be delivered during stage 3.

D.

Delete entry 6 because the customer details were used in stage 2 to create the customer list.

E.

Delete entry 7 because it should be shown in the Product Description for the label design.

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Questions 40

Who sets the tolerances for a work package?

Options:

A.

The project board

B.

The project manager

C.

The team manager

D.

Corporate or programme management

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Questions 41

Scenario

Product Summary

A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.

Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.

The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.

Product Breakdown Structure (contains errors)

Extract from Stage Plan for stage 3.

(All entries are true statements but may not be shown under the correct heading or in the correct document).

Using the Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.

The Stage Plan for stage 3 has been produced.

The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.

None of the £500 change budget has been used to date and this is available for the stage.

Which 2 statements apply to the Monitoring and control section?

Options:

A.

Delete entry 11 because this relates to the monitoring and controlling of the Project Plan, not the Stage Plan.

B.

No change to entry 12 because this describes how the Project Board will control the stage.

C.

Move entry 12 because the Highlight Reports are deliverables of this stage and should be shown under Product descriptions.

D.

Delete entry 13 because this is part of the Controlling a Stage process.

E.

Delete entry 14 because the Product Status Account is NOT an ad-hoc report. It is produced at the end of each stage to identify any variations between planned status, reported status and actual status of the stage's products.

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Questions 42

Scenario

Product Summary

A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.

Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.

The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.

Product Breakdown Structure (contains errors)

Extract from Stage Plan for stage 3.

(All entries are true statements but may not be shown under the correct heading or in the correct document).

Using the Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.

The Stage Plan for stage 3 has been produced.

The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.

None of the £500 change budget has been used to date and this is available for the stage.

Which 2 statements apply to the Budgets section?

Options:

A.

Amend entry 15 because it should also include the cost of management activities.

B.

Delete entry 16 because timescales should NOT be shown under the heading of budgets.

C.

Delete entry 17 because the risk budget should be shown in the Risk Management Strategy.

D.

Add 'Change budget - £500'.

E.

Add 'Cost tolerance - +£6k 1-£6k

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Questions 43

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

DIRECTING A PROJECT

Here are three actions that are carried out as part of the ‘directing a project’ process.

During which activity (A-E) should they be carried out?

Choose only one activity for each action. Each activity can be used once, more than once, or not at all.

Options:

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Questions 44

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

Based on lessons from previous projects that used the ABC Company standard development model, the project board has set low cost and time tolerances for stage 2. As a result, the project manager plans to set very low tolerances for time and cost for all work packages to be carried out during stage 2.

Is this an appropriate application of the ‘manage by exception’ principle, and why?

Options:

A.

Yes, because the project manager should set tolerance equally for all work packages in a stage.

B.

Yes, because setting appropriate tolerances for work packages will help keep the stage within tolerances.

C.

No, because tolerances set by the project manager should be the same as those set by the project board.

D.

No, because the project manager should divide the stage tolerances between the team managers.

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Questions 45

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

RISK

The project is in stage 2. The project manager has heard that a competitor may launch a similar e-learning course much sooner than ABC Company. There is a threat that the earlier launch of a competitor’s course may reduce the profitability of ABC Company training courses.

Here are three responses to this risk.

Which risk response type (A-F) are they?

Choose only one response type for each risk response. Each response type can be used once, more than once, or not at all.

Options:

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Questions 46

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

Use the ‘Additional Information’ in the Scenario Booklet to answer this question.

The Operations Director is the executive for the project and has proposed that a senior course developer be appointed as project manager. The course developer works in the Training Development Manager’s team and has a good understanding of the standard course development model. The course developer was a team manager on a previous project for which the Operations Director was the executive.

Is this proposed appointment appropriate, and why?

Options:

A.

Yes, because the course developer is responsible for ensuring that trainers deliver courses to the required standard.

B.

Yes, because the course developer is likely to have the project management and specialist knowledge required.

C.

No, because the course developer’s team reports to the Business Development Director, not the Operations Director.

D.

No, because there is a conflict of interest as the Training Development Manager is responsible for gaining accreditation.

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Questions 47

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

One of the senior managers of the company that is developing the ‘e-learning course’ has worked with ABC Company before. The team manager for the delivery of the ‘e-learning course’ has looked on ABC Company’s intranet, but cannot find any reference to this work. The team manager has contacted the senior manager to discuss this project.

