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PRINCE2 Practitioner Exam is a valuable certification for project managers, team members, and anyone involved in project management. It demonstrates a candidate's ability to apply the PRINCE2 methodology to projects, which can lead to better project outcomes and increased success rates. PRINCE2 Practitioner Exam certification also demonstrates a candidate's commitment to professional development and continuous improvement in their field.
NEW QUESTION # 98
Whilst identifying the mailing costs for the calendars the Project Manager was surprised to find the costs could vary considerably depending on the size of the package and the delivery service used. For the purpose of this project, the Project Manager has selected an appropriate service but feels that a corporate standard for postage would have reduced the time and effort invested. It could reduce the company's overheads by up to E20k per year. How should the Project Manager record this observation within the project?
- A. Produce a project mandate, outlining the potential savings to be achieved by the introduction of a corporate standard.
- B. Make a note of the observation in the Daily Log to be transferred to a Benefits Review Plan at the end of the project.
- C. Record the observation in an Exception Report to the Project Board.
- D. Make an entry in the Lessons Log for future consideration by corporate management.
Answer: D
NEW QUESTION # 99
ABC has experience of delivering training projects that respond to new legislation. Previous projects have had to change the acceptance criteria, due to further updates being made to legislation during the project.
What action should be taken to address this, and why?
- A. Agree and prioritize the acceptance criteria during the initiation stage, because these criteria will be used to determine if the project can be closed.
- B. Set the quality tolerances for the acceptance criteria in the product descriptions, because quality tolerances define the acceptable range.
- C. Set the quality tolerances for the acceptance criteria in the product descriptions, because this would allow for additional changes in legislation.
- D. Agree and prioritize the acceptance criteria during the initiation stage, because they can be amended through change control, if needed.
Answer: D
NEW QUESTION # 100
Scenario
Additional Information
Extract from the Communication Management Strategy.
The project information in the table below is true, but it may not be recorded under the correct heading or be in the correct document.
Using the Project Scenario, select the appropriate response to each of the following 5 questions which have been raised by the Project Board.
The project is now at the end of the initiation stage. Having decided that the Calendar project is a relatively simple project, the Project Manager combined the Starting Up a Project process and the Initiating a Project process. No Project Brief has been produced. Instead the Project Manager used the project mandate to produce a simple Project Initiation Documentation (PlO). The PlO includes the Business Case, a product checklist and several Product Descriptions, Including the Project Product Description. Short sections are also included for each of the strategies and the controls to be applied. The Project Manager has elected to use the Daily Log to record all risks, issues, lessons and quality - results.
After the initiation stage there will be two further stages during which a small number of Work Packages will be authorized. While these are being managed, the Project Manager will hold regular checkpoints, which will support the production of weekly Highlight Reports to the Project Board.
This question provides a number of changes which may or may not be required to the Extract from the Communication Management Strategy provided in the additional information.
Which statement applies to the Stakeholder analysis: Interested parties section?
- A. Add 'Internal Creative Team'.
- B. Delete entry 11 because the photographer is internal to the project management team.
- C. Delete entry 12 because the printing of the calendars is outside of the scope
Answer: A
NEW QUESTION # 101
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 E500 change budget has been used to date and this is available for the stage.
Which 2 statements apply to the Budgets section?
- A. Add 'Cost tolerance - +E6k 1-E6k
- B. Add 'Change budget - E500'.
- C. Amend entry 15 because it should also include the cost of management activities.
- D. Delete entry 17 because the risk budget should be shown in the Risk Management Strategy.
- E. Delete entry 16 because timescales should NOT be shown under the heading of budgets.
Answer: B,C
Explanation:
Explanation/Reference:
Plans Theme
Question Set 2
NEW QUESTION # 102
The project is approaching the end of stage 4 and all work will be completed as planned. The project manager is now preparing a plan for acceptance and the handover of the 'capability to provide health and safety training'.
