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Prince2-Practitioner Questions and Answers

Question # 6

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.

Towards the end of stage 2, the stage 3 plan is being prepared. This includes the work required to promote the new courses to other training companies. In addition to the current ways of marketing the courses, the Sales Director wants to advertise in trade magazines. The likely costs involved and the opportunities it may bring have been identified.

As part of the ‘update the project plan’ activity, what should the project manager be responsible for?

A.

Creating time and cost tolerances for the delivery of the magazine advertisements.

B.

Creating the product description, with detailed quality criteria, for the magazine advertisements.

C.

Recording the effect of implementing the magazine advertisements on the overall time and cost of the project.

D.

Recording changes to ABC Company risk appetite as a result of using the magazine advertisements.

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Question # 7

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.

The project is at the start of stage 3, and there will be six teams working on product delivery. In order to exercise control, the project manager has asked each team to submit a detailed team plan for approval. The external team manager for the ‘e-learning course’ has agreed to submit a summary to the project manager, but will submit the detailed team plan to the senior supplier to review and approve.

Is the team manager’s response appropriate, and why?

A.

Yes, because a supplier may want to keep the details of the specialist work confidential.

B.

Yes, because team plans are mandatory on a project of this size and complexity.

C.

No, because the project manager needs detailed plans to manage the work of several teams.

D.

No, because the team plan must be submitted to project assurance to check it is viable.

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Question # 8

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?

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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Question # 9

Which of the following statements is TRUE with regard to expected benefits?

A.

They cannot be assigned

B.

They don't need to follow corporate objectives

C.

They should be measurable

D.

Tolerances cannot be set against expected benefits

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Question # 10

Which of the following statements describes an outcome?

A.

Any of the projects specialist products

B.

A result of the change derived from using the project's products

C.

A measurable improvement resulting from a change

D.

Something perceived as advantages by a stakeholder

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Question # 11

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 3, project costs are increasing but there will still be a positive return on investment, as documented in the business case. However, corporate management has recently revised its targets for return on investment and has decided to stop the project as it will not meet the new targets.

Is this an appropriate application of the ‘continued business justification’ principle?

A.

Yes, because changes in corporate strategy may impact a project’s justification.

B.

Yes, because a change in a project’s justification should trigger premature closure.

C.

No, because the project business case still justifies a project.

D.

No, because changes in corporate strategy should not impact a project once authorized.

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Question # 12

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 correctly define a Business Case risk which should be recorded under the Major risks heading?

A.

Operational costs will increase as a result of the recruitment campaign.

B.

The prepared calendar pack is to be delivered to the printers by the first week in December.

C.

If the calendar quality is poor customers will not use it, creating the reverse effect and reducing orders further.

D.

If any competitors launch a calendar at the same time this will reduce the impact of the MNO calendar and benefits will be reduced.

E.

Staff morale will improve as a result of the promotional calendar.

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Question # 13

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.

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Question # 14

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.

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Question # 15

In the PRINCE2 Quality review technique, who would most likely carry out the role of administrator:

A.

Project manager

B.

Project support

C.

Team Manager

D.

Project Assurance

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Question # 16

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 Expected benefits heading?

A.

Increase orders by at least 10% with a minimum of 10 further orders from the list of prospective customers within 12 months.

B.

It will be similar to calendars sent out in previous years

C.

The Marketing department believes that the benefits of a good company image, as portrayed by a successful calendar, will last into a second year and bring the same increase in orders.

D.

The calendar will contain photos of both staff and company products.

E.

The Marketing department want a very high quality, glossy product as they believe this will be more appealing to customers.

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Question # 17

Scenario

Extract from the Project Product Description (with errors)

Which 2 statements apply to the Derivation section?

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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Question # 18

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.

The service level agreement contains a number of technical terms that are missing from its glossary of terms.

A.

Obtain agreement from the Director of Facilities Division to add these into the glossary of terms within the remaining +2 days’ tolerance.

B.

Raise an issue (off-specification).

C.

Raise an issue (request for change).

D.

No action required.

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Question # 19

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.

Which is a correctly defined acceptance criterion for the transferred staff?

A.

No staff are to be left behind.

B.

Staff should be transferred as soon as possible.

C.

All legal requirements are adhered to for the transfer of staff.

D.

Retained staff should be of reasonable competence to maintain the SLA.

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Question # 20

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.

Which statement applies to the Introduction section?

