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PRINCE2 Prince2-Practitioner PRINCE2 7 Practitioner (7th Edition) Exam Exam Practice Test

PRINCE2 7 Practitioner (7th Edition) Exam Questions and Answers

Question 1

Scenario

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

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

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

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

Which 2 statements should be recorded under the Proximity heading?

Options:

A.

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

B.

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

C.

Imminent risks are those which may occur within two weeks.

D.

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

E.

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

Question 2

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

Options:

A.

Identify, Assess, Resource, Implement

B.

Identify, Evaluate, Resource, Implement

C.

Identify, Assess, Plan, Implement

D.

Identify, Evaluate, Plan, Implement

Question 3

Additional Information

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

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

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

Options:

Question 4

Who is responsible for reviewing the risk management practices to ensure they are in line with the project's risk management strategy?

Options:

A.

Project Support

B.

Project Manager

C.

Team Manager

D.

Project Assurance

Question 5

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

Options:

A.

Best placed to keep an eye on the risk

B.

Carry out the response actions to a risk

C.

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

D.

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

Question 6

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.

Options:

Question 7

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.

Column 1 contains a number of risk responses identified by the Project Manager following an assessment of this risk. Column 2 contains a list of threat response types. For each risk response in Column 1, select from Column 2 the type of response it represents. Each option from Column 2 can be used once, more than once or not at all.

Column 1 contains a number of possible risk responses to the above risk. For each risk response, select from Column 2 the appropriate risk threat response type that it represents. Each selection from Column 2 can be used once, more than once or not at all.

Options:

Question 8

Project Scenario – Health and Safety Training Project:

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

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

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

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

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

End of the Project scenario.

Additional Information:

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

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

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

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

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

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

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

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

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

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

End of the additional information.

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

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

Is this proposed appointment appropriate, and why?

Options:

A.

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

B.

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

C.

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

D.

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

Question 9

Project Scenario – Health and Safety Training Project:

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

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

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

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

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

End of the Project scenario.

Additional Information:

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

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

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

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

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

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

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

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

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

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

End of the additional information.

QUALITY

Teams have been set up to develop different parts of the ‘classroom-based training materials’.

Here are three activities related to managing quality.

Which role (A-F) should carry them out?

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

Options:

Question 10

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 Health and Safety Training Project is closing as planned. According to the contract terms, suppliers must submit all invoices within one week of project closure. The project manager will issue a project closure notification informing all suppliers of this invoicing deadline as part of the ‘recommended project closure’ activity.

Is this appropriate, and why?

Options:

A.

Yes, because the project board should approve the project closure notification drafted by the project manager.

B.

Yes, because a project closure notification should be sent to suppliers as part of the ‘closing project’ process.

C.

No, because the project board should issue a project closure notification as part of the ‘directing a project’ process.

D.

No, because the project manager should notify stakeholders using the approved project closure notification.

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.

ABC Company has a number of projects in progress. The executive of the Health and Safety Training Project is also a member of the project board for two other projects and is very busy. As a result, during this initiation stage, the executive has appointed another person to carry out both their business assurance and the role of change authority for minor and medium severity issues.

Is this appropriate, and why?

Options:

A.

Yes, because people with delegated project assurance roles may act as the change authority.

B.

Yes, because projects that are likely to have many changes should delegate the change authority.

C.

No, because the decision to have a change authority should be made before the project is authorized.

D.

No, because the project manager identifies the level of tailoring that is relevant for the project.

Question 12

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, the operational staff that handle course bookings asked for the project scope to be increased for an online booking function. The additional product has been as it will enable them to process bookings more quickly and accurately.

Is this an appropriate application of the ‘focus on products’ principle, and why?

Options:

A.

Yes, because the goal is to seek opportunities to implement improvements after the life of the project.

B.

Yes, because the project needs to fulfill stakeholder expectations by delivering the products required.

C.

No, because there needs to be an understanding of the products from the start of the project.

D.