Is this an appropriate application of the ‘learn from experience’ principle, and why?

Options:

A.

Yes, because the project involves more than one organization.

B.

Yes, because the team manager should actively look for useful information.

C.

No, because the senior manager should advise the team manager of any lessons.

D.

No, because every project is unique and should deliver specific business objectives

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Questions 48

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

During stage 4, a work package was authorized for the ‘delivered pilot courses’ to be completed by the end of week 2. The ‘finalized materials’ work package will start in week 3. Both work packages have zero tolerances, and finalizing the materials is dependent on feedback from the pilot courses.

During week 1, there were some problems with the pilot courses, so at the start of week 2 the team manager rescheduled the courses to week 3, and reported this in the weekly checkpoint report as the end of week 2.

Should the team manager have reported this delay previously as an issue, and why?

Options:

A.

Yes, because the work package to deliver the pilot courses was forecast to exceed its time tolerance.

B.

Yes, because a team manager should not change the scheduled order of a work package.

C.

No, because the checkpoint report for week 1 should include information on any issues that occurred.

D.

No, because the feedback from the rescheduled courses can be used in week 4 to finalize the materials.

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Questions 49

PROGRESS

Here are three statements relating to controlling the progress of the project.

In which management product (A-E) should each statement be recorded?

Choose only one product for each statement. Each product can be used once, more than once, or not at all.

Options:

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Questions 50

BUSINESS CASE

Here are three statements from the business case for the Health and Safety Project.

Under which heading in the business case (A-F) should they be recorded?

Choose only one heading for each statement. Each heading can be used once, more than once, or not at all.

Options:

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Questions 51

During the 'starting up a project' process, the project manager discusses the standard model for course development with the executive. The project manager then assesses how the Health and Safety Training Project will be delivered, including what products should be delivered in each stage.

Is this an appropriate way to carry out the ‘plan the initiation stage' activity, and why?

Options:

A.

Yes, because the work of the initiation stage needs to be planned and approved, in the same way as other project work.

B.

Yes, because the management controls for the initiation stage need to be defined and approved by the project board.

C.

No, because subsequent stages are planned in the initiation stage as part of creating the project plan.

D.

No, because the senior supplier is responsible for assessing the viability of the project approach.

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Questions 52

Scenario

Extract from the Project Product Description (with errors)

Which 2 statements apply to the Derivation section?

Options:

A.

Move entry 9 to Composition because this is within the scope of the project.

B.

Delete entry 10 because this is NOT a source product for this project.

C.

Delete entry 11 as this is already correctly shown under Development Skills required.

D.

Move entry 12 to Composition, because this is within the scope of this project.

E.

Add 'Professional photographer'.

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Questions 53

Which of the following statements are True:

1. Quality management is the complete set of quality standards, procedures and responsibilities for a site or organization.

2. Quality planning is about defining products required of the project with their respective quality criteria, methods and responsibilities.

3. Quality control focuses on the operational techniques and activities used to carry out quality inspections

4. Quality assurance ensures that quality methods are being correctly followed.

Options:

A.

1, 2 & 3

B.

1, 3 & 4

C.

1, 2 & 4

D.

2, 3 & 4

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Questions 54

Which of the following statements would NOT be included in the Project Product Description?

Options:

A.

Purpose of the product

B.

Composition

C.

Project level tolerances

D.

Quality criteria

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Questions 55

Which principle is central to the quality theme and provides explicit understanding of what the project will create?

Options:

A.

Manage by stages

B.

Focus on products

C.

Manage by exception

D.

Learn from experience

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Questions 56

Which role is responsible for providing the customer's quality expectations and acceptance criteria for the project?

Options:

A.

Executive

B.

Corporate or Programme Management

C.

Senior User

D.

Project Assurance

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Questions 57

Scenario

Additional Information

Product Description

Quality notes from the Daily Log

The Director of Information Technology Division (DIT) has been asked to ensure that any changes to the outsourced staff employment contracts adhere to employment law. The DIT will review future job descriptions of the transferred staff before the final contract is signed with the selected service provider.

