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NEW QUESTION 14
Checkpoint reports are being produced monthly. A week after the last checkpoint report was prepared, the team responsible for developing the 'classroom-based training materials' have realized that they will not be able to deliver the materials to the accreditor by the work package completion deadline.
Which action demonstrates application of the 'manage by exception' principle?
- A. The team manager reports the issue in the next checkpoint report.
- B. The team manager immediately reports the issue to the project manager.
- C. The team manager raises a risk that the deadline may be missed.
- D. The team manager immediately produces an exception plan to replace the current plan.
Answer: B
Explanation:
Explanation/Reference: http://prince2.wiki/Manage_by_exception
NEW QUESTION 15
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 without the calendar the company is going to experience difficulties recovering its decline in orders, and alternative solutions are required if the company is going to recover its position?
- A. Risk Register
- B. Exception Report
- C. End Project Report
- D. Benefits Review Plan
Answer: C
NEW QUESTION 16
What will be the impact on the benefits?
- A. Reduced savings, now £10m over 10 years.
- B. An additional cost of £1.5m to deliver the services provided by the Facilities Division.
- C. Outsourcing project cost reduced by 50%.
- D. Increased savings of £5m over 10 years from the new initiative to centralize the services provided by the Facilities Division.
Answer: A
Explanation:
Explanation/Reference:
Question Set 2
NEW QUESTION 17
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.
QUALITY
Teams have been set up to develop different parts of the 'classroom-based training materials'.
Here are three activities related to managing quality.
Which role (A-F) should carry them out?
Choose only one for each activity. Each role can be used once, more than once, or not at all.
Answer:
Explanation:
Explanation
NEW QUESTION 18
Scenario
Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.
Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
There is no mention of any Stage Plans, yet there are two further stages proposed. How will this be resolved?
- A. There will be three Stage Plans, the two management stages plus an additional stage to plan and complete the activities of the Closing a Project process.
- B. Whilst the activities are divided into two further stages, there is no reason why the Calendar project should use stages. The project will therefore be run as a single stage project and the activities will be added to the Initiation Stage Plan.
- C. It is appropriate for the Calendar project to be run as two further stages as there is a key decision to be made at the end of stage 2. Stage Plans will be produced.
Answer: C
NEW QUESTION 19
Who is responsible for the initial creation of the Configuration Item records?
- A. Project Assurance
- B. Project Manager
- C. Project Support
- D. Team Manager
Answer: C
NEW QUESTION 20
During stage 3, the team manager reports that the work to update the 'corporate quality procedures' has been completed and the product is ready to be delivered.
What should project assurance do next?
- A. Update the team plan to show that the work package is complete.
- B. Update the stage plan to show the work package as completed.
- C. Check the work package and follow the procedure to deliver completed products.
- D. Verify that all the products to be delivered by the work package are approved.
Answer: D
Explanation:
Explanation/Reference:
NEW QUESTION 21
Who is responsible for reviewing the risk management practices to ensure they are in line with the project's risk management strategy?
- A. Project Assurance
- B. Project Manager
- C. Project Support
- D. Team Manager
Answer: A
Explanation:
Explanation/Reference:
Testlet 1
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.
NEW QUESTION 22
Which of the following activities is the Executive responsible for?
- A. Assess and update the Business Case at the end of each stage
- B. Responsible for the benefits review plan
- C. Responsible for the Benefits Review Plan post project
- D. Ensure the desired outcome of the project is specified
Answer: B
Explanation:
Scenario
NEW QUESTION 23
The project is now closed. The expected increase in revenue is not being achieved. It has been agreed with the team manager for the 'marketing materials' that additional marketing activities will be undertaken to achieve the expected increase in revenue.
Who should be responsible for monitoring the results of the marketing activities, and why?
- A. Senior user, because this person is responsible for specifying the desired from the project.
- B. The team manager for the 'marketing materials', because this person has the skills to demonstrate that the activities are effective.
- C. The team manager for the 'marketing materials', because the project board is disbanded at the end of the project.
- D. Senior user, because this person is responsible for realizing the benefits post-project.
Answer: D
NEW QUESTION 24
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?
- A. Add 'Hardware Manager' because he provides computer hardware to all business functions and will be impacted by the outcome.
- B. Add 'Director of Facilities' because he is responsible for the design of the future organization, processes, systems and operation models for Facilities.