No, because existing product descriptions provide a means to estimate effort to planning.

Question 13

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 ‘classroom-based training materials’ will be used as the basis for developing the ‘e-learning course’. As a result, the executive wants to ensure that the ‘classroom-based training materials’ are of the required standard. The executive has asked to meet the project manager every day during stage 2 to discuss progress and identify any concerns regarding quality.

Is this an appropriate approach to applying the organization theme, and why?

Options:

A.

Yes, because the executive should be available to provide ad hoc direction to the project manager.

B.

Yes, because the executive should be the key decision-maker on the project, supported by other project board members.

C.

No, because the senior user should be responsible for specifying the quality criteria for the training materials.

D.

No, because the project manager should be given authority to manage the project on a day-to-day basis.

Question 14

Project Scenario – Health and Safety Training Project:

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

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

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

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

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

End of the Project scenario.

Additional Information:

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

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

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

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

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

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

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

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

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

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

End of the additional information.

ABC Company has a standard course development model with four defined stages that the company manages using PRINCE2. The project manager for the Health and Safety Training Project has recommended the stage 2 of the standard model be split into two separate stages. As a result, there will now be five management stages in the project.

Is this an appropriate application of the ‘tailor to suit the project’ principle, and why?

Options:

A.

Yes, because the project manager can adapt or combine PRINCE2 process to suit the project.

B.

Yes, because the standard course development structure should be tailored to suit the project.

C.

No, because a simple project should have no more than two management stages.

D.

No, because the standard course development structure should be applied to the project.

Question 15

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.

At the end of initiation there is +1 week 1-2 weeks time tolerance for this project. Which statement is true?

Options:

A.

There can be no time tolerances for any of the stages.

B.

All of the project level time tolerance can be allocated to stage 2.

C.

The Stage Plan for stage 2 could create some additional project time tolerance by allowing no time tolerance in Team Plans.

D.

Additional time tolerance for the project could be found by adding extra resources without affecting other tolerances.

Question 16

During which process would the stage tolerances be set?

Options:

A.

Controlling a Stage

B.

Initiating a Project

C.

Managing a Stage Boundary

D.

Directing a Project

Question 17

Project Scenario

Project Scenario

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

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

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

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

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

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

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

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

Stage 2 will include tie activities to:

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

    Confirm compliance with the Data Protection Legislation

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

    Select and appoint a professional photographer

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

    Prepare a production cost forecast

    Select paper and envelope.

Stage 3 will include the activities to:

    Produce and select tie professionally-taken photographs

    Hold the label design competition and choose the label design

    Assemble the prepared calendar pack.

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

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

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

Options:

Question 18

Project Scenario

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

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

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

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

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

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

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

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

Stage 2 will include tie activities to:

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

    Confirm compliance with the Data Protection Legislation

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

    Select and appoint a professional photographer

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

    Prepare a production cost forecast

    Select paper and envelope.

Stage 3 will include the activities to:

    Produce and select tie professionally-taken photographs

    Hold the label design competition and choose the label design

    Assemble the prepared calendar pack.

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

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

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

Options:

A.

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

B.

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

C.

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

D.

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

Question 19

Scenario:

Techniques, processes and procedures

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

Joint agreements

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

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

Tolerances

4. None.

Constraints

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

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

7. +£10,000 / -£25,000.

Reporting arrangements

8. Highlight Report every Monday by 10.00 am.

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

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

Problem handling and escalation

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

Extracts or references

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

Approval method

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

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

Options:

Question 20

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?

Options:

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.

Question 21

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 Techniques, processes and procedures or Constraints sections?

Options:

A.

Delete entry 1 because this section should contain the techniques, processes and procedures required for specialist product development.

B.

Add 'There must be minimum disruption to current services' to Constraints.

C.

Move entry 5 to Techniques, processes and procedures because this is a technique which staff should be aware of.

D.

Delete entry 6 because this applies to Office Moves Limited and is therefore outside the Work Package.