The service level agreement between MFH and the selected service provider will specify the type and quality of service required. The selected service provider must follow the industry standards for providing outsourced services.

MFH has a quality management system which contains a document control procedure for all its documentation, however this does not include change management.

All project documents will be subject to a quality review. Nominated products will require a formal approval record signed-off by the quality review chair.

Extract from the draft Quality Management Strategy (may contain errors)

Introduction

1. This document defines the approach to be taken to achieve the required quality levels during the project.

2. The Project Board will have overall responsibility for the Quality Management Strategy.

3. Project Assurance will provide assurance on the implementation of the Quality Management Strategy.

Quality management procedure - Quality standards

4. The selected service provider will operate to industry standards for providing outsourced services.

5. MFH document standards will be used.

Records

6. A Quality Register will be maintained to record the planned quality events and the actual results from the quality activities.

7. Configuration Item Records will be maintained for each product to describe its status, version and variant.

8. Approval records for products that require them will be stored in the quality database.

Roles and responsibilities

9. The DIT will check that the employment contracts for outsourced staff adhere to employment law.

10. Team Managers will provide details of quality checks that have been carried out.

11. Team Managers will ensure that the Quality Register is updated with the names of team members who are involved in the review process.

12. The Senior User will review the Product Descriptions of the products to be produced by the selected service provider to ensure that they can be achieved.

Although it is not specified in the current corporate branding standards, the MFH corporate logo should be shown on the front page of the service level agreement.

Options:

A.

Obtain agreement from the Director of Facilities Division to amend this within the remaining +2 days tolerance.

B.

Raise an issue (off-specification).

C.

Raise an issue (request for change).

D.

Accept this error as a concession.

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Questions 58

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

ORGANIZATION

The communication management approach is being developed. ABC Company’s corporate management has agreed the information about proposed courses can be shared externally, provided that a non-disclosure agreement is signed and corporate management is informed.

Here are three items of information relating to the sharing of course materials.

Under which heading of the communication management approach (A-F) should they be included?

Choose only one heading for each item of information. Each heading can be used once, more than once, or not at all.

Options:

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Questions 59

Scenario:

The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH's documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.

According to PRINCE2, which statement about the Configuration Management Strategy for the Outsourcing project is correct?

Options:

A.

Every project needs a Configuration Management Strategy, even if the organization has existing configuration management standards, because every project has different circumstances.

B.

A separate Configuration Management Strategy will be required for each of the suppliers within this project because each will have a different way of managing and storing products.

C.

A Configuration Management Strategy is unnecessary for this project because the MFH document control process is documented. It is acceptable simply to reference this in the Quality Management Strategy.

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Questions 60

: 30

Project Scenario – Health and Safety Training Project:

ABC Company is a well-established training company that uses a standard model to develop training materials and deliver courses to customers.

ABC Company has commissioned a project in response to recent changes in government legislation relating to health and safety on construction sites. The project will deliver “capability to provide health and safety training”, including the materials needed for classroom-based training and e-learning. The expected benefits for construction companies include a reduction in lost days and legal costs due to accidents.

The e-learning course will be developed by a specialist external consultancy. The materials for classroom-based training will be delivered by ABC Company’s development team. All course materials will be piloted before they are used. ABC Company will deliver training to its customers and also hopes to sell the course materials to other training companies as part of their operational business. ABC Company will use their own sales and marketing departments to promote the courses.

The legislation requires construction companies to comply with the new legislation within two years. The course materials and trainers have to be accredited by a government agency before courses can be delivered. ABC Company is planning to deliver pilot courses within five months of starting the project.

The ABC Company standard development model for new courses recommends the following stages:

End of the Project scenario.

Additional Information:

The Chief Executive Officer (CEO) founded the company five years ago. Under her leadership, ABC Company has grown quickly into a successful training company. It delivers a range of accredited professional training.

The Finance Director is also a founder member of ABC Company and is responsible for authorizing budgets for the Operations and Development Teams. She authorizes all large contracts personally.

The Purchasing Manager reports to the Finance Director and is responsible for managing and monitoring supplier contracts.

The Operations Director is responsible for the delivery off all training and for the training development budget. His department organizes courses, venues and trainers. They work with the Product and the Sales teams to provide a comprehensive training schedule. ABC Company’s IT manager reports to the Operations Director.