Is this appropriate, and why?
- A. No, because user acceptance of the project's products should have taken place throughout the project.
- B. Yes, because a separate closure stage plan should be created during stage 4.
- C. No, because closure activities should have been planned at the end of stage 3.
- D. Yes, because a plan should be created to measure the number of courses carried out after project closure.
Answer: D
Explanation:
Explanation/Reference:
NEW QUESTION # 103
Scenario
Additional Information
Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.
Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.
Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.
Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.
Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.
Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar.
It has yet be decided which of the photographers to use.
Which 2 statements explain why the Marketing Director should be appointed as a Senior User for this project?
- A. A number of the products will be produced by the Sales department and the Marketing department.
- B. She can represent the Marketing department.
- C. The Marketing department will help to deliver the benefits of this project.
- D. She previously had a successful career in publicity.
- E. The project will be funded from the business marketing budget.
Answer: B,C
NEW QUESTION # 104
PLANS
During the initiation stage, the project manager is creating the project plan.
Here are three activities carried out as part of PRINCE2's recommended approach to planning.
As part of which step of the approach (A-F) should each activity be carried out?
Choose only one step for each activity. Each step can be used once, more than once, or not at all.
Answer:
Explanation:
Explanation:
NEW QUESTION # 105
Scenario
A central government department, the Ministry of Food Hygiene (MFH), faces increasing pressure to cut costs, better manage suppliers' performance and reduce the confusion caused by inadequate internal controls, outdated standards and outdated technology. External consultants were employed to conduct a feasibility study to identify options to address the problems, and the likely costs and benefits. The following options were considered:
Do nothing.
Re-engineer selected business functions.
Outsource selected business functions.
The feasibility study concluded that there was a case for outsourcing the MFH Information Technology Division and the Facilities Division (maintenance of buildings and grounds). The recommendations were:
One service provider should be contracted to provide the services currently provided by the Information Technology Division and the Facilities Division.
A 10-year service contract should be agreed with the selected service provider.
The feasibility study developed high-level designs of the current organization, processes, systems and operating models, plus an outline Business Case for the required project. The external consultants also made the following recommendations for the management of the project:
Use PRINCE2.
Set up the project with 4 management stages:
Stage 1. Standard PRINCE2 initiation activities.
Stage 2. Create detailed designs (future organization, processes, systems and operating models) and the service level agreement between MFH and the future service provider.
Stage 3. Request and evaluate proposals, select service provider and agree contract.
Stage 4. Transfer equipment and staff, transfer responsibility for service provision and run trial period.
Initial estimates indicated that the project would cost £2.5m and take two years to complete.
MFH senior management agreed that there was a case for outsourcing, and accepted the recommendations as a basis for the project. There is an expected saving of £20m over 10 years.
The Outsourcing project has completed the Starting up a Project process and is now in the initiation stage.
Because of the strategic importance of the project, the MFH Chief Executive Officer has taken the role of Executive. A PRINCE2-experienced Project Manager has been appointed from within MFH. Staff within the business functions being outsourced will work with the external consultants who conducted the feasibility study to define the detailed designs.
Which 2 statements should be recorded under the Major risks heading?
- A. The initial estimates, taken from the feasibility study report, indicate that the project will take two years to complete, which means that the business problems would remain for this period.
- B. Due to market conditions a suitable service provider may not be found, possibly leading to premature closure of the project.
- C. The management stages recommended by the consultants may not be appropriate, resulting in confusion in planning.
- D. Owing to employment contract changes staff may resist outsourcing, which would make it difficult to transfer staff to the selected service provider.
- E. MFH's operations may be reduced and the 1a-year contract may not achieve its estimated value of
£80m, which would reduce the service provider's profit.
Answer: A,D
NEW QUESTION # 106
The project is in stage 2. The project manager is reviewing stage status and has collected the checkpoint reports from the team managers. These show that the products are being completed on schedule. However, project support has raised issues that quality reviews have not been completed as agreed. The project manager reports in the highlight report that the stage is progressing well.