A.

Delete entry 1 because the project approach is defined in the Project Brief.

B.

Delete entry 2 because this is the Project Manager's responsibility.

C.

Delete entry 3 because it is the Project Manager's responsibility to implement the Quality Management Strategy.

D.

Move entry 3 to the Roles and responsibilities section because this is a quality responsibility.

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Question # 21

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.

Which statement applies to the Roles and responsibilities section?

A.

Delete entry 9 because this should only be recorded in the Product Description.

B.

Delete entry 10 because this is the responsibility of the quality review chair.

C.

Delete entry 11 because only the Project Manager can update the Quality Register.

D.

Amend entry 12 because this is the responsibility of supplier assurance.

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Question # 22

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.

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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Question # 23

Two weeks after starting work the Team Manager noticed that each completed product had exceeded its estimated effort by around 10%. If this trend continues the Work Package will exceed its agreed cost tolerance of 5%.

Which 2 actions should the Team Manager take in response to this situation?

A.

Check the status of the products currently being worked on and analyze the effort expended, to determine if the trend is continuing.

B.

Update the Team Plan by increasing all future work estimates by 10%.

C.

Amend the Work Package and ensure that the revised targets are met.

D.

Escalate the situation in the next Checkpoint Report.

E.

Raise an issue that costs will exceed tolerance if the current trend continues.

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Question # 24

Which management product do the Project Board use to decide whether to authorize initiation?

A.

Project Brief

B.

Business Case

C.

Project Initiation Documentation

D.

Project Product Description

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Question # 25

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.

Benefits Review Plan

B.

Exception Report

C.

End Project Report

D.

Risk Register

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Question # 26

Which of the following statements is FALSE regarding the Continued Business Justification?

A.

The justification for the project must remain the same throughout the project

B.

The justification for the project should remain valid

C.

The justification for the project may change

D.

If the project is no longer justified it should be stopped

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Question # 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.

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Question # 28

Which of the following is NOT a trigger for the project manager to authorize a work package?

A.

Stage Authorization

B.

Corrective Action

C.

Exception plan approved

D.

Reporting highlights

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Question # 29

The Work Package has been in progress for four weeks and has four weeks remaining. The Information Technology Team Manager is concerned that he has no idea what the service provider is doing about preparing to accept the transfer of Information Technology equipment and staff. He is uncertain about what should be happening.

Which 2 initial actions should the Team Manager take in response to this concern?

A.

Notify the Project Manager by raising an Exception Report.

B.

Raise this concern in the next fortnightly Checkpoint Report.

C.

Check the Communication Management Strategy to ascertain what records of communications with the service provider are required.

D.

Check the Information Technology Work Package for development interfaces to see whether the service provider Team Manager should have been liaising with the Information Technology team during development.

E.

Raise an issue to notify the Project Manager of this concern.

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Question # 30

Which of the following is the definition for an off-specification?

A.

An issue the Project Manager needs to resolve or escalate

B.

Something forecast or currently not meeting specification

C.

A proposal for a change to a baseline

D.

A statement of concern

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Question # 31

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?

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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Question # 32

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

1. Performance targets

2. Business Case

3. Resources

4. Risk

A.

1, 3, 4

B.

2, 3, 4

C.

1, 2, 4

D.

1, 2, 3

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Question # 33

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?

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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Question # 34

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

A.

A Change Authority

B.

A Change Board

C.

A Change Committee

D.

A Change Budget

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Question # 35

In which strategy would the change control process be recorded?

A.

Quality Management Strategy

B.

Configuration Management Strategy

C.

Risk Management Strategy

D.

Communication Management Strategy

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Question # 36

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?

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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Question # 37

Who is responsible for confirming stage and project progress against agreed tolerances?

A.

Project Support

B.

Executive

C.

Project Assurance

D.

Project Manager

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Question # 38

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.

During stage 2, if the Project Manager decides to recommend that the Project Plan is revised to finish three weeks later, which statement is correct?

A.

The tolerances stated in the Project Plan CANNOT be changed.

B.

The Executive needs to seek formal approval from corporate management to implement this change.

C.

The current project must close prematurely and be restarted with a new Project Plan, a new Business Case and new Risk Register.

D.

The revision of the Project Plan would have to wait until the end stage assessment of stage 2.

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Question # 39

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 Reporting arrangements or Problem handling and escalation sections?

A.