The Business Development Director has recently been appointed to identify new training needs and propose new products. She will work with the Operations. Director to ensure a cost-conscious approach and that appropriate development technologies are used for the health and safety course.

The Training Development Manager reports to the Business Development Director and is responsible for developing training materials and gaining accreditation, in accordance with the standard course development model. Course developers in his team have skills in a range of development technologies and are allocated to projects as needed.

The Training Delivery Manager, who reports to the Operations Director, is responsible for ensuring that internal and external trainers deliver ABC Company training courses to the required standard. He also checks course materials to ensure they are fit for purpose and of the required quality.

The Central Services Director has responsibility for corporate communications, facilities management and configuration management. He recently led a project to consolidate all company quality systems into one quality management system and set up a corporate quality department, now managed by the Corporate Quality Manager.

The Corporate Document Manager reports to the Central Services Director. She helped establish the company’s document management system and now operates it across the business. She manages a team of administrators and contracts staff when workload is high.

The Sales Director joined ABC Company two months ago and is keen to establish himself by suggesting new markets for the courses and material. All account managers and the marketing team report to him. They promote existing training courses to other training companies and existing customers.

End of the additional information.

ABC Company has decided to include the Health and Safety Training Project in a programme to support their strategy to deliver globally. The programme team has provided the detailed business justification and, as a result, the project board has decided that the business case will not need refining further during the ‘initiating a project’ process.

Is this an appropriate action for the project board, and why?

Options:

A.

Yes, because the project board are able to use the business case provided by the programme.

B.

Yes, because when the project is part of a programme, the programme team provides the business case.

C.

No, because the programme team cannot constrain the project manager’s choices.

D.

No, because each project in the programme will need a revised business case.

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Questions 61

When examining a project issue, which three aspects should be considered?

1. Performance targets

2. Business Case

3. Resources

4. Risk

Options:

A.

1, 3, 4

B.

2, 3, 4

C.

1, 2, 4

D.

1, 2, 3

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Questions 62

Scenario:

The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH's documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.

What additional risk will this place on the project?

Options:

A.

None because risks associated with the centralization and rationalization of the Facilities Division will be managed by another project.

B.

These changes will delay stage 3 by three weeks.

C.

There is only £70k left in the project change budget.

D.

The reduced value of the contracted services required by the Outsourcing project may result in an insufficient number of proposals being received.

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Questions 63

If the Project Board are too busy to authorize all change requests themselves, they can appoint?

Options:

A.

A Change Authority

B.

A Change Board

C.

A Change Committee

D.

A Change Budget

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Questions 64

Who would be responsible for maintaining the Configuration Item Records?

Options:

A.

Project Manager

B.

Project Support

C.

Project Assurance

D.

Team Manager

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Questions 65

Scenario:

The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH's documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.

Having created the Issue Report and analyzed the impact of removing the Facilities Division from the scope of the Outsourcing project, the proposed option exceeds tolerance. \Nhat is the next action the Project Manager should consider?

Options:

A.

Create an Exception Report to inform the Project Board of the situation and the available options.

B.

Update the associated Configuration Item Records with details of the Issue Report that caused the change.

C.

Amend the Stage Plan for stage 3: remove all products related to the Facilities Division and add the activities required to deliver the new Government initiative.

D.

Create an Exception Plan to change all of the project's products to reflect the exclusion of services provided by the Facilities Division.

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Questions 66

Scenario:

The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH's documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.

What products will be impacted by this change?

Options:

A.

All of the project's products created so far.

B.

Only those products created in the first three weeks of stage 3.

C.

All of the project's products which relate to or include services provided by the Facilities Division.

D.

No products would need to be changed but some will need to be removed from the project.

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Questions 67

Scenario:

The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH's documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.

What will be the impact on the benefits?

Options:

A.

Reduced savings, now £10m over 10 years.

B.

Increased savings of £5m over 10 years from the new initiative to centralize the services provided by the Facilities Division.

C.

An additional cost of £1.5m to deliver the services provided by the Facilities Division.

D.

Outsourcing project cost reduced by 50%.

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Questions 68

Scenario

A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers’ performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:

● Do nothing.