Is this appropriate, and why?
- A. No, because the project manager should have recorded the cause of the delay to the quality reviews in the lessons log.
- B. Yes, because the highlight report is used to provide the project board with stage and project progress.
- C. Yes, because the highlight report is a summary of the information in the checkpoint reports.
- D. No, because the issues raised by project support are a cause for concern and should be reflected in the highlight report.
Answer: D
NEW QUESTION # 107
Which of the following reports does not contain any information on risk?
- A. Highlight report
- B. Issue Report
- C. Lessons Report
- D. End Stage Report
Answer: B
Explanation:
Explanation/Reference:
Testlet 1
Scenario:
The Ministry of Food Hygiene (MFH) has a quality management system which contains a document control process to manage all documentation requirements. The document control process was created by the MFH Quality Manager, who now maintains all of MFH's documents and performs an organization-wide configuration management role. The MFH Quality Manager will administer the configuration management procedure for the Restructuring project since this must comply with the MFH document control process.
NEW QUESTION # 108
The Health and Safety Training Project is part of a programme of strategic expansion, which is important for
ABC Company's continued operation. At the end of stage 2, the estimated project costs are greater than the
expected benefits in the business case. The project board has reviewed the situation and asked programme
management to decide whether the project should be closed prematurely.
Is this an appropriate application of the 'manage by stages' principle, and why?
- A. No, because the project board should decide whether to continue with the project.
- B. No, because this contradicts the 'manage by exception' principle.
- C. Yes, because decisions about closure should be escalated to programme management, unless otherwise
instructed. - D. Yes, because the project board should escalate significant decisions to programme management.
Answer: C
NEW QUESTION # 109
Scenario
Product Summary
A list of customers will be collated. This will use existing information from the Accounts department about current customers, and existing information from the Marketing department about prospective customers.
Using the tariff of mailing costs available from the Post Office, a production cost forecast will be produced to allow the CEO and the Marketing Director to decide whether to continue with the project. If they decide to continue, they will give the approval to launch the internal label design competition. Competition rules will be required to communicate details of the competition to the staff. The chosen label design will then be selected from the competition entries.
The photos for the calendar must be based on existing photo design ideas available from the Marketing department. The selected photos will be chosen from these. Monthly calendar displays will be created to show the required layout of each page.
Product Breakdown Structure (contains errors)
Extract from Stage Plan for stage 3.
(All entries are true statements but may not be shown under the correct heading or in the correct document).
Using the Project Scenario and the Extract from Stage Plan for stage 3 provided as additional intonation for this question in the Scenario Booklet, answer the following 5 questions.
The Stage Plan for stage 3 has been produced.
The Engineering Manager insists that there are to be no interruptions to operations whilst photographs are being taken of the engineering staff performing their everyday duties and operating machinery. Two weeks ago the professional photographer produced the photo session schedule based on the operational staff schedule. The operational staff schedule is produced weekly and maintained by the Engineering Manager.
None of the £500 change budget has been used to date and this is available for the stage.
Which 2 statements apply to the External dependencies section?
- A. Delete entry 7 because it should be shown in the Product Description for the label design.
- B. Move entry 5 to Plan prerequisites because the new company logo will influence the label designs.
- C. Move entry 5 to Plan description because the new company logo will be delivered during stage 3.
- D. Delete entry 6 because the customer details were used in stage 2 to create the customer list.
- E. Delete entry 5 because the new company logo is being delivered by a separate project and will be detailed in the plans for that project.
Answer: A,D
NEW QUESTION # 110
Which of the following is False?
A Successful project management team should.