Replace entry 8 with 'Checkpoint Report every Monday by 10.00 am' because Highlight Reports are intended for the Project Board.

B.

Delete entry 9 because this level of detail is unnecessary.

C.

Move entry 10 to Problem handling and escalation because that section describes how issues are handled.

D.

Add 'Any risks identified to be added to the Risk Register' to Reporting arrangements.

E.

Delete entry 11 because the impact analysis should be provided when the issue is notified.

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Question # 40

There are two time driven controls in PRINCE2, which are they?

A.

Highlight and End Stage Reports

B.

Highlight and Checkpoint Reports

C.

Checkpoint and End Project Reports

D.

Highlight and Lessons Reports

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Question # 41

During which process would the stage tolerances be set?

A.

Controlling a Stage

B.

Initiating a Project

C.

Managing a Stage Boundary

D.

Directing a Project

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Question # 42

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.

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Question # 43

ORGANIZATION

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

Here are three individuals who work for ABC Company.

Which project management team role (A-F) would be the most appropriate for each individual?

Choose only one role for each individual. Each role can be used ONCE, or not at all.

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Question # 44

During the 'create the project plan' activity as part of the initiation stage, the project manager identifies several threats to the project timescales. These threats relate to stage 3 products. Therefore, the project manager decides to wait until the end of stage 2 to assess the risks to the project plan.

Is this an appropriate application of the plans theme, and why?

A.

Yes, because detailed planning of stage 3 should take place after completion of the stage 2 products.

B.

Yes, because risk planning should take place in the stage plan before the risks occur, not in the project plan.

C.

No, because the risks inherent in the project plan should be assessed, and the plan modified to manage them.

D.

No, because the risk actions to manage project-level threats should be recorded in the risk register.

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Question # 45

The project board has asked user and supplier assurance to review all product descriptions relating to the 'updated corporate quality procedures', prior to authorizing the stage plan for stage 3.

Is this appropriate as part of the 'directing a project' process, and why?

A.

Yes, because project assurance should assess whether all stakeholders have been identified, if requested by the project board.

B.

Yes, because project assurance should review the stage 3 plan for viability, if requested by the project board.

C.

No, because the project manager is responsible for writing product descriptions when creating the stage 3 plan.

D.

No, because the project board should review new product descriptions before they authorize the stage 3 plan.

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Question # 46

The work package to produce the 'updated corporate quality procedures' was created during stage 3. Before accepting the work package, the team manager produces the team plan and finds that the expected delivery date is unrealistic. As a result, the project manager agrees an extra two weeks to complete the work package, within the current stage tolerance. The work package is then accepted by the team manager.

Is this an appropriate application of the 'manage product delivery' process, and why?

A.

Yes, because the team manager should set the time required to complete a work package.

B.

Yes, because the team manager should agree the limits within which the work is to be completed.

C.

No, because the work package, defined by the project manager, should not be changed.

D.

No, because the use of the stage time tolerance should be authorized by the project board.

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Question # 47

The project is nearing the end of stage 2. The Sustainability Manager records a lesson learned in the daily log that could be used on other projects in the portfolio.

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

A.

Yes, because the daily log is used for informal issues and lessons

B.

Yes, because recording the lesson ensures learning on this project

C.

No, because the lesson should be shared beyond the project

D.

No, because the lesson should be marked as “logged”

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Question # 48

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.

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Question # 49

The shopping centre is now open. The Business Opportunities Director is concerned that the new shopping centre has not resulted in the expected increase in opportunities for businesses. The Director has asked for research to identify whether more opportunities exist and whether more new businesses have started in LouisTown as a direct result of the project.

Which principle is being applied by the Director, and why?

A.

Ensure continued business justification, because there should be checks to ensure that the benefits have been achieved after the project has closed

B.

Ensure continued business justification, because the project executive should ensure the expected benefits are realized as a result of the project

C.

Manage by exception, because the senior user’s forecast that the benefits tolerance will be breached should be escalated

D.

Manage by exception, because the project board should decide whether more work is needed to achieve the benefit

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Question # 50

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 either the Records or Reporting headings?

A.

Project Support will maintain the Risk Register.

B.

The evaluated net effect of all risks will be updated at the end of each stage and included in the End Stage Report.

C.

The Change Authority will report monthly to the Project Manager on the status of the change budget.

D.

Risks that are likely to occur within the next two weeks should be recorded as imminent.