● Re-engineer selected business functions.

● Outsource selected business functions.

The feasibility study concluded that there was a case for outsourcing the MFH Information Technology Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:

● One service provider should be contracted to provide the services currently provided by the Information Technology Division and the Facilities Division.

● A 10-year service contract should be agreed with the selected service provider.

The feasibility study developed high-level designs of the current organization, processes, systems and operating models, plus an outline Business Case for the required project. The external consultants also made the following recommendations for the management of the project:

● Use PRINCE2.

● Set up the project with 4 management stages:

Stage 1. Standard PRINCE2 initiation activities.

Stage 2. Create detailed designs (future organization, processes, systems and operating models) and the service level agreement between MFH and the future service provider.

Stage 3. Request and evaluate proposals, select service provider and agree contract.

Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run trial period.

Initial estimates indicated that the project would cost £2.5m and take two years to complete.

MFH senior management agreed that there was a case for outsourcing, and accepted the recommendations as a basis for the project. There is an expected saving of £20m over 10 years.

The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage. Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.

Which 2 statements should be recorded under the Timescale heading?

Options:

A.

The contract with the selected service provider will be agreed during stage 3.

B.

The expected benefits will be calculated over 10 years from completion of the project.

C.

If more MFH divisions are added to the scope of the services to be outsourced, the project timescale will be extended and the realization of benefits will be delayed.

D.

The expected benefits should start to be realized as soon as the outsourced services become operational at the end of stage 4.

E.

The transfer of equipment and staff is estimated to take six weeks.

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Questions 69

Scenario

A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers’ performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:

● Do nothing.

● Re-engineer selected business functions.

● Outsource selected business functions.

The feasibility study concluded that there was a case for outsourcing the MFH Information Technology Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:

● One service provider should be contracted to provide the services currently provided by the Information Technology Division and the Facilities Division.

● A 10-year service contract should be agreed with the selected service provider.

The feasibility study developed high-level designs of the current organization, processes, systems and operating models, plus an outline Business Case for the required project. The external consultants also made the following recommendations for the management of the project:

● Use PRINCE2.

● Set up the project with 4 management stages:

Stage 1. Standard PRINCE2 initiation activities.

Stage 2. Create detailed designs (future organization, processes, systems and operating models) and the service level agreement between MFH and the future service

provider.

Stage 3. Request and evaluate proposals, select service provider and agree contract.

Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run trial period.

Initial estimates indicated that the project would cost £2.5m and take two years to complete.

MFH senior management agreed that there was a case for outsourcing, and accepted the recommendations as a basis for the project. There is an expected saving of £20m over 10 years.

The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage. Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.

Lines 1 to 6 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.

Options:

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Questions 70

Scenario

Additional Information

During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:

There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation. If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff. Operational costs are likely to increase because skilled staff are expensive and difficult to find.

In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of £2k. The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.

The Marketing Director will be funding the project from the business marketing budget. She believes that the effect of a good company image portrayed by a successful calendar would last into a second year. She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.

A number of alternatives were explored, including:

    20% discount for all repeat customers - not cost-effective and very short term

    A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year

    A series of television and press advertisements was too expensive

    A direct mail shot to all customers - benefit would be short term

    Creation of an internet website - would not suit all customers

The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity. Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.

Using the Project Scenario and the additional Information provided for this question In the Scenario Booklet, answer the following question.

Lines A to E in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.

Options:

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Questions 71

Which of the following activities is the Executive responsible for?

Options:

A.

Ensure the desired outcome of the project is specified

B.

Responsible for the benefits review plan

C.

Assess and update the Business Case at the end of each stage

D.

Responsible for the Benefits Review Plan post project

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Questions 72

Scenario

A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers’ performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:

● Do nothing.

● Re-engineer selected business functions.

● Outsource selected business functions.

The feasibility study concluded that there was a case for outsourcing the MFH Information Technology

Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:

● One service provider should be contracted to provide the services currently provided by the Information Technology Division and the Facilities Division.

● A 10-year service contract should be agreed with the selected service provider.

The feasibility study developed high-level designs of the current organization, processes, systems and operating models, plus an outline Business Case for the required project. The external consultants also made the following recommendations for the management of the project:

● Use PRINCE2.