- A. Never be reviewed as members should stay with the team for the duration
- B. Ensure appropriate governance by defining responsibilities for directing, managing and delivering the project and clearly defining accountability at all levels
- C. Have business, user and supplier stakeholder representation
- D. Have an effective strategy to manage communication flows to and from stakeholders
Answer: A
NEW QUESTION # 111
The executive has set the following tolerances for stage 2:
Time (+/- 1 week)
Cost (+/- £20,000)
Scope (using MoSCoW prioritization technique)
Risk (based on the risk appetite defined in the risk management approach) These tolerances have been recorded in the stage plan. The project manager will report progress regularly via highlight reports to the project board and use exception reports to raise exceptions. In addition, the project assurance role will monitor the stage to provide confidence to the project board that exceptions are being reported.
How well does this apply the 'manage by exception' principle, and why?
- A. It applies the principle poorly, because it is the regular reporting of progress that should give the project board the required confidence.
- B. It applies the principle poorly, because tolerances should be set for each stage against each of the six aspects of project performance.
- C. It applies the principle well, because the project manager needs to control the project using discrete management stages.
- D. It applies the principle well, because tolerances should be set for the related aspects of project performance for each stage.
Answer: B
NEW QUESTION # 112
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 changes to ABC Company risk appetite as a result of using the magazine advertisements.
- D. Recording the effect of implementing the magazine advertisements on the overall time and cost of the project.
Answer: A
NEW QUESTION # 113
Additional Information
Chief Executive Officer (CEO): He started the company 25 years ago and knows his job very well. He injured his leg two years ago which has restricted his visits to the engineering area. As CEO he has an overall perspective of the business strategic requirements and the authority to commit resources as required.
Marketing Director: She has been with the company for three years, following a successful career with a publicity company. She has the ability to represent the needs of the business, particularly as this is a marketing project. She has the authority to commit the annual business marketing budget, from which the project will be funded, as she sees appropriate. She will be responsible for monitoring the expected benefits of the calendar, in particular the improvement of the company's image.
Engineering Manager: He has been responsible for many engineering innovations in the company and is still as keen and energetic as the day he started. VVhilst he will not be part of the project team, his staff will feature in the photos for the promotional calendar.
Central Records: This group of five staff looks after all company records and document control. They now maintain all project files.
Bright Lights: This is the local office supplies company. It supplies all the stationery and office equipment needs of the company and will supply the stationery for this project.
Portraits ltd: This is a professional photographic company with a number of excellent photographers and a history of successful work. This company has been selected to take the photos for the company calendar. It has yet be decided which of the photographers to use.
Which 2 statements explain why the Marketing Director should be appointed as the Executive for this project?
- A. She is able to represent the business needs of MNO Manufacturing.
- B. She has authority to commit the marketing budget, from which the project will be funded.
- C. She previously had a successful career in publicity.
- D. She has been with the company for three years.
- E. She requires more experience working with the engineering industry.
Answer: A,B
NEW QUESTION # 114
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 team plans are mandatory on a project of this size and complexity.
- B. Yes, because a supplier may want to keep the details of the specialist work confidential.
- 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.
Answer: C
NEW QUESTION # 115
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 cost of all fallback plans must be contained within the project's tolerance.
- D. The Project Manager's threshold level of risk exposure is low impact and probability.
- E. The risk budget will have a tolerance of +/~ 10%.
Answer: B,C
Explanation:
Explanation/Reference:
Risk Theme
Question Set 2
NEW QUESTION # 116
In the PRINCE2 Quality review technique, who would most likely carry out the role of administrator:
- A. Team Manager
- B. Project Assurance
- C. Project support
- D. Project manager
Answer: C
NEW QUESTION # 117
Which of the following roles cannot be combined?
- A. Senior Suppler and Supplier Assurance
- B. Project Manager and Project Support
- C. Project Assurance and Team Manager
- D. Executive and Senior User
Answer: C
Explanation:
Explanation/Reference:
Quality Theme
Testlet 1
Extract from the Project Product Description (with errors)
NEW QUESTION # 118
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