E.

A summary of risks will be maintained and included with the monthly Highlight Reports to the Project Board.

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Question # 51

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.

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Question # 52

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.

Using the Project Scenario answer the following question. The Plan for stage 3 has been approved and work has commenced.

Column 1 contains a number of issues for this project. Select from Column 2 the appropriate category for each issue. 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.

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Question # 53

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?

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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Question # 54

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?

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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Question # 55

There are four steps in the Risk Management procedure, what are they?

A.

Identify, Assess, Resource, Implement

B.

Identify, Evaluate, Resource, Implement

C.

Identify, Assess, Plan, Implement

D.

Identify, Evaluate, Plan, Implement

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Question # 56

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 management procedure heading?

A.

When a new problem arises, a full impact analysis will be undertaken to assess the impact on the project' objectives and Business Case.

B.

Probability will be assessed against the scales defined in this Risk Management Strategy.

C.

Any risk which has an expected value of more than £1 k will NOT be registered.

D.

Every threat and opportunity identified must be clearly defined in terms of cause, event and effect.

E.

'Reduce' Response actions which result in a lower impact and/or probability rating.

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Question # 57

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?

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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Question # 58

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?

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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Question # 59

Who is responsible for committing user resources to the project?

A.

Senior User

B.

Senior Supplier

C.

Executive

D.

Project Board

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Question # 60

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

A.

2, 4, 3, 1

B.

4, 2, 1, 3

C.

4, 3, 2, 1

D.

2, 4, 1, 3

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Question # 61

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

A.

Pre-requites

B.

Assumptions

C.

Quality responsibilities

D.

Product descriptions

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Question # 62

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.

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Question # 63

Who sets the tolerances for a work package?

A.

The project board

B.

The project manager

C.

The team manager

D.

Corporate or programme management

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Question # 64

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

A.

Review Stage status

B.

Giving ad hoc direction

C.

Escalating a project issue

D.

Report stage end

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Question # 65

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

A.

Exception Plan

B.

Project Management team

C.

Business Case

D.

Project Initiation Documentation

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Question # 66

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.

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Question # 67

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

A.

1, 2, 3

B.

1, 3, 4

C.

1, 2, 4

D.

2, 3, 4

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Question # 68

Which of the following statements is FALSE regarding the Continued Business Justification?

A.

The justification for the project must remain the same throughout the project.

B.

The justification for the project should remain vabd.

C.

The justification for the project may change.

D.

If the project is no longer justified it should be stopped.

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Question # 69

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

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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Question # 70

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?

A.

Scope, People & Resources, Benefit

B.

Scope, Risk, Product

C.

Risk, Benefit, Product

D.

Scope, Risk, Benefit

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Question # 71

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 Sales Manager should be appointed as a Senior User for this project?

A.

He joined the company last year with huge enthusiasm.

B.

He would like to move into the Marketing department in the future and sees this as an opportunity to work closely with the Marketing Director.

C.

The launch of a company calendar will impact the Sales department.

D.

He reports directly to the Marketing Director.

E.

He is able to represent current and prospective customer interests.

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Question # 72

Which of the following is False?

A Successful project management team should.

A.

Have business, user and supplier stakeholder representation

B.

Never be reviewed as members should stay with the team for the duration

C.

Ensure appropriate governance by defining responsibilities for directing, managing and delivering the project and clearly defining accountability at all levels

D.

Have an effective strategy to manage communication flows to and from stakeholders

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Question # 73

Which of the following roles cannot be combined?

A.

Executive and Senior User

B.

Project Manager and Project Support

C.

Project Assurance and Team Manager

D.

Senior Suppler and Supplier Assurance

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Question # 74

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?

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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Question # 75

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 Central Records should be appointed as Project Support for this project?

A.

They control the receipt, identification, versions, storage and issue of all project products within the company's projects.

B.

They already exist within the organization and have been with the company for many years.

C.

They will ensure compliance with all company policies and procedures.

D.

They perform a quality assurance function across all projects.

E.

They have knowledge of the organizational standards that will be applicable to the project.

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Question # 76

In which Management product would the Project Board specify where the authority for change requests lies?

A.

Risk Management Strategy

B.

Quality Management Strategy

C.

Communication Strategy

D.

Configuration Management Strategy

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Question # 77

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

A.

Project Assurance

B.

Project Manager

C.

Corporate or Programme Management

D.

Project Support

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