● Set up the project with 4 management stages:

Stage 1. Standard PRINCE2 initiation activities.

Stage 2. Create detailed designs (future organization, processes, systems and operating models) and the service level agreement between MFH and the future service provider.

Stage 3. Request and evaluate proposals, select service provider and agree contract.

Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run

trial period.

Initial estimates indicated that the project would cost £2.5m and take two years to complete.

MFH senior management agreed that there was a case for outsourcing, and accepted the recommendations as a basis for the project. There is an expected saving of £20m over 10 years.

The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage. Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.

Which 2 statements should be recorded under the Expected benefits heading?

Options:

A.

The 10-year outsourcing contract, at current prices, will be worth £80m.

B.

Outsourcing would allow MFH to take advantage of the best services the outsourcing industry has to offer.

C.

The total expected savings over 10 years, at current prices, is £20m.

D.

The 10-year outsourcing contract will enable MFH to stabilize costs at agreed levels.

E.

The confirmed cost of the Outsourcing project is £2.5m, but with considerable savings over 10 years.

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Questions 73

Which of the following should NOT be included in the business case?

Options:

A.

Reasons

B.

Major Risks

C.

Business options

D.

Business approach

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Questions 74

Scenario

A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers’ performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:

● Do nothing.

● Re-engineer selected business functions.

● Outsource selected business functions.

The feasibility study concluded that there was a case for outsourcing the MFH Information Technology

Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:

● One service provider should be contracted to provide the services currently provided by the Information Technology Division and the Facilities Division.

● A 10-year service contract should be agreed with the selected service provider.

The feasibility study developed high-level designs of the current organization, processes, systems and operating models, plus an outline Business Case for the required project. The external consultants also made the following recommendations for the management of the project:

● Use PRINCE2.

● Set up the project with 4 management stages:

Stage 1. Standard PRINCE2 initiation activities.

Stage 2. Create detailed designs (future organization, processes, systems and operating models) and the service level agreement between MFH and the future service provider.

Stage 3. Request and evaluate proposals, select service provider and agree contract.

Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run trial period.

Initial estimates indicated that the project would cost £2.5m and take two years to complete.

MFH senior management agreed that there was a case for outsourcing, and accepted the

recommendations as a basis for the project. There is an expected saving of £20m over 10 years.

The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage. Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.

Which 2 statements should be recorded under the Business options heading?

Options:

A.

The re-engineering of selected business functions would not provide the required outcome.

B.

The lack of up-to-date technology in MFH means a re-engineering of existing services will not necessarily deliver the performance improvements required.

C.

Use external consultants to provide guidance on the detailed design of the outsourced services.

D.

Set up a PRINCE2 project to deliver the outsourced services.

E.

Review a list of service providers to determine a short-list of possible service providers.

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Questions 75

Scenario

Additional Information

During the initiation stage the Project Manager met with the Marketing Director to find out more about the requirements of the promotional calendar and recorded the following notes:

There has been a reduction in the order numbers at the MNO Manufacturing due in part to the increased marketing activities of its competitors. 10% of customers have not re-ordered in this financial year and staff morale is poor. A number of skilled staff have left as a result and replacement staff have not been recruited due to the reduced operation. If the project is successful, a recruitment campaign will be required to fill the existing staff vacancies and there may be a requirement for additional staff. Operational costs are likely to increase because skilled staff are expensive and difficult to find.

In financial terms, there were a total of 1,500 orders in the last financial year, each with an average profit of £2k. The Marketing department believes that sending a promotional calendar to our current and prospective customers would increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months from the date of distribution.

The Marketing Director will be funding the project from the business marketing budget. She believes that the effect of a good company image portrayed by a successful calendar would last into a second year. She has forecast the same increase in orders for a second year and predicts that the annual employee satisfaction survey will show a measurable improvement in staff morale.

A number of alternatives were explored, including:

    20% discount for all repeat customers - not cost-effective and very short term

    A promotional calendar as a free Christmas gift - would target current and prospective customers and the benefits would last into a second year

    A series of television and press advertisements was too expensive

    A direct mail shot to all customers - benefit would be short term

    Creation of an internet website - would not suit all customers

The calendar is seen as the favored option, as long as the company's competitors do not increase their marketing activity. Whilst the Marketing department wants a very high quality, glossy product, the project management team must be aware of the cost this will incur.