E.

Delete entry 7 because this should be contained in the Quality skills required section of the Product Description.

Question 22

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

Options:

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.

Question 23

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

Options:

A.

Review Stage status

B.

Giving ad hoc direction

C.

Escalating a project issue

D.

Report stage end

Question 24

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

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

Options:

Question 25

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

1. Business Case

2. Benefits Review Plan

3. Configuration Item Records

4. Project Brief

Options:

A.

1, 2, 3

B.

1, 3, 4

C.

1, 2, 4

D.

2, 3, 4

Question 26

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

Options:

A.

Update the project plan with actual

B.

Update the Project Management Team

C.

Request a product status account

D.

Confirm project has delivered what is defined in Project Product Description

Question 27

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

Options:

A.

Scope, People & Resources, Benefit

B.

Scope, Risk, Product

C.

Risk, Benefit, Product

D.

Scope, Risk, Benefit

Question 28

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

Options:

A.

Exception Plan

B.

Project Management team

C.

Business Case

D.

Project Initiation Documentation

Question 29

Which of the following principles uses Product Descriptions to provide clarity by defining each product's purpose, composition, derivation, format, quality criteria and quality method?

Options:

A.

Tailor to suit the project environment

B.

Focus on products

C.

Manage by stages

D.

Continued business justification

Question 30

Which of the following statements is NOT correct?

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

Options:

A.

When Starting a Project

B.

When Initiating a Project

C.

As the project progresses

D.

As the project closes

Question 31

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

Options:

A.

Project Brief

B.

Business Case

C.

Project Initiation Documentation

D.

Project Product Description

Question 32

The Team Manager has received notification that the new hardware and software solution has been installed and completed, but there is a concern that it has not been approved by the appropriate people.

Which 2 actions should the Team Manager take to check that the completed products have been approved as required?

Options:

A.

Check the Work Package to ascertain who should approve the completed Work Package.

B.

Check the Product Descriptions to ascertain who should have approved the products.

C.

Check the Configuration Management Strategy for product handover procedures.

D.

Check the approval records as required in the Work Package.

E.

Check the Product Descriptions for the quality method required.

Question 33

When does Directing a Project begin?

Options:

A.

From the beginning of Starting up a Project

B.

From the beginning of Initiating a Project

C.

From the completion of Starting up a Project

D.

From the completion of Initiating a Project

Question 34

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 the photos could be used for other promotional material for the company?

Options:

A.

Benefits Review Plan

B.

Lessons Log

C.

Exception Report

D.

End Project Report

Question 35

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

Options:

A.

Highlight report

B.

Checkpoint Report

C.

Issue Report

D.

End Stage Report

Question 36

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?

Options:

A.

Due to market conditions a suitable service provider may not be found, possibly leading to premature closure of the project.

B.

Owing to employment contract changes staff may resist outsourcing, which would make it difficult to transfer staff to the selected service provider.

C.

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.

D.

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.

E.

The management stages recommended by the consultants may not be appropriate, resulting in confusion in planning.

Question 37

Which of the following statements describes an outcome?

Options:

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

Question 38

Who is responsible for ensuring that the value-for-money solution is constantly reassessed?

Options:

A.

Business Assurance

B.

Senior User

C.

Corporate or Programme Management

D.

Reject Support

Question 39

Scenario

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

● Do nothing.

● Re-engineer selected business functions.

● Outsource selected business functions.

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

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

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

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

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

● Use PRINCE2.

● Set up the project with 4 management stages:

Stage 1. Standard PRINCE2 initiation activities.

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

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

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

trial period.

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

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

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

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

Options:

A.

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

B.

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

C.

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

D.

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

E.

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

Question 40

When considering the business options in the business case, which of these is NOT an option?

Options:

A.

Do nothing

B.

Do the maximum

C.

Do the minimum

D.

Do something

Question 41

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

Options:

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

Question 42

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 Reasons heading?

Options:

A.

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

B.