- C. Replace with 'Director of Facilities' because he supports the initiative and has many ideas about how to improve the service.
- D. Remove because she only represents the Information Technology Division.
- E. Retain because she is responsible for the design of the future Information Technology organization and working practices.
Answer: B,E
NEW QUESTION 25
Who is responsible for appointing the Project Manager?
- A. The Project Board
- B. The Executive
- C. Project Assurance
- D. Corporate or Programme Management
Answer: B
NEW QUESTION 26
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 management procedure heading?
- A. Every threat and opportunity identified must be clearly defined in terms of cause, event and effect.
- B. 'Reduce' Response actions which result in a lower impact and/or probability rating.
- C. Any risk which has an expected value of more than E1 k will NOT be registered.
- D. When a new problem arises, a full impact analysis will be undertaken to assess the impact on the project' objectives and Business Case.
- E. Probability will be assessed against the scales defined in this Risk Management Strategy.
Answer: A,E
NEW QUESTION 27
Which role is responsible for providing the customer's quality expectations and acceptance criteria for the project?
- A. Project Assurance
- B. Executive
- C. Corporate or Programme Management
- D. Senior User
Answer: D
Explanation:
Explanation/Reference:
Plans Theme
Testlet 1
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).
NEW QUESTION 28
HOTSPOT
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 Column 1 is a list of actions that occur during the Controlling a Stage process. For each action in Column
1, select from Column 2 the PRINCE2 theme that is being applied. Each selection from Column 2 can be used once, more than once or not at all.
Drop down the answer from column 1 to column 2.
Hot Area:
Answer:
Explanation:
NEW QUESTION 29
Which 2 statements apply to the Composition section?
- A. Move entry 6 to Derivation because this product already exists.
- B. Delete entry 3 because this is NOT a major product to be delivered by this project.
- C. Delete entry 7 because these will be produced by the photographer.
- D. Amend entry 2 to 'Selected paper'.
- E. Add 'Calendars distributed to customers'.
Answer: B,D
Explanation:
Explanation
NEW QUESTION 30
Which activity is responsible for updating the stage plan with actual during Controlling a Stage?
- A. Report Highlights
- B. Review work package status
- C. Review the stage status
- D. Take corrective action
Answer: A
NEW QUESTION 31
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?
- A. The risk of staff leaving the organization will be categorized as beyond the project proximity.
- 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. Proximity categories for this project are: Imminent; Within the stage; Within the project; Beyond the project.
Answer: C,D
NEW QUESTION 32
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 Major risks heading?
- A. MFH's operations may be reduced and the 1a-year contract may not achieve its estimated value of
£80m, which would reduce the service provider's profit. - B. Owing to employment contract changes staff may resist outsourcing, which would make it difficult to transfer staff to the selected service provider.
- C. Due to market conditions a suitable service provider may not be found, possibly leading to premature closure of the project.
- D. The management stages recommended by the consultants may not be appropriate, resulting in confusion in planning.
- E. The initial estimates, taken from the feasibility study report, indicate that the project will take two years to complete, which means that the business problems would remain for this period.
Answer: B,E
NEW QUESTION 33
Which of the following statements best describes what a risk owner is?
- A. Responsible for management, monitoring and control of all aspects of a risk
- B. Carry out the response actions to a risk
- C. Reports to the project manager regularly on the status of a risk
- D. Best placed to keep an eye on the risk
Answer: A
NEW QUESTION 34
When does Directing a Project begin?
- 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
Answer: C
NEW QUESTION 35
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?
- A. Add 'Hardware Manager' because he provides computer hardware to all business functions and will be impacted by the outcome.
- B. Add 'Director of Facilities' because he is responsible for the design of the future organization, processes, systems and operation models for Facilities.
- C. Replace with 'Director of Facilities' because he supports the initiative and has many ideas about how to improve the service.
- D. Remove because she only represents the Information Technology Division.
- E. Retain because she is responsible for the design of the future Information Technology organization and working practices.
Answer: B,E
NEW QUESTION 36
Which of the following statements is FALSE regarding the Continued Business Justification?
- A. The justification for the project should remain vabd.
- B. The justification for the project must remain the same throughout the project.
- C. The justification for the project may change.
- D. If the project is no longer justified it should be stopped.
Answer: A
NEW QUESTION 37
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