Using the Project Scenario and the additional Information provided for this question In the Scenario Booklet, answer the following question.

Which 2 statements should be recorded under the Reasons heading?

Options:

A.

The Marketing department believes that sending a promotional calendar to current and prospective customers will increase orders by at least 10%.

B.

10% of customers have not re-ordered in this financial year.

C.

1,500 orders are expected, each with an average profit of £2k.

D.

The Marketing department believes that the effect of a good company image, portrayed by a successful calendar, will last into a second year.

E.

MNO Manufacturing is experiencing a fall in orders due in part to the increased marketing activities of its competitors.

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Questions 76

CHANGE

Here are three items of information relating to controlling change in the Health and Safety Training Project.

In which management product (A-E) should each item be recorded?

Choose only one product for each item. Each product can be used once, more than once, or not at all.

Options:

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Questions 77

INITIATING A PROJECT

Here are three items of information relating to the ‘initiating a project’ process for the project.

As part of which activity (A-F) should this information be recorded?

Choose only one theme for each activity. Each theme can be used once, more than once, or not at all.

Options:

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Questions 78

As a result of experiences on previous projects, a change authority has been established for the Health and Safety Training Project. A key client for the training materials has a representative on the project board.

Should their interests be represented within the change authority for the project, and why?

Options:

A.

Yes, because this will give them a better understanding of the training materials.

B.

Yes, because a change authority should consider external stakeholder needs.

C.

No, because the change authority should be internal to the ABC organization.

D.

No, because their project board member will be able to agree any required changes.

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Questions 79

The project board authorizes the project after reviewing the PID and business case.

Is this appropriate application of Directing a Project?

Options:

A.

Yes, PID authorization allows next stage work

B.

Yes, notification replaces approval

C.

No, because the stage plan must also be approved

D.

No, because the council must approve

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Questions 80

The project manager excludes operating costs from the investment appraisal because they are not yet known.

Is this an appropriate application of the business case practice, and why?

Options:

A.

Yes, because only construction costs and benefits are required

B.

Yes, because NPV only applies to benefits

C.

No, because maintenance and operating costs must be included

D.

No, because income is uncertain

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Questions 81

The Calendar project was delivered as originally planned, and Is now preparing for planned closure.

Lines 1 to 6 in the table below consist of an assertion statement and a reason statement. For each line identify the appropriate option, from options A to E, that applies. Each option can be used once, more than once or not at all.

Options:

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Questions 82

Which of the following management products ARE updated as part of Managing a stage boundary?

1. Business Case

2. Benefits Review Plan

3. Configuration Item Records

4. Project Brief

Options:

A.

1, 2, 3

B.

1, 3, 4

C.

1, 2, 4

D.

2, 3, 4

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Questions 83

When updating the project plan as part of Managing a stage boundary, what else might be updated?

Options:

A.

Exception Plan

B.

Project Management team

C.

Business Case

D.

Project Initiation Documentation

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Questions 84

The Manage by Exception principle sets tolerances for six areas of the project, Time. Cost and Quality are three of them, what are the other three?

Options:

A.

Scope, People & Resources, Benefit

B.

Scope, Risk, Product

C.

Risk, Benefit, Product

D.

Scope, Risk, Benefit

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Questions 85

Which of the following activities is NOT an action of preparing for planned closure?

Options:

A.

Update the project plan with actual

B.

Update the Project Management Team

C.

Request a product status account

D.

Confirm project has delivered what is defined in Project Product Description

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Questions 86

Which of the following activities could trigger the production of an exception plan?

Options:

A.

Review Stage status

B.

Giving ad hoc direction

C.

Escalating a project issue

D.

Report stage end

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Questions 87

Which principle is supported by the activity Evaluate the Project?

Options:

A.

Continued Business Justification

B.

Defined roles and responsibilities

C.

Learn from experience

D.

Manage by stages

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Exam Code: Prince2-Practitioner
Exam Name: PRINCE2 7 Practitioner (7th Edition) Exam
Last Update: Jan 22, 2026
Questions: 263
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