Providing re-engineered services in-house will remove the need to transfer staff to a service provider.

C.

The Ministry of Food Hygiene (MFH) needs to deal with the increasing pressure to cut costs and better manage supplier's performance.

D.

Relocating staff to the selected service provider's premises will mean that no property transfer is required.

E.

The inadequate controls, outdated standards and outdated technology must be addressed.

Question 43

RISK

The following risk has been recorded:

“There may not be enough participants for the pilot courses to justify the continuation of the project.”

The recommended risk response is to improve the marketing campaign, and a risk budget exists to fund the response.

Here are three risk actions related to this response?

Which role (A-F) should be responsible for each action?

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

Options:

Question 44

PROGRESS

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

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

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

Options:

Question 45

DIRECTING A PROJECT

Here are three activities that occur during the ‘directing a project’ process.

Which theme (A-E) do they relate to?

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

Options:

Question 46

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

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

Options:

A.

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

B.

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

C.

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

D.

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

Question 47

The project is part of a program to develop more training courses that respond to new legislation. The project manager has requested that project support be made available from the program. As a result, the executive has confirmed that this will be carried out by the program office.

Is this appropriate, and why?

Options:

A.

Yes, because the program office should provide support to projects, if requested.

B.

Yes, because the project support role is not optional and must be provided.

C.

No, because the project manager should take on project support responsibilities.

D.

No, because program and project team structures need to be separate.

Question 48

The senior user is concerned that the trainers' limited availability could delay their accreditation. This was discussed during the 'starting up a project' process, but during the 'initiating a project' process the project manager notices that it has not been recorded.

Which action should the project manager take FIRST?

Options:

A.

Add appropriate activities to the project plan to manage the concern and avoid any adverse impact.

B.

Raise an exception report to manage the impact that any such delay would have on the project plan.

C.

Raise an issue report so that the trainers' time can be allocated to the accreditation activities.

D.

Add the information to the risk register so that it can be evaluated and an action decided.

Question 49

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?

Options:

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.

Question 50

In which strategy would the change control process be recorded?

Options:

A.

Quality Management Strategy

B.

Configuration Management Strategy

C.

Risk Management Strategy

D.

Communication Management Strategy

Question 51

Scenario:

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

What products will be impacted by this change?

Options:

A.

All of the project's products created so far.

B.

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

C.

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

D.

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

Question 52

Scenario:

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

What additional risk will this place on the project?

Options:

A.

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

B.

These changes will delay stage 3 by three weeks.

C.

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

D.

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

Question 53

Who would be responsible for maintaining the Configuration Item Records?

Options:

A.

Project Manager

B.

Project Support

C.

Project Assurance

D.

Team Manager

Question 54

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

Options:

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

Question 55

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

Options:

A.

A Change Authority

B.

A Change Board

C.

A Change Committee

D.

A Change Budget

Question 56

Scenario:

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

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

Options:

A.

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

B.

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

C.

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

D.

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

Question 57

Which of the following roles cannot be combined?

Options:

A.

Executive and Senior User

B.

Project Manager and Project Support

C.

Project Assurance and Team Manager

D.

Senior Suppler and Supplier Assurance

Question 58

Scenario

Additional Information

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

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

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

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

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

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

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

Options:

A.

He is responsible for the organization's procurement activates.

B.

He is responsible for the performance of supplier contracts.

C.

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

D.

He can influence the external supplier's Business Case.

E.

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

Question 59

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

Options:

A.

Risk Management Strategy

B.

Quality Management Strategy

C.

Communication Strategy

D.

Configuration Management Strategy

Question 60

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 been decided which of the photographers to use.

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

Options:

A.

He started the company 25 years ago.

B.

He knows his job very well.

C.

He restricts his visits to the engineering area.

D.

He has the authority to commit resources as required.

E.

He has an overall perspective of the business's strategic requirements.

Question 61

Which of the following statements is true of the business interest on the project?

Options:

A.

Ensures the project provides value for money

B.

Ensures the requirements for the project are defined

C.

Ensures the products produced meet the desired quality

D.

Represents the users of the product

Question 62

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?

Options:

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.

Question 63

Scenario

Additional Information

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

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

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

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

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

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

Options:

A.

Remove because he will be impacted by the project and therefore represents a user.

B.

Replace with 'Project Manager' because this is a simple project that does not require additional business assurance.

C.

Add Outcome Consultants' because they carried out the feasibility study.

D.

Add 'Director of Finance Division' because she is responsible for checking that any supplier and contractor payments are authorized.

E.

Retain because he is familiar with the Ministry of Food Hygiene business strategy, the business level risk assessment and the Business Case standards.

Question 64

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 running cost of the outsourced service?

Options:

A.

Must be kept to a minimum.

B.

Must be kept to a level acceptable to the Ministry of Food Hygiene.

C.

Subject to market conditions.

D.

The annual increase to be less than half the rate of inflation.

Question 65

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.

None of the reviewers have proof-reading skills.

Options:

A.

Record an action to request that Project Assurance identify a proof-reader who can, within the next 2 days, complete the check for typographical errors.

B.

Ask the reviewers present at the meeting to conduct a proof-reading exercise and pass any comments to the author within 2 days.

C.

Contact Project Assurance to find appropriate resources to come into the review.

D.

No action required.

Question 66

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

Options:

A.

Executive

B.

Corporate or Programme Management

C.

Senior User

D.

Project Assurance

Question 67

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

Options:

A.

Purpose of the product

B.

Composition

C.

Project level tolerances

D.

Quality criteria

Question 68

Scenario

Extract from the Project Product Description (with errors)

Which 2 statements apply to the Derivation section?

Options:

A.

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

B.

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

C.

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

D.

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

E.

Add 'Professional photographer'.

Question 69

Scenario

Extract from the Project Product Description (with errors)

Which 2 statements apply to the Development skills required section?

Options:

A.

Move entry 13 to Composition because the appointment of the photographer is within the scope of this project.

B.

Move entry 13 to Derivation because this is a source of information for this project.

C.

Delete entry 14 because this skill is NOT required within this project.

D.

Delete entry 15 because this skill is NOT required within this project.

E.

Add 'Knowledge of Data Protection Act.

Question 70

Which of the following statements are True:

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

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

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

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

Options:

A.

1, 2 & 3

B.

1, 3 & 4

C.

1, 2 & 4

D.

2, 3 & 4

Question 71

The project has a cost tolerance of +5% I ·5%, of which stage 2 has a tolerance of +£45k 1-£45k.

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

Options:

Question 72

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

Options:

A.

Pre-requites

B.

Assumptions

C.

Quality responsibilities

D.

Product descriptions

Question 73

Who sets the tolerances for a work package?

Options:

A.

The project board

B.

The project manager

C.

The team manager

D.

Corporate or programme management

Question 74

PRINCE2 proposes 3 levels of Plan, which are they?

Options:

A.

Initiation, Project and Stage Plans

B.

Project, Stage and Exception Plans

C.

Initiation, Project and Benefit Review Plans

D.

Project, Stage and Team Plans

Question 75

Scenario

Product Summary

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

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

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

Product Breakdown Structure (contains errors)

Extract from Stage Plan for stage 3.

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

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

The Stage Plan for stage 3 has been produced.

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

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

Which 2 statements apply to the Monitoring and control section?

Options:

A.

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

B.

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

C.

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

D.

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

E.

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

Question 76

Product Summary

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

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

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

Product Breakdown Structure (contains errors)

Extract from Stage Plan for stage 3.

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

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

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

Options:

Question 77

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

1. Prepare Estimates

2. Define and analyze Products

3. Prepare the schedule

4. Identify activities and dependencies

Options:

A.

2, 4, 3, 1

B.

4, 2, 1, 3

C.

4, 3, 2, 1

D.

2, 4, 